A step-by-step guide to starting your first limited liability company (LLC)

In the US, you’ll need to register the name of your LLC with the local authorities for your state. As you can’t have the same name as a pre-existing LLC, you’ll need to search existing businesses to ensure your name is unique. 

Depending on the state, there may also be other rules about what you can or can’t call your LLC so you’ll also need to check these before proceeding. Figure out the best place to form an LLC by consulting the LLC University website. 

An LLC Registered Agent is the person responsible for receiving legal documents on behalf of your LLC. The agent could be you, a friend or a family member. Alternatively, you can pay for a Registered Agent service. 

Whichever option you choose, the Registered Agent must have a physical street address in your chosen US state, and this address will be listed on public records along with the agent’s name.  

For your LLC to begin, the next step you’ll need to take is to submit LLC Articles of Organisation with the local authority. These formation documents will be filed with the Secretary of State or equivalent government office and will include key details such as your LLC’s name and purpose, its address and the details of your Registered Agent. 

There is a one-time fee to pay as part of filing the LLC Articles of Organisation, which varies by US state. If you’re unsure about how to proceed with this step, it’s possible to hire a third-party company to file the paperwork on your behalf. 

If the Articles of Organisation create your LLC, your Operating Agreement is where you provide information about who is responsible for the company, as well as tracking important information about profit shares and the structure of the business. 

An Operating Agreement can be necessary to open a business account with some banks, and it can also be a useful tool if there are ever any disagreements within the business. 

Finally, you need an EIN or Employer Identification Number. This is obtained from the Internal Revenue Service (IRS) and is used to identify your business for tax purposes and enables you to apply for licences and permits as well as open bank accounts. 

US citizens will be able to obtain an EIN online. However, non-US residents will have to obtain theirs via fax or mail. 

Once you’ve followed these steps, your LLC has been officially created and can start operating. Things you may want to do next will include: 

• Open a business bank account 
• Apply for any business licences or permits required for your chosen field 
• Check state requirements for LLCs to ensure you remain compliant 
• Set up an accounting system and/or hire an accountant 
• Set up payroll if you plan to hire employees