A Limited Liability Company Is A Hybrid Business Organization

860 Words Jun 30th, 2015 4 Pages
A limited liability company is a hybrid business organization that takes the limited liability aspects of a corporation and merges them with the tax benefits and operational flexibility associated with a partnership. The Commonwealth of Virginia defines a Limited Liability
Company or LLC as an entity that is an unincorporated association having two or more members that is organized and existing under the Virginia Limited Liability Act. § 13.1-1002. In the Commonwealth, the first step in forming a limited liability company is choosing a name. There are two distinct requirements for a business name, the name must be distinguishable from other business names registered with the Virginia State Corporation Commission and the name must contain the words “Limited Liability Company” or the abbreviation LLC. While completing the formation of the LLC, a name may be reserved for 20 days by completing an SCC Form LLC1013, Application for Reservation or Renewal of Reservation of a Limited Liability Company Name. After registering or reserving a name, a LLC is created by filing an Articles of Organization, SCC Form LLC1010.1, with the State Corporations Commission. The articles must include the LLC’s name and the registered agent of the corporation. A registered agent is an individual or business entity that accepts any legal papers that will accept any legal papers on behalf of the corporation. The agent must be a member or manager of the LLC, a member of the Virginia State Bar or a…

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