Laws on Forming an LLC

Limited liability companies are easier to form than corporations, but you should follow certain guidelines to make the LLC a legal reality. First you should choose a name for your LLC, which should comply with the rules of your state's LLC division. Your state's LLC office can tell you how to check if your proposed name is available. Often, for a small fee, you can reserve your LLC name for a short period of time until you file your articles of organization. That way, when you file your articles of organization, your business name will be automatically registered.

After settling on a name, you must prepare and file articles of organization with your state's LLC filing office. While most states use the term "articles of organization" to refer to the basic document creating an LLC, some states use the term certificate of formation or certificate of organization.

You need to pay a filing fee when you submit your articles of organization. In all states, an individual or company must be responsible for receiving important legal and tax documents. This service is provided by an agent of the LLC, who is registered with the state of incorporation. The registered agent must have a valid street address within the state of formation, and should be available during normal business hours to receive documents. He is responsible for services like receiving and forwarding legal documents, receiving and forwarding tax and report forms, and accepting and forwarding service of process.

Once all these are set, you can also apply for a federal tax ID number, which is a social security number for businesses. Some states require notice to be published in a newspaper that a corporation or LLC has been formed; to comply with this requirement, you can contact your local county recorder's office and they will guide you.

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