Starting your own business can be a really good way to go about your life in the future. Not only do you get to enjoy the fun of doing something you like, but if you are lucky enough to be a part of the exclusive group of entrepreneurs that succeed at what they do, you might even be able to get a good revenue stream out of it. Now, as much as we talk about starting a business and standing up for it, there are certain risks involved in the process.
The risks that we talk about may come and haunt you in many ways, including the threat of going bankrupt and being considered liable for the debts of the business. While many entrepreneurs start a business knowing the risks involved, others practice more caution in the process. They do plan to back their venture with all their might, but they don’t want to put all their assets and money at stake. One form of business that has emerged due to this growing concern among people is that of a Limited Liability Company.
A Limited Liability Company usually operates separately from its owners and is considered as a separate legal entity. The company has a separate existence and in case of bankruptcy, the owner won’t be considered as liable for the company’s debts. Limited Liability Companies are generally easier to establish and are more flexible than a normal corporation.
Starting an LLC
The reason why many small business owners opt for an LLC is that of the limited liability it provides. Now that we have talked about the growing popularity of LLC’s, we will get to how to start your own LLC in Lake Nona, FL.
To form an LLC in Nona, FL, you need to file the requisite paperwork within the state. Florida has its own rules when it comes to starting an LLC, and you need to comply with these rules and regulations to have a proper opening for your LLC. Here are the several steps that you will need to take to launch your LLC in Nona, FL.
Think of a Business Model
Starting an LLC is no different than starting your own business when it comes to the business model. Just like you would want the model for your start-up to be well thought, you would want the same for your LLC. Creating a business model and starting your own business isn’t a walk in the park, and you need to be wary of all the implications that need to be taken care of beforehand.
Here we have some tips that you can follow to make your business model better:
Does your Product/Service Target a Latent Need?
The product or service that you are planning to launch through your business endeavor should target a latent need present within consumers of the contemporary era. In this era of feasibility, there are some latent needs that are left unfulfilled. If your product or service is able to target a latent need then you are good to start with your business and marketing.
While it is necessary for your business to target a latent need, it is extremely important for you to also know the latent need that you’re going to target. The worst case scenario can be for your idea to be targeting a latent need, while you have no idea of it.
Saturation in Industry
Next thing you need to know before you start your business is the saturation rate in the industry that you are reaching out into. If the industry you are targeting is extremely saturated then you may not be able to pitch your product in a manner that you will like. Pitching your product in an industry that is full of options for consumers may be a very tough job.
Some industries have a lot of saturation, but new start-ups still find success, because of the high number of consumers. This could be applicable for the food and clothing industry, both of which are already full of brands and options for consumers, but new brands that come with their own unique idea are still able to get a decent reputation. This, however, is not a luxury that every industry possesses. Some industries have a set point, after which new businesses offering the same product or service may find it hard to compete.
Marketing is undoubtedly going to be one of the major points that describe your success as a brand going into the future. The way you market yourself and your offerings is going to create a point of differentiation for you.
There are many pricing and promotion strategies for you to choose. Regardless of whether you go for penetration pricing or convenient pricing, the way you stick by your strategies would make a difference for you. Promotions are extremely necessary, and you need to have a plan at all times. You should know just how to reach out to the masses, and should have a plan at the ready.
Choosing a Name for your LLC
With all ideas regarding your business finalized, we move on to the technical part, that of selecting a name for your LLC. The name you choose should be unique, as no two entities can keep the same name for their LLCs in the state. This means that you cannot have ‘Joe Donuts, Inc” and “Joe Donuts LLC,” even if both these stores are located in different cities.
The state also restricts you from having specific words such as ‘banks’ in your name. These words could be misleading, which is why you are told to stay away from them. Now, the best way to check whether your planned name is unique and that no other business is operating with it currently is to go online. Search for your business name online and see if there are any search results coming from your area. If current businesses operate with your name, then you may have to change your business’s name altogether. Moreover, you should also check whether a domain with the name you are going for is available. Do not proceed with filing or filling the LLC paperwork until you are decided on your company’s name from all aspects.
