Forming a Limited Liability Company (LLC) can seem like an overwhelming task especially if you consider the penalties associated with missing compliance deadlines or not filing official documents properly, which can cause the state to dissolve your business. Here are the 10 steps on forming an LLC to help you avoid just that.

10 Steps on How to Setup an LLC

Select Your State

Get a Copy of Your State’s LLC Articles of Organization Form

Decide On A Name For Your Business

The name should also end with an LLC designator like “LLC” or “Limited Liability Company”.

Pick A Registered Agent

Choose Between Member vs. Manager Management

Prepare the LLC Operating Agreement

It may also have clauses on who can contribute additional funds and the circumstances under which a member can leave among others.

File Your LLC with the State

· Name and address of LLC

· Length of the LLC’s existence

· Name and address of the registered agent

· Purpose of the LLC

In most states, the filing needs to be done with the Secretary of State. A filing fee is also required. This process might be overwhelming for some, so hiring a good LLC service provider can definitely help.

Comply with the Regulatory Requirements and Taxes

You will also need to comply with all regulatory reporting requirements and taxation liabilities to set up an LLC, such as franchise tax and property tax.

Obtain Certificate from the State

File Annual Reports

Optional Steps

You need to obtain a federal tax identification number or federal employer identification number (EIN / FEIN) for your business or corporation to conduct business activities. One example of this is hiring employees for your business or corporation.

These additional steps after LLC formation can also be handled by your chosen LLC formation company or legal services. Some of the companies that offer these additional services are ZenBusiness, LegalZoom, Inc file, and others.

Register Your LLC in the Other States

If you want the LLC to conduct business in one or multiple states other than the one you’re registered in, then you will need to register your LLC in all those other states as well. For this, you will need to fill out and submit similar paperwork pertaining to your business and also get a registered agent at each of these states.

Frequently Asked Questions

Can I set up an LLC myself?

Should I use a lawyer to form an LLC?

What is the average cost to set up an LLC?

What is the fastest way to set up an LLC?

Conclusion

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I’m Daniella. I love to try different stuff and share my feedback and my thoughts about them. Hope you enjoy my blog. Thank you!

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