The idea of setting up a limited liability company (LLC) can seem daunting at first glance, but the process is systematic. If you understand this process, it will help you go ahead without any hassles.
The basic steps to form an LLC are:
- Start out by choosing the name of your LLC. This name should be original, and there shouldn’t be another company registered under the same name. The company’s name should end with LLC, L.L.C., Ltd. Liability. Co., etc. You can choose a name and approach your state’s LLC office to know if it is available or not. You can register the company’s name by paying a nominal fee. You can do this before filing the articles of your organization.
- The next step is to go ahead and file the articles of your organization to start the process of forming an LLC. This data includes the name of your LLC, address, and also the name of the members or founders.
- One important step when you form an LLC is to create an LLC operating agreement. The LLC operating agreement is the document that contains details regarding the agreed upon rules of ownership and business operation details. This document is very similar to partnership agreements and corporate bylaws statements.
- If you are a resident of NY or AZ, and your LLC is formed there, then you need to publish a notice. While this step is not mandatory in other states, publishing a notice helps establish your company’s authenticity.
- Once you have begun the process to form an LLC, the next step is to start the process of getting all the necessary licenses and permits depending on your business needs. One of the most basic licenses that you have to acquire is the business license because that is the permit which allows you to sell your product or services.
- If you want to retain the status of your LLC as a separate entity after you form one, then you need to ensure that the required formalities are maintained at all times, including keeping a record of your finances, meeting minutes, etc.
While the process is simple, you can always get professional and legal assistance so that you do not have to run in circles trying to figure out any intricate details.