Setting up an LLC in Your Home State is Easy
Limited Liability Company or LLC is relatively a new form of business entity. All the 50 states have passed resolutions to accept LLC’s as a valid legal entity. Rules and regulations for forming LLC vary in each state. Setting up an LLC in your state must be done in accordance with your state laws. Refer to your to state agency dealing with LLC registrations to get the exact details and formalities to form LLC.
Setting up an LLC in your home state is easy and simple as is in most states. All states provide online resources on the formalities and procedures required for setting up an LLC. Generally business registrations are handled by the Secretary of State or Corporations Commissioner’s offices. In some states it is the revenue division that handles the process. These agencies provide detailed instructions in setting up an LLC. You may have to consult a lawyer to draft your LLC operating agreement if your state laws stipulate filing the same for a valid registration.
Some of the basic steps and requirement in forming an LLC are:
LLC Name
You need a name to register your LLC in your state. It should be a valid name and must end with ‘Limited Liability Company’ or ‘LLC’ or a derivative which clearly states the limited liability status of the company. The name cannot be identical or closely similar to that of an existing business. Some states do have a name availability check option with their registration process.
Articles of Organization
This is called a Certificate of Organization in some states. To obtain a valid registration for your LLC you have to file an Articles or Certificate of Organization with the state and pay the required fee. This is a basic requirement with all states. All states indicate the information needed in the Articles in a pre-printed form or through instructions. You have to carefully understand the requirements, complete the form and sign it as the organizer.
Operating Agreement
Some state laws stipulate that the LLC operating agreement be filed along with articles for a valid registration. Anyhow, an operating agreement is crucial in the existence of an LLC. The most important fact is that it will provide individuality to the LLC.
Registered Agent
The LLC requires a local person or entity to act as its registered agent. The Articles or Certificate must contain the agent’s name and local address and the persons consent to act as the registered agent.
Public Notification
Some states require that a public notice be issued regarding the intent of forming the LLC with the proposed name.
As the requirements vary with each state, it is advisable to refer to your states regulations to form LLC.
