How to Organize an LLC Company
Is a limited liability company (LLC) the best option for your business? Take some time to research the pros and cons of registering your business as an LLC. Be sure that it's the most logical option for your business. Typically, entrepreneurs opt to organize an LLC because it limits personal liability, there's no double taxation, and it can include a large group of partners.
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Instructions
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Research the LLC filing process for your state. Go to the library or your state business office, or simply search "LLC laws" online and include your state's name. Review the information to get an idea of what's required in your particular area. The rules and the processes vary by state. Pay special attention to the fees associated with filing and determine how they will be paid.
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Think of at least three names for your business. Visit your state's business website and do a search for the names you'd like to use. Be sure they're available before you start the filing process. Remember that once your business is registered as an LLC, it's important to use the LLC title after it. This helps to distinguish your business and protect you and limit your liabilities.
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Decide whether you want to continue the LLC process on your own or if you'd like to hire a lawyer. Filing LLC paperwork can sometimes put an undue amount of stress on many entrepreneurs, so you can elect to have a lawyer handle everything instead. Keep in mind that if you use a lawyer, you will incur additional fees for his services. Lawyer fees for LLC filings may vary from state to state and from office to office.
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Determine how many people make up your LLC, and then determine how much capital each person plans to invest in the business. This information should be documented by the members.
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File your articles of organization and mail them your state's filing office along with your payment for the filing fees. Be sure to include one of your LLC members as the "registered agent" who will receive all important legal notices for the business in the future, including, but not limited to, tax information.
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Create an operating agreement for your LLC that explains what the business is and how it will operate. This agreement outlines the responsibilities of each LLC member. It also covers important information about how and where meetings will be held, how decisions will be made and how profits and losses will be divided among the group. This agreement is important, because it comes into play in legal matters and if the business involuntarily or voluntarily dissolves.
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Once all information has been submitted to your state office, you must wait for notification before you can move forward with your LLC. You will receive communication via mail regarding the approval or denial of the formation of your LLC.
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