Entrepreneurs want to form their own limited liability company. Best place to start on that project is at the bookstore.

QUESTION.
My friend and I are starting an espresso catering service in our town. I downloaded the Limited Liability form #205 from the Texas Secretary of State office and am having trouble figuring out what exactly needs to go in some of the blanks. We don't want to submit it and have it rejected, so we want to do it right the first time. Would this be something you could help us with? And if not could you point us in the right direction? Thank you so much.

ANSWER.
As a SCORE counselor I am limited to providing business coaching services. When legal services are needed I recommend the client seek out an attorney to help them with legal matters. Helping you fill out the LLC form for Texas would be the practice of law.

The form should not be all that difficult to fill out. If you are having trouble, then visit www.nolo.com to find a book on how to form an LLC. My memory tells me that there are two or three books on the subject that Nolo sells.

Forming an LLC is not necessarily all that easy. The single-member ones are VERY easy since there is only one person involved. However, the multi-member LLCs are a bit more tricky because they are basically partnerships. When you form a partnership a smart person will draft a detailed partnership agreement that covers such topics as buyouts, death of a partner, etc. An LLC has a similar document called an operations agreement or operating agreement. You would be foolish to form a multi-member LLC without a good operating agreement. What happens when you and your friend don't like being partners? How will one of you get your money back? What about management issues?

Search online for samples of operating agreements. If you can't find a few, then look for sample partnership agreements, too. The topic should be covered in the book or books you get from Nolo. You can also visit your county courthouse and visit its law library that should be open to the public for free. Ask the law librarian where the form books for LLC issues is kept. Study the form book and you will be using the same book a local attorney would be using.

I hope my comments are helpful. Good luck! Regards, -Jeff

Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com