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Best Way - Cheapest Way to Create an LLC

To create an LLC, a limited liability company, you must first register your business and file documents with your state government. Each state has different requirements, so you will start by finding out what your state requires. Every state calls for doing Articles of Organization as the preliminary process and charges a fee for filing the paperwork.

    Articles of Organization

  1. Don't let the legal sounding name intimidate you. The Articles of Organization is a set of information about your business. You will need to know the name of your business, the address where you will be conducting business and the date you wish the Articles of Organization to take effect.

    You will also need to name someone to be the registered agent (essentially be the person responsible for the incorporation paperwork) and give his address as the registered office. You will define the purpose of your company and how long you want it to be in existence. This term of existence can be perpetual or set a specific ending date of the LLC.

    Another piece of information you need to include in your Articles of Organization is a declaration as to whether the LLC will be manager-managed or member-managed. All owners or investors in a LLC are members. If the LLC is member-managed, each of these people has an equal right to manage and perform business for the company. In a manager-managed company, these people will choose amongst themselves to pick a manager who is authorized to do business. Addresses of the initial managers or members will need to be provided.
  2. Filing Your Articles of Organization

  3. You can submit your paperwork by mail or online. Some states charge a lower fee for doing the filling online, and in other cases you actually pay extra for online submission. You will want to check with your Secretary of State to see which is the best scenario for you.

    Whether you chose to mail in your paperwork or submit it online, be sure to keep a copy of the information for your records.
  4. Cheapest Way to Create an LLC

  5. Although many companies offer services to create your LLC, the cheapest way to do it is to simply fill out and file the paperwork yourself. Since you will have to pull together all the information anyway, you might as well put it into the form yourself. Whether you hire a company to form your LLC or do it yourself, you will pay the filing fee with your state.

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