Use this seven-step guide to start your LLC today. Each state has different laws and processes, so be sure to browse our state-specific LLC formation guides for more information.
1. Decide on a Business Name
Choosing the right business name is crucial for branding purposes, but it also needs to meet state law requirements. Most states prohibit using a business name that’s already in use or contains certain restricted words. Typically, you’ll need to include “LLC” or “limited liability company” at the end of your business name.
To determine if the name you want is available, visit your state agency’s website responsible for business filings (usually the Secretary of State) and perform a name search.
2. Designate a Registered Agent
Every LLC needs a registered agent to receive official or legal documents on behalf of the company. The registered agent can be yourself, an employee, or a company that provides registered agent services. Keep in mind that if you choose to act as your own registered agent, your name and address will become public record.
Consider your options carefully, and consult with a lawyer or professional agency if needed.
3. Get a Copy of Your State’s LLC Articles of Organization Form
To establish your LLC as a legal entity, you’ll need to file the articles of organization with the state agency responsible for business filings. Each state has its own form, which you can find on their website.
4. Prepare the LLC Articles of Organization Form
Follow your state’s specific requirements and procedures for filling out the articles of organization form. You’ll need to provide information such as your business name, principal place of business address, purpose of the business, how the LLC will be managed, contact information for the registered agent, and more. Make sure to review the form and have one or more business owners or organizers sign it.
In some states, you may also need to publish a notice in the newspaper before filing the articles of organization.
5. File the Articles of Organization
Double-check the articles of organization before submitting them to your state, and pay the filing fee required by the state. Once approved, you’ll receive a certificate from the state indicating that your LLC is officially registered. Use this certificate for tasks such as setting up a business bank account and obtaining a tax ID number.
6. Create an Operating Agreement
While not always required, an operating agreement is essential for LLCs with multiple members or partners. It outlines the financial, legal, and management rights of all members. Even for solo business owners, having an operating agreement can provide clarity and protection.
You can find free templates online for crafting your own operating agreement. For more complex situations, consider hiring an experienced attorney.
7. Keep Your LLC Active
Starting an LLC is just the beginning. To maintain good standing with your state, you’ll need to keep your LLC active. Check your state’s business filing website for up-to-date information on how to do this. You may need to file an annual report and pay an annual filing fee to keep your LLC in compliance.
Now that you know the seven essential steps, you’re ready to start your own LLC. Remember, it’s always a good idea to consult with professionals and stay informed about your state’s specific requirements along the way. Good luck on your entrepreneurial journey!
