How to Plan an LLC
- 1). Pick a name. Your state may have specific laws regarding choosing a name for a LLC. In general, the name must be original, cannot include certain words such as "bank," "city" or "corporation" and must end with the LLC designation. Your proposed LLC name must also not violate another business's trademark. Check with your secretary of state office to determine that your potential LLC name is available and valid.
- 2). File Articles of Incorporation. Articles of Incorporation are documents containing the names of the founders and members of the LLC, the address of the LLC and the name of the registered agent. The registered agent is the person who accepts process in the event the LLC is sued. Articles of Incorporation are filed with your state's LLC filing office along with the filing fee applicable to your state.
- 3). Draft an operating agreement. In an LLC operating agreement, you state the rules regarding the ownership and management of the business. This information includes each member's percentage in the LLC, the rights and responsibilities of the members, voting powers, rules and timing on holding meetings, and how the LLC plans to allocate its profits and losses.
- 4). Obtain necessary licenses. Certain types of businesses need to obtain specific licenses or permits before beginning operations. Your state LLC office can advise you as to whether your LLC will be subject to these additional licensing requirements.
- 5). Publish any necessary notices. Some states require that potential LLCs post a notice in the local newspaper informing the community of the intent to form an LLC. The notice may be required to run for a period of four or more weeks, after which time a Certificate of Publication will be issued to the state's LLC office. You can check with your local newspaper for information on how to post such a notice and to see if one is required in your state.
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