It is simple to form a limited liability corporation (LLC). We’ve also designed an LLC creation checklist to make things even simpler.
For small firms, a limited liability corporation provides liability protection and tax possibilities.
This Checklist for Starting an LLC outlines the actions you must follow while forming an LLC.
Our LLC formation checklist will assist you in getting your LLC up and running fast and simply. When establishing an LLC, you must complete the following:
Let’s go through each item on the LLC setup checklist.
Choosing a company name is a crucial step on the LLC checklist after you’ve chosen to establish a new firm. When naming your company, take the following points in mind:
A registered agent is required in most states for LLCs. A registered agent is a human or legal organisation that receives tax and legal paperwork on your behalf. A registered agent is also known as a resident agent, statutory agent, or agent for service of process in various jurisdictions.
A business owner or another person in the firm may serve as the LLC’s registered agent if they match the following criteria:
However, it is typically a good idea to use the services of a registered agent. Hiring a registered agent service has a few advantages:
The Articles of Organization are the state-required LLC creation documents. It’s known as a Certificate of Formation or Certificate of Organization in various states. You will include some basic corporate information in this paper. This might contain its location, registered agent, whether it is controlled by members or by managers, and its owners.
Depending on the state, multiple forms are available for filing online or by mail. The filing fee for an LLC varies by state, ranging from $40 to $500.
It is not difficult to file the articles of organisation, and you can typically do it yourself. Our state-specific How to File the LLC Articles of Organization instructions will help you through the procedure step by step.
An operational agreement is a legal document that defines your limited liability company’s ownership and member responsibilities.
An operating agreement is required by law in a few states (California, Delaware, Maine, Missouri, Nebraska, and New York), although it is optional in the others. However, for a few reasons, we suggest having one even if it is not essential.
For starters, an operating agreement may aid in the prevention or resolution of disagreements amongst LLC owners. Even if your firm is a single-member LLC, an operating agreement may give it legitimacy and guarantee that courts respect the organization’s limited liability status.
Operating agreements typically include at least six major sections:
You may build the contract in an easy-to-use question-and-answer style using our proprietary free LLC operating agreement tool. If you like, you may use our free operating agreement template. If you don’t want to write it yourself, you may hire an attorney to help you.
An Employer Identification Number (EIN) is your LLC’s equivalent of a Social Security number (SSN). It is also known as a Federal Employer Identification Number (FEIN) or a Federal Tax Identification Number (FTIN) (FTIN).
If any of the following apply to your company, you require an LLC:
Getting an EIN is an excellent idea even if you operate a single-member LLC with no workers. To create a business bank account, most banks need your LLC to have one. To learn more about why your LLC should obtain an EIN, see our article 7 Benefits of Getting an EIN.