Forming an LLC allow business owners to take advantage of the corporation business structure while still allowing them some additional freedom. LLCs protect owners from personal liability and puts the risk on the business. This protects the owner’s personal assets like their house and personal funds.
This means that owners must clearly separate their personal and business expenses. This also means they can also pass all revenue through to themselves without facing higher corporate taxes.
What do I need to apply for a Novo account as an LLC?
To successfully apply for a Novo account as an LLC, you must provide a copy of your unexpired government-issued ID and, if requested, proof of your current address (such as a utility bill or lease agreement). You will also need to provide your Social Security Number (SSN) and your Employer Identification Number (EIN only in case of multi member LLC) and ownership details of other owners with their contact information. We may also request you to provide one of the following business documents which shows that your business has been registered with the state.
Articles of Organization
The articles of organization outline the initial statements required to form a limited liability company in many U.S. states. Some states refer to articles of organization as a certificate of organization or a certificate of formation. While the requirements vary by state, Articles of Organization are a requirement for LLCs applying for a Novo account.
Operating Agreements
An operating agreement is a key document used by limited liability companies to outline the business' financial and functional decisions including rules, regulations, and provisions.
These document must state your name as a member/ manager/ organizer/ authorized representative/ owner/ director of the business.