Monday, April 6, 2009

LLC Georgia- 3 Common Errors Will Cause an Improper Formation

By Christine Snook

Almost any Georgia business owner who wants an easy-to-use and maintain vehicle for their business ought to consider the Georgia LLC.

Doing things right from the start will avoid delays and headaches that can cause serious problems within the state. Not until a carefully produced filing is give to the state and has been accepted and processed will the Georgia limited liability company be formed.

Every Georgia filing is inspected and reviewed by State personnel to make sure that all teh requirements are met.

It is really important that you do not indulge in business activity until formation is completed properly. This is because if for some reason your LLC Georgia formation filing is deficient or contain errors, your pre-formation business activity will not be covered by the liability protection of a Georgia limited liability company.

A FIRST COMMON ERROR

The first mistake made is a simple but common one. Many pay the wrong fee or write the check out to the wrong state agency. This can be fixed by just following the requirements in the Georgia regulations. Make sure you review the latest set of rules.

A SECOND COMMON ERROR

Georgia will not accept just any proposed name for your LLC Georgia entity. There are rules set forth in the regulations that provide some limitations and specific requirements. For one, your name cannot be the same as or too similar to another registered name.

Also, the name must end with an appropriate designation acceptable by the state. These are listed in the statute or a reputable service can ensure this is met when preparing your filing.

MISTAKE THREE

Georgia laws, regulations and form instructions all impose specific requirements that must be met when preparing and submitting a formation filing. Matters including document formatting, address requirements and registered agent information must be included and meet these rules.

Appointing a qualified registered agent and registered office is a must as failing to meet these rules can lead to loss of status of the Georgia LLC. When a Georgia limited liability company loses its status, there is risk of liability and other potentially costly consequences.

IN CONCLUSION

Major mistakes involved during the LLC Georgia formation process if avoided helps in a smooth filing process.

Using a reputable and experienced formation services company is one way to ensure that your filing is not deficient and is processed efficiently.

About the Author:

No comments: