A limited liability company is a way structure a business in a legal sense. It can provide many advantages in its use, as it provides the liability of a corporation whilst still providing the flexibility and lack of technicalities that comes with a partnership or sole trader company. This type of legal structure is best for any businessowner who does not want to be swamped down with legalities, technicalities and other formalities, as well as liabilities for business debts and legal lawsuits. If you are interested in forming an LLC, then there are some steps you can take in order to form one for your business entity.
- Choose the name of your LLC
This is one of the more obvious steps to take. You must be able to identify your LLC from the rest of them, and as such, you must choose a name. There are a few requirements that must be met when you are choosing a name. The name must end with LLC in order to identify it as a limited liability company. An abbreviation of this can be used including Limited Company, or the full name. Moreover, the name you take must not be the same as any other LLC name. This prevents potential confusion when identifying companies.
- Send the articles of organization
Articles of organization are required in the process of registering an LLC. These articles of organization will correlate with your state’s filing office. These articles will pertain to the intricacies of your organization, and must be sent in to allow for your LLC to be registered under the law.
- Choose a registered agent/organization
There are many different registered agents/organizations available which will agree to accept legal documents on the chance that the organization is sued. Furthermore, there are also LLC services out there which can help your LLC register, and some of the best LLC services are just a quick search away!
- Develop an operating agreement
While this is not required in all states, it is important to develop an operating agreement. An operating agreement is essentially a document which will detail how your LLC is going to be run. It will detail the management, who is involved, the structures put into place and so on. Without an operating agreement, the state law will determine how your LLC will be run. If you want to have more control over how your company will be run, then an operating agreement is a must.
- Obey tax laws, regulations and requirements
Tax laws, regulations and requirements are numerous, and must be followed or you risk breaking the law with severe penalties. For many people, this part can be understandably confusing. It is best to have someone, such as a professional, who will be able to guide you through this so that you understand the requirements and you know what must be paid. LLC services are the best people to consult for this, as they cn guide you through the process.