Limited Liability Companies, or LLC’s, enjoy the benefits of asset protection without the double taxation that is endured by most corporations. If you have decided to start a Limited Liability Company, you will need to take a few important steps to ensure that your company is legally registered. Here is what you need to know when beginning your LLC company:
Deciding A Name
Many states bar companies from sharing or adopting the same name and almost all established businesses protect their name by virtue of copyrights, so it is very important, albeit tedious to think of a suitable and valid name for your LLC before setting out to register your company. Make sure the name you choose is easy to remember. In some states, you can check the name’s validity on the Secretary of State’s website.
Reserve Your LLC’s Name
Many of the states provide you the utility of reserving the name of your business for a miniscule period of 30 to 60 days, during which you can easily manage all your documents.
Registering with Your State
When you form an LLC Company, you’ll need to register with your state prior to filing on a federal level. To register, you will need to at least have the name of your company. Ideally, you’ll also have a business plan. This will come in handy because if you want to operate across state lines, you’ll need to file with each state where your company will operate.
After registering with your state, you will need to file an Article Organization, as well as an LLC Operating Agreement. The Article of Organization details the structure of your business and can authorize appropriate individuals to accept documents and act on behalf of the company. Meanwhile, an LLC Operating Agreement details the way that the company will be run, including how any profits and losses will be divided.
How to Get a Federal Tax ID
In addition to the registration forms, you will also need a tax identification number for your new LLC. A company Tax ID acts like a social security number for your company. You can also use your Tax ID to open a line of credit for your business and in other financial matters that involve your LLC. Once you obtain the Tax ID number for your company, you will use that number to file taxes every year, so it is important to ensure that your ID is secure.
Register Your LLC In Other States
Your business plan could include extending your company’s reach to several states rather than operating in just one. The process to achieve this is similar to what you followed when registering for your state. The only difference is that you have to search for a registered agent in the state you wish to do business in and submit your documents.
While filing for an LLC does take some work, the process can be completed much faster and with minimal hassle, thanks to the internet which enables you to file your documents online instead of relying on the snail pace of mail.