Having a seasoned professional on your team can be beneficial when you start a new business as a limited liability company (LLC). An executor can provide valuable guidance and support during the early stages of your company's growth. They assist in organizing your LLC business and ensuring that all required legal documents are in place.
This short guide takes you through the role and responsibilities of an LLC executor.
What is an LLC executor?
The formation of an LLC is the responsibility of an executor. They must ensure the LLC abides by the local, state, and federal laws.
They might also give the business owner legal or tax guidance, as knowledge of business law and tax legislation is essential in operating an LLC.
Individuals who lack the time or competence to act as the business executor for their company might engage a professional to handle it on their behalf. Anyone, including an attorney, accountant, or an initial LLC member, can serve as an LLC executor. There is no need to fill out any additional paperwork or file any documents with the state for an executor to serve on their behalf.
What are the responsibilities of a business executor?
The executor is accountable for a wide range of tasks, such as:
The executor could also offer direction when your company is being formed. They can assist you in organizing and ensuring that all necessary documentation is in place.
Articles of Organization process:
Who can be a business executor?
LLC business executors are individuals or entities responsible for forming an LLC.
Some states specify that the business executor must be at least 18 years old, a resident of the state where they seek to establish their company and not already prohibited from doing so by another state.
Although it's not required, LLC members can serve as their own executors. There is no requirement in state law that an executor must also be an LLC member.
The LLC executor may be a single person, a group, a family member, a business lawyer, your LLC's registered agent, a corporation, an association, a trust, a partnership, or any other legal institution.
What paperwork does an executor need to complete?
An LLC member is not the same as an LLC executor. An individual or group that holds a membership interest is an LLC member. The operations and management of the LLC are the responsibility of these members. On the other hand, an LLC executor is a person or organization that assists an LLC with its technical establishment. This individual is not required to be an LLC member.
LLC members are not personally responsible for the debts and liabilities of the LLC. In comparison to a regular company, an LLC offers many advantages, including fewer formalities and reporting requirements.
Yes, provided that you specify this in the Articles of Organization. A single individual may organize several LLCs.
Yes. The executor's name appears on your state's public records because they must sign the formation documents during the earliest stages of the LLC setup.
Depending on the state, it can take around two to three weeks from when the state gets your limited liability company documentation via mail or online. The process can be sped up by paying an extra fee.