How to form an LLC in 4-easy steps. In Minnesota, the process of forming an LLC is similar to most other states. When deciding how to form an LLC, you will want to start by preparing the following documents:
1 – Articles of Organization
The Articles of Organization are the foundation of your LLC. The Articles are basic in nature but their effect is to communicate to the world that your LLC is a legally-recognized business entity. Once filed, the Secretary of State issues a Certificate of Organization.
2 – Bylaws / Operating Agreement
Like a rulebook for the NBA or NFL, the Bylaws of an LLC serve as the rulebook for your LLC. They give meaning by defining broadly who an owner is (and is not), who an officer/manager is (and is not) and how your business will be run.
3 – Organizational Minutes
The Organizational Minutes are the formal adoption of the Articles and the Bylaws and also attach specific names to various roles in the LLC. As things change in your LLC, updated versions of Minutes can then be prepared to reflect such changes.
4 – Membership Units
Membership Units are akin to stock certificates. They reflect in writing ownership by an individual.
If you are forming an LLC with one or more business partners, you are strongly advised to also prepare a Member-Control Agreement (i.e. Buy-Sell) and/or Partnership Agreement that lays out the relative rights and responsibilities of each of the owners to each other and the LLC itself.
If you are going to operate under an Assumed Name, you will want to file appropriate documentation and connect that Assumed Name (D/B/A) to the LLC.
If you’ve experienced forming an LLC, are there any other considerations that you would recommend a new business owner take into account?
