How to Set Up an LLC: Everything You Need to Know
How to set up an LLC will depend on where you plan to open the LLC. Each state has its own criteria to form an LLC.3 min read
How to set up an LLC will depend on where you plan to open the LLC. Each state has its own criteria to form an LLC, which offers limited liability protection for LLC owners. Most states require similar processes to form an LLC.
Benefits of Setting Up an LLC
- LLCs are not taxed twice because LLCs are set up as flow-through business entities.
- Only LLC owners are taxed, not the company.
Frequently Asked Questions on How to Set Up an LLC
- I have an LLC that will be operating in multiple states. Do I need to file the paperwork in every state?
That depends on which states you will operate in. If you are operating in more than one state, then you will likely only have to form your LLC in one state. However, you may need to file paperwork in each of the states in which you do business. This could be as simple as filing a notice with the Secretary of State's office and possibly paying the associated fees. Some states will require you to file with a different office. Check with the requirements of each state that you will be doing business in to be sure.
- How do I go about filing to form an LLC?
You will start to form an LLC by gathering the information that you need to file your Articles of Organization. Each state should be able to provide you with a template or list of requirements for your articles. There will be a filing fee, although it varies, depending on the state that you are in. The length of time that it takes to process the paperwork and renewal policies vary as well. If you are not sure how to finish the paperwork, you can contact a lawyer for help. There are plenty of lawyers with the experience to help you, and most states have online filing systems that walk you through the process.
- My LLC is growing, and I want to expand into other states. What do I need to do?
If you want to expand your operation across state lines, then you will need to check the requirements of each state that you will do business in. That way, you can be sure of the filing requirements for those states.
- I had to change my company's name; do I need to refile?
If any of the information about your company changes, you just need to file to amend the paperwork that you already submitted. For example, you will need to amend your business address if your company changes locations. You can do this online or in person at the appropriate government office. There may be a fee to amend your filings.
- Are there any other filing requirements for starting an LLC?
In some places, you will need to take an additional step to start your LLC. In some states, you will need to publish a notice in local newspapers to announce the formation of your LLC. You will likely have to publish this notice multiple times over a set amount of time within the state. Then, you just have to notify the government by filing an Affidavit of Publication with the appropriate office. If you have any questions about the publication, the government office that handles filings and local newspapers can help you get started.
Steps on How to Set Up an LLC
1. Decide where you want to set up your LLC, as the guidelines vary by state.
2. Choose a name for your LLC.
- Many states require you to include "LLC" or some variation in your LLC's name.
- It must be unique and distinguishable. You cannot use a name that's already used by an existing business entity.
- Search trademark and business databases to ensure that your name is not used.
- Once you find an available name, you can reserve it before you finish setting up your LLC. The fees vary by state.
3. File your LLC's Articles of Organization with the state.
4. Get a copy of your state certificate so you can apply for an Employer Identification Number (EIN) number through the Internal Revenue Service (IRS) and for any necessary business licenses.
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