If you are starting a small business, it is important that you have it legally structured. And one way is through Limited Liability Company (LLC). This is a hybrid of the limited liability of the corporation but still, flexible and does not have that many formalities in partnerships and sole proprietorship. So if you are thinking of starting an LLC, then here are the basic steps that you can follow.
Select the State
The best option for most business owners is to form the LLC in the state where they are residing and where they want to start their business. But there are also options where you can set up the business in a different state. And if you know that you will have a physical store or office for your business in another state, then you have to make sure that you register your business for a foreign LLC in that state.
Choose A Name
Once you are sure of the state, then you need to pick a name for your LLC. When picking one, remember that the name of your company should include “LLC” or “limited liability company. Remember that it should not include words that will make others confuse it of a government agency.
Choose an Agent
You then have to choose a registered agent who will send and receive the legal papers on your behalf. There are plenty of registered agent services these days, as the Northwest Registered Agent. But before you pick one, make sure that you read reviews and compare offers and prices. This will ensure that you are choosing the right one who can help form your LCC.
File Your LLC
The next thing to do is to officially create the LLC. To do this, you need to file your formation documents with the state. Many business owners are filing this themselves, but there are others who use LLC formation services. Before you do so, know the state filing fees and what the requirements are.
Create an Agreement
An LLC operating agreement needs to be done next. This is a legal document that will outline the ownership structure as well as the roles of the LLC members. There are states that will require you to operate without an agreement, while other states don’t have this requirement.
Get The EIN
Once the agreement is set, the next step is to get an Employer Identification Number or EIN. This acts as the Social Security Number for your LLC. You have to remember that you will need to the EIN in order for you to start hiring employees legally. You will also need the EIN to open a business bank account.
Do you want to read more about LLC formation services? Then you should read about the review of Northwest. Northwest Registered Agent is just one of the many that offer business formation services. You can use the information that you find here and compare it to help you find the best who can help you form an LLC whether locally or in another state.