The limited liability company, or LLC, has become an increasingly popular business structure in recent years. If you’re thinking about forming your own LLC, it’s important to take the necessary steps to register with the appropriate state authority and understand all of the legal requirements surrounding the registration and operation of your business entity before you begin doing any work as an LLC. This guide will help you learn about the five steps to LLC registration so that you can proceed confidently with your new business endeavor.
1: Choose A Business Name
After you’ve chosen a name, it’s time to register your business—unless you already have an LLC. Depending on where you are in the world, there are different requirements and forms. Some locations require that you list your business with their local chamber of commerce or department of trade and industry. Once that’s done, you can begin registering as an LLC with your state or national government, depending on where you plan to operate your company. In most cases, you need to file articles of organization and pay a small fee. If you’re looking for more information about LLC registration, visit our LLC registration page for additional resources.
2: File Articles Of Organization
Once you’ve decided on your LLC name, registered it as a fictitious business name, and reserved a domain name for your site (if you need one), it’s time to file articles of organization. You’ll need to fill these with your secretary of state or equivalent. It will cost a few bucks. The paperwork is pretty standard—you provide information about yourself and your LLC, including its purpose and location. LLC registration rules vary by state, so be sure to check your local requirements.
Most states require businesses to have an operating agreement in place before they can register their LLC. An operating agreement is essentially a contract between all owners that spells out how they’ll operate their company. If you don’t have an operating agreement, consider creating one before filing your articles of organization; if you do have an operating agreement, make sure it reflects any changes since it was created.
3: Obtain Taxpayer Identification Number (EIN)
Before you can register your LLC, you need a Taxpayer Identification Number (or EIN). When it comes to taxes, an LLC will be considered a separate entity from you, so even if it’s just you running things right now, make sure you obtain an EIN in your name. Most online tax services will help walk you through applying for your Taxpayer Identification Number. Most are free and take just a few minutes. Once you have your EIN, you’re ready to register your business.
4: Open A Business Bank Account
5: Get Insurance
If you are registering a new business, consider getting general liability insurance. This type of insurance covers your legal responsibility for bodily injuries or property damage that result from your business operations. While most states do not require LLC to carry any specific kind of coverage, doing so can help protect your assets in case an employee is injured on your property or one of your customers sues over an unpaid invoice.
