Many want to know how to form an LLC. The process is not terribly difficult because it is an administrative process governed by each state. So, the processes, rules, requirements and other details are outlined and provided by each state agency. However, it does take some time and concentration to make sure every detail gets completed properly. It is so important that everything is done the right way because the protection afforded by a Limited Liability Company requires a strictly compliant formation and LLC maintenance.
While each state varies, most steps are as follows:
ONE: Give your business LLC a name. The business name should comply with the states rules and regulations. It as well should not be similar to another of an already existing company. Also, most states have required designations that must be at the end of the name (e.g., LLC).
TWO: Ensure that all the paperwork is completed and prepared in accordance with all state requirements. The filing document is typically called the Articles of Organization but some states use different terminology. It is a good idea to check not only the instructions provided by state forms but also the latest statutory language to ensure you meet all requirements. You will also have to pay a filing fee when submitting your article of organization. And, every state requires a registered agent and office within the state of formation. Check your state’s registered agent requirements.
THREE: Once formed, an LLC should adopt a written LLC operating agreement. This document evidences ownership of the business and also puts in place a management and operational structure for how the LLC conducts business and makes decisions.
FOUR: In a few states, there is a publication or written notice requirement. This process usually involces obtaining a and publishing in a stated newspaper the existence of your LLC. After a set period of weeks, the LLC will need to submit an affidavit or other confirmation to the LLC filing office of having met this requirement.
FIVE: After the state issues a certificate evidencing the formation of the LLC, the legal entity is technically formed and in existence. However, you should research and determine what other permits and licenses (tax registration certificate) are required to operate your business.
When learning how to form an LLC, the key is in the details and processes. If you want to be sure your LLC is formed properly, you can hire an experienced lawyer to assist you or you can retain the services of an experienced document service company- there are several reputable ones that special in LLC formation services.