LLCs are a fairly new type of business entity that are becoming very popular. It can provide tax advantages without the strict formalities of a corporation. Check with your state's Secretary of State office to make sure your business meets the necessary qualifications prior to forming your LLC.
Create an operating agreement. Although not required in all states, an operating agreement will define the rights and responsibilities of the members. At a minimum, this document needs to include the voting rights of the members, how you will handle profits and losses and buyout procedures. Businesses often make the error of waiting too long before preparing this document.
File the Articles of Organization. Obtain an Articles of Organization form from the Secretary of State's website. It is a simple form that only requires a few pieces of information including the business name, address of record and members' names. Complete the form--keeping a copy for your records--and mail to the address on the form with the fee indicated. Fees range from a small amount to hundreds of dollars depending on the state.
Choose your LLC name. This can be a difficult process if you have a common business name. Your business name must not match any other name already registered in your state. Check the Secretary of State's website for your state to search for available names.
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