How to Start a Limited Liability Corp
Registering a business as a limited liability company, or LLC, is a complicated process that may be best handled by a lawyer. However, it's possible to file your own LLC. With a bit of patience and research, filing may be done independently at a cheaper rate than with legal counsel. Follow these steps to complete an LLC registration.
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Instructions
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Figure out a name for the new business and register it. According to FindLaw, the name will most likely have to include the letters LLC or the phrase Limited Liability Company. Make the name one that leaves little doubt as to the nature of the business, yet is catchy and memorable. This part requires research, since the name has to be original in order to pass registration.
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Create an LLC operating agreement. The Wall Street Journal states that it should explain "the details of the business arrangement, including members' percentage ownership, roles, rights and responsibilities. Having such an agreement can help protect the LLC structure if it's challenged in court and prevents you from having to default to state operating rules." This isn't a mandatory step in all states, but it can save you headaches later on.
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Create articles of organization. This is a mandatory document that gets filed in your state's Secretary of State's office to establish existence and give a legal record of the business' aims. It includes the business's name, mission, registered agent (the official legal spokesperson) and management team names. There's a fee for filing this document that varies from state to state.
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Apply for business permits and licenses at the city, state and federal level. These will vary depending on the nature of the company.
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Tips & Warnings
Online services exist that purport to file an LLC for very little money, but these services may not offer the complete process at the lowest rate. Read the fine print on these websites to make sure that every part will be completed for the cost. One leading provider does a quick registration of the Articles of Formation for $99; however, the complete procedure, with all licenses and papers, is $515.
Resources
- Photo Credit 2007 lumaxart / Creative Commons
