Entrepreneurs like you have big dreams and tough questions, like: which documents should I file? Do I need any business licenses? How do I find a registered agent? Maybe you’ve been searching for answers all day, or maybe this is the first page you found.
Either way, look no further because everything you need to know about forming an LLC is in this guide.
By the end of our step-by-step guides, your LLC will be up and running, ready to take on the world. That said, if at any point you need assistance in the process.
The Costs Of Starting An LLC
One day, your LLC is going to prosper, skyrocket into success, and line your pockets. Whether that day is in three years or three months, you’ve got the vision and drive to make it happen.
But as the old saying goes, you have to spend money to make money, and forming an LLC is no exception.
Up-front costs to start an LLC aren’t exorbitant, but depending on where you live, they can put a small dent in your finances. All 50 states have their own procedures regarding LLC formation and varying fees, ranging from fifty to several hundred dollars.
Start off on the right foot and avoid being surprised by startup costs by getting familiar with your state’s required fees.
We’ll outline everything from state LLC formation fees and ongoing compliance fees like annual reports, franchise taxes, and more. By the end, you’ll have a solid expectation of the costs involved with starting and maintaining an LLC, so you can confidently charge full steam ahead into your new endeavor.
How To Do An LLC Name Search
Your business name is much more than words, it’s a deep well of ideas about your LLC. It conveys personality, purpose, values, and services. In selecting a name, you’re molding your customers’ first impression, directing their initial thoughts. You don’t want your business’ identity mixed up with anyone else’s, and neither does the state.
So after you’ve brainstormed, collaborated, and narrowed down your perfect name, you’ll want to make sure that it’s not already taken. How? By performing a business name search through your state government.
Nearly every state has a search function that scans all of its currently reserved and registered business names and informs you of any matches. But the process varies slightly in each state. Our guide will explore the nuances of name search procedures so that you can confirm that the name you fell in love with is yours and yours alone.
Reserving An LLC Name
You’ve reached an impasse. After a few brainstorming sessions, you settled on a perfect name for your LLC, and even better, you performed a name search and discovered that it’s available.
But there’s a problem: you still need to get some details squared away before you actually start your business. Now, with your LLC months away from formation, you’re worried, because your name is so fantastic, someone might take it in the meantime.
This is a totally valid fear and a common predicament for LLC organizers. Fortunately, there’s a simple solution. All you need to do is lock down that name by reserving it with your state’s government. This will protect it from would-be name snatchers while you prepare to launch your business.
The process for placing a name reservation is fairly straightforward but slightly different in each state.
Creating An LLC Operating Agreement
Imagine this: you successfully form your LLC (great!), but as you begin conducting business, the members start feuding over share percentages, banks don’t take you seriously, and you’re slapped with lawsuits that threaten your personal assets. Not a pretty picture.
What you’ve just imagined is a very real scenario for an LLC that fails to adopt an operating agreement.
It’s true that only a handful of states actually require the creation of operating agreements by law, but it’s also true that drafting an agreement provides some essential benefits for any LLC, and we strongly recommend it.
An operating agreement acts, in many ways, like your LLC’s bylaws, setting up a framework of rules and regulations necessary for the company’s stability and success. Not only that, but it also details the LLC’s managerial and ownership structures, so that everyone within the company is on the same page and outside entities like courts and banks recognize its legitimacy.
The biggest advantage of having an operating agreement is the fact that it avoids leaving important aspects of your company open to interpretation down the road.
Plus, it draws lines between your personal and business assets, creating a safety net in potential future legal disputes. The amount of detail required for this document can seem overwhelming at first, but in our guide, we’ll untangle some of the confusing elements, outline the information you should include, and generally make the operating agreement more accessible.
Filing LLC Articles Of Organization
Like the air in a stadium before kickoff or that feeling in your stomach at the peak of a roller coaster drop, you’re standing on the precipice of a new and exciting chapter in your professional life.
