Effortless LLC Formation

6 Steps to Form an LLC for Your Business

Let's start by getting the basics right! Don’t worry we will dive into each step in detail below. To start an LLC formation you need to fulfill certain requirements. If you have a registered agent to work with you then it is much easier. So, here are the six steps that you can take to register your business as an LLC.

Step 1 : Select a name for forming LLC

Step 2 : Select your state to register in

Step 3 : File certificate of organization

Step 4 : Choose a registered agent

Step 5 : Draft operating agreement

Step 6 : Get an Employer Identification Number

Ready to form an LLC?

Now these steps are explained in more detail below, for business owners who want to know more about LLC formation and are not sure what to do.

1. Choose a Name for Your LLC

Choosing a name for your LLC is not the fun part but it should be the top priority on your to-do list. Start by brainstorming some name ideas. Ask yourself what services your business provides, and write down anything that comes to your mind when describing your company. This way you will find a unique and catchy name for your LLC.

There are some rules you need to follow when naming your LLC such as including the word LLC in the name and staying away from terms such as bank, insurance, Inc., or trust in the name.

These rules may alter slightly depending on which states you want to form your LLC. That’s why it’s best to read your state’s laws on their website first then come up with a name. Apart from that you need to make sure that the name you have chosen is not already registered. You can find out here:

2. Choose Your State

Your best bet is to register for an LLC in your home state because local lawyers will help you out with the operating guidelines and filings.

The good news is you can form your LLC in any state. You don’t need to worry about the legal requirements as all 50 states have separate resources like articles or rules and regulations published on their sites which you can read before taking the next step.

Why is it good news? Because if you choose to register out-of-the-state you can enjoy lower setup costs, minimum taxes, and more. When registering your LLC in a different state you must have a physical address or hire a registered agent to receive your official mail on behalf of your business.

Some popular states that can be a good fit for establishing an LLC are Delaware, Wyoming, and Nevada. These states attract business owners due to their minimum tax frameworks and low setup fees.

3. File for Certificate of Organization

You have made it to the registration phase. Now you need to file for a certificate of organization or certificate of formation to officially get the legal approval for setting up your LLC. These legal articles include your LLC name, home address or registered agent’s office, and other information required by the state office.

You can easily get this form on the state office websites, the general fee might vary from state to state but you can expect $70 to $1000 and the requirements vary.

Once your application gets approved by the state, you’ll get your certificate of organization. This document accepts the legal status of your LLC within your state. That’s great because now you own and can do your business without worrying about legalities.

4. Choose a Qualified Registered Agent

Well, you might be thinking setting up an LLC is a piece of cake. Here is what you are missing–yes you can do all the work on your own but you will need the help of a legal advisor to do the paperwork and document filings.

That’s why most businesses hire certified registered agents to look after the LLC formation process. A registered agent takes care of all the legal documentation for your company such as tax notices, subpoenas, and more.

Depending on how flexible your state laws are, you can act as a self registered agent for your business, or you can nominate an external person to do that. If you don’t think you are not qualified to handle these legal actions, you can simply register your LLC with LogoDesign.net!

5. Draft an Operating Agreement

An operating agreement as the name suggests lists your LLC structure, organizational framework, and assigned duties of the members. It is a crucial document that outlines the hierarchy of the decision makers in your firm.

In most states, the law doesn’t ask you to create an operating agreement. However, it is helpful to have it when disagreements arise within the organization or the investors or your partners file lawsuits against you.

The owner sets out some rules in the operating agreement as a roadmap to manage the internal operations. Companies that don’t draft an operating agreement for their LLCs must operate according to the rules and laws of the state.

6. Get Your EIN

Employer Identification Number (EIN) or you may know it as Federal Tax Identification Number is an identification number of your company. It is an important number that you must add to all your income tax filings or reports. You have to get this nine-digit number for your business from the IRS.

There are two ways you can go about it, the first one is to apply online. You can find out the timings when online applications are available but generally, the applications are open from Monday to Friday from 7 a.m. to 10 p.m. ET. This is the most convenient option as once your application is completed, you will get an EIN within 24 hours.

The second option is to mail the Form SS-4 to the official IRS address or fax the Form SS-4, to their fax number. The mail option is the most time-consuming; you can expect to get your EIN in 4 weeks. Or if you’ve applied for the fax, you’ll receive your EIN in around 4 business days.

Why Get an LLC Formation from Us?

With LogoDesign.net you can form your LLC easily. We help you every step of the way so you don’t need to sweat over the legal worries! We get it, it’s hectic to take care of all the legal documentation of your company. So we do the hard work for you! The fastest, affordable, and most reliable way to get your LLC registered! If you haven’t registered for your LLC yet, let us do it for you. Here’s how LogoDesign.net can help you: