Close this search box.

How to Get an LLC and Start a Limited Liability Company

llc california

Share This Post

Do you know how to get an LLC and start a limited liability company without falling on the wrong side of the law? It has a business structure protecting its members from personal responsibility, such as liabilities and debts, in the United States.

If you’re a business owner seeking more liability protection than a sole proprietorship and don’t want to register as an S or C corp, consider forming a limited liability company.

Are you a new entrepreneur ready to discover how to get an LLC and start a limited liability company? Join us as we discuss everything beginners should know about the process below. Let’s get started.

How to get an LLC and start a limited liability company: What are the benefits?

Limited liability is undoubtedly one of the most notable benefits of forming an LLC anywhere worldwide. It refers to the business owners, also called members, not being responsible for the organization’s legal or debt liabilities.

In addition, limited liability companies can choose a preferred tax method and remit payment as a partnership or sole proprietorship. Furthermore, they can pay taxes as a corporation, allowing you to separate business income from social security tax.

However, just online company formation of an LLC is not enough. Business owners should consider learning the types and choose a preferred choice.

Steps to apply for an LLC

Selecting the right type and choosing a business name are the first steps to applying for an LLC. Filing articles of organization and designating a registered agent is also essential. Let’s dig into the details:

1.      Select one of the 5 LLC types

A limited liability company is not a one-size-fits-all business, as there are various types to suit your needs. Let’s break them down.

Member-managed LLCs: It’s an organization where specific individuals or owners run the company.

Series LLCs: This LLC-type structure resembles a corporation with various subsidiaries. It usually comes with an umbrella or parent LLC with one or multiple sub-or series LLCs beneath; each differs.

Restricted LLCs: This company formation registration method is favored in Nevada, especially in the estate planning industry. With a restricted, limited liability company, organization owners can receive profits from the business for at least ten years from the registration date.

Anonymous LLCs: It refers to an online company formation where members’ true identities are not publicly disclosed. They’re famous in states like Nevada, New Mexico, Wyoming, and Delaware.

Professional LLCs: It’s a limited liability company designed for professionals like architects, doctors, and attorneys. Besides, it protects business owners like other types, but all members must have professional licenses in the same field.

2.      Choose a Business Name

After choosing your preferred LLC type, it’s time to focus on your business name for personalized marketing strategies. Consider the right letter combination and legal requirements for brand and marketing purposes.

Your company business name should include “LLC,” and avoid introducing words restricted by your state. For example, individuals cannot use words like insurance and bank in many United States jurisdictions. Consider checking the state website for necessary information.

Ensure the name isn’t for another individual, and some states will let you reserve it until you complete the documentation. Besides, it’s best not to infringe on any existing names with trademarks.

3.      Register a DBA name and File articles of organization

After choosing the right word combination, it’s time to register a “doing business as” (DBA) name. It’s different from your company’s officially registered business name, but not all states require it. So check your jurisdiction’s business office and follow the proper process.

Another ideal step after setting up a company online is filing articles of organization in your state when forming your limited liability company. Most jurisdictions have an easy-to-fill-out document for individuals to obtain online or in person.

The information varies in states, so visit the necessary website for the requirements. After completion, file it within your jurisdiction agents and pay the required fee.

4.      Designate a registered agent and draft your operating agreement

A registered agent is necessary for every state as they’re responsible for receiving essential documents on behalf of the organization.

This individual collects compliance-related documents, government correspondence, and service process notices for your business before drafting the operating agreement. It’s the document that provides a structure for crucial company decisions internally and improves brand reputation.

While many states don’t require an operating agreement, it’s essential when business owners seek clarity on critical issues. Lastly, it covers the responsibilities and voting rights, members’ duties, powers, and ownership percentage.

5.      Publish a notice of formation and obtain a business license and permit

You might need to announce the formation of your limited liability company by publishing a notice in your local paper. Check with your state if it’s required and follow the procedure before obtaining permits and licenses.

The permits and licenses businesses require for operations depend on the industry, local government, and state requirements. Incorporate your business online, but consider working with experienced legal representatives to avoid breaking the rules.

Wrapping up

After learning how to get an LLC and start a limited liability company, it’s time to explore your desired city. When opening a bank account for your business, you’ll need employer identification numbers (EINs) over Social Security numbers.

It is quick and seamless to obtain an EIN. Complete the form by heading to the Internal Revenue Service (IRS) website. Submit to the appropriate authorities, and you’ll get your employer identification numbers.

You can now open a bank account with your business license. Having a separate company account is helpful, allowing you to manage expenses and income, making financial decisions and accounting efforts easier

About Author

Picture of Rick Mak

Rick Mak

Rick Mak is a 30-year veteran businessman, having started, bought, and/or sold more than a dozen companies. He has bachelor's degrees in International Business, Finance, and Economics, with masters in both Entrepreneurship and International Law. He has spoken at hundreds of conferences around the world during his career on entrepreneurship, international tax law, asset protection, and company structure. Business Anywhere Editorial Guidelines

Subscribe To Our Newsletter

Get updates and learn from the best

More To Explore

how to name your llc

How to Name Your LLC Like a Pro

In 2023, there were over 33.1 million American small businesses. While the proliferation of innovative ideas is fantastic for the

How to Fill Out a W-9 Form

How to Fill Out a W-9 Form

Every day, goods and services are exchanged in our society, which makes the world run smoothly. We’d like it to

Do You Want To Boost Your Business?