Are you a business newbie? Do you need guidance in opening your own business?
Are you confused about what to do to start your business and how to move forward?
Do you think you need step by step instruction to start your business as an LLC?
If yes, you have come to the right place.
We have composed a step by step guidance on forming an LLC to help you get your business up and running.
There are two ways you can choose to move further. You can either do it yourself or approach an online LLC service provider to help you form your LLC without having to spend too much time on it.
Yes, it is possible to form an LLC yourself, but having a service provider to help you do it will allow you to focus on your business rather than stressing the process.
This article will help you learn everything about forming an LLC and what you should do after creating one.
Before proceeding with the step by step guide, let’s learn what an LLC is?
An LLC, i.e., a limited liability company, is a type of business entity solely based in the United States of America. Here, the business owners are not held liable for the companies debts or liabilities.
It combines pass-through taxation or a sole proprietorship with the liabilities of the company.
Now that we know what a Limited Liability Company is, we can now move onto the steps involved in forming it.
As we mentioned before, you have two options to choose, to do it yourself or to seek help from a service provider to form your LLC.
I am sure you can’t wait to get started to reach the goal at the earliest.
7 Step To Form a LLC
- Choose your business name.
- Assign a Registered Agent.
- File your formation document.
- Obtain an EIN from the IRS.
- Create an Operating Agreement.
- Take control of your financial matters.
- Manage taxes, licenses and permits.
1. Choose your Business Name.
Before choosing your business name, you have to make one of the most critical decisions to finalize the state or location you want to register your business.
Right after you fix the state you will be doing your business in, decide on your LLC name.
Your business name is ultimately your identity, so choosing a unique business name is essential.
It is best to keep at least two LLC name options because if one of them gets rejected, you won’t have to spend extra time choosing another name.
Doing a name availability check is recommended before registering as you can avoid your LLC name registration from getting rejected.
The name you are registering with the state is your legal name, and it is mandatory to end with a suffix like LLC or limited liability company.
You can also choose to have a different brand name for marketing purposes and customer reference.
In that case, you will have to register a ‘doing business as’ name abbreviated as DBA.
Some of these state resource websites provide a free name availability check to ensure that your name is not an existing name.
It is also so recommended to check with the trademark commission of the state.
Each state has different business name regulations, which include restricted words, government agency references, etc.
You also can pay a certain amount to the state after you have confirmed that your name meets your state’s specific requirements, to hold it for your company till you complete your business formation.
This option can help you avoid your name from being taken by some other LLC company in the meantime.
If you have successfully named your company and have registered it with the state, you can now move on to the next step.
If you choose to go with an online LLC formation with a service provider’s help, some providers offer free name availability checks in any state.
| State | Name Reservation Cost | Name Reservation Cost | Name Availability Check |
|---|---|---|---|
| Alabama | By Mail: $10 Online: $25 | 1 Year | Check Here |
| Alaska | $25 | 120 Days | Check Here |
| Arizona | By Mail: $10 Online: $45 | 120 Days | Check Here |
| Arkansas | By Mail / In-Person: $25 Online: $22.50 | 120 Days | Check Here |
| California | $10 | 60 Days | Check Here |
| Colorado | $25 | 120 Days | Check Here |
| Connecticut | $60 | 120 Days | Check Here |
| Delaware | $75 | 120 Days | Check Here |
| Florida | Service Unavailable | Service Unavailable | Check Here |
| Georgia | $25 | 30 Days | Check Here |
| Hawaii | $10 | 120 Days | Check Here |
