Looking to Start Your Own Business Consider a LLC
While it is not everyone’s dream to start up their own company, for many they are interested in this endeavor. Being your own boss has many advantages, people like the idea of running the show, making the calls, and putting their dream into reality not to mention the dream of making some good money. Owning your own company may also come with a longer work week but if you are doing what you like, those hours can seem small in comparison to doing a job you are dissatisfied with. One of the popular ways is starting your own Limited Liability Company (LLC)
Contrary to popular belief forming an LLC is actually very easy. Below are the steps you need to take to make your LLC a reality.
- Always choose a name for your business that is in compliance with your states rules for an LLC. Example, if you live in California, you will want to form an LLC in California.
- File paperwork known as articles of organization and pay the appropriate filing fees. The fees range from $100 to $900 depending on your state.
- Create a plan that states the rules of each member of your LLC
- Depending on your state you may need to file your intent for your LLC
- File all the permits and licenses necessary for your LLC.
Most of these basic steps to form an LLC can be done online.
To find out additional information for additional steps to form an LLC check out the IRS website or search online for websites to help you form your LLC.
Choosing Names For An LLC
Before choosing a name for your LLC check with your state for the rules in choosing the right name. This division is usually in the secretary of state’s office in the corporation’s division.
Even though the rules are different from state to state they:
- Cannot be the exact same name or even similar to another LLC in the same state.
- The name of the business or company must end with LLC, L.L.C. or Ltd.
- The name cannot include words that are not permitted in the state such as Insurance, Bank, Corporation or State, however, the words that are not permitted are different depending on the state.
Your local LLC office can help you find the appropriate name for your company and one that is not being used by another business or company in your state. You can also pay a fee to have a name for your LLC for a certain period of time until you find one that is right for your business. Besides ensuring that the name of your business complies with your state’s LLC rules you also need to ensure that the name of your business does not infringe on the name of another business in your state. You can search online for websites that will help you choose a name that is the right fit for your business and also will not infringe on another business in your state. Once you find a name that is unique and is appropriate for your company you may need to register it. Usually once the articles of organization are filed with your state the name is registered automatically.
About Articles Of Organization
After you have chosen a name for your business you must file paperwork also known as “articles of organization” with the LLC office in your state. Most states use the name to refer to all the basic paperwork necessary to start an LLC, however there are some states that refer to the LLC paperwork as “articles of formation” and also “certificates of formation”. To find out exactly what paperwork is necessary to start an LLC in your state you can check out their website.