Forming an LLC is a way to limit your personal liability with your business. Deciding to form an LLC may sound intimidating to you, but it isn’t. Here are the steps that you must take to form your LLC.
Choose Your Name
You must make sure that the name of your business includes the words “limited liability company” in it. Whether you want to spell it out or abbreviate it as LLC is up to you. You also must make sure that whatever name you choose is unique and is not similar to the other businesses in the state you plan to file.
Your state may have a database where you can check to ensure that your name is not similar to other businesses.
Select a Registered Agent
The next step is to select a registered agent who will receive legal papers on behalf of the business. If your business receives any lawsuits, subpoenas, or other legal documents, your registered agent is the person who will pass those documents along to you.
A legitimately registered agent must be someone over 18 years old, a corporation, or another LLC. The registered agent must also reside in the same state.
Create an LLC Operating Agreement
The next step is creating an LLC operating agreement. An LLC operating agreement is a document that explains the operations of your LLC. Think of it as a framework that describes how your LLC will run.
This document will include the specifics about how your meetings will be conducted, how the business will operate if one of the members dies or leaves, and how the business will dissolve if it goes out of business.
Every state may not require you to create an LLC operating agreement. But it is still a great document to draft. Defining the rights and regulations for your business will resolve any future disagreements between you and the members.
File Paperwork With The State
You will then be required to file formation documents with the secretary of state or another organization that handles business filings. In some cases, this paperwork must be signed by the person forming the LLC and the registered agent.
Once your documents are filed and approved, you will receive a certificate as proof that your LLC exists. After you’ve received this certificate, you’ll be able to handle other matters.
Other Business Practices
After you’ve received your certificate for your LLC, you’ll be able to take care of many business matters. You can obtain your EIN (employee identification number), open your business account, and apply for the required licenses and permits.
If you want to do business in another state, you will just need to do this process all over again, including searching for a registered agent in the state you want to operate.
Speak With a Phoenix Business Law Attorney Today
To make sure your business is set up as an invaluable asset, reach out to a business attorney at The Law Offices of William D. Black. Contact us online to schedule your free consultation.