| Idaho | By Mail: $40 Online: $20 | 4 Months | Check Here |
| Illinois | $25 | 90 Days | Check Here |
| Indiana | $20 | 120 Days | Check Here |
| Iowa | $10 | 120 Days | Check Here |
| Kansas | By Mail: $35 Online: $30 | 120 Days | Check Here |
| Kentucky | $15 | 120 Days | Check Here |
| Louisiana | $25 | 60 Days | Check Here |
| Maine | $20 | 120 Days | Check Here |
| Maryland | $25 | 30 Days | Check Here |
| Massachusetts | $30 | 60 Days | Check Here |
| Michigan | $25 | 180 Days | Check Here |
| Minnesota | By Mail: $35 Online/In-Person: $55 | 12 Months | Check Here |
| Mississippi | $25 | 180 Days | Check Here |
| Missouri | $25 | 60 Days | Check Here |
| Montana | $10 | 120 Days | Check Here |
| Nebraska | $15 | 120 Days | Check Here |
| Nevada | $25 | 90 Days | Check Here |
| New Hampshire | $15 | 120 Days | Check Here |
| New Jersey | $50 | 120 Days | Check Here |
| New Mexico | $20 | 120 Days | Check Here |
| New York | $20 | 120 Days | Check Here |
| North Carolina | $30 | 120 Days | Check Here |
| North Dakota | $10 | 12 Months | Check Here |
| Ohio | $39 | 180 Days | Check Here |
| Oklahoma | $10 | 60 Days | Check Here |
| Oregon | $100 | 120 Days | Check Here |
| Pennsylvania | $70 | 120 Days | Check Here |
| Rhode Island | $50 | 120 Days | Check Here |
| South Carolina | $25 | 120 Days | Check Here |
| South Dakota | $25 | 120 Days | Check Here |
| Tennessee | $20 | 120 Days | Check Here |
| Texas | $40 | 120 Days | Check Here |
| Utah | $22 | 120 Days | Check Here |
| Vermont | $20 | 120 Days | Check Here |
| Virginia | $10 | 120 Days | Check Here |
| Washington | $30 | 180 Days | Check Here |
| West Virginia | $15 | 120 Days | Check Here |
| Wisconsin | $15 | 120 Days | Check Here |
| Wyoming | $50 | 120 Days | Check Here |
2. Assign a Registered Agent.
Assigning a registered agent is an essential step because they act as a mediator to send and receive every Official Document with the state.
If you are questioning if it is compulsory, here is the answer. No, it’s not mandatory, but most of the states recommend having a registered agent.
But why? If you miss even one document or prolong to address it, your state might even close your LLC.
It is imperative to address every sensitive notification and document that you receive from the state.
If you are a business owner, your working hour is already going to be hectic which is why your registered agent will make sure that you receive every bit of information and filing deadlines during the work hours.
You can indeed nominate yourself as a registered agent in individual states. However, we still recommend you to appoint someone else to do the work, including a registered agent company or an individual registered agent service provider.
You can even designate an attorney, a friend, a family member, or a business staff as long as they have an in-state address and are available during working hours.
Some LLC formation companies offer free registered agent service for one year along with the LLC formation package.
After you appoint your registered agent, you can proceed with the formation process.
3. File your Formation Document with the State.
After working hours and hours building a foundation, you have finally reached the most crucial step, which is filing your LLC document.
The document you have to prepare and file with the state is the Articles of Organization, also called a certificate of organization.
Articles of Organization have a specific template that may differ from a state to another.
You can find the form on the secretary of state website.
The method of filing Articles of Organization also differs from a state to another. Some states let you file your Articles of Organization via Email, while some want you to send it via fax or in person.
Even though Articles of Organization sound complicated, it’s a simple process where you have to fill in your business information like
- Name and address of your company.
- Purpose of forming your business.
- The nature of your business.
- Name and address of your registered agent.
- Name of the owners and members of your LLC, etc.
Each state charges a different fee for finding your LLC, and some even charge an extra cost as corporate tax.
| State | Filing Fee | Expedited Filing Fee | By Mail | In-Person |
|---|---|---|---|---|
