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How to Form an LLC Company in the United States

LLCs were first established in Germany in 1892, but not until 1977 did a U.S. state, Wyoming, provide for LLCs like Germany's The tax advantages, protection of members' personal assets, and ease of structure make it a great choice for many businesses. Forming an LLC, or Limited Liability Company, in the United States is simple and can be accomplished fairly quickly. Check with the secretary of state's office in your state to be sure your business qualifies before forming an LLC.

Develop an operating agreement. It details the rights and responsibilities of the members and is essential in operating a successful LLC. You can find sample forms on the Internet. Make sure the agreement contains information on voting rights, on dealing with profit and losses, and on buyout procedures. Check with your state to see if you must file a copy; not all states require it.

File the articles of organization. You can find this short form on the secretary of state's website. You must document the business name, address of record, and information regarding the members. There is a fee for filing the form, which differs among the states. Keep a copy of the form and submit the original to the secretary of state's office.

Choose your LLC's name. There cannot be another LLC with the same name in your state. Check with your secretary of state's office for available names.

Difficulty: Moderately Easy

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