Starting an LLC Checklist

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.

Checklist for 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:

Choose a company name.
Select a registered agent.
Submit the Organizational Articles
Make a business agreement.
Obtain an EIN

Let’s go through each item on the LLC setup checklist.

Step 1: Select a Name

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:

Considerations for Marketing
You want your brand to be simple to advertise. This might imply various things for different companies, but typical guidelines include keeping names brief, memorable, and simple to say. Some business owners choose descriptive names so that prospective clients can quickly figure out what the firm performs.

Considerations Legal
Every state has its own set of laws and regulations regarding company names. Most states require that the name be “distinguishable” from any other registered business name in the state, that it not be deceptive about the company’s activities, and that it include the words “limited liability company,” the abbreviation “LLC,” or something similar.

DBA (Doing Business As) Name
You may also explore obtaining a DBA, which would enable the LLC to operate under a name other than its legal one. This is important if your company has many brands or services.

Domain Title
It’s a major benefit if your company name is already accessible as a web domain. If the domain is not accessible, there are frequently inventive alternatives.

Step 2: Select a Registered Agent.

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:

Is at least 18 years old
Has a physical address in the state where the company was founded.
Is accessible during regular business hours (in person)

However, it is typically a good idea to use the services of a registered agent. Hiring a registered agent service has a few advantages:

Observance of the law
Mind-set tranquillity
Flexibility
Privacy

Step 3: Submit the Organizational Articles

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.

Step 4 Create an Operating Agreement

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:

Voting and Organizational Management
Distributions Capital Contributions Membership Changes Dissolution

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.

Step 5: Obtain an EIN

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:

Your company employs people.
Your LLC has several members.
Your LLC is required to submit excise taxes.
Nonwage income paid to a nonresident alien is taxed by your 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.