Starting a Limited Liability Company (LLC) is one of the essential steps in creating your business. It’s a prevalent legal structure for businesses pursuing personal liability protection, flexibility, and other perks.
Though the specific requirements differ slightly from state to state, setting up an LLC is a straightforward process – and can be completed in just a few hours. Here are a few steps to follow when starting your LLC registration process.
Select A Business Name
Choosing a unique business name will help you avoid confusion and any forms of trademark infringement claims. Once you’ve selected a name, you need to thoroughly check to confirm someone else hasn’t used it – both in and out of your state.
Marketing should be your primary focus when choosing a name, as this is your customers’ first impression of your brand.
Choose A Registered Agent
Some states mandate that LLCs appoint a registered agent. A registered agent is a person or company that receives official documents on your behalf when you’re sued or have any legal case.
However, companies like LLC Publishing in NY provide registered agent services for a particular fee. Registered agents must be over the age of 18 and also have a physical street address in the same state that you registered for your LLC.
Collect And Fill Out The Articles Of Organization Form
To legally establish your LLC, you’ll need to file a document with the agency that oversees business filings in your state. The document is usually called the ‘Articles of Organization’ – but the name may differ in some states.
The basic information required when filling out the form is:
- your company’s name
- address of your business
- aim of the company
- how your LLC will be managed
- contact information for the registered agent
- duration of the LLC
- signature from one or more business owners.
Some states, including New York, require you to publish a notice in the local newspaper stating your intention to register your LLC. So a publication should be done before filling out your Articles of Organization Form.
File The Articles Of Organization Form
Confirm that every piece of information you’ve provided in your Article of Organization is correct before submitting it to your state. You’ll be required to pay a filing fee upon submission, and when your document has been approved, you’ll be issued a certificate of registration.
You can use the certificate to set up a business bank account, apply for a tax ID number, Employer Identification Number (EIN), and get a business license.
Create An LLC Operating Agreement
Though most states don’t require one, you can still create an LLC operating agreement. The agreement is a legal document that contains details of the legal, financial, and management rights of each member of the LLC.
File An Annual LLC Report
Once your LLC is formed, you’ll need to file an annual report to update information concerning your LLC – which will require a yearly fee. So you need to work hard for your business to remain in good standing with your state to avoid any problems.
Conclusion
Setting up an LLC has many financial benefits for your business, as it’s a flexible option. LLCs are very easy to set up and maintain too. Simply fill out the paperwork correctly and create an operating agreement.