How to Register an LLC for Hospitality

Introduction

An LLC, or limited liability company, is a business structure that combines the personal liability protection of a corporation with the tax benefits of a partnership. The first step in creating an LLC is to file articles of organization with your state. This article will walk you through each step of this process, including naming your new business and choosing an agent to receive legal documents on its behalf.

Decide If You Need an LLC

Before you register an LLC, you’ll want to make sure it’s the right choice for your business. The following questions can help you make this determination:

• Is my business small? An LLC is a good choice if your company has fewer than 100 employees and grosses less than $25 million in revenue annually. If so, then you should use an LLC because it provides limited liability protection over partners and shareholders in corporations.
• Do I plan to grow? An LLC is also beneficial because it allows owners to manage multiple companies without having each have its own separate legal structure. This flexibility makes it easier for businesses that plan on merging with or acquiring other businesses later down the road.

Name Your LLC

When you are ready to file your LLC’s Articles of Organization, name your business with care. The name should be unique, not too long, and not too short. The name should also be easy to spell and pronounce as well as free from trademarks or other legal conflicts. Avoid using words that are prohibited in the state where you are filing your company.

The name of a limited liability company must not be the same as another existing limited liability company in the state, nor may it be confusingly similar thereto. You may want to consult an attorney prior to filing if you are unsure about naming your business entity.

Find an Agent to Receive Legal Documents

• You can use a friend or family member to receive legal documents on your behalf. However, they will need to be authorized by you as the registered agent before they can act on behalf of your LLC.
• A lawyer, accountant, or another professional would be able to receive legal documents for you if they have been authorized as the registered agent.

Prepare the Articles of Organization

The articles of organization are the first legal document you will file to form your LLC. They must include:

• The LLC name
• The address for service of process, which is where people can serve legal documents on your company if needed (this can be anywhere in the U.S.)
• A statement about how long you want to keep your business open (called an “operating agreement”).
• Your main purpose for running this business and what products or services it provides

File the Articles with the State

The state where you form your LLC is called the “home state.” This means that this is where you will file taxes, even if you have no physical presence there. It’s also important to know that every business must have a home state, as well as an office in another state where it actually operates. The location of your physical office in another state can be either within its borders or outside them—this depends on whether there are specific laws mandating that companies physically operate within their borders.

In order to find out what kind of filing requirements exist for LLCs in your home state, consult with an attorney or visit the official website for your particular jurisdiction before forming an LLC.

Create an Operating Agreement

An Operating Agreement is a document that establishes the rights and responsibilities of the company’s owners, as well as its structure and management, in order to ensure that a business can continue to run smoothly after an owner leaves. It also allows for greater flexibility when making big decisions about how your business is run. An Operating Agreement may be created by one founder or by multiple founders. If you are starting an LLC with two or more partners, each partner should have their own copy of the operating agreement so they can refer back to it when necessary.

Get a Tax Identification Number

A tax identification number is a 9-digit number that you need to pay taxes. It’s also known as a Federal Tax Identification Number (FEIN).

You can get one from the IRS by filling out Form SS-4, Application for Employer Identification Number. You’ll use this form if you’re a sole proprietor or corporation.

If your business is an LLC, partnership, or trust, you might have to apply for a new FEIN with the state government instead of the IRS.

Make sure your business stays compliant

When you’re starting a new business, it can be easy to lose sight of the laws and regulations that apply in your industry. In hospitality, there are many state and federal regulations that you must stay on top of. Be aware of:

• Local laws, such as those in your city or county
• Federal labor laws such as the Fair Labor Standards Act (FLSA) and Occupational Safety and Health Act (OSHA)
• State-level worker’s compensation insurance requirements

It’s also important to keep up with changes in the industry, so that you’re always aware of what’s going on around you—and how those changes might impact your company.

Conclusion

Even if you’re just starting out, it’s important to start planning ahead. You may think that it’s too early to consider legal issues, but it’s not! Setting up your business properly from the beginning will help ensure that you stay compliant as your company grows and evolves over time.