The gratifying thing about forming a LLC is that they are affordable and easy to set-up. Yes, you heard right. It is easy to form a LLC (Limited Liability Company). Despite the far spread of the rumor, the truth is that you do not need a lawyer or use the service of a formation company to set up your LLC. Although I would highly recommend using an incorporation service to do the filing for you because of the value they can provide at such a low price.
Forming a LLC – 4 Easy Steps
In 2013 there are so many factors you need to consider in forming a new business, so we want to make it easy for you to set-up the LLC structure. So here are a few steps to help in the process.
The steps you need to follow to form a LLC are:
- Check out the availability of the name you choose
- File the articles of organization
- Set-up The Operating agreement
- Acquire the Employer Identification Number
Getting Starting Forming a LLC
Below we discuss the specifics for forming a llc in your state. However, if you want to make life simple, save some time and get the llc formed properly, consider using a service to do it for you. You can get a discount of $50 off with Incorporate.com to form your llc just by clicking here. For instructions on using the discount code go to Incorporate.com Coupon Code
Name accessibility: The first thing you need to do in order to form a LLC is select an available name for your business. At absolutely no cost, you can check if the name you want to use is accessible and is not used by an existing LLC business, corporations, etc. Many states do not ask you to decide on the name before structuring your LLC. There are a few states that still have not set-up online search databases, but the majority do have them. This way you can go directly to the Secretary of State’s website and look up the name you are thinking about using to form your business. If the name is already taken you can always use a variation of the original name. For example, if Apple Industries, LLC is taken, try something like Apple Global Industries, LLC.
Form a LLC: With your Secretary of State’s office, file your LLC articles of organization. Based on specific state requirement, you may need to publish your intent of starting a LLC in the local newspapers. The states that ask for it includes New York, Arizona, and Nebraska. Pennsylvania requires publication for Corporations. The articles of organization is easy to prepare! All you need to do is fill up the blanks and check the boxes in the LLC form that will be provided by the Secretary of State’s office. Many states provide this form online. The data required will be the name of your business, address, and your business goal. It’s that simple and helps you in keeping your money for better use in the future.
LLC Operating Agreement: When you form a LLC, it is very important to have a LLC Operating Agreement that will define the privileges and responsibilities of LLC members. The LLC Operating Agreement is a very important document that can help stem and clarify future issues between members. This agreement outlines the business and financial arrangement of the LLC members. The agreement should include important information relating to:
- voting rights
- Withdrawal of the profits
- Ease of leaving the company or dissolving their contribution.
- Payment to be made when an owner leaves the company.
- If an exiting owner can sell his/her interest, etc.
It is highly recommended to create the operating agreement when you form a LLC.
Federal Tax ID Number or Employer Identification Number (EIN): The employer identification number is used to categorize a business. Every business requires an EIN and you can get it, without any charge, from the IRS website. The EIN is also used when filing the federal income tax return for the business.