How to Form an LLC Fast

An LLC is a limited liability company, which limits the liability you personally have if someone sues your company. It's also easier to form than a corporation and benefits from pass-through taxation, in which the tax burden is shifted onto the partners and not the company itself, avoiding the corporate problem of double taxation. It does take some time to set up, but if you're in a time crunch, there are a few ways you can speed things up.

Instructions

1. Choose a name for your company. Check your state's rules for naming your LLC, as some states require certain wording such as including "LLC" in the name. Make sure you're not violating another company's trademark.

2. Publish an ad in the newspaper stating your intent to establish the LLC, if required. Do this right after you decide on a name. Check your state's Web site to find out about any other requirements and follow them.

3. Call the filing office and ask if it would be quicker for you to file online or to go to their office. Many states allow you to file online if you have a credit card; in most cases, this is the most efficient way to file.

4. Pay you state's filing fee and file your articles of organization. This is short formal statement registering your LLC as a legal entity. Make sure that each person listed as an owner signs the document.

5. Appoint a "registered agent." This is the person who will be served legal documents if the company is sued at some point.

6. Write up an agreement for the owners to sign, stating the share each owner has in the company, what happens in the event of dissolution, the rights and responsibilities of each owner and how the LLC will be run. Even if it's not required, it's wise to have a formal, signed agreement in the event of a dispute. Get this document notarized by your bank or lawyer.

Tips & Warnings

• If you are unsure of any of these steps, consult an attorney who handles LLC filings. He can advise you on the legalities specific to your area.

• Ask if there is a way to expedite the filing. Some states offer expedited service if you pay a small additional fee.