Creating Your Own LLC – 5 Steps to Creating Your Own Limited Liability Company

creating your own llc

Creating your own llc is a great way to grow your business and take advantage of the limited liability protection it offers. It also simplifies the tax process by separating your business’ assets, debts and liabilities from your personal assets and income.

Choosing Your LLC Name

The name of your business is one of the most important decisions you will make. It should be legal, unique and brandable – something that will attract clients to your business.

State-specific requirements for naming your LLC vary. Look for words that aren’t too similar to other businesses in your area and avoid using prohibited or restricted words such as “banking,” “banker,” “engineering” or “insurance.”

Filing Articles of Organization

The first step in forming an LLC is filing articles of organization with your state. These documents outline the details of the LLC and list the names of all members. The forms are typically available from your state’s Secretary of State but can be filed online as well.

Creating Your Own LLC: Everything You Need to Know

A registered agent is an individual or business entity that accepts and forwards official mail and service of process on behalf of an LLC. They can be the owner of the LLC or a third party, like a lawyer, who agrees to receive these documents and correspondences on your behalf.

Creating Your Operating Agreement

An LLC operating agreement is an essential document that describes how profits will be distributed, who owns what percentage of the business and how the management structure works. It’s not required by every state, but it’s worth having in place for a number of reasons.