| Alabama | $100 + Probate Jude Fee | $100 (For Paper Filing) | Secretary of State, Business Services, P.O. Box 5616, Montgomery, AL-36103-5616. | — |
| Alaska | $250 | — | State of Alaska, Corporations Section, P.O.Box-110806, Juneau, AK-99811-0806. | 333, Willoughby Ave., 9th Floor,State Office Building, Juneau, AK-99801-1770. |
| Arizona | $50 | $35 | Arizona Corporation Commission, Corporate Filings Section, 1300 W. Washington Street, Phoenix, AZ-85007. | Arizona Corporation Commission, Corporate Filings Section, 1300 W. Washington Streeet, Phoenix, AZ-85007. |
| Arkansas | $45 – Online, $50 – By Mail/In-Person | — | Arkansas Secretary of State, Business and Commercial Services Division, Suite 250, Victory Building, 1401 West Capitol Avenue, Little Rock, AR-72201. | Arkansas Secretary of State, Business and Commercial Services Division, Suite 250, Victory Building, 1401 West Capitol Avenue, Little Rock, AR-72201. |
| California | $70 – Online/By Mail, $85 – In-Person | $350 – 24-Hour, $500 – Same-Day, $750 – 4-Hour. | California Secretary of State, Business Entities, 1500, 11th street, Sacramento, CA-95814. | California Secretary of State, Business Entities, 1500, 11th street, Sacramento, CA-95814. |
| Colorado | $50 | — | — | — |
| Connecticut | $120 | $50 | Commercial Recording Division,Connecticut Secretary of State, P.O. Box 150470, Hartford, CT-06115-0470. | Commercial Recording Division,Connecticut Secretary of State, 30 Trinity Street, Hartford, CT-06106. |
| Delaware | $90 | $50 – 24-hour service, $100 – Same-day service, $500 – 2-Hour service, $1000 – 1-Hour service | Delaware Division of Corporations, John G. Townsend Building, 401 Federal Street – Suite 4, Dover, DE-19901. | Delaware Division of Corporations, John G. Townsend Building, 401 Federal Street – Suite 4, Dover, DE-19901. |
| Florida | $125 | — | New Filing Section, Division of Corporations, P.O. Box 6327, Tallahassee, FL-32314. | 2661, The Clifton Building, Executive Centre Circle, Tallahassee, FL-32314. |
| Georgia | $100 | $100 – 2-Day Service, $250 – Same-day Service, $1,000 – 1-hour Service. | Office of Secretary of State, Corporations Division, 2 Martin Luther King Jr. Dr. SE, Suite 313 West Tower, Atlanta, GA-30334. | Office of Secretary of State, Corporations Division, 2 Martin Luther King Jr. Dr. SE, Suite 313 West Tower, Atlanta, GA-30334. |
| Hawaii | $51 | $25 | Department of Commerce and Consumer Affairs,Business Registration Division, 335 Merchant Street, P.O. Box 40, Honolulu, HI-96810. | Department of Commerce and Consumer Affairs,Business Registration Division, 335 Merchant Street, P.O. Box 40, Honolulu, HI-96810. |
| Idaho | $100 – Online, $120 – By Mail/In-Person | $40 – Expedited service, $100 – Same-day Service. | Office of the Secretary of State, 450 N 4th Street, P.O. Box 83720, Boise, ID-83720-0080. | Office of the Secretary of State, 450 N 4th Street, P.O. Box 83720 Boise, ID-83720-0080. |
| Illinois | $150 | $100 (Mandatory For Online Service) | Secretary of State, Department of Business Services, Limited Liability Division, 501 S. Second St., Rm. 351, Springfield, IL-62756. | Secretary of State, Department of Business Services, Limited Liability Division, 501 S. Second St., Rm. 351, Springfield, IL-62756. (OR) Illinois Secretary of State, Division of Business Services, 69 W. Washington St., Suite 1240, Chicago, IL-60602. |
| Indiana | $100 | — | Secretary of State, Business Services Division, 302 W. Washington St. Room E-018, Indianapolis, IN- 46204. | Secretary of State, Business Services Division, 302 W. Washington St. Room E-018, Indianapolis, IN- 46204. |
| Iowa | $50 | — | Lucas State Office Building, 321 East 12th Street, Des Moines, IA-50319. | — |
| Kansas | $165 – Online, $160 – By Mail. | — | Kansas Office of the Secretary of State Memorial Hall, 1st Floor, 120 S.W. 10th Avenue, Topeka, KS-66612-15941. | — |
| Kentucky | $40 | — | Office of the Secretary of State, Divisions of Business Filings, P.O. Box 718, Frankfort, K- 40602-0718. | Room no. 154, Capitol Building, 700 Capital Avenue, Frankfort, KY-4061. |
| Louisiana | $100 | $30 – 24-Hour Service, $50 – 2 to 4 Hour Service. | Commercial Division, P. O. Box 94125, Baton Rouge, LA-70804-9125. | Commercial Division, 8585 Archives Avenue, Baton Rouge, LA-70809. |
