Ohio Limited Liability Company Act

By Holly Cameron

In Ohio, limited liability companies (LLCs) are regulated by Chapter 1705 of the Ohio state code. A LLC can be incorporated for any lawful purpose. To start up a LLC, individuals must submit Articles of Organization to the Secretary of State and pay a fee of $125. Payment of a higher fee will expedite the formation of the company.

In Ohio, limited liability companies (LLCs) are regulated by Chapter 1705 of the Ohio state code. A LLC can be incorporated for any lawful purpose. To start up a LLC, individuals must submit Articles of Organization to the Secretary of State and pay a fee of $125. Payment of a higher fee will expedite the formation of the company.

Name

In Ohio, all LLCs must contain the final words, “limited liability company,” or an abbreviation of this term, including “LLC.” Individuals starting up a company must check that their chosen name is not the same as, or similar to, any other Ohio Limited Liability Company or limited partnership. It is possible to apply to the Secretary of State for permission to use a similar name, provided that the other entity consents.

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Articles of Organization

Provisions regulating the Articles of Organization are set out in Chapter 1705.04. Articles must be filed with the Secretary of State and must be signed by at least two organizers. If the Articles of Organization do not stipulate the period of the duration of the LLC, it shall be perpetual. It is usual for the Articles to contain provisions regarding the internal operation of the company.

Statutory Agent

Every LLC must maintain a statutory agent in the state for the purposes of service of process. The agent may be an individual or a corporation. The Articles of Organization must stipulate the details of the statutory agent. If the agent dies, resigns or moves out of the state of Ohio, the LLC must forthwith appoint a replacement. Details of the replacement agent must be filed with the Secretary of State.

Membership

The owners of a LLC are known as “members,” and the company can operate with a minimum of one member. Details of the original members will be set out in the Articles of Organization. New members can be admitted subsequent to incorporation by acquiring an interest directly from the company, with the consent of all existing members. Alternatively, an existing member may assign his economic right to receive distributions to a new member, and the unanimous consent of the existing members is usually required.

Continuing Reporting Requirements

Each LLC must keep up to date records at its registered office. These include names and addresses of all members, a copy of the Articles of Organization and copies of recent tax returns and financial statements.

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Nevada LLC Regulations

References

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How to Start an LLC in Ohio

An Ohio limited liability company, or LLC, is a form of business organization designed to shield members for personal liability, simplify record-keeping procedures and provide tax advantages that many traditional corporations do not qualify for. An LLC is considered a legal entity that is separate from any of its members. Although the procedure for forming an Ohio LLC is similar to procedures in other states, Ohio LLC procedures do contain some distinctive features.

LLC Statutes in Illinois

In 1997, the Illinois Limited Liability Company Act was enacted and established the governing LLC statutes in Illinois, cited as 85 Illinois Compiled Statutes (ILCS) 180. The act authorized the formation of LLCs as new business structures that are designed to give business owners the advantages of a corporation -- limited liability -- and a partnership -- flexibility in management and pass-through taxation. In August 2005, the act was amended to authorize a new type of LLC called a "series LLC" and amended again in 2010 to provide for a new type of LLC called a "low-profit LLC.”

Nevada LLC Requirements

Chapter 86 of the Nevada Revised Statutes sets out the requirements for forming a limited liability company, or LLC, in the state. An LLC is a business entity that merges the tax benefits of a partnership with the limited liability of a traditional corporation. In Nevada, an LLC may be organized for any lawful purpose by one or more persons.

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