Here are a few things to keep in mind when running your LLC.
- Keep things separate
As previously mentioned, it's important to keep the business and affairs of the LLC separate from a member's or manager's personal affairs. This means setting up a separate bank account, maintaining separate records, and keeping separate accounts.
Regular or annual meetings of the members or managers are not required. The operating agreement included with the AllLaw.com LLC formation package does not require regular meetings, but states that meetings may be held as the members or managers deem them necessary to run the company. Even though it's not required by law, it may be a good idea to keep records of the actions taken or approved at the meetings.
- Transfer of ownership interests
Transfer of membership interests generally requires the consent of other members. However, AllLaw.com allows you to change the default rule if you desire. This is an important issue to consider for any LLC with more than one member. On one hand, you may wish to sell or transfer your membership units to anyone you wish. On the other, if you consider the other members of the LLC your business partners, you may want approval over whether they can transfer their interest and who they can transfer it to.
- Tax forms and licenses
Many LLCs are required to obtain a federal tax identification number, which is similar to an individual's social security number. However, there are some situations where an LLC can simply use the social security number of the owner. Single-member LLCs that do not have employees generally do not need a separate federal tax ID. City and county business licenses may also be required. Please check with an accountant about the need for a tax ID number and your city and county to see which types of licenses are needed.