Guide to Forming an LLC

When you want to start a business, it's important to know the various entities that you can form. Most people opt to operate either sole proprietorships or limited liability companies.  With a sole proprietorship, your personal assets are tied to the business. On the other hand, a limited liability company (LLC) separates your business assets from your personal ones.

It is important to know the advantages and disadvantages of any type of business entity you would like to form. If you have decided an LLC would be perfect for you, here is what you will need:

i)  Select a name for your business. The name should comply with your state's LLC rules. For example, in some states you may not be allowed to use certain words or conjunctions in your LLC name.

ii)  File the paperwork required. Generally, you will need an articles of organization for your business. This article indicates the management, ownership and status of the business. The document will have to be filed at your state's trade offices. The fees you will pay will depend on your state. Your can learn about LLCs or see the comparison of operating agreement vs bylaws.

iii)   The next item you will need is an operating agreement. In the operating agreement, you will need to state the rights and responsibility of the members of your LLC. You should consult a lawyer to help you come with an operating agreement.

iv)  In some states, anyone looking to form an LLC is required to publish a notice of their intent to form the company.

v)   Finally, if you have done all the steps above and there are no issues with your application, you will be given the licenses and permits that your business requires. For example, you will be given your LLC's seal.

Forming an LLC is not difficult, unlike many people think. In fact, in most states, you can form an LLC over the internet. You can sign up for company formation services to have your business registered in the state you would like. These services will handle everything for you, from carrying out a name search to creating the operating agreement and articles of organization for a small fee. In most cases, you can get your LLC approved within three to seven days.

Operating a limited liability company is a great option for entrepreneurs who would not like to risk their personal assets to the business. The above are the steps you will have to follow to form an LLC. Here are more tips for forming an LLC: https://www.huffingtonpost.com/ebong-eka/should-i-form-a-llc-or-sc_b_3749675.html.