Paper trail is a road many of us do not think about paving. In a society that is fixated on instant gratification, focusing on the mundane is the last thing most of us want to do but it is very important for our success. If you are a startup or established company looking to apply for some additional capital to get your next project off the ground or protect yourself legally, here are the entity documents you will need for your LLC or corporation:
LLC:
1. Operating agreement
Your operating agreement outlines the LLC’s members, ownership percentages and any other important information that was agreed upon during the company’s inception. Some states will not require an operating agreement and if an institution asks for it a simple letter of explanation confirming the members and their ownership percentage will suffice.
2. EIN Letter
The EIN letter is provided by the state your entity is registered with and confirms the EIN number the state has assigned to your entity. it is the social security number for your business and is mandatory in every state.
3. Articles of Organization
The Articles of organization, like the operating agreement, will usually outline the members of the company, the business address, active status and any registered agents assigned. It is required in every state and is a must when forming your business. 4. Active SearchIn order for a company to conduct business in its registered state, it must be active. This means the company is in good standing and all registration dues have been paid. You can check your business’s active status by searching for your entity on your state’s secretary of state website.
5. Corporate Resolution
A corporate resolution is only needed if your signing on behalf of the other members of your LLC. This is usually needed when applying for a loan or signing any third-party agreement.
Corporation:
1. Bylaws
Your bylaws outline the corporation members, share distributions, ownership percentages and any other important information that was agreed upon during the company’s inception. Bylaws are required by every state.
2. EIN Letter
The EIN letter is provided by the state your entity is registered with and confirms the EIN number the state has assigned to your entity. it is the social security number for your business and is mandatory in every state.
3. Articles of Incorporation
The Articles of incorporation, like the bylaws, will usually outline the members of the company, the business address, active status and any registered agents assigned. It is required in every state and is a must when forming your business.
4. Active Search
In order for a company to conduct business in its registered state, it must be active. This means the company is in good standing and all registration dues have been paid. You can check your business’s active status by searching for your entity on your state’s secretary of state website.
5. Corporate Resolution
A corporate resolution is only needed if your signing on behalf of the other members of your LLC. This is usually needed when applying for a loan or signing any third-party agreement.
