Limited Liability Company (LLC)
How to incorporate an LLC in the United States ?
An LLC ( Limited Liability Company) provides liability protection and other benefits. The requisite to incorporate an LLC differs in each state however few steps are common.
Business Name
The first step is to choose the right and unique name of your business name which should not be used by any other existing entity. The inclusion of “LLC” or “limited liability company” at the end of business name is also a requisite.
The availability of the name can be searched on the respective government’s website of the state. Eg. For the state of Texas https://mycpa.cpa.state.tx.us/coa/ this site can be used.
Assign a Registered Agent
Incorporating an LLC requires to have a registered agent. A is someone who receives official or legal documents (such as subpoenas or summons) on behalf of the LLC’s members.
Anyone can be a registered agent who is at least 18 years old and it can be yourself or your employee. but must have a local address in the state where the LLC is to be formed. There are various companies such as NOLO.com which provides the services of assigning online registered agents for a fee.
Other requirements for LLC formation are:
- File articles of organization with the state’s business registration office. This document includes the LLC’s name, the names and addresses of the members, and any other information required by the state.
- Create an operating agreement, which lays out the ownership and management structure of the LLC, as well as the rights and responsibilities of the members.
- Obtain any necessary licenses and permits required by the state or local government.
- Register for state taxes, such as sales and use tax.
- Obtain an EIN number from the IRS if you have employees or to open a business bank account.
It’s important to note that the steps and requirements vary from state to state, and you should consult a My Legal Pal attorney for specific guidance on the process in the state you wish to incorporate in and contact us for the drafting of documents required for it.