1. Name Your Business
When creating an LLC, you will need to choose a name for your business. The name must be unique and cannot be the same as an existing business in your state. You can check to see if a name is available online or through the Secretary of State's office.
2. Prepare Your LLC's Operating Agreement
An operating agreement is a legally binding document that sets out the rules and regulations for your LLC. It is not required by law, but it is highly recommended to have one in place. The operating agreement should include details such as how profits will be shared, how members can remove other members, and what happens in the event of a disagreement.
3. File Your Articles of Organization With the State
In order to create an LLC, you will need to file articles of organization with your state's Secretary of State office. This document simply states that you are forming an LLC and provides some basic information about your company. There is usually a filing fee associated with this process.
4. Receive Your State Certificate of Organization
Once your articles of organization have been filed, the state will issue you a certificate of organization which confirms that your LLC has been created. This document will include your LLC's name, address, and purpose.
5. Apply for an Employer Identification Number
An Employer Identification Number (EIN) is a nine-digit number assigned by the IRS to identify businesses for tax purposes. You will need an EIN for your LLC regardless of whether or not it has employees. You can apply for an EIN online or through the mail.
6. Obtain Any Necessary Licenses and Permits
LLCs are subject to the same licensing and permitting requirements as other businesses. You will need to contact your local licensing authority to find out what is required for your business.
7. Open a Business Bank Account
It is important to keep your personal and business finances separate, so you will need to open a business bank account for your LLC. This will make it easier to track expenses and prepare financial statements.
8. Operate Your Business Within the Bounds of the Law
As an LLC, you will be required to follow all state and federal laws that apply to businesses in your industry. This includes things like filing annual reports and paying taxes. Failure to comply with the law can lead to serious penalties, so it is important to stay up-to-date on any changes that may affect your business.