Come up with a name for your business. This is the first step you take to form a company in the U.S., as the importance hinges on your marketing and legal aspects.
A common state rule is for LLC businesses to have the abbreviation LLC or the designation limited liability company at the end of their name. You can review naming requirements by visiting the website of your state's appropriate agency responsible for business filings, usually the Secretary of State.
The second crucial step to form a company in the U.S. is assigning a registered agent for your organization. They are persons with the power to receive official legal documents, such as subpoenas, on the entire company’s behalf. Once received, the document is passed onto someone in charge of that particular LLC.
Anyone at least 18 years old can serve as a registered agent, as long as they can handle official or legal documents during regular business hours.
To create your LLC as a legal entity, you file documents with a state agency that handles business filings in your state. In some states, it is called the article of organization, while in others, it is a certificate of formation.
Specific procedures must be followed to ensure your business is registered appropriately. You should provide the information noted below:
Some states like Nebraska and New York require LLCs to publish an ad in a newspaper to finally form a company in the U.S. This statement reveals your desire to have your business registered, and it must be published before you can move on to filing the articles of the organization.
Check your records carefully before submitting them to your state. Forming an LLC generally involves paying a filing fee, which varies depending on the state where you're doing business.
The operating agreement contains all relevant information about the operations of your LLC. It states how profits or losses will be distributed, how members leave the LLC, and who contributes capital for the business.
Many states don't require an operating agreement, but that doesn't mean you don't need to craft one. If you are a single-member LLC or have more than one member, you should have an operating agreement. It protects your rights and responsibilities under the law.
You need to keep the business alive when you form a company in the U.S. In addition to paying an incorporation fee when you file your papers, you may need to complete filings each year (e.g., an annual report) and pay a yearly fee.
Looking for a way to protect your assets while also starting a business? An LLC might be the perfect business structure for you. It offers limited liability protection while you’re beginning, and it will grow with your business. Incorporating an LLC is relatively simple and requires only a few forms and a fee. Check with your state’s business filing website for the specifics on how to set one up.
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