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 means they can also pass all revenue through to themselves without facing higher corporate taxes.
Read more about forming an LLC through the SBA.
What do I need to apply for a Novo account as an LLC?
Generally speaking, we will require your business documents that shows that your business has been registered with the state. Additionally, these documents will also need to have your name and signature on them. Generally, we can find these documents ourselves on your state's Secretary of State website.
If we are unable to find these documents ourselves we may require the following:
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Operating Agreement
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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. While not all states require these documents it is a requirement for Novo accounts. The SBA also recommends that you file for one as a way to protect yourself and your business. Read more here.
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Articles of Organization
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The articles of organization are a document similar to the articles of incorporation, outlining 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. Read more here.
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