Forming a business is an exciting time for any person. Drought, Drought & Bobbitt’s business formation expertise includes:
The Articles of Organization
The articles of organization should be filed with the appropriate government agency. In Texas, that agency is the Secretary of State. Specific information contained in the Articles of Organization can vary from state to state. Most states require this document to contain the organization’s name, mailing address, names of the organizers and registered agent, etc.
During the life of a corporation or an LLC, the Articles may be amended from time to time to adjust to your business needs. All such amendments need to be filed in a prescribed format with the appropriate government agency.
Bylaws are the internal rules and regulations by which an organization is governed, and the Board of Directors must adopt them. Although the Bylaws of every organization are unique, typically, the document would cover various operational procedures of the organization such as memberships, elections of directors, conduct of meetings, establishment of committees, etc.
A Company Agreement includes the internal rules and regulations by which a Limited Liability Company (LLC) is governed. The Company Agreement is similar to the Bylaws of a corporation. In general, it is an agreement among the members about rights and duties, management structure, operation, etc.
Application for Employer Identification Number
An Employer Identification Number (EIN) is a unique number used to identify business entities. This is similar to a Social Security Number used to identify individuals. The Internal Revenue Service (IRS) assigns the EIN to business entities in the United States. Employers, sole proprietors, corporations, partnerships, non-profit organizations, trusts and estates, government agencies, certain individuals and other business entities all use EINs. In order to receive an EIN, one must submit a completed Form SS-4 application to the IRS.
501(c)(3) Tax-Exempt Application
All organizations seeking to be recognized as a Tax-Exempt organization as per section 501(c)(3) of the Internal Revenue Code are required to complete Form 1023 application to the IRS. Examples of Tax-Exempt organizations include churches, schools, hospitals, and in general, charities that work for the benefit of the public.