Form LLC
A few or all of the processes listed below may be unnecessary in the state in which your limited liability company will be formed. More specific information on how to make LLC legally may be obtained from your state’s department of commerce.
1. Choose a Business Name
Take some time to consider what you want the name of your new LLC to be. There are crucial legal factors to keep in mind while selecting a name for your business or organization, such as whether or not the name has already been used.
Your limited liability company’s business name must first reflect the fact that it is an LLC. That’s why you will need to create LLC or limited liability Corporation to your official name. You also can’t have any terms in your LLCs name that are prohibited by law in your state. The use of terms like bank and “insurance” is often prohibited in the majority of jurisdictions. Make sure your proposed company name doesn’t include any of the forbidden terms listed for your state.
Make sure your company’s suggested name doesn’t conflict with any trademarks that already exist. The United States Patent and Trademark Office (USPTO) maintains a database of registered trademarks and prior pending trademark applications that may be searched online through their Trademark Electronic Search System (TESS).
2. Check the Availability of Your Business Name
Take some time to consider what you want the name of your new LLC to be. There are crucial legal factors to keep in mind while selecting a name for your business or organization, such as whether or not the name has already been used.
Your limited liability company’s business name must first reflect the fact that it is an LLC. That’s why you’ll need to add LLC or limited liability Corporation to your official name. You also can’t have any terms in your LLCs name that are prohibited by law in your state. The use of terms like “bank” and “insurance” is often prohibited in the majority of jurisdictions. Make sure your proposed company name doesn’t include any of the forbidden terms listed for your state.
Make sure your company’s suggested name does not conflict with any trademarks that already exist. The United States Patent and Trademark Office (USPTO) maintains a database of registered trademarks and prior pending trademark applications that may be searched online through their Trademark Electronic Search System (TESS).
3. The Three Steps to Registering a DBA Name
If you want to use a name other than the business name for your limited liability company (LLC), you must register a “doing business as” (DBA) name. DBA stands for doing business as, and it’s a term used to describe a name other than your LLC’s actual registered business name. In order to find out what steps you need to take in your state to legally utilize a DBA name, you need to contact the relevant authorities.
4. File Your LLC’s Articles of Organization
Articles of Organization must be filed with the state government in order to establish a limited liability company. Most states refer to this document as “articles of organization,” although yours may use a different word, such as certificate of formation.
You may get the articles of organization from the state’s business or filing office, and it’s usually a simple form to fill out. Downloadable blank versions of the form may be available on several states governments’ websites. Information requirements may vary by state, but often all you’ll need to do is include your LLCs name, address, and members.
After completing the articles of organization form, you must submit it to your state along with the required filing fee. Articles of incorporation are typically filed with the Secretary of State, however, this may vary from state to state. The SBA website has a directory to state agencies that assist entrepreneurs. Learn more about where to submit your articles of incorporation and what fees, if any, your state requires by clicking on the appropriate link below to access your state’s department of commerce.
5. Appoint a Registered Agent
An LLC must have a registered agent in most states. You must designate a registered agent, also called an agent for service of process, to act as the companies official point of contact for receiving legal processes, official government mail, and other compliance-related paperwork. Typically, a company’s registered agent will be a member of the companies LLC.
6. Draft an Operating Agreement
Though having an operating agreement for your limited liability company isn’t required in most states, it’s a really good idea. Important company choices need to be made internally, and an operating agreement may help set the stage for doing so. Common topics addressed in operating agreements include each member’s share of ownership, their respective voting rights and responsibilities, their respective powers and obligations, and the clauses controlling the transfer of members’ interests. Additionally, while operating agreements are not required from LLCs in most states, there are exceptions. The necessity of an operating agreement may vary from state to state; you should examine the laws in yours.
7. Fulfill the Publication Requirement
Publication of a notice declaring the creation of your limited liability company (LLC) in a local newspaper may be necessary in some states. If your state has a publishing requirement, you may learn more about what must be included in the notice, how often it must be published, and any other guidelines that apply by contacting your state’s business filing office.
8. Obtain Business Permits and Licenses
After setting up your limited liability company, you will need to apply for any necessary licenses and permissions. The specific permissions and licenses your business need will be determined by both state and municipal regulations, as well as the nature of your industry. The SBA website provides a directory of state business license offices.
9. Open a Bank Account for Your LLC
Your limited liability company must have its own bank account so that the business’s finances are kept separate from those of its members. The paperwork needed to create a business bank account for an LLC might vary between financial institutions. Before going to create an account for your business, you should call beforehand to check what paperwork is required.