How to Apply to Become a Limited Liability Company

A limited liability company (LLC) is a legal business entity that is formed on the basis of a partnership and sole proprietorship. What distinguishes a limited liability company from other forms of companies is that it features the characteristics of both a corporation and a partnership.

The most important feature of a limited liability company is that it does not hold any single person responsible for losses and gains. Rather, it holds all the shareholders or partners equally responsible for any event linked to losses and gains.

The growing competition and the ability for people to start any kind of business has led business owners and entrepreneurs to prefer working as a limited liability company. A majority of these companies are legitimate establishments that are best governed as both corporate and partnership entities.

Applying for a limited liability company entails some necessary legal steps. The rules may vary from state to state in the United States of America. It should be noted that limited liability company regulations are not issued by federal government and all the applications and documentation is issued by the state authorities.

Instructions

  • 1

    Contact Secretary of State office

    In order to apply for a limited liability company—whether a sole proprietorship or a partnership—you will have to get in touch with the office of Secretary of State. Since you will be required to set up your company in a particular state, all the documentation that includes the company name and other necessary forms regarding business details will be issued by the office of Secretary of State.

  • 2

    Log on to USA.org

    As a faster and more efficient process, you can visit the website of USA.gov. The website, run by the Federal government of the United States, has all the necessary information and resources, such as in which state you want to start an LLC. You can go directly to the section “Business and Nonprofits,” which facilitates those who to want to start and manage a business.

  • 3

    Incorporate your business

    After you have opened the page “Business and Nonprofits,” click the tab “Incorporate your Business,” which will take you to the list of the all states in the United States.

  • 4

    Choose state

    If you start a limited liability company as a partnership, be sure to go through all the regulations that usually vary from state to state. The website has a detailed list of online forms for an LLC.

  • 5

    Download required forms

    Download all the required forms and then get a print  (hard copy). The website also has an option of online application.

  • 6

    Mail the forms

    The USA.gov will show the details of all the mailing address and fees for you to send your LLC application. It usually takes a month to receive an approved mail from your state government.

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