| Maine | $175 | $50 – 24-Hour Service, $100 – Immediate Service. | Secretary of State, Division of Corporations, UCC and Commissions, 101 State House Station, Augusta, ME-04333-0101. | Secretary of State Division of Corporations, UCC and Commissions, 101 State House Station, Augusta, ME-04333-0101. |
| Maryland | $100 | $50 | Department of Assessments and Taxation, 301 West Preston Street, Baltimore,MD-21201-2392. | State Department of Assessments and Taxation, Charter Division, 301 West Preston Street,8th Floor, Baltimore, MD-21201-2395. |
| Massachusetts | $520 – Online, $500 – By Mail/In-Person | — | Secretary of the Commonwealth, Corporations Division, One Ashburton Place, 17th floor, Boston, MA-02108-1512. | Secretary of the Commonwealth, Corporations Division, One Ashburton Place, 17th floor, Boston, MA-02108-1512. |
| Michigan | $50 | $50 – 24-hour Service, $100 – Same Day Service, $500 – Two hour Service, $1000 – One hour. | Michigan Department of Licensing and Regulatory Affairs Corporations, Securities & Commercial Licensing Bureau, Corporations Division, P.O. Box 30054, Lansing, MI-48909. | 2501 Woodlake Circle, Okemos, MI. |
| Minnesota | $155 – Online/In-Person, $135 – By Mail | — | Minnesota Secretary of State, Business Services Retirement Systems of Minnesota Building 60 Empire Drive, Suite 100, St Paul, MN-55103. | Minnesota Secretary of State , Business Services Retirement Systems of Minnesota Building, 60 Empire Drive, Suite 100, St Paul, MN-55103. |
| Mississippi | $50 | — | — | — |
| Missouri | $50 – Online $105 – By Mail | — | Corporations Unit, James C. Kirkpatrick State Information Center, P.O. Box 778, Jefferson City, MO-65102. | — |
| Montana | $70 | $20 – 24-Hour Service, $100 – 1-Hour Service | — | — |
| Nebraska | $100 + $5 Per Page | — | — | — |
| Nevada | $75 | $125 | Secretary of State, New Filings Division, 202 North Carson Street, Carson City, NV-89701-4201. | Secretary of State, New Filings Division, 202 North Carson Street, Carson City, NV-89701-4201. |
| New Hampshire | $100 | — | Corporation Division, NH Dept. of State, 107 N Main St, Rm 204, Concord, NH-03301-4989. | State House Annex, 3rd Floor, Rm 317, 25 Capitol St, Concord, NH. |
| New Jersey | $125 | $25 – 8.5-Hours Service, $50 – Same-Day Service | New Jersey Department of the Treasury, Division of Revenue & Enterprise Services / Corporate Filing Unit, P.O. Box 308, Trenton, NJ-08646-0308. | 33 W. State Street, 5th Floor, Trenton, NJ-08608- 1001. |
| New Mexico | $50 | — | — | — |
| New York | $200 | $25 – 24-Hour Service, $75 – Same-Day Service, $150-2-Hour Service | The Division of Corporations, State Records and Uniform Commercial Code, One Commerce Plaza, 99 Washington Avenue,Albany, NY-12231. | The Division of Corporations, State Records and Uniform Commercial Code, 6th floor, One Commerce Plaza, 99 Washington Avenue, Albany, NY-12231. |
| North Carolina | $125 | $100 – 24-Hour Service, $200 – Same-Day Service | Business Registration Division, P.O. Box 29622, Raleigh, NC-27626-0622. | Business Registration Division, 2 South Salisbury Street, Raleigh, NC-27601. |
| North Dakota | $135 | — | — | — |
| Ohio | $99 | $100 – 2-Day Service, $200 – 1-Day Service, $300 – 4-Hour Service | Ohio Secretary Of State, P.O. Box 670, Columbus, OH-43216. (For 2-Day Service) Ohio Secretary of State, P.O. Box 1390, Columbus, OH-43216. | Client Service Center, Suite 103, 80 E. Broad St.C, Columbus, OH-43215. |
| Oklahoma | $100 – Online/Mail, $125 – In-Person | — | Oklahoma Secretary of State , 421 N.W. 13th, Suite 210, Oklahoma City, OK-73103. | Oklahoma Secretary of State , 421 N.W. 13th, Suite 210, Oklahoma City, OK-73103. |
| Oregon | $100 | — | Secretary of State, Corporation Division, 255 Capitol St. NE, Suite 151, Salem, OR-97310-1327. | — |
| Pennsylvania | $125 | $100 – Same-Day SERVICE, $300 -Three-Hour Service, $1,000 – One-Hour Service | Pennsylvania Department of State, Bureau of Corporations and Charitable Organizations, P.O. Box 8722, Harrisburg, PA-17105-8722. | Pennsylvania Department of State, Bureau of Corporations and Charitable Organizations, 401 North Street, Room 206, Harrisburg, PA-17101. |
| Rhode Island | $150 | — | Division of Business Services, 148 W. River Street, Providence, RI-02904-2615. | Business Services Division, 148 W. River Street, Suite 1, Providence, RI-02904. |
