LLCs are a popular business how to establish a llc structure because they offer a number of advantages, including limited liability protection and pass-through tax status. But establishing an LLC requires careful paperwork and a plan for ongoing filings that comply with your state’s requirements.

Getting Started

Establishing your llc starts with choosing a name that complies with the state’s guidelines and filing Articles of Organization (also known as Certificate of Formation) to register your LLC in the state. This documents your LLC’s legal existence and establishes the company’s ownership, management and responsibilities.

Establishing a LLC: A Step-by-Step Guide

An operating agreement is a key document that states how your LLC will be run and the rights and responsibilities of its members, as well as how profits and losses are distributed. It’s especially important for multi-member LLCs and those who want added protection against personal liability, but it is also recommended for all small businesses.

Getting your Registered Agent Set Up

Each state has its own rules for appointing a registered agent, which accepts and forwards official mail or service of process on behalf of the business. If you decide to act as your own registered agent, make sure that you’re capable of receiving and handling this type of legal paperwork, and check with a lawyer or professional agency before making this decision.

Getting Your Articles of Organization Approved

Once you’ve chosen a name and filed Articles of Organization, the next step is to publish a notice of your LLC’s formation in two newspapers for six consecutive weeks within 120 days of the articles’ filing. Be sure to include a description of your LLC, as well as the full contact information for your managers and owners.