How Do I Register an LLC?
Starting a business requires a decision whether to register the new entity as a corporation or a limited liability company (LLC). The biggest advantage of an LCC is that members are shielded from personal liabilities from the debts incurred by the company. An LLC, unlike a corporation, allows members to avoid paying a corporate tax. With no restrictions on ownership and the freedom to distribute profits as members see fit, an LLC offers flexibility a corporation does not.
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Instructions
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Name your LLC. Ensure the chosen name is not registered to another entity by searching the website of the state in which the company operates or by calling the Secretary of State's office. The Secretary of State's office certifies a business name, and the name will be rejected if it shares, or is too similar to, an existing company.
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Draft an operating agreement. This is a document that outlines the LLC members, their rights, percentages of ownership and voting privileges. It lists the rules for management, meetings, voting procedures, provisions for sale of the LLC and for the withdrawal of a member. An operating agreement is necessary only if the LLC has more than one member.
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Select a registered agent. The registered agent is a person or entity designated to receive legal communications with the LLC. It can be an individual or a company registered in the same state as the LLC.
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File the company's registration forms with your Secretary of State's office and pay appropriate fees. Obtain forms from the Secretary of State office, often at its website. Online registration is allowed in some states, and forms also can be submitted in person or by mail. Fees range from $30 to $200. A certificate of formation, indicating that your LLC is an active business in your state of operation, will be sent when registration is complete.
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Tips & Warnings
An LLC that provides goods or services may want to obtain a trademark at the federal level to prevent an LLC in another state from using the same name.
Keep your LLC in good standing by submitting the required annual reports and fees to the state.
References
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