After drawing up a business plan, speaking with partners and employees, gathering research, and developing branding, hours and hours of planning a preparation are about to come to fruition. It’s time to file the Articles of Organization.
Though it goes by various names in different states – Articles of Organization, Certificate of Formation, Certificate of Organization – this document has a singular, important task: officially forming your LLC.
Still, the form and filing process can look very different from state to state, and you may have a handful of questions about it. What exactly are the Articles of Organization? What type of information do they include? How do you go about drafting and filing them?
Continue reading and you’ll find all the foundational information you need to better understand the Articles of Organization and get started with your LLC formation process.
Who Can Be An LLC Registered Agent
When you envision your LLC’s future, it’s likely dreams of big deals and bigger paydays, or of catalyzing positive community change, or of pages upon pages of satisfied customer reviews. You probably aren’t fantasizing about handling paperwork or dealing with lawsuits.
But you can’t have the former without the latter. Placing value on all the nitty-gritty details like filing deadlines are what makes your business successful, which is why your registered agent is so important.
Registered agents are a vital part of the American business landscape these days, as every business entity in the country needs to designate one. However, we often hear specific questions about registered agents. Is it required to form the business initially, or it something that can be added later? Why do I need one? What if I don’t have one?
Our article will serve as a kind of FAQ guide to registered agents, offering all the important details your LLC needs. We’ll walk you through how to designate your registered agent (if you choose between an individual or online service)and everything that comes with the office, then tackle some important questions.
Select your state below to see who can be an LLC registered agent in your state or read
Changing A Registered Agent
Anyone who runs a business knows that change is inevitable. What matters is how you react. Whether we’re talking shifts in your market, in your customer base, or within your leadership structure, it’s important to adapt and facilitate smooth transitions.
This also applies when changing your registered agent.
At some point during the life of your LLC, your registered agent – the indispensable ally who handles your most important business and legal communications – may need to leave the company. Regardless of the reasons behind this, it’s vital to your LLC’s continuity and stability that you quickly and smoothly switch to a new registered agent.
Registered Agent Resignation
With new projects, endeavors, and journeys on the horizon, it’s come time for you to resign from your registered agent role.
Maybe you’re leaving the company, maybe you’re transferring the responsibilities to someone else, or perhaps you’re an attorney or accountant who no longer wants to handle the duties for your client. Whatever the reason, the goal should be to ensure a smooth and efficient transition for everyone involved.
Resigning from your registered agent responsibilities is actually a simple process, typically a single form submission. If you follow the steps in our guide and work closely with your LLC to facilitate a quick agent switch, you’ll be onto your next exciting project and your LLC will continue in its success.
LLC Foreign Qualification
Your limited liability company (LLC) is making moves, venturing out from its home state and expanding into others. No doubt you’re excited to take on this new challenge, but before you get ahead of yourself, take a moment to learn each state’s requirements.
Out-of-state businesses have to abide by a different set of rules than domestic LLCs, and understanding how they differ is the key to remaining compliant in any state where your LLC operates.
Whether you just have a few clients in another state or you’re taking your business coast to coast, you will need to foreign qualify your business in each state it enters.
LLC Annual Reports
An LLC is like a car. You can pay the initial cost for it, but that doesn’t mean it will run forever. To keep it in good condition, you can’t skip out on its routine maintenance. For cars, this means oil changes, tire rotations, etc. But for LLCs, ongoing maintenance means annual reports.
Analogies aside, most states need to keep accurate and updated records on all the businesses operating within them, which is why many impose ongoing compliance requirements for their LLCs in the form of annual reports.
Unsure about your state’s reporting requirements? You’re not alone. Many business owners aren’t aware of annual reporting requirements or other LLC maintenance processes until it’s too late. Our guide covers all 50 states, so if your state has mandated maintenance, you’ll know about it. By the end, you’ll be ready to maintain a successful LLC for years to come.
