How to Create an LLC (Limited Liability Company)

An LLC is a business structure that gives you limited liability protection as well as pass-through taxation.

Regardless of what state you’re in, here are the steps you’ll need to take to form an LLC.

Choose a State

Most people choose to start an LLC in the state that they plan to do business in (usually the state you’re living in). The reason for this is that if you choose to form an LLC in a state you’re not doing business, you’ll need to file to become a foreign LLC in your actual state.

Choose a Name for Your LLC

In most states, you can reserve your LLC business name for a short period of time for a small fee (until you file your articles of organization).

Choose a Registered Agent

A registered agent is someone who receives important documents (like legal notices and tax documents) for the LLC.

This is usually done with your state’s corporate filing office, usually the secretary of state. In some states, this is called the certificate of formation, and in others still, it’s called the certificate of organization.

File Articles of Organization / Certificate of Formation

In today’s day and age, it’s easier than ever to become an entrepreneur and start your own business. If you want to grow, though, it’s likely that you’ll need to incorporate at some point in time. At that point in time, you’ll need to know how to create an LLC.

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