When you want to create a new business there are multiple options to consider. Many people go with an LLC option because it brings in liability protection. As an LLC owner you are not responsible if your business has any debts, which is the case when it comes to other types of companies. In addition, an LLC is also easier to set up and it offers more flexibility than other business types. Below you can find some steps on how to create an LLC so check them out!
Picking the LLC name
You want to search for business names online to see which ones are great for you and which ones are also available. Most states should have their own website to perform this type of search. You can reserve the name by filing a form and paying a name reservation fee to that state if you want a specific name. This holds the name so you can continue with the rest of the paperwork filing process.
Choose the registered agent
This person will receive any official documents on behalf of the LLC and then pass them along to your business. Anyone over the age of eighteen can become a registered agent for your business, but you can hire a company to act as a registered agent too. If you require doing business nationally, you will need a registered agent for each state you are doing business.
Managing the LLC operating agreement
This agreement is a roadmap that shows how your business is going to be managed, how you allocate profit and loss, what voting rights board members have, how you split everything between members and managers and so on.
File the LLC paperwork
You will need to file the articles of organization with the state you are doing business in, which lists the purpose of your LLC, the name and address for the registered agent, length the business has been around and other pertinent business specific information. Only the LLC creator will be able to sign this paperwork before it gets sent in. Similar to having a registered agent for each state, separate paperwork will need to be filed with each state you work in.
Get a certificate from the state
Once you shared all the necessary LLC formation documents and they are approved, you will receive a certificate which shows the validity of your business. Now you can get the business license, set up a bank account and acquire the tax ID number.
As you can see, creating an LLC is not that complicated, provided you know all the steps and information needed to complete them. You do need the right amount of patience to complete the process. Just make sure that you take your time with this and adapt to the local guidelines and requirements of your particular state. If you need assistance, there are companies like INCFile and SwyftFilings that will handle this entire process for you.