| South Carolina | $110 | — | South Carolina Secretary of State’s Office, Attn: Corporate Filings, 1205 Pendleton Street, Suite 525, Columbia, SC-29201. | — |
| South Dakota | $150 – Online, $165 – Mail | $50 | Secretary of State Office, 500 East Capitol Avenue, Suite 204, Pierre, SD-57501-5070. | — |
| Tennessee | $50 Per Member (Minimum $300 – Maximum $3000) | — | Secretary of State’s office, 6th Floor, Snodgrass Tower, ATTN: Corporate Filing, 312 Rosa L. Parks AVE, Nashville, TN-37243. | Secretary of State’s office, 6th Floor, Snodgrass Tower, ATTN: Corporate Filing, 312 Rosa L. Parks AVE, Nashville, TN-37243. |
| Texas | $300 | $25 | Secretary of State, P.O. Box 13697, Austin, TX-78711-3697. | James Earl Rudder Office Building, 1019 Brazos, Austin, TX-78701. |
| Utah | $70 | $75 | Utah Division of Corporations & Commercial Code, P.O. Box 146705, Salt Lake City, UT-84114-6705. | Heber M. Wells Building, 160 E 300 South, 1st Floor, Salt Lake City, UT-84111. |
| Vermont | $125 | — | Vermont Secretary of State, Corporations Division, 128 State Street, Montpelier, VT-05633-1104. | Vermont Secretary of State, Corporations Division, 128 State Street Montpelier, VT-05633-1104. |
| Virginia | $100 | $100 – Next-Day Service, $200 – Same-Day Service | State Corporation Commission Clerk’s Office, P.O. Box 1197, Richmond, VA-23218-1197. | State Corporation Commission Clerk’s Office, First Floor, 1300 East Main Street, Richmond, VA-23219. |
| Washington | $200 – Online, $200 + $30(Initial Report) – Mail/In-Person | $50 | Secretary of State, Corporations Division, P.O. Box 40234, Olympia, WA-98504-0234. | Secretary of State, Corporations Division, 801 Capitol Way South, Olympia, WA-98501-1226 |
| West Virginia | $100 | $ 25- 24-Hour Service, $250 – 2-Hour Service, $500 – 1-Hour Service | Charleston Office, One-Stop Business Center, 1615 Washington Street East, Charleston, WV-25311. (OR) Clarksburg Office, North Central WV Business Center, 200 West Main Street, Clarksburg, WV-26301. (OR) Martinsburg Office, Eastern Panhandle Business Center, 229 East Martin Street, Martinsburg, WV-25401. | Charleston Office, One-Stop Business Center, 1615 Washington Street East, Charleston, WV-25311. (OR) Clarksburg Office, North Central WV Business Center, 200 West Main Street,Clarksburg, WV-26301. (OR) Martinsburg Office, Eastern Panhandle Business Center, 229 East Martin Street, Martinsburg, WV-25401 |
| Wisconsin | $130 – Online, $170 – Mail/In-Person | $25 | State of WI-Dept. of Financial Institutions, P.O. Box 93348, Milwaukee, WI-53293-0348 | State of WI-Dept. of Financial Institutions, 4822 Madison Yards Way, North Tower, Madison, WI 53705. |
| Wyoming | $100 | — | Wyoming Secretary of State, 2020 Carey Avenue, Suite 700, Cheyenne, WY-82002-0020. | — |
4. Obtain an EIN from the IRS.
After filing your LLC with your state, you have to obtain EIN, i.e., Employer Identification Number or Federal Tax ID.
An employer identification number acts as a social security number for your company.
Obtaining and can help you open a business bank account, hire employees, prepare and file taxes.
Having a social security number for your company can also help you obtain any permits or licenses for your business.
You can obtain your Employer Identification Number by directly applying online to the IRS.gov website or mailing a hard-copy of the form to the IRS.
If you register your employer identification number online, you can obtain it immediately.
Some online LLC formation service providers offer this service for a specific cost, while few offer it for free under their formation package.
Now that you passed through filing your LLC and registering an EIN, We shall move forward with the next step in the process.
5. Create an Operating Agreement for your company.
Not every state wants you to have an Operating Agreement. However, we recommend you to create one because everything that you jot down in your Operating Agreement will help you in the future to avoid any disagreements within your company.
If you are wondering what exactly an Operating Agreement contains, we have listed some of it below.
- Details about your company formation.
- The ownership structure.
- The roles and rights of the members.
- Distribution of financial losses and profits.
- Business meeting and voting rights.
- The procedure of replacing or removing a member.
