Forming LLC

Forming LLC

Forming an LLC (limited liability company) is not as hard as most people think. Here are the steps you need to take to make your LLC a legal reality.

Name for Your LLC - Choose an available business name that complies with your state's LLC rules. The name cannot be the same as the name of another LLC. The name must end with an LLC designator, such as "Limited Liability Company" or "Limited Company.

Filing Articles of organization - File formal paperwork, usually called articles of organization, and pay the filing fee (ranging from about $100 to $800, depending on your state's rules). After settling on a name, you must prepare and file "articles of organization" with your state's LLC filing office. While most states use the term "articles of organization" to refer to the basic document required to create an LLC, some states call it a "certificate of formation" or "certificate of organization."

LLC Operating Agreement - Create an LLC operating agreement, which sets out the rights and responsibilities of the LLC members. In an LLC operating agreement, you set out rules for the ownership and operation of the business.

Publication Requirements - Publish a notice of your intent to form an LLC. You must publish a simple notice in a local newspaper, stating that you intend to form an LLC. You are required to publish the notice several times over a period of weeks and then submit an "affidavit of publication" to the LLC filing office.

Licenses and Permits - Obtain licenses and permits that may be required for your business. These may include a business license, a federal employer identification number, a sellers' permit, or a zoning permit.

Advantages of LLC formation

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