1. How to Set Up an LLC
2. LLC
3. Organize the LLC
4. How Do You Form a Limited Liability Company?
5. Choose a Name for Your LLC
6. Assign a Registered Agent
7. File Articles of Organization

How to Set Up an LLC

If you want to know how to set up an LLC, you should know the process is straightforward. Paperwork must be filled out and filed with the appropriate state entity.


A limited liability company or LLC is a business structure that is extremely popular, especially when it comes to startups. The LLC is started in accordance with the laws of the state and the state entity has the ability to protect the business with limited liability once it forms.

The LLC also allows for something called “flow through” or “pass through” taxes where the tax burden lies with the members of the LLC and how profits are directly recorded on personal tax forms. This means that there is not a double taxation like there is with corporations.

Only the owners of the LLC are taxed and there is no business or corporate tax involved.

The rules that must be followed when starting an LLC are ones that are set up by the state. While certain specific aspects might change from state to state, the basics are often the same or similar. This is true of the general requirements as well.

You may not have to hire a lawyer or a legal representative to start and register your LLC. However, in some cases you may want to speak with a legal professional. This is especially true if there are several members of the LLC who will have different roles in the business.

LLCs are generally a good business type for anyone who wants to own, start, and run a small business but does not want all of the liability and paperwork involved with a corporation.

Organize the LLC

When you think about setting up the LLC, you want to consider exactly where you should do so. Delaware is one state where LLCs are often formed because laws are developed and well established. While this are choices you can make about where to form the business, most people do start their LLCs in the state where they intend on doing business and physically owning the company. Not only is this realistic, but it can save you some time and money when it comes to filling out forms and paying fees.

If your business is going to do business in several states, then you may need to register in all states. Basically, you will need to file a notice with the Secretary of State in each state and pay the necessary registration fees.

How Do You Form a Limited Liability Company?

Starting the LLC itself is pretty easy. You will need to choose a name that is in line with the rules of the state. The name must be unique and it must contain the LLC abbreviation. The name should not include any confusing or official words that may confuse the public. For example, you cannot use federal or government in the name.

Choose a Name for Your LLC

Make sure that the name is not one that will be limited by the availability, or lack thereof, of website domains, emails, and other types of electronic tools you may choose to use in the future.

If your name is one that differs from the public version that you want to use, then you will need to file paperwork with the “fictitious business name” or “doing business statement.” Keep in mind that it can take some time to come up with a unique and appropriate name for your business, so start early once you decide that you do want to form your LLC.

Assign a Registered Agent

Along with the naming of the LLC, you must choose an individual called a registered agent. This person is an individual, a group of individuals, or a business that is legally able to accept summons and other official papers on behalf of your business. This person will have legal authority, so it is wise to pick someone you trust or a business that specializes in registered agent services.

File Articles of Organization

Once the name and the registered agent are settled, you will need to fill out documentation called the articles of organization. This is a very basic document and it may be referred to as a few different names depending on where you live.

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