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LLC Formalities Checklist

Please see below for each of the Checklist points.  Each is followed by a link to an associated article and YouTube video addressing how to accomplish the point.

Sign up to get an easily printable pdf copy of the the checklist here.  Editable documents and a comprehensive treatment of how to set up an LLC are available in our LLC Wizard packages.

1. Have you read and do you fully understand your Articles of Organization?

Article: Articles of Organization

YouTube: Articles of Organization

2. Have you fully executed and filed your Articles of Organization?

Article: Articles of Organization

YouTube: Articles of Organization

3. Have you appointed the appropriate members and managers of your company and had them sign the appropriate documents?

Article: Sign Here, Madame President

YouTube: Executing Documents

4. Have you issued Membership Interest Certificates?

Article: Issuing Membership Certificates

YouTube: Membership Interest Certificates

5. Do you have a ledger of your Membership Interest Certificates?

Article: Issuing Membership Certificates

YouTube: Membership Interest Certificates

6. Are you holding your annual meetings?

Article: Hold Regular Meetings

YouTube: Holding Meetings

7. Have you given appropriate notice (and kept copies) of the Meeting of the Managers?

Article: Hold Regular Meetings

YouTube: Holding Meetings

8. Have you kept proper and adequate minutes for the annual Meeting of the Managers?

Article: Hold Regular Meetings

YouTube: Holding Meetings

9. Have you adopted the Operating Agreement for your LLC?

Article: Adopt Your Operating Agreement

YouTube: Operating Agreement

10. Do you understand what is covered by the Operating Agreement and what protection it gives you?

Article: Adopt Your Operating Agreement

YouTube: Operating Agreement

11. Has the LLC secured a Federal Tax ID number (EIN) from the Internal Revenue Service with proper address? (May not need one if taxed as a disregarded entity.)

Article: Tell the IRS How to Tax You

YouTube: EIN

12. Have you made the proper tax election (S corporation, Partnership, C corporation, or Sole Proprietorship)?

Article: Tell the IRS How to Tax You

YouTube: EIN

13. Is your LLC legally doing business in other states? If so, have you been sure to file all necessary filings in those states that your company is doing business in?

Article: Doing Business in Multiple States

YouTube: Registering in Multiple States

14. Have you made the appropriate resolutions of the Managers to authorize and document all major company acts?

Article: Give Managers Their Power

YouTube: Resolutions for Managers

15. Have you kept separate books and bank accounts for the company and yourself, making sure at all times never to commingle any funds?

Article: Commingling

YouTube: Commingling

16. Are you sure that your tax returns, books of account, and company records all say the same thing?

Article: Minimize IRS Audit Pain

YouTube: Books and Records Need to Agree

17. Are you sure that you have properly documented all transactions between you and the company, with resolutions, minutes, etc.?

Article: Should I Reimburse the Company or Take a Distribution?

YouTube: Properly Documenting Transactions

18. Have you executed every document that you have executed on behalf of the company as its manager/member, to guard against personal liability?

Article: Sign Here, Madame President

YouTube: Executing Documents

19. Was your LLC properly capitalized?

Article: Capitalization of a Company

YouTube: Capitalizing Your Company

20. Have you documented all major transactions of the company business with resolutions, notes, contracts, etc.?

Article: Documenting Transactions

YouTube: Document All Major Transactions

21. Do you have a resolution documenting the business purposes for any questionable deductions?

Article: Questionable Deductions

YouTube: Questionable Deductions

22. Are you current on the above formalities and paperwork? If you’re behind, do you know how to catch up?

Article: Catching Up on Paperwork

YouTube: Going Back

23. Has your LLC adopted an expense account form for official company use that meets IRS guidelines?

Article: Expense Reimbursement Forms

YouTube: Expense Account Form

24. Does your LLC have an actual physical address, and the cancelled checks to prove it?

Article: Your Business Needs Stuff

YouTube: Business Address and Phone

25. Does your LLC have a phone in its own name, and cancelled checks and statements to prove it?

Article:  Your Business Needs Stuff

YouTube: Business Address and Phone

26. Does your LLC have its own business license?

Article:  Your Business Needs Stuff

YouTube: Business Address and Phone

27. Does your LLC have its own bank account?

Article: Your Business Needs Stuff

YouTube: Business Address and Phone