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Submitted By torikrienke
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Worksheet on Limited Liability Companies,
Limited Partnerships and Limited Liability Partnerships

Nolo Press is a publisher of numerous self-help law books. It has a web site and publications with information on various business topics. You can find basic information on a wide variety of legal topics at its online Legal Encyclopedia.

Go to the www.nolo.com website. Scroll down the page, read through the sections and explore some of the links. Then answer questions 1-3.

1. Is it difficult to form an LLC? What legal requirements must be met to form one?
Forming an LLC seems fairly easy. You must choose a name not already used in Minnesota for your business and have LLC within the name. Example being, “My Business, LLC.” You must file Articles of Organization with the Secretary of State. You must appoint an agent that would receive papers on the company’s behalf, if for an example you were sued. You must make sure you are complying with all tax codes and regulations. Each year, the LLC must file an annual file renewal with the secretary of state. If you plan to do any business outside the state you must also register that with the Secretary of State.

What department within a state’s government should you contact for information on forming an LLC within your state?

You would contact the Secretary of State for more information.

2. Why should LLC owners prepare an operating agreement for their company even though such an agreement is not legally required in most states?

The operating agreement gives the individual members of the LLC protection from liabilities. It also clarifies all verbal agreements and now makes them easier enforceable because it is in a written document. If there is no operating agreement then any disputes fall into state default regulations, which may not be in anyone’s favor.

3. How are LLCs taxed? How does

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