Frequently Asked Questions

What steps should be taken to separate personal and business assets in a Massachusetts LLC?

To separate personal and business assets in a Massachusetts LLC, several steps should be taken. Firstly, it's crucial to establish a unique name for your LLC that adheres to the state's naming guidelines. This name should not be in use by another business in the state and should not cause confusion with a government agency. Once you've chosen a name, you can reserve it for up to 60 days for a fee. Secondly, your LLC must have a registered agent, an individual or company designated to receive legal documents on behalf of your business. This agent must live in or be authorized to do business in Massachusetts. Thirdly, you need to file a certificate of organization, which requires an employer identification number (EIN) from the IRS. This EIN serves as a Social Security number for your business and is used to file taxes and open a business checking account. Fourthly, creating an operating agreement is recommended, especially if your LLC has more than one member. This document details your LLC's operating and ownership procedures, including voting rights, roles and responsibilities, and the procedure for adding or removing members.