Understanding How to Start Your LLC

How to Start Your LLC :

LLC stands for Limited Liability Company. The purpose of creating a LLC is to create a legal entity/ form a business. In order to create an LLC you have to file documentation reflecting your desire to form an LLC with the state's Secretary of State. The document you will file with the Secretary of State is usually called the  Certificate/Articles of Organization and accompanies a filing fee because the government have to get their cut.  The Articles of Organization will include: business name, location, and the names and address of the owners/members ( LLC's require one member), and a registered agent.

A registered agent is someone whom has a physical address in the state you are forming your LLC.  The purpose of a registered agent, is a person or entity that accepts legal papers on your LLC's behalf. Therefore, if you live in that state where the LLC is being formed you can be your own registered agent.

The Good Part:

Most states have streamlined the process allowing you to file the articles of organization online or by mail. Be mindful that there are a few states who may require you to publish an intention to form an LLC in the local paper.

Recommended:

Creating a LLC Operating Agreement is highly recommended which will allow you to structure your business, finances, and terms regard co-owners. Please note that an Operating Agreement maybe required in some states and other states require an Operating Agreement when the LLC has more than one member.