Business

Forming an LLC – Few vital considerations to take into account

In recent years, an LLC or a Limited Liability Company has become one of the most popular legal structures for all those small businesses which are eager to enter into the industry and set their mark. The requirements for filing an LLC will vary from one state to another but that doesn’t make the process of setting up an LLC tough. It is rather a simple process which can be done within an hour or less than that, depending on the organizational structure and its complexity.

A Limited Liability Company is in many ways similar to a partnership but it has legal protection of personal assets which is offered by a corporation without the herculean task of paperwork, formalities and fees. So, in case you don’t know how to file for your LLC online, here are few tips that you may take into account.

  • Get an LLC Articles of Organization form from your state

The first step that you need to take is to get a copy of your LLC Articles of Organization form from the Secretary of State Office in your state. When you get in touch with them, you also have to find out that the state in which you’re incorporating the LLC needs you to post some information on the newspaper. Also enquire about the specific rules which you have to follow regarding the name of your business.

  • Christen your business and give it a name

You have to then choose a business name which abides by state’s rule of LLC business names. The main portion of the name of the business is extremely flexible but there is a list of words for each state like ‘Incorporated’, ‘Corporation’, ‘Insurance’, ‘City’ and few others which are prohibited strictly. You have to ensure that your legal name ends with an LLC designator and the name can never be the same as yet another LLC in the state wherever you’re filing.

  • Fill out the form and publish a notice in local newspaper

Filling out a form is definitely a simple process as you just require notifying about the details of the organization, like the name, the purpose of your business, the office address and other details. Next, you’ve go to publish a notice in any local newspaper which you wish and inform that you have an intention to form an LLC. This step needs to be taken before filing Articles of Organization. Check everything with your Secretary of State to be sure.

  • Submit your form and you’re almost done

Submit the form to the Secretary of State along with the correct amount of fee that is needed. Fees usually range from $40 to $900. You need to be aware of the fact that there are some states which have a corporate tax that’s separate from filing fee but which needs to be paid during the time of filing. For instance, the state of California has a $70 filing fee but an annual tax of $800.

Once you’re done with this, you’re done legally and now you’re very close to starting an LLC of your own. Make sure you know the nuances of running a business before you take plunge.