Step-by-Step LLC Formation
Starting an LLC in any state is a straightforward process and is similar in most US states. Below is a simplified step-by-step guide explaining what is involved in registering a new LLC business entity.
Step 1 - Select Your State
Select a state where you want to form your new LLC to get a more detailed overview of all required actions you need to perform and costs related to forming an LLC in that particular state.
Step 2 - Choose a Business Name
Next, you want to pick a business name for your future LLC and make sure that it is distinguishable from other company names in that state as well as following all local naming requirements.
Each Secretary of State website has a business entity search where you can check whether your name is taken or available for registration.
All LLC business entities are required to include a designator at the end of the name to show what type of business structure it is.
Business Entity Name Reservation
Business name reservation is a service provided by the Secretary of State. In most US states it is not obligatory to reserve a business name.
However, if you worry that your chosen business entity name can be taken, you can reserve it for 30 to 120 days. A reservation fee must be paid to the Secretary of State when filing the name reservation paperwork.
Step 3 - File the Articles of Organization
The Articles of Organization is a legal document that has to be filed with the local Secretary of State along with the filing fee.
Once your Articles of Organization get approved by the local authorities, you should receive a Certificate of Formation which proves that your LLC has been officially formed and is authorized to do business in the state.
The Articles of Organization can be filed online via the website of the Secretary of State, by mail, by fax, or in-person by visiting the SOS office.
Step 4 - Apply for an EIN
If your LLC has more than one member, or you'll want to open a business bank account, then you will have to apply for an EIN.
You can apply for an EIN for free via the IRS website.