Many people think they have property formed their new LLC when they have filed the Certificate of Formation with the State. If you only file the Certificate of Formation you are at risk of a creditor arguing this is a “sham/ shell” company that is not properly formed and may end up hurting the liability protection desired.
Here is the full picture:
- Certificate of Formation filed with the State.
- Organizational Meeting minutes prepared/signed.
- Company Agreement prepared/signed (Pay attention to the Exit provisions between partners)
- Obtain a Company Manual and complete Membership Certificates
- Open a new LLC Bank Account
- Deposit the capital contribution or transfer the land/equipment into the LLC.
Excited to see you thrive.
~ Your Friends at The Allen Firm.