There are currently more than 480,000 businesses operating across the United States. Owning and running your own business allows you to offer unique products and services to clients from around the country and even the world!
However, before your business can expand, you need to register it and establish your reputation. This is where LLC certificates can come in handy.
Your certificates tell potential clients a lot about the quality of your products and services. You can also use them to negotiate business deals and secure investments. So it is worth taking the time to get your LLC certificates organized.
Not sure where to start? Then you're in the right place! Read on to find out everything you need to know about the different types of LLC certificates available at the moment.
What is a Limited Liability Company?
Limited liability companies are private business organizations. They combine pass-through taxation with the limited liability that you would expect to find in a corporation.
However, LLCs are not legally defined as corporations. Instead, they tend to be partnerships or sole proprietorships. Their structure offers business owners flexibility when it comes to corporate laws and liability.
What Are LLC Certificates?
When you first form an LLC you will have to provide a number of certificates to show that you have officially registered the business.
Once your business is up and running, you can also issue and apply for a number of additional certificates. You can hold onto these or you can issue them to investors. Owning an LLC certificate is similar to owning stocks in the company itself.
With that in mind, let's take a closer look at some of the certificates you will come across when setting up and running an LLC.
Receiving Your Certificate of Organization
When you form your LLC, you need to apply for a Certificate of Organization. This may also be known as a Certificate of Formation, depending on where you register your business.
You can apply for your certificate through your secretary of state. To do this, you will need to provide them with the following information:
- The name of your business (ending in LLC)
- The starting date for your business
- The name and address of your registered LLC agent
- Your business address
- Whether you plan to run your LLC using managers or members
- The name and address of each member (if you have more than one)
You should receive your Certificate of Organization in the post from the secretary of state. Depending on where your business is registered, you may also receive a copy of your Articles of Organization. You should keep a copy of everything you receive with your business records.
LLC Member Certificates
LLC member certificates are issued by the LLC itself to individual members. These essentially act as a record of ownership in the business. They can be used in a similar way to stock share ownership in corporations.
For example, investors may receive certificates of membership in exchange for their investment.
Any membership certificates that you give out should include:
- The name of your LLC
- The state that you formed your LLC in
- The number of current members
- The benefits that the certificate owner is entitled to
- The date that the certificate was issued
- The signature of the authorizing member for your LLC
Each certificate also includes a certificate sale section. This can be used if the member wants to sell their certificate on to someone else. This section should include space for:
- The date of the sale
- The value that the certificate was sold for
- The new owner
- Signatures authorizing the sale
It is very important to create an annual record of your membership certificates and to update this when necessary. That way you know exactly who has a stake in your business.
Custom Printed LLC Certificates
If you are planning to issue certificates of membership, then you will need these to look official. You'll also want certificates that include all the key legal information.
In that case, you might want to check out customizable certificate templates. These include all of the information you need plus space for you to add in the name of your LLC and your authorizing signatures.
You can use custom templates for:
- LLC share certificates
- LLC unit certificates
- KG9 LLC certificates
So no matter what you need to issue, there's an LLC certificate template out there for you!
Certificates of Good Standing
As we mentioned earlier, you should keep a record of your LLC certificates throughout the year. You will need to include these in your LLC's annual report before you can file it.
This is an important piece of paperwork as it demonstrates that you have been conducting your business in a professional and legal manner. Once you have proved this in your annual report, you will be issued with a Certificate of Good Standing.
Most lenders, banks, and investors will expect to see a Certificate of Good Standing before they support your business or enter into a deal with you. So it is very important that you file your report and pay any fees on time each year.
You should also keep your certificates and annual reports in one place. That way you have them to hand to show potential investors or business partners.
Order Your Custom LLC Certificates Today
If you run an LLC then kitting yourself out with the right LLC certificates will show anyone who wants to work with you how well-organized you are. This includes applying for your own business certificates and stocking up on certificates for your investors.
So what are you waiting for? Check out the range of LLC certificates that we have available for you to download today.