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What steps are necessary for creating an LLC?

Are you thinking of starting your own business? If so, one of the first things you must consider is what type of business entity you will create. While different options exist for the type of legal entity your business will be, many people choose to create a limited liability company or LLC. An LLC can offer tax and personal liability benefits, but in order to start one, you need to ensure you have all the steps in place.

This first step is deciding on a business name. Generally, no special parameters or limitations exist for the name you choose. The only stipulation is that the name must include the abbreviation LLC or some variation of the phrase "limited liability company." After deciding on your business' name, you must then check its availability. Several online databases as well as your state's filing office can assist with your search. Once you have found a unique name for your business, you must then register it. Typically, the process of registering your LLC will also register your business' name with the appropriate state office.

Along with registering the name, you must also create operating agreements and articles of organization. These documents will explicitly lay out the structure of your business and each needs to be filed with your state's Secretary of State office.

Finally, you must secure the necessary permits and licenses required to legally do business in your state. The type of products and services your business will offer will determine what types of licenses and permits will be required.

Starting your own business can be exciting -- and hopefully lucrative -- but without proper planning and registration, you can end up failing before you even get started. If you know you want to set up your business as an LLC, you will need to consult with an attorney experienced in business law to ensure you have all your bases covered.

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