How to form a Limited liability company

How to Form a Limited Liability Company (LLC)
What do I need to form a LLC?

Forming a LLC (limited liability company) is straightforward in most cases. Follow these steps and you'll be on your way to LLC ownership.

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Step 1
1. Select a business name for your LLC. The name must be available in your state (not in use by someone else). In most states, you can search the state records online. For example, in California search for "California business search" and the link usually will come up in your search result. Your LLC name must include either one of the words or letters such as, "LLC, L.L.C., or Limited Liability Company, such as Mary's Cakes, LLC. The comma after the business name and before the LLC designation is optional. The best way to ensure that your name remains available for you is to file a LLC name reservation. The reservation allows you time (usually 30-60 days) to figure out the information needed to form the company such as address, members, and other details.

Step 2
2. Find the state form of certificate or articles of formation or organization for the LLC. Be sure to read all the instructions that usually accompany the state form and complete the information. At this time you'll need to determine whether your LLC will be member-managed (meaning all members will run the company together) or managed by a manager (the members designate one person to handle the management). You'll also want to designate a Registered Agent as required by each state. American Startup is an approved Registered Agent and can assist you in fulfilling that requirement. Order registered agent service here.

Step 3
3. Submit your LLC form to the state with the appropriate filing fee ranging anywhere from $100 to $800 depending on your state. If your state offers an opportunity to obtain a copy of the document, order that too. The copy cost is usually only a few dollars more. Submit your LLC forms to the state here.

Step 4
4. Prepare a operating agreement for your LLC. The operating agreement helps the members (and manager or managers, if selected) run the company by setting up the rights, procedures, and goals of the company. Nearly every state requires the LLC to have an operating agreement. The operating agreement also outlines the percentages of ownership of each member if, particularly important if ownership is not split equally. Have all members and any managers sign the operating agreement.

Step 5
5. Obtain a taxpayer identification number for your LLC. You may use IRS Form SS-4 or use the online taxpayer identification number application. Once you have your tax ID, you'll be able to open a bank account in the name of the LLC.

Step 6
5. Find the state form initial report or statement of information. File your initial report with the state.

Order your LLC Formation Kit
The American Startup LLC Formation Kit contains all of the documents and forms needed to for your LLC.

Need more information? No problem! Contact us at (310)752-1157 or by email at service@american-startup.com