How to Form a Limited Company

Limited Liability Company (LLC) refers to businesses in which the liability of the owners is limited to the amount they have invested in the company. The formation is further divided into private and public, where the former is backed or limited by guarantees while the latter with shares.

Moreover, LLC will ensure protection of personal assets from creditors and third parties. The process to set up an LLC is reasonably easy.


  • 1


    You must have a business plan in place which clearly defines goals and how you intend to pursue them. This is necessary before you consider starting your business. Identifying and knowing your state’s law is also important in order to stabilize the formation process.

  • 2

    Choose an appropriate name

    The name must be unique, and preferably should refer to the product or service you are catering to. Check your state’s registry for confirmation that the name is not incorporated before. Performing your own search is helpful but surf your state website or use the Companies House WebCheck service to check for availability.

  • 3

    Now start the process. Visit your state website and get prints of the LLC forms to complete the necessary application. Use the Companies House Web Incorporation service if you are based in UK.

  • 4

    Provide all the necessary details of your company. For Registration, file the Articles of Organization with your state. You will be required to fill the business name, address, and the name of the owners. In the other form, where the business is opened on a bigger scale, you will be asked to incorporate the names of the shareholders, the amount of capital involved and name of the officers (Directors and so forth). You may also be required to hand some personal details – date of birth, National Insurance No – to protect your company.

  • 5

    Get your EIN or employer Identification Number by contacting the Internal Revenue Service or visiting the website. This is important for any business trying to sell its product, as it is subject to sales tax license. Contact your state office to check whether you need additional licensing (permits etc) for your business.

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