Starting a LLC

By Lanee' Blunt

A limited liability company LLC is a business that is similar to a partnership. A LLC has legal protections of personal assets that a corporation has but does not have the same formalities of paperwork and fees that a corporation has. LLC’s are popular because of their similarities to a corporation where owners have limited personal liability for the debts and actions of the LLC.

File an article of organization with your secretary of state’s office

The exact rules for setting up your LLC do vary from state to state. SBA.gov will navigate you to the proper state where you can apply for the LLC. Your secretary of state’s website will provide you with the rules and fees involved.

Agreement for your LLC

Write an agreement for your LLC that states the arrangement and details, percentage of ownership of members, roles, and responsibilities.

Lawyer

Hire a lawyer to read your paperwork this is not mandatory. Yet, it is helpful to make sure that your operating agreement has your interest protected.

Mail your Application

If you mail the application instead of handing it in person, everyone who is on the application has to sign the form. You will need to include a photocopy of each driver’s license or state ID card with the application.

Tips

LLC limits your personal liability and are simpler to form than corporations.

In some states you may apply online or download an application to mail it back.

Reference:

IRS: Limited Liability Company (LLC)

The Wall Street Journal: How to Form an LLC

Posted in: Start Up