The process for how to start an LLC depends on your state of formation.
But in every case, you must know that a limited liability company does not exist until the processing for its formation has been fully completed and processed by the state agency responsible for forming LLCs.
The only way to know if one has been completed is when the state shows the existence of your LLC in its records. It is important that you not engage in any business until the LLC is formed as formation is a prerequisite to gaining the benefit of limited liability protection provided by the legal entity.
Now, how to start an LLC. Each state has its own set of rules and requirements which must go into a filing made to the state. First, there are name rules which govern what kind of name you can give your LLC. You can look these up in the laws or just call your state agency and have them check whether your desired name is acceptable.
Second, there is a registered agent requirement. Every LLC is required to have a registered agent appointed. Each state has its own set of registered agent rules. These can be found in the state’s LLC laws.
Third, there will be a set of disclosure requirements which vary from state to state. Some states require very little information while others have some onerous disclosures. For example, Texas requires that all members and their addresses be listed for member managed Texas LLC entities. These requirements are found in the organization provisions of the LLC laws.
Fourth, you need to determine processing times and the proper filing fee. Always, always, always understand the processing times for your filing. In states like California and Delaware, a normal filing will take more than 6 weeks! This is not acceptable for most people who want to start an LLC for a business.
The good news is that those states as well as most other states offer an expedited process for additional fees in which your LLC can be formed in a week or even a day if the proper fee is paid.
As step 4, determine what processing time you need and the fees to be paid. Also, make sure you find out exactly who you need to write the check out to. This can prevent your filing from being rejected and delayed.
Fifth, prepare and submit your filing. Once processed, your LLC has been formed and started.
At this point you have a shell LLC. So, you need to provide it with its own rules and create members and a management structure. This is typically done with a written LLC Operating Agreement.
Finally, you will want to obtain federal and state tax ID numbers for your new LLC.
Because there are so many variations and intricacies imposed by each state, the best approach is to hire a reputable LLC filing service to handle it for you.
The LLC Expert offers LLC formation services in some states (go to our Form an LLC page.
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