How to Start a LLC

Start a Limited Liability Company On Your Own

Many business start-ups choose to structure their business as a limited liability company (LLC), also sometimes called a limited liability corporation (though this is not a technically correct term). If you want to know how to start an LLC of your own, here are the steps to take to register as a limited liability company.

Instructions

1. **Understand the Advantages**

   As the name makes clear, a limited liability company limits the legal liabilities of the business owners. This can be especially important if the business is sued for any reason. For an LLC, only the businesses assets are at risk in such a suit, but the owner's personal assets (such as a house) are off limits.

   In contrast, a sole proprietorship, another common form of ownership for small businesses, makes no distinction between the person and the business. All assets are at risk.

   Let's say an employee of a business causes an accident, and the person injured sues the business. A sole proprietor business has unlimited liability -- all business and personal assets are at risk in such a suit, including the owner's home, personal bank accounts, investments, and so on.

   For an LLC, on the other hand, there is limited liability -- only the business assets (such as a business bank account, or accounts receivable) are at risk, but an owner's personal assets are safe.

2. **Find Your State Site for Registering an LLC**

   Limited liability companies are generally registered at the state level, so you're first step for filing for an LLC is to find the forms and procedures in your state.

   A Google search on a state name (or initials) followed by the word 'Corporations' generally takes you directly to the Division of Corporations (or similar organization) within state government that handles LLC registrations.

   For instance, Google searches on:

   Corporations NY

   or

   Corporations Illinois

   immediately take you the Secretary of State sites in New York, or Illinois, where you can register an LLC business in that state.

   If you have any trouble locating the right page, try a search on Secretary of State (and the state name) instead.

3. **Locate LLC Filing Requirements and Fees**

   Once you have the right site, it should be relatively easy to find the link for registering an LLC in the state. At various Secretary of State sites, the links were listed as:

   *LLC Articles of Organization

   *Filing Information, Forms and Fees

   *Limited Liability Companies

   Follow the online instructions. The process is usually fairly simple, and the fees are modest. Many states allow the entire filing and registration process to be carried out online.

4. **Check Your LLC Name**

   Before submitting your documents, it is a good idea to check on the availability of the name of your LLC. If another business is using the same name, you may not be allowed to register that name for your own business.

   Rules differ from state to state, but in general, you are better off having a business name that is not likely to be confused with another LLC business in the state.

   Most states have online search tools at the Corporations Division website that allow you to search on name availability. This is always advisable, before filing for you LLC registration in the state.