Forming your own business is not easy. You will need to rely on years of expertise and long hours of hard work to successfully get off the ground. While there is of course risk involved when starting your own business, there are measures you can take that will better position your organization to succeed. With the right planning, you can greatly mitigate risk, and one way of doing that is to create a Limited Liability Company (LLC). An LLC is a legal structure that establishes your business as its own entity. If you have done the research and decided that this is an intriguing option for your business, you may be wondering how do you start an LLC company?
Before you start assembling the correct documents, you may want to acquaint yourself with some of the perks in forming an LLC. For one, they offer flexibility in their management structure. While a corporation will need a board of directors and has to answer to shareholders, an LLC can pretty much be run however its members see fit. An LLC will also provide limited liability protection, so if your business is sued, you can protect your personal assets.
Another tantalizing aspect of forming an LLC is the pass-through tax status you can receive from the Internal Revenue Service (IRS). Money that is generated by your business will not be taxed by the IRS off top. Instead, that money will flow through to the members of the LLC who will then pay income taxes.
Gathering the Correct Information
Every state in the U.S. allows you to form an LLC. While there are generally similarities across the board in terms of how this is done, you will want to consult with the state in which you are forming your LLC to fully understand their requirements.
In general, you will want to choose a unique name for your LLC. Nearly every state requires that businesses have names that are wholly distinguishable from other LLCs of record. You will also want to prepare an LLC operating agreement. While your state likely won’t require this, it is a prudent business practice. Your operating agreement will outline how your business will be run, as well as where management responsibilities will fall. This set of guidelines can also be used to lay out a profit-sharing agreement.
How Do You Start an LLC Company? By Working WIth Us
With all of your pertinent details and formalities in place, you can set about to complete your articles of organization. This document, which must be submitted to your local Secretary of State’s office, will need to be completed in order to establish your LLC. You will be prompted to provide the name and address of your business, some information about your LLC’s members, and contact details for your registered agent.
At Corporation Center, we offer easy-to-use web forms to create an LLC. We have state-specific forms for all 50 jurisdictions, and we make it clear exactly what information needs to be provided. To learn more, take a minute and browse our site’s navigation menu. You can also contact us by phone or email with any questions you may have.