- Circumstances under which your LLC’s dissolutions happen and allocation of assets in such cases.
Most states don’t require you to prepare an Operating Agreement, but doing this will help you avoid future confusion and disagreement. It defines the rules and regulations and the responsibilities of the owners and your LLC members.
If you decide to go with an online formation service provider, you can use the free operating agreement template that some provide along with the formation package.
Finally, we have moved further down the lane after getting past the primary process.
Now that you have formed your LLC let’s see what you will have to do after that.
6. Take control of your financial matters.
Now is the time to take your company’s financial matters into your hand.
Having a company and leaving out the financial matters to be looked at later would be a huge mistake.
As a business owner, you should take care of your financial ups and downs and learn to manage it right from the beginning before jumping into your business.
How to handle your company’s finances, manage everything financial, how your finances get in and out of your company, etc., should be one of your primary concerns after forming your LLC company.
Two most important work you must do to keep your finances on track are:
- Open a bank account.
- Hiring a certified accountant or getting accounting software.
Opening a business bank account is the foremost essential thing to do because the money that comes in and goes out needs a pass-through medium.
If you don’t have a business bank account, you will have to use your bank account with no other option for your business needs, breaching your privacy.
So go open a business bank account with your EIN as early as possible.
Performing accounting for your business will help you keep track of everything that happens in your company financially.
You can choose to do it yourself with accounting software or hire an accountant outside of your company to help you with your accounting.
Using accounting software yourself is not that hard.
Most of the accounting software is easy to use to help yourself perform your business’ accounts for your financial benefit.
So figure out how you want to do your accounting and jump to your last and final step before you get your business up and healthy.
7. Manage taxes, licenses, and permits.
Are you tired already? Don’t worry. This stage is the final step to jump-start your business.
As a business owner, you have to pay your income taxes to your federal government. LLCs being pass-through entities, you have to pay and file it on your tax return every year.
You also have the option for your LLC to be treated as a corporation for your tax purposes.
You may or may not have state taxes payable to the state government depending on the state you start your LLC in. Check with your state government office or their official website to learn it
If you are a business with employees, you have to register unemployment insurance with the state.
Additionally, if your business sells taxable products, you have to register it with the state for sales and use tax.
In the case of licenses and permits, it is mandatory to obtain these at the earliest for different reasons to avoid unwanted charges.
Your state governments’ website provides information regarding licenses and permits.
You can find what kind of licenses and permits you will need to run your business in your state.
Licenses and permits that you should register and obtain differ for each state, so your state’s official website will guide you through the process.
The licenses and permits that you should get also depend on the product or service that you provide to your customers.
Depending on your company’s product or service, the licenses and permits you should buy will add or minus.
Some licenses and permits include,
- A business license
- A zoning permit
(Both depend on the state you start your business)
3. Federal permits and licenses
(Depends on the type of business that involves the federal agency)
4. Sales tax permit
(Also known as a seller’s permit for businesses that sells goods online or offline)
5. A sign permit
(For putting up a sign for your business)
6. A health permit
(For businesses that involve preparing, handling, and distributing food)
And many such licenses.
Additional steps you should consider.
Following are the things you should keep in mind while forming your LLC.
- Annual reports.
- Certificate of good standing.
- Business insurance.
1. Annual reports
As the name suggests, you need to report everything regarding your business changes annually.
Your LLC’s address, names of the shareholders, employees, registered agent’s information, etc., should be reported with your state each year.
It has to cover your LLC’s activities throughout the year. You can not leave this out, so you are in good standing with your state.
2. Certificate of good standing.
You can obtain the certificate of good standing from the state under some circumstances, like when you will have to prove that your business is legally running and after meeting the state’s requirements to run a business in your state.
It’s a document that states your business is appropriately registered and regularly updated with the document filings, etc., and is allowed to do business in the state legally.
You can make use of it when you want to expand your business in other states or when you want to sell your business or get a loan, etc.
3. Business insurance
You might need some business insurance in some states. It is also essential to get one for your business in case of any downfalls along the way.
Getting general liability insurance will make sure that your business assets, if any, stay protected.
Winding-up
If you have come past all the above procedures, congratulations, your business is ready to meet your customers.
There you go, everything you should do to start and run your business.
Your business will run with no hindrance if you follow everything you should do to satisfy your state’s requirements.
Seek help when needed.
Have fun running your business.
Keep in mind. You have to maintain good state compliance.
Hopefully, our article content did justice to our title ‘How to start an LLC.’
Good Luck!!
