Apply for an LLC: Everything You Need to Know
To apply for an LLC, you must register at the secretary of state office in your respective state. An LLC is a business entity that mixes the pass-through taxation features of a sole proprietorship or partnership with the liability protections of a corporation.3 min read
To apply for an LLC, you must register at the secretary of state office in your respective state. An LLC is a business entity that mixes the pass-through taxation features of a sole proprietorship or partnership with the liability protections of a corporation. LLCs not only safeguard personal assets, but allow you to claim business profits on your individual tax return. In addition, LLCs provide multiple taxation avenues, such as an S corp tax designation, or the ability to be taxed as a sole proprietorship.
An LLC is also the most popular entity type in the United States. When it comes to an LLC breakdown, the responsible party is an individual with a certain amount of control over assets or funds of the business. This allows the individual, whether directly or indirectly, to manage or control the dispensation of assets and funds. If an LLC has more than one owner, a sole representative of the business must be responsible for getting a tax ID number for the LLC.
In essence, an LLC may contend with multiple owners, and there should be a lone responsible party that obtains a tax ID, among other duties.
A primary advantage of an LLC is that owners are only liable for business debts based on his or her investment in the LLC. Such protections are one of the reasons why LLCs are a popular choice among small business owners in the United States. Applying for an LLC is not a hard process, but you need to follow certain steps to ensure that you file properly. The application process is simple, and many states offer online registration. Also, you can mail in your LLC application and pay the filing fees accordingly, or you can show up in person and register.
States have differing guidelines when it comes to LLC registration, which is why you should make sure you are familiar with the guidelines within your state.
Choosing a business name is a vital step in the LLC process, and you should make sure it is a name that will be recognized by the government of your state. You should also choose a name to properly market your business to customers or clients. For instance, choose a name that links your business to your brand identity. Also, you must make sure that the name itself complies with state guidelines.
• **Step One: Regardless of the name, the business name must have a designator in the form of “LLC” or “Limited Liability Company.”
• **Step Two: You also cannot use restricted words. For instance, you cannot use words such as “bank” or “insurance” in most cases. You should check with your state requirements to see if other names may be restricted.
• **Step Three: Ensure that the name does not violate trademarks or existing LLC names. You can check the Trademark Electronic Search System (TESS) to see if your intended name would infringe on other trademarks. You should also search the state database to see of an existing LLC is using your intended name.
After, you may register the name if it is not already taken. Also, you may reserve the name until you complete the registration process. Doing so ensures that nobody takes your name as you register your business entity. In most cases, however, your business name is already reserved once you file your articles of organization document.
• **Note: You should also buy the domain name of your business, even if you do not intend to establish an online presence. This prevents others from using your business name on the internet.
Most states operate under a fictitious name, but you may also operate your LLC under a different name. If so, you need to register a separate a doing business as (DBA) name. A DBA is also a trade or assumed name that’s different from your official business name. However, not every state demands official registration of a DBA. To be on the safe side, check your state guidelines to see if you would need to register a DBA name.
Articles of Organization
After deciding on a name, prepare the articles of organization, which is the basic document that creates your LLC. You can obtain an articles of organization document from the secretary of state office, or you can download a blank template online. The required information varies by state, but you only need to fill out such information as:
• Business name
• Business address
• Ownership structure
To apply for an LLC, submit your legal inquiry to our UpCounsel marketplace. UpCounsel’s lawyers will guide you in successfully registering an LLC and will give you deeper insight into how you should manage your business. Also, our attorneys will help you maximize vital tax advantages that you can use to your advantage.