How to Form an LLC in the US
The process of forming an LLC is straightforward, but it’s still something you’ll want to give some thought to before diving in. Here are the steps you need to follow to start one in the U.S.
Choose a Name for your LLC
Now that you've decided to form an LLC in the U.S., it's time to choose a name for your new company. Before choosing a name, make sure it's not already being used by another company or business (in the same state as yours). Also be sure to research whether or not any similar-sounding names are already taken. Choose a name that reflects your business and makes sense with its industry—this will help you avoid confusion among customers and clients when they hear about what kind of products/services you offer through word-of-mouth advertising channels like social media platforms such as LinkedIn, Facebook, Twitter etc.
Make sure the name is easy enough for people both inside and outside of your industry understand what type of service/product offerings they can expect from this organization without needing additional clarification about where exactly these services are coming from (ie: city/state).
File Articles of Organization
You can form your LLC using a state-specific form, which you'll find in the secretary of state's office. Each state has its own filing procedures, so you'll need to check with your state for specific requirements.
These forms will include information about your business and what type of company it will be (for example: corporation or partnership). You'll also need to provide contact information for all members and an address where the company is located.
If everything goes well with filing the articles of organization, you should receive some paperwork verifying that everything was done correctly and confirming that your business is officially registered as an LLC.
Create an Operating Agreement
An operating agreement is a document that governs the relationship between the members of your LLC. It should include information about how your LLC will be run, who will make decisions, how profits will be split, etc. You can create one yourself or find a template online that covers all the topics you want to cover (and some templates have even been approved by attorneys).
Once you've created your operating agreement, get signatures from every member on it so that everyone agrees to follow its rules and regulations.
Appoint a Registered Agent
In the United States, your LLC is required to have a registered agent. A registered agent is simply an individual or company that you appoint to receive and manage legal papers on behalf of your business. You will need to appoint your registered agent(s) in the state where you want to register your LLC.
When choosing a registered agent, it's important that they agree with what type of service they are providing for you and how often they will be contacted by clients, customers or other third parties regarding issues related to your company. The person should also have experience with similar companies as yours and be able to provide references if needed.
Obtain an EIN from the IRS
To apply for an EIN, you will need to fill out IRS Form SS-4. The form is available on the IRS website and can be downloaded for free.
It is necessary to include the following information in your application:
- Your name and address (if you use a PO box, list it as well)
- Your social security number or employer identification number (EIN) if applicable
- The type of entity you are forming (LLC, corporation or partnership)
Open a business Bank Account
- Choose a bank that is convenient for you.
- Choosing a bank that is FDIC insured is necessary
- Make sure to choose a bank that has good customer service.
- Make sure to choose a bank that has competitive interest rates
File for the Appropriate Permits and Licenses
You will need to file for the appropriate permits and licenses in your locality. For example, if you are operating a food truck, you will need to apply for a permit from your local health department. If you are running a daycare center or other service business, then you will need to apply for an occupational license from the state where you live. Some states also require limited liability companies (LLCs) to pay sales tax on their gross income; however, this differs by municipality so it's best to check with them before starting up your business. Many cities also require LLCs that want to handle cash transactions over $10,000 per month or $50k per year (whichever is less) to register as an MSB (Money Services Business).
Overall, starting an LLC is a straightforward process and requires only basic paperwork. If you need help with this, there are many online resources that can walk you through the steps of forming an LLC and filing for your state and federal identification numbers.
With this guide, you should have all the information you need to start an LLC. If you have any questions or need help with your LLC, feel free to reach out.