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Forming a limited liability company (LLC) is not difficult, though there are certain steps and procedures that need to be properly followed to ensure the company has the legal rights and protections of an LLC company. The specific steps can vary from country to country, and even between states or provinces within a country, but in general a unique name for the LLC has to be chosen first. This name is then filed with a government agency along with the articles of organization or incorporation and any applicable taxes or fees. The organization of the LLC company then needs to be established formally, including the names of head officers, minutes should be recorded for a first meeting, and any other paperwork or fees necessary for the area where the LLC is being formed should be filed and paid.
One of the first steps that should be taken to form an LLC company is choosing a unique name. This name should not be the same as another established LLC, or at least different from any other LLCs created in the state or province you are forming within. It will also usually have to include an indicator that it is an LLC, such as “LLC” or “Limited Liability Company” as part of the name of the business. Once the name is chosen, the necessary paperwork for establishing the LLC company can be filled out and filed with the local government LLC office.
Fees will typically have to be paid for filing as well, and different regions will charge different fees for processing, often establishing some regions as being more preferable for starting an LLC company within. You can receive copies of the necessary paperwork and details regarding the fees associated with filing from the LLC office in your state or province. You will also need to create an organizing agreement for your LLC company to establish how the company will be run.
This agreement indicates the various offices and positions for the heads of your company, pay scales, and other important aspects of how your LLC company will actually be run. Some states will also require that you publish notice of your new company in a local newspaper or similar periodical, and you should be sure to follow any such laws in your region. Once you have followed all of these guidelines for your new LLC company, you should then hold your first meeting of the board members and keep track of the minutes for this meeting. You may also want to open a new bank account just for your company and other similar steps to keep your tax and business records clear and legally distinguished from your own assets.