What Is Involved With Forming an LLC?

You can form a Limited Liability Company (LLC) simply by filing the proper paperwork with any state. Start by registering your business name, then follow the requirements in the state where you'll be operating your business. Most states have a filing fee of $100 to $200, though some charge more and some less.

Identify Members

Members of an LLC may be individuals, corporations, partnerships or foreign entities. A single person can form an LLC, and there is no limit on the number of members.

Decide on a Tax Structure

For the purpose of federal taxes, LLCs file as a corporation, partnership or sole proprietorship with IRS Form 8832.

File Articles of Organization

Your initial paperwork will be the Articles of Organization, which includes basic information such as the business name, list of members, the registered agent and pertinent addresses. It will also set the official starting date of the LLC and establish the length of time it will operate.

Create an Operating Agreement

An operating agreement is a document that outlines the roles and responsibilities of each member. It is required in Missouri and New York, but not other states. This document does not get filed with the state.

Hire a Service

You can hire a service to file your LLC paperwork for you, but you will need to pull together all the necessary information. It may be just as easy, and certainly less expensive, to put that data into the proper forms and file it yourself.

References

• Limited Liability Company (LLC)
• Forming a Limited Liability Company
• Business Incorporation | Registering Your Business

Resources

• LLC Operating Agreements Basics