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How to Start an LLC Company

An LLC is a limited liability company. It is a combination of a corporation and a partnership with the advantage of offering more flexibility. Another advantage is that it offers more protection than the former two types of companies in that you can't personally be found liable for debt and you only owe taxes on your actual earnings. Forming an LLC is a simple, albeit time-consuming process. However, if you follow through on your steps to creating your company, you will be ready to print your business cards in no time.

Write and turn in your articles of organization. Include the address and name of your LLC. Name the representative who will be legally allowed to accept legal documentation on behalf of your LLC and provide his address. State the nature of your business and members with whom you share responsibility. Make sure that you and your members have signed the document before turning it into your Secretary of State.

Draw up your LLC operating agreement. This is necessary to lay out the ground rules of your company. Include the percentage interests of each member. State how profits will be divided, usually according to the amount invested by each individual. The same goes for profit losses. State clearly the expectations and responsibilities of each member. Include rules for meeting procedures, voting, buyouts and provisions.

Get your business license. After you have completed the proper steps for all of your paperwork you are ready to obtain your business license and, if needed, necessary permits. You can usually do this at your local county clerk's office. They will be able to guide you through this process easily. The fees are usually very little and once this final step is complete, you will be the proud member of an LLC.

Choose your company name. Most states require that you include "LLC" in your company name. Choose a handful of names that you like. The reason for this is that you will now have to conduct an availability search. Your county clerk's office will have a list of fictitious business names in your area and sometimes the entire state. You can also Google your company name to see if there are any companies operating under a similar title. This is necessary because trademark law prohibits a business from operating under a similar name that could cause confusion or steer business to any company besides the original namesake. Once you have completed this process you can register your company name.

Difficulty: Moderate

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