To Setup your LLC has never been easier, or quicker. For any small business owner looking to get started there are only a few procedures to follow, documents to file, and fees to pay, however, don’t let these deter you from starting if you think it is overwhelming or too complicated. This article will guide you through the steps to follow and what you need to do when you apply for your LLC, specifically what you can do after you applied for your LLC.
The LLC application procedure can be organized in two parts, according to your formation files (also known as Articles of Organization), these are formal documents that give all the details of your LLC and allow your LLC to be officially registered with the state. Let’s take a look at the process before you send your formation files to the state and after you have sent them to the state for approval.
What You Need Before Filing Your Formation Files with the State
1. Choose Your State
An important part of starting your LLC is knowing where it will be; recommended advice is to start in the state where you live. If you choose another state you will need to apply for a Foreign LLC.
2. Choose Your Business Name To Setup Your LLC
After you decide a business name, remember the following:
- With your business name, the term ‘LLC’ or ‘Limited Liability Company’ needs to be added, this is usually at the end of the name.
- Avoid names or words that will be too similar to government agencies, for example, the FBI.
- Words like ‘University’ or ‘Attorney’ are considered restricted words, however if these are used you will need to provide proof of a licensed professional as part of the business.
3. Choose Your Registered Agent
Registered agents (either a person or business) assist with sending and receiving legal paperwork for your business. They need to be residents of the same state that you operate in, and if it isn’t in the same state they need to be authorized to do business in the state.
What You Need After Filing Your Formation Files with the State
Once you have your business location, name, and selected registered agent, you will also need to select any members as part of the LLC, the duration, start date, and purpose of the LLC. With this information, which makes up your Articles of Organization, you can file it with your state and wait until they are approved.
In the meantime, you can start doing the following:
4. Operating Agreement to Setup Your LLC
An Operating Agreement will indicate the ownership structure of your LLC, as well as what the roles will be for each member.
5. EIN (Employer Identification Number)
You will need to set up an EIN if you have more than one member in the LLC or if you plan to have employees.
6. Business Finances, Accounting, and Taxes
To avoid risks it’s important to open a business bank account and not use your personal bank accounts, additionally, your business will need to register for tax (depending on the location and type of business).
To remain organized in your finances it will be worth your while to use accounting services online or hire an accountant.
7. Business Insurance to setup your LLC
Insurance is very important for your business; a General Liability Insurance is recommended when you start your LLC because this offers protection for your physical assets including any legal matters like lawsuits.
8. Business Licenses and / or Permits to setup your LLC
When starting your LLC, depending on the type of business you do, you will need to determine if you need any specific licenses or permits in order to operate your business, for example, if you own a restaurant that sells alcoholic beverages.
Starting your LLC does not have to be complicated, visit TRUiC’s website for more information and detailed steps to set up your LLC.