Day: January 19, 2023

Starting Your Own LLCStarting Your Own LLC

starting your own llc

Starting your own llc (limited liability company) is a major professional step that can give you control over the financial destiny of your business. It’s also a good way to separate personal finances from the business, and it can help you build business credit. Read more

First, you must pick an LLC name that’s distinctive and not a similar name to another LLC in your state. This can prevent trademark infringement claims, and it can help avoid confusion with customers.

Then, you must complete and file articles of organization with the secretary of state in your state. These documents will list your LLC’s name, address, and all of the members.

You can also create an operating agreement, which is a legal contract that defines how you and the other members of your LLC will run the business. This document isn’t required by law, but it can minimize future disagreements and keep you from getting into trouble with the state.

From Idea to Incorporation: A Guide to Creating Your Own LLC

Once you’ve filed your formation documents, the state will issue a certificate of formation confirming that your LLC exists. This can also be referred to as an official certificate of registration, and it allows you to start applying for any business licenses and permits that your LLC may need.

Next, you must establish your business’s tax status with the Internal Revenue Service and register for sales and income taxes in each state where the LLC will conduct business. This can include applying for an EIN number, or employer identification number, which is the number used for registering with the IRS.