A Limited Liability Company or LLC is a type of organization owned by one or many people. These people mainly own the membership of the organization and not the shares. Basically LLC is one type of legal entity. Forming an LLC is not as complicated as most of the people think about this. Each state has its own unique list of steps and requirements and also you can find some common things among them. So, wherever you will establish your LLC either in business friendly place or in any rural area, all you need to go through the following steps if you want to know how to create an LLC:
Choose a Proper Business Name: First short list some of the possible business names to choose from before you register your LLC. Some of the business names that you want may be possible already taken by other business owners or they might violate a trademark. You need not to worry on it. Most of the states have their own searchable database online where you can check that the business name you are thinking already being used or not. Remember that the business name should be followed with a designator identifying it as an LLC. Some valid legal terms are: Limited Liability Company, Limited Company, Ltd., LLC and Liability Co. Once you decided a valid name for your LLC, just go ahead to register your company. However, it will automatically register if you complete the second step.
File Your Organization: Your LLC‘s Articles of Organization is a document containing basic business information like your business name, address, purpose of business and also the name of the owners. It is a ready-made form that you can get from your Secretary of State’s office. Here you can also ask them about the fees and requirements involved in setting up an LLC. In this way, you can also think for the next step.
As soon as you file your Articles of Organization, you will need to pay a filling fee. The tax id application is necessary step to be taken in this case. The filing might be inexpensive, but if you want the filling to be expedited, you need to pay few more money. Also, some of the states may need some additional fees.
Create an Operating Agreement: However, this is not required in all states but it is good to know about this at the very beginning. Your LLC’s operating agreement should contain information about the role of each owner with their profit and loss details as well as the operating rules of the business.