Chapter 3 of 7
Module 3.1: Step-by-Step Guide to Forming an LLC
Setting up an LLC involves several steps, from choosing a unique business name to filing the necessary paperwork with your state.
The process is relatively straightforward and can often be completed without legal assistance, though consulting with a lawyer or accountant is recommended for more complex situations.
Key Points:
- 1. Choose Your Business Name: Ensure it's unique in your state.
- 2. File Articles of Organization: Submit to your state's Secretary of State office.
- 3. Create an Operating Agreement: Outlines how the LLC will be managed.
- 4. Obtain an E.I.N.: Needed for tax filings and bank accounts.
Module 3.2: Required Documents for LLC Formation
When forming an LLC, you'll need to prepare and file certain documents with your state's business registration office.
The most important document is the Articles of Organization, which officially establishes your LLC. Additionally, while not always legally required, an Operating Agreement is strongly recommended to outline the ownership and operating procedures of your LLC.
Key Points:
- Articles of Organization: The primary document filed with the state to create your LLC.
- Operating Agreement: A document that outlines the ownership structure and operating procedures (optional in some states, but recommended).
Module 3.3: Filing Fees and Costs
The cost of forming an LLC varies by state, with filing fees typically ranging from $50 to $500.
In addition to the initial filing fee, most states require LLCs to pay annual fees or file annual reports to maintain their good standing. These ongoing costs should be factored into your business planning.
You're on Chapter 3 of 7