Glossary

Formation

A Registered Agent is a business or individual with a street address in your business’s state of filing that is designated to receive legal communications and documents for your business entity such as subpoenas, service of process, tax notices, etc. 

Registered agents act as the Big Brother of your business. They receive important legal documents such as a service of process for lawsuits and pass the information to the appropriate person at the business. Missed deadlines for lawsuits, notices, and subpoenas can have strict deadlines, so it is important to have an individual or entity that can receive and send the documents promptly.

Yes, if you also reside or have an office within the state of filing.

Great question. Many small business owners act as their own Registered Agent or name a trusted family member or friend to take on the responsibility. This saves money but it does come with risks. A registered agent service may be better if you conduct business in multiple states or are planning to in the future, OR think you may have to replace your Registered Agent in the future (you must update your Agent with the Secretary of State each time it changes).

You may put your own home address. Please note that once we file – your LLC filing becomes publicly accessible. For security, we recommend an office address or a virtual office address that you may receive regular mail notice.

This is so we have options to use in case your name is already taken by another company in the State. List your top 3 with your first one being your preferred name.

This is to clarify to the State, the type of services or products you will be providing to your clients. We use this same information to file for your EIN as well.

An Employee Identification Number (EIN) is a Tax Identification Number that the IRS will use to identify your Company when you file taxes. You need this number to open up business bank accounts as well.

Annual Reports are corporate filings with the Secretary of State on the anniversary of your LLC filing. There is a recurring fee paid every year with the Annual report. Each State has different dates for when this Annual Report is due annually, and all companies are encouraged to plan accordingly.

The State Filing fees are required to actually file your incorporation documents with the State. This is a one-time fee.

An LLC Operating Agreement is technically a summary of how your LLC will operate. It includes sections on voting, legal representatives, successors etc. To open a business bank account, some banks require this document.

Limited legal representation is for a limited scope and time that a client would engage an attorney

This is a requirement that anyone filing a NY LLC must also “publish” a notice that the LLC has been formed, in two (2) separate publications. These notices have to run for 6 weeks within your county that you filed your company.

a. Mutual

i. Are there two parties disclosing information you each want to keep confidential? Hair product recipe? Special cupcake mixture? Secret technique?

b. Unilateral

i. Only one party disclosing confidential information to another party? This is likely the NDA for you. Ex: You want a bid for a project you are doing and have to share confidential information about the project specifications to the company, but the company you are seeking a bid from does not offer any confidential information back.

a. Do I need an Independent Contractor or Client Agreement?

i. Client Services Agreement – If you (or your company) are engaged to provide services to another person or company (let’s call them Company X) FOR THEM as a 1099 or non-employee, then you will need a Client Services agreement. You will still be an independent Contractor under the law, but you can define your services to your Client – Company X. This will protect YOUR company and your status when you do work FOR THEM.

ii. Independent Contractor Agreement – If you are engaging someone to do work FOR YOU as a contractor such as a web designer or accountant – then use the Independent Contractor agreement. This will protect YOUR company and your status when they do work FOR YOU.

b. Can a person be an Independent Contractor to a company?

i. Yes. They can also be a company and an independent contractor to another company as well.

a. Website Privacy Policy (PP) – Definitely need this.

i. Before you publish your beautiful website, you need to have your Privacy policy drafted and linked to your website. Visitors want to feel secure while browsing your website. People often enter their email address, their phone number, and even their payment information while being on your website. The whole purpose of a website is to generate traffic to your business. Summarize your mutual agreement for the User’s submission of their private information on your Website with a Website Privacy Policy.

b. Website Terms of Use OR Terms of Purchase

i. What if I don’t provide products for sale on my website NOW, but will later? Which form should I get?

    1. You have 2 options:

      a. Get the Terms of Purchase and edit and update later when you do actually provide products for sale

      b. Get the Terms of Use to use now and Get the Terms of Purchase later when you start selling online.