3 Easy Steps in the Process of Forming Your LLC
Though many of the particulars involved can vary slightly by state, the general concept of how to form an LLC remains constant. Here we’ve outlined for you the steps we’ll be taking in the process of forming your LLC in any state. There are 3 basic steps:
(Step 1) Tell about your company
> Name Your LLC
The first part in the process of forming an LLC in any state is choosing a name that complies with your state’s rules. These rules can typically be found on your state’s secretary of state website. Though the rules can sometimes vary, you can expect to comply with at least the following guides:
- The name must be different from any other LLC operating in the state. We check your state’s database for name availability. You will provide us with 3 name choices for us to check the availability. Just be sure your company’s name does not violate the trademarks of any other company.
- The company must include the “LLC” or similar title in the moniker.
- Your company name is prohibited from including certain words like “bank,” “insurance,” or “corporation.” Again, each state may differ slightly on exclusions.
> Choose a Registered Agent
(Step 2) We File the Paperwork (Articles of Organization)
> We Create an Operating Agreement (optional)
Though not commonly required by state law, an LLC operating agreement serves much like partnership agreements or bylaws for corporate entities. They are essential for outlining the rules for ownership as well as the operation of your business. We can include the Operating Agreement with your new LLC for an additioanl $30 if there will be more than 1 member of the LLC. Typically an operating agreement includes the following information:
- Members’ percentage interests in the business
- Members’ voting power as well as rights and responsibilities
- How profits and losses will be allocated
- Means of management as well as rules for holding meetings and taking votes
- “Buy-sell” provisions, which outline procedures for if/when a member wishes to sell their interest, passes, or becomes disabled
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*After you get finished with your LLC, we highly recommend you Apply for an EIN
An IRS Employer Identification Number (EIN) is required for your LLC unless it is a single-member LLC with no employees. Obtaining an EIN is as easy as completing the application here on our site. The fee is just $59 to secure your EIN
Most limited liability companies and corporations will need to register with the Comptroller of Public Accounts. Most states also require LLCs to file annual reports with the Secretary of State, and some may have other requirements, such as filing an annual franchise tax report. You’ll need to check your state’s Comptroller of Public Accounts website to get accurate and updated information.