Frequently Asked Questions
Looking for answers to your questions about VPM's TruStart courses? You've come to the right place!
Q: How much does it cost to form an LLC?
The cost of forming an LLC will vary depending on several factors, including the state where you're forming the company, whether or not you use a legal or business formation service service, and other requirements specific to your industry.
In general, the cost to form an LLC will range from around $40 to $500.
Q: Do I need a business address for my LLC?
Yes, you will need a business address for your LLC.
Every LLC is required to have a business address, also known as a "principal place of business." This address is used for official mail, legal notices, and other important documents related to your business.
P.O. boxes are not an acceptable business address for an LLC. You are permitted to use your home address, though it is not recommended due to privacy reasons.
Q: What is a registered agent?
A registered agent is a person or entity appointed to receive official documents, such as lawsuits, subpoenas, and other government correspondence, on behalf of your business.
The person or entity you appoint to act as your registered agent must have a physical address within the state where your LLC is registered and be available during regular business hours to receive documents.
While you may have the option to act as your own registered agent, it's important to note that your business address and registered agent contact information will be publicly listed and available on the Internet. To maintain your privacy, a more convenient option may be to hire a third-party service, such as VPM, to act as your registered agent.
Q: What are Articles of Organization?
Articles of Organization refer to a legal document that is filed with the state to confirm your LLC’s existence as a legal business entity.
The purpose of your Articles of Organization is to establish the basic structure of your LLC, including its name, address, purpose, the names and addresses of the LLC's members or managers, and the name and address of your registered agent.
Q: What is an Operating Agreement?
An Operating Agreement is a legal document that outlines the rights and responsibilities of the LLC's members and managers, the company's financial and accounting procedures, and the process for making decisions and resolving disputes.
Though an Operating Agreement is only required in a handful of states (California, Delaware, Maine, Missouri, and New York), it is recommended that your LLC have one.
Q: What is an Employee Identification Number (EIN)?
An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for tax purposes. An EIN is required for most businesses, including LLCs.
Acquiring an EIN is free on the IRS website and can be done in multiple ways. While the quickest and most convenient approach is to apply for yours online, other options include applying through mail, phone, or fax.
Q: Will I need to open a business bank account?
Opening a business bank account is not a requirement. However, it is highly recommended that you open a separate bank account for your LLC so you don't mix personal and business funds.
Having a separate business bank account for your LLC helps keep your personal and business finances separate, which is important for both legal and bookkeeping purposes.