How to Form a Limited Liability Company

A limited liability Company is a business venture which has the characteristics of both a corporation and partnership. The owner(s) benefit from the limited liability protection, where their personal assets are protected in case of liquidation. However, unlike in a corporation, their shares cannot be traded in the open market. Opening up an LLC is relatively easy, where the owners have to follow certain defined procedures.


  • 1

    To begin with, research the laws applicable to an LLC. You will need to visit your state office or an LLC centre which regulates all laws at the state level, which is in accordance with the federal law. This is important as you are recommended to file for incorporation in your home state. However, if you choose otherwise, then research the laws applied to that state.

  • 2

    Begin by finding a suitable name for you business. You are not allowed to share names with an already established entity. To find whether you are violating another company’s trademark, visit the US Patent and Trademark’s website or office. Your business name must end with an LLC designator such as Limited Company, Limited Liability Company or simply Ltd.  Moreover make sure that your name does not coincide with any state entity.

  • 3

    Now file ‘articles of association’ with your state’s filing office. It is a brief document; where you simply need to provide certain details – name, address, signatures. You are required to pay filling fee, which is usually modest in most states. Moreover you will need to mention the name of a registered agent who will represent the company in case of a lawsuit. These can be sent electronically or through traditional methods – mail or in person.

  • 4

    Create an opening agreement where you will define the percentage of each owner, voting power, a brief insight into how the business will be managed and other general information which may include the admission of new members.

  • 5

    Now make your LCC official. According to most states, you are required to inform the general public about your business. You can do this by placing an ad or notice in the local newspaper.

  • 6

    Get additional licensing and permits, such as Employer or Tax Identification Number, export license or any permit which is necessary for you to carry out all business related activities.

Leave a Reply

Your email address will not be published. Required fields are marked *

+ four = 6