How to Create a Limited Liability Company (LLC)

Have you started your own business and now want to set up an LLC (limited liability company) as a measure of protection against being held personally liable for any business losses? It is relatively quick and easy to set up an LLC on your own and can be accomplished in a couple of hours.

Contact your secretary of state's office to get a copy of your state's Articles of Organization form and LLC rules and regulations.

Choose a name for your LLC. Check with your state when creating a name for your LLC. Some states do not allow certain words to be included in the name, and most require that you include LLC at the end. You will only be able to file your LLC if no other LLC has that name in your state.

Fill out the Articles of Organization form provided by your state. This typically includes your LLC's name, the purpose of your business, your business address, and the names of all partners.

Submit the form along with any fees the state requires.

Tips

  • Check to see if you need to submit a public notice of your intent to form an LLC to the newspaper. This is a requirement in some states.

Warnings

  • Ask about yearly taxes associated with an LLC. Although the filing fee may be low, sometimes the tax associated with the LLC annually can be expensive. If you are creating your LLC with others, make sure to create a legal agreement or LLC operating agreement as well.

References

  • SBA.gov: Limited Liability Company (LLC)

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