Key Steps required for setting up an LLC

Step 1: Choose A Name For Your LLC

See LLC Name article

Step 2: Reserving A Name

See LLC Name article

Step 3: Selecting A Registered Agent

Most states require an LLC to name a registered agent or a ‘statutory agent’.

The registered agent or statutory agent accepts lawsuits, subpoenas and other legal documentation on behalf of the LLC and passes them on to each applicable person/member.

Usually a registered agent can be a state resident over age 18 – as well as a member or officer of the LLC.

Step 4: Preparing An LLC Operating Agreement

An LLC operating agreement provides a map of your LLC’s operations and includes:

  • ownership interests
  • voting rights of its members
  • distribution of profit or loss
  • arrangements for meetings
  • business governance
  • rights of members in the event of departure or death of a member
  • how the company will be dissolved in the event of bankruptcy

The operating agreement may not be a legal requirement in your state. An LLC operating agreement outlines the rights and responsibilities of its members and helps to minimize future disputes.

Step 5: Filing Articles Of Organization

Most states require the filing of articles of organization to form an LLC. The articles provide a list which includes:

  • Name and address of the LLC
  • Length of its existence, if not perpetual
  • Name and address of the registered agent
  • Purpose for which the LLC was formed

The person forming the LLC usually signs the paperwork and sometimes a registered agent also signs.

LLC formation documents are normally filed with the secretary of state,

States charge a filing fee which differs from state to state.

Step 6: Receiving A Certificate

A certificate or legal document confirming the existence of your LLC is issued once the LLC’s formation documents are filed and approved.

After receiving the certificate, a Tax ID number, Business Licenses, and a Business Bank Account can be set up.

Step 7: Register In Other States

Should you wish to conduct business in other states it will be necessary to submit paperwork like the filing forms used during the formation of your LLC. A registered agent must be present in each state where your business operates.



LLC Guide

LLC Name
Steps To Setup LLC