start an LLC

How to start an LLC in 7 Easy Steps: A Complete Guide

by Daily Banner

An LLC is a hybrid business type that combines tax and structure flexibility. If you are worried about the initiative of an LLC then we are here to guide you through everything about LLC, and how you can start it in 7 easy steps. Let’s start!

What is an LLC?

LLC is a limited liability company. It is a type of business that U>S business owners choose for the operation of their enterprise. Creating an LLC protects any individual and a business in case of any legal trouble and bankruptcy. It also offers some business tax options, as not all companies operate similarly. You can also consult your tax advisor to determine the best option for your LLC.

Set up of an LLC

There is a difference in processes and laws from state to state. You can use the following seven-step guide to set up your LLC business. You must follow these steps to start an LLC.

1.Decide a Business Name

It is very important to choose the right name for your business or a branding purpose. Marketing may be at the top of your mind as the name of your business. You also need to consider the laws and requirements of a state while choosing the best name for your business. You could not choose the same name that is being used by another business in the same state. Some states also prohibit to choice of certain words in your business name like insurance and banking. You must have to choose the version of LLC and limited liability company at the end of your business name.

2. Designate a Registered Agent

A registered agent receives official or legal documents. Once he received the documents then passed them to the LLC. Every state requires LLCs to have a registered agent. Anyone with the age of 18 can be a registered agent and he can name himself as a business employee. However, the agent must be available within your state during normal business hours. You can also consult a company that provides you with a registered agent and pricing for the agent must be more than one dollar. You can also be your own business registered agent and you must have to know that your name and address will soon become a matter of public record.

3. Get a copy of Your State’s LLC Article of organization form

If you want to establish your own LLC legal entity, you will have to fill out a document with the state agency that handles the business filling in your state. In some states, this document is named as an article of organization but the other states have other sets of names like certificate of formation. Every state has a form that you can use to find the form of your state. You can also go to their official website to find the article of organization.

4. Prepare the LLC article of organization form

Each state lists its specific requirements and procedures for those who are trying to get an LLC. You need to provide some basic information which includes:

  • Name of your business
  • Address of your principal place of business
  • Purpose of your business
  • The way your LLC will be managed
  • Contact information for the registered agent
  • The duration of the LLC

Once you complete these steps, one or more business owners will need to sign the form. Some states like New York require you to publish a notice in the newspaper that will show your desire to establish your LLC. This step must be completed before filling the article of organization.

5. File the Article of Organization

You need to check the article of organization carefully before submitting it to the state. You will also need to pay your filing fee, which may be different depending on the state where you are forming your LLC business. When your formation documents are approved, you will be issued a certificate by the state that indicates that your LLC is now legally registered. You can use this for other purposes like setting up a business bank account and getting a tax ID number.

6. Create an operating Agreement

An operating agreement contains all the details of the financial, legal, and management rights of all the members of the LLC. It will also include how will you leave the business, how profit will be distributed, and who contribute capital to the business. Many states do not require an operating agreement but that does not mean that you don’t need to craft one. LLCs with more than one number of partners will want to create one that ensures their rights and responsibilities.

7. Keep your LLC Active

Setting up the LLC is just a start. After this you will need to run your business with great zeal to ensure your business remains in good standing. You can again consult the business’s official website for further details. You will need to update your profile and pay an annual filing fee.


After this guide, you can set up your own LLC business. You need to fulfill the seven steps mentioned above to start. Once you get started you just have to run it smoothly and actively. You can get help from LLC’s official website if you find any error or problem. Lastly, LLC is a very flexible and reliable company for starting your small business.

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