How to Set Up a Limited Liability Company
Have you considered starting a business?
If so, you’re likely wondering what’s the best business structure for your new venture. One of the easiest and most advantageous options is to form an LLC.
A Limited Liability Company (LLC) is a business structure that offers protection from lawsuits. It helps protect your personal assets from potential seizures. It’s one of the easiest business structures for small and medium-sized enterprises.
So how do you start an LLC?
Here’s what you need to know:
Basic Company Details
The first step is to choose a name for your company. You’ll have to research different names in your state’s company database.
Create a shortlist of different names in case your first choice isn’t available. You can’t use the same name as another company that has a different business structure. For example, you can’t register Sharma’s Samosas, LLC if Sharma’s Samosas, Inc. is already taken!
Once you’ve chosen your name, you need to find a business address for your company. You can use your personal address for your company’s address — however, keep in mind that this will get listed in public records.
The final basic step is find a registered agent. This is a legal service that accepts legal documents on your company’s behalf.
Once you’ve completed the basic company details, you’ll have to prepare documents before requesting to form an LLC.
The first step is to prepare an operating agreement. This is a legal document that outlines how you’ll organize an LLC. You can click here to learn how to draft this document.
In some cases, your state won’t require an operating agreement. However, you should always draft one to have a clear strategy on how you’ll run the company. It’s especially crucial if you wish to work with a business partner.
You’ll also have to draft Articles of Incorporation which you’ll have to show your state’s business registry. This outlines the name of your LLC, the nature of the business, legal details, etc.
Submit Your Information
The last of the LLC steps it to submit your business details and documents to your state’s registry. You’ll have to pay a small processing fee with your state when you submit the information.
On average, it’ll only take a few weeks for your state’s business registry to respond to your request. If your proposal to start an LLC gets accepted then you’ll receive a certificate that confirms your business.
You’re now the proud owner of an LLC and can start operating your business!
Start Your Limited Liability Company
Now you know how easy it is to start a Limited Liability Company and the advantages of it over other business structures.
Start by deciding on a great name for your business. Find a great address for your company and a registered agent to handle the legal details.
Next, draft the various documents such as operating agreements and Articles of Incorporation. Submit all this information to your state’s business registry and await their response!
While you wait to form an LLC, why not check out our business tips on our blog?