Setting Up an LLC

Setting up an LLC, has in the past years become the popular legal structure for small businesses that wanting to incorporate. The requirements for an LLC vary from state to state.  Setting the LLC up is a relatively easy process that can be done in about an hour time. The first step in creating an LLC is for you to get a copy of your state’s LLC Articles of Organization from your Secretary of State’s local office; when you decide to contact their office, find out if you need to post a notice in your newspaper, you will also need to find out the rules for choosing your business name.

When you choose a name for your business it needs to follow your state’s rules for LLC business names. Some states have a list of prohibited words but there is generally plenty of flexibility. Your legal business name needs to end with LLC as its designator. The name of your business can not be the same name of another LLC business in the state that you are filing.

When you are done going through that process and work of obtaining papers you will then fill out the articles of organization. This part of setting up an LLC is simple; you will be giving your state information like your company’s name, the purpose of your business, the main office address and the name of the initial members of the company. In certain states you are also required to publish a notice in your local newspaper. After you are done filling out your articles of organization you will submit them to your Secretary of State along with the fee that is required.

After that procedure all legal needs are done, however, if there is more than one partner you might wish to file an LLC operating agreement. When you create an LLC Operating Agreement to Set Up an LLC , it will being stating the financial management rights and the responsibilities of the members of the LLC. This agreement will say who is responsible if the company needs access to money and how the profits of the company will be distributed. It is important to get this in writing because you do not want to have conflict later on.