Reserving your Name
If you have checked for the name that you want to keep for your organization and it is available, you should reserve it for the future. Regardless of whether you are starting your business in the near future or not, it is best that you get the name reserved. Nearly every state within the country gives you an option to reserve a name. You can reserve your name while starting an LLC in Lake Nona, FL by paying a pre-decided fee to the local office.
Choosing Registered Agent
This is just the start of all legal details, and every state within the country requires all LLCs to bring forth a registered agent for the formalities (the agent is also referred to as a statutory agent at times). A registered agent is basically a person who agrees to receive all subpoenas, lawsuits and other legal or non-legal official documents on behalf of the registered LLC. The agent will also be responsible for passing the specified documents along to the specified person(s) within the organization.
Almost every state gives the right to any state resident aged over 18 to become a registered agent. The work of the registered agent is to receive all documents and then get them to the right man. Many legal companies have also stepped into the market, and offer agent services to many LLCs.
LLC Operating Agreement
An LLC operating agreement is basically a roadmap describing how you plan to run your LLC. The operating agreement entails many details, and these details talk about how the business is going to be run as a whole. Some of the salient features discussed in an operating agreement include:
- Ownership interests and the voting rights to be given to all members part of the management group.
- How the profit and losses are going to be divided between the owners and shareholders. The operating agreement should clearly specify as per ratio or percentage the share of the profit of each and every member part of the ownership.
- How meetings will be held within the LLC. Meetings are an important part of every LLC, as shareholders and owners come face to face to discuss growth and other issues. These meetings should be planned out beforehand and shouldn’t be abrupt.
- How the business is to be governed. The operating agreement should include reference to how the business is to be governed and what are the patterns to be followed here.
- The rights of all members in case one of them leaves the group or dies. This is an important point and should be covered in detail. What happens when one of the member dies and how their share is to be dealt with is important and worth a mention in the operating agreement.
- The way the company gets dissolved in case the members decide to go out of business. This is another important statute and should be mentioned.
The operating agreement should be authentic and should cover all the details mentioned. Many states do not legally require an operating agreement, but you are required to create one, if you want to avoid conflicts going into the future. Future disagreements can often be averted through the use of a proper operating agreement.
File Organizational Paperwork
Each state has its own procedures when it comes to establishing an LLC and filing the paperwork with the state. If you plan to start an LLC in Lake Nona, FL, then you should file the articles of organization in your local state office. The articles of organizations should list the following things:
- The name and address that the LLC will operate with. If you are starting with multiple offices, then do mention them.
- The period of existence, if it is not perpetual.
- The details of the registered agent. These details include his/her name and address.
- The purpose behind the formation of the LLC. It is imperative that you define the purpose and only move on after doing so.
The paperwork that you file in the state office should be signed by all of the individuals that are behind the LLC in Lake Nona, FL. All members should sign the LLC, and at times the registered agent must also put their signature on paper. While in most states you are required to file the LLC with the secretary of state, this is not the case everywhere. All states, however, do charge a filing fee that varies from place to place.
Obtain a Certificate
Once you have handled all documentation processes within the state office, you can go on to get the certificate from the state. The certificate or the document you get from the state will certify that you have now initiated an LLC in Lake Nona, FL and that your LLC formally exists. This certificate that you get over here should be kept with care as it is helpful in other matters including getting a tax ID number, business license, and setting up a bank account.
Register for Doing Business in another State
This stage is optional, and you should only opt for these documents if you want to do business in another state. For doing business in another state, you need to fill a form similar to the one you filled at the formation of your LLC. The form should contain all rudimentary details and should be thorough. You are also required to have agents present in all states that you are going to operate from, since that agent will receive all the state documents pertaining to your LLC. With these details done, you are good to start your LLC in Lake Nona, FL and any other state within the US.