How to Start an LLC Small Business Association
A Limited Liability Company (LLC) is a hybrid organizational structure that combines aspects of a partnership with those of a corporation. Given its flexibility and generally low cost, an LLC offers an ideal form of structure for many small businesses.
The following steps identify the most important aspects in starting an LLC Small Business Association. While easy to create, you should always get appropriate legal advice before starting an LLC because different states have different laws regarding LLCs.
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Things You'll Need
- Business name
- $1,000-$2,000 state filing and legal fees
- Name(s) of the initial member or members
Instructions
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1
Determine in which state you'd like to establish your LLC. It doesn't have to be the state you plan to do business within, but you'll need to speak with a qualified attorney and accountant to determine the relevant tax and legal ramifications.
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2
Contact the relevant state's Department of State and obtain the forms necessary to file.
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3
File the necessary forms, including something usually called "Articles of Incorporation." You usually only need a little information--like the name and address of the company and the names of the members. The cost of filing varies by state from less than $100 to $1,000.
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Publish a legal notice if your state or municipality requires it. Double check the requirements of your state. You might be able to meet this requirement by publishing in a lower cost suburban weekly rather than a more expensive metropolitan daily. This may need to be done prior to or concurrent with filing your forms. Again, check with your state for specific requirements.
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5
Create an LLC Operating Agreement. This document outlines the duties of and rights of the individual members. It's a good idea to have this well thought out before hand and reviewed by legal counsel.
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Tips & Warnings
• Some states may require you to add "LLC" or "Limited Liability Company" to your name.
• Going through a lawyer will often speed up the process and reduce errors.
• Getting advice from an accountant will help you avoid states with low establishment costs but high annual fees or taxes.
Although it may be less expensive to file in other states, other costs may increase your long term costs.
Be careful before investing "a few dollars" in a do-it-yourself kit. Paying a little more for peace of mind often proves more beneficial in the long term.
