How can I set up an LLC?

Great question. First, it is important that you’re sure that registering your business as an LLC is the best legal formation for your needs. While an LLC makes your taxes easier to complete, you don’t really save any money (in regards to taxes) because you choose to incorporate as an LLC. However, an LLC can certainly help you protecting your personal assets. Now, for the actual answer of how to set up an LLC, I am going to presume that you’ve done your research and that you’ve decided that an LLC is absolutely the best choice for you.

LLCs are easy to set-up. While there are some documents you’ll need to complete, it’s less time consuming than some of the other business entities. Your first step is to determine what you’d like to name your business. Make a list of two or three options because you’re going to need to visit the Secretary of State website for your state and run a name search to make sure that the name you want isn’t being used or wouldn’t be so similar to another business that it could cause confusion.

Next, decide where you want to incorporate. You could choose the state that you’re in or you could choose a state like Delaware or Nevada. Many new business owners find it easier in the long-run to register their business in their home state because it is much easier to find an attorney or learn about the law in your area.

The next step involves completing the appropriate forms. Each state has its own set of forms for registering an LLC. The forms are usually available for free on the Secretary of State website. When you download the forms (usually in PDF format), make note of the filing fee that you’ll need to pay when you complete the forms. Some states allow you to submit your forms and pay your registration fee online. Some states may require that you mail in the forms along with your fee.

Read the documents carefully before you complete them. Make sure that you are turning in any document that is requested of you. Finally, keep in mind that you’ll have to pay a renewal fee each year. You should also know the process of how to dissolve your LLC in whichever state that you’ve chosen to register it in the event that you decide to end your business.

Hopefully, this will get you headed in the right direction. If you need any help forming your LLC, check out LawTrades. We’ve helped thousands of small businesses get their start and we’d love to help you, too.