How to Set Up LLC – A Few Easy Steps and You Are Done

Because you want your small business to save money, a great way to do so is through a limited liability company. If you have heard about this, you might be wondering how to set up LLC. It actually is much easier than most people think because the whole process can be done quickly and painlessly online. Before you even fill out any forms, you have to select a name and make sure it is not taken already. You do not have to stress over your name, just make sure that it is something that is relevant to your company and your services.

The next step in how to set up LLC is actually filing what is called an article of organization with your state’s secretary state office. You might see this as a certificate of organization. You will have to pay a fee with this step, which varies depending on the state in which you reside. The filing office can provide you with the form or you can visit their Web site and complete it online. Once this is completed, you will have to prepare and sign and operating agreement. You and any other partners need to do this.

Although the last step is not required by the state, it is a great way to further include liability protection. It details all the rights, duties and obligations of the partners in the LLC. Your next step in how to set up LLC is preparing documentation of ownership interests. This goes over all the members in the LLC and the ratio that is shared. You may also know this as a membership interest. The next few steps are extremely important because they involve the IRS and banking, both of which help dictate the success of your company.

With the IRS, you will need to file a federal employer identification number. You need to do this because your LLC is separate from you and its other owners. If you are the only member of the LLC, you have the option of reporting your own social security number or getting a new employer identification number. The final step in how to set up LLC is to set up a bank account in the LLC’s name. This is because your LLC is considered separate from anything else, so it needs a separate bank account. This makes is easier to prove that you kept your personal and business finances separate.

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