For small business owners, a limited liability company (LLC) is a popular business form since it offers the advantages of both a corporation and a partnership. Whether an LLC can have a president is one subject that frequently comes up. The answer is yes; however, there are some restrictions. An LLC may have a president.
Members of an LLC are the proprietors who are in charge of running the business. However, the LLC has the authority to choose executives to assist in running the company. A president, vice president, secretary, and treasurer are examples of possible officers. The president is often in charge of running the business on a day-to-day basis, with the other officers handling specific tasks including record keeping, financial management, and legal concerns.
It’s crucial to remember that just because someone holds the title of president doesn’t mean they automatically have greater power or decision-making authority than the other members. To prevent confusion, the operating agreement for the LLC should specify each officer’s duties.
In order to create an LLC in Massachusetts, a Certificate of Organization must be submitted to the Commonwealth’s Secretary. The Certificate of Organization must be filed with a $500 filing fee. In Massachusetts, LLCs must also submit an annual report, which costs $500 to file.
Although the time it takes to approve an LLC in Massachusetts varies, it usually takes 5-7 business days. However, if there are problems with the application or if the Secretary of the Commonwealth is dealing with a high volume of files, the approval time may be extended.
There are a few measures you need to follow as a business owner if you’re thinking about closing your limited company. You must first submit Articles of Dissolution to the Commonwealth Secretary. You must also make sure that all existing bills are paid in full, including with all taxes and fees. The LLC will cease to exist after the dissolution is finished, and any assets or liabilities will be dispersed in accordance with the operating agreement.
It’s crucial to terminate any bank accounts held by dissolved companies as quickly as possible. It’s advisable to shut the account before the bank does so because they might freeze it if they find out about the divorce. The operational agreement should be followed when allocating any money that is still in the account.
Finally, even if an LLC is allowed to have a president, it’s crucial to comprehend each officer’s specific duties. Additionally, there is a filing fee and an annual report obligation when incorporating an LLC in Massachusetts. If you’re thinking about dissolving your limited company, there are steps you should follow to make sure the procedure goes well.
Yes, a business with debts may be struck off. The debts won’t go away, though, and the company’s directors might still be held personally responsible for any unpaid obligations. Before formally shutting off a firm, it is crucial to appropriately settle any unpaid debts to avoid any legal complications.