It’s crucial to understand a company’s legal structure before doing business with it in the US. Limited Liability Company (LLC) business structures are one popular type. Due to the benefits they provide in terms of taxation and personal liability protection, LLCs are popular among small business owners. But how can you tell if a US corporation is an LLC? The following actions are for you to take:
1. Verify the Business Name
A company’s name is one of the simplest ways to tell if it is an LLC. The words “LLC” or “Limited Liability Company” must follow the name of an LLC in the majority of states. Check the state’s corporate entity database because some states have different criteria, though.
2. Lookup business entities in the state’s database
To learn more about a company’s legal structure, you can search the business entity database that each state maintains. Visit the state’s Secretary of State website and look for the Business Entity Search tool if you want to access the database. Select “LLC” or “Limited Liability Company” as the entity type and enter the name of the company in the search bar. If the business has an LLC registration, the information will show up in the search results.
3. Verify with the IRS The Internal Revenue Service (IRS) is a good place to start if you want to find out a company’s tax status. All businesses with an Employer Identification Number (EIN) are listed in the IRS’s database. Using the Business Taxpayer Identification Number (TIN) Matching Program of the IRS, you can look for a company’s EIN. If the business is IRS-registered, its details will show up in the search results.
4. Verify the company’s CAC registration status. You might be wondering how to find out if a firm is registered with the Corporate Affairs Commission (CAC) if you’re conducting business in Nigeria. Nigeria’s regulating authority for business registration is called the CAC. You can use the commission’s internet site to search its database to determine whether a business is registered with the CAC. To check if a company is registered, type its name or registration number into the search bar.
5. Recognize the Difference Between LLC and Articles of Organization Finally, it’s critical to comprehend the distinction between LLCs and Articles of Organization. A legal document called the Articles of Organization creates an LLC. It contains details on the name, goals, stakeholders, and organizational structure of the company. However, an LLC is the actual legal structure. An organization becomes an LLC after submitting its Articles of Organization and receiving state approval.
In conclusion, it takes some investigation to ascertain whether a corporation is an LLC in the US. Start by looking up the corporate entity database for the state using the firm name. If you want to know if the business is registered with the IRS, you may do that as well. In Nigeria, you can look up a company’s registration status by searching the CAC’s database. You can obtain a better grasp of how a company is governed legally by knowing the distinction between its articles of organization and its limited liability company (LLC).
Articles of organization are often used to establish a limited liability company (LLC), whereas articles of incorporation are typically used to establish a corporation. This is the fundamental distinction between the two documents. While a corporation’s structure and management are outlined in its articles of incorporation, an LLC’s structure and management are described in its articles of organization. Additionally, unlike corporations, LLCs are not required to maintain a board of directors or have regular shareholder meetings.