You want to start an LLC, but you’re not sure where to begin? At StartingAnLLCBusiness.com you can find step-by-step guides on starting your LLC for each state. It’s designed for the complete beginner who has never heard of an LLC before!
Starting a new LLC business is one of the most exciting and liberating things you can do. We will provide all the information you need to start your own LLC in a few easy steps. This step-by-step guide is going to walk you through the process of registering an LLC. We’ll tell you what is required to form your own company, and give some useful tips along the way.
Every state has its own law and regulation about forming an LLC. We will give you general guidelines for all 50 states so that you can get a sense of what is required in your area. You should always check with your secretary of state office to make sure you are following the correct process for your area.
The first step in creating an LLC is to decide which state you will be incorporating in. The state constitutes where your legal company headquarters are; it decides the jurisdiction of your business and therefore affects how courts may rule against disputes that occur in its territory. If you are planning on running a multi-state business then check out ‘National LLCs’ which allow you to operate multiple companies in different states under one central LLC.
Your company needs a name! It can be anything! If you already have one in mind then write it down right now. Make sure it is unique and memorable so you can easily find it when the time comes.
Laws also require that your company name be written in such a way that it does not resemble another, existing LLC or doing business as (DBA) name. The last thing you want is for your company to get snared up in legal problems because of a simple name mix-up!
A registered agent is an individual (it can be you!) who has registered with the State Secretary’s office as being the point of contact for your company. This person will act as secretary to your LLC, taking on administrative tasks like serving court summons and maintaining minutes and files of corporate meetings. Your registered agent will be handed all legal documents that come your company’s way and is expected to forward them to you without conversing with the sender.
The state government will not acknowledge your new company as a legal entity until you have filed the required documents. These can be done through the Secretary of State, online or on paper. Once you have filed them then you are officially an LLC!
For compliance purposes, all LLCs are required to file an Annual Report with the state. This report contains information about your company’s structure, profits, and officers. It needs to be filed in order to keep your LLC active and IRS-compliant.
An operating agreement is the most important document you will need when starting up your LLC because it sets out in detail how the business should be run, it also allows you to outline what your relationship with partners are and explains their rights as well as responsibilities.
That’s it! You are now in charge of your own LLC!
The first step in creating an LLC is to decide which state you will be incorporating in. The state constitutes where your legal company headquarters are; it decides the jurisdiction of your business and therefore affects how courts may rule against disputes that occur in its territory. If you are planning on running a multi-state business then check out ‘National LLCs’ which allow you to operate multiple companies in different states under one central LLC.
Your company needs a name! It can be anything! If you already have one in mind then write it down right now. Make sure it is unique and memorable so you can easily find it when the time comes.
Laws also require that your company name be written in such a way that it does not resemble another, existing LLC or doing business as (DBA) name. The last thing you want is for your company to get snared up in legal problems because of a simple name mix-up!
A registered agent is an individual (it can be you!) who has registered with the State Secretary’s office as being the point of contact for your company. This person will act as secretary to your LLC, taking on administrative tasks like serving court summons and maintaining minutes and files of corporate meetings. Your registered agent will be handed all legal documents that come your company’s way and is expected to forward them to you without conversing with the sender.
The state government will not acknowledge your new company as a legal entity until you have filed the required documents. These can be done through the Secretary of State, online or on paper. Once you have filed them then you are officially an LLC!
For compliance purposes, all LLCs are required to file an Annual Report with the state. This report contains information about your company’s structure, profits, and officers. It needs to be filed in order to keep your LLC active and IRS-compliant.
An operating agreement is the most important document you will need when starting up your LLC because it sets out in detail how the business should be run, it also allows you to outline what your relationship with partners are and explains their rights as well as responsibilities.
That’s it! You are now in charge of your own LLC!
LLC Formation Services make it much easier to form an LLC. We have found the best of these service providers and reviewed them so that you can make a more educated decision when choosing the right one for you.
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ZenBusiness offers all of the legal aspects that are required for your LLC business.
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If you are simply looking to incorporate online and get a no-nonsense service.
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One of the most affordable LLC formation services with a free option.
Choosing an LLC formation service provider can be a difficult and confusing decision. There are many considerations to take into account, such as the level of expertise required, the cost of services rendered, customer support and many additional features. This comparison table will provide an overview of LLC formation service providers so that you can make an informed choice about what is best for your needs.
| VALUE | USER FRIENDLY | CUSTOMER SUPPORT | ADDITIONAL FEATURES | OVERALL RATING | ||
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 | 3.5 out of 5.0 stars | 4.7 out of 5.0 stars | 4.5 out of 5.0 stars | 5.0 out of 5.0 stars | 4.4 out of 5.0 stars |
What is an LLC?
A Limited Liability Company is a company with the legal principle of limited liability which protects its owners from debts and obligations.
The LLC, or sometimes referred to as a ‘Limited’, was designed because of this need for protection. Its lengthier name, ‘Limited Liability Company’, was derived in order to distinguish it from S Corporations which require a slightly different set of rules.
The LLC is one of the most widely used business forms in the United States. This type of company structure was made possible after changes to state laws that took place between the 1970s and 1990s.
What is the downside to an LLC?
LLC’s have so many benefits, but the two main cons are:
1. LLCs are subject to Double Taxation which means that income and profits are taxed twice; once at the company level and then again at a personal level when distributed to owners.
2. Due to their pass-through tax status, LLCs may not receive as much tax reduction as corporations. This can make them more costly for small businesses and new companies who are looking at their balance sheets.
What state do I form my LLC in?
The first step when choosing an LLC is deciding on a location. You need to determine where you’re going to be doing business and which state’s laws will apply to your LLC.
If a company gets registered in the wrong state, it could be subject to back taxes and penalties.
One good way of deciding is by thinking about where you’ll be doing business. If you’re going to operate mainly online then it doesn’t really matter which state’s laws apply; just pick one that has an affordable fee structure.
Who should form an LLC?
If you are planning on starting a small business, an LLC can be useful. Here’s why:
If your business is profitable and has the potential to grow, it may make sense to form an LLC. An LLC limits your liability exposure in case anything goes wrong with your company. It shields you from personal bankruptcy if things go south. You’ll also have the legal protection of an LLC, which means that your personal assets will be protected and won’t be at risk in case of a lawsuit. An LLC is a good idea if you want to raise funds from investors or partners. Investors like the structure and protection of an LLC. When they invest in your business through a partnership, they are putting their own assets at risk. If your business is sued or fails, they can lose money. An LLC protects them from this risk since personal assets are shielded from company liabilities and debts.