How to Form an LLC?

By The Law Office of Yoel Molina.
 
Here are the procedures you must follow in order to form an LLC in any state:
 
1. What Name Should My LLC Have?
Your LLC's name must adhere to the laws of your state. While these regulations vary, most states demand:

• The name of your LLC must not already be registered with your state as the name of another LLC or commercial entity.
• It must also finish with an LLC designator, such as Limited Liability Company, Limited Company, or an abbreviation of one of these words.

​A minor charge frequently entitles you to hold onto your LLC name for a brief period of time until you submit your articles of organization.
 
2. How Do I Create an LLC?
You must file articles of formation with your state's corporate filing office, frequently the Secretary of State, in order to establish your LLC. Instead, some jurisdictions use the term "certificate of formation," while others refer to the document as a "certificate of organization."
Usually, you can complete the articles of organization online or with a form found on the website of your secretary of state. You'll need the name of your LLC, the name and address of its registered agent, as well as other essential details like how the LLC will be run or the names of the LLC owners. When you submit the articles, you'll need to pay a filing fee. The costs are generally low in most states, usually under $100.
 

3. What Requirements Apply to Registered Agents?
A registered agent must be appointed for LLCs. If someone sues the LLC, this person or business consents to receive court documents on its behalf. The LLC's registration state requires that the registered agent have an actual street address there. The majority of states keep a list of for-hire commercial registered agents who will serve as an agent for process serving private service providers. The LLC's registered agent may be one of its members.
 
4. Should Members or Managers Manage My LLC?
The majority of small LLCs opt to have its members manage them directly, but LLCs can also name one or more outsiders to serve in that capacity, much way a board of directors would oversee a corporation. Key decisions like borrowing money, buying property, or altering strategic goals are put to a manager's vote.
 
5. What is an LLC Operating Agreement and How Do I Make One?
Even though the majority of states do not mandate it, you must draft an operating agreement when forming an LLC. This internal document spells out how your LLC will function, including how it will be handled. Without an operating agreement, your LLC's operations will be governed by state law.
 
6. What Tax and Regulatory Requirements Are There?

There can be additional tax and legal requirements for your LLC. These consist of:
 
EIN: Even if your LLC has no employees, each additional member must obtain their own IRS Employer Identification Number (EIN). If you form a one-member LLC, you only need to get an EIN if the LLC will employ people or if you want it to be taxed as a corporation rather than a sole proprietorship (disregarded entity). By submitting an online EIN application on the IRS website, you can get an EIN.
 
Business licenses: Your LLC may require additional municipal and state firm licenses, depending on the nature of your LLC's operations and the location of your business. To confirm that you are legitimately registered, licensed, and allowed to conduct business in your state, contact the relevant state offices.
 
Sales and Employer Taxes: In some circumstances, such as when you will be employing people or when you will be selling items and collecting sales tax, you must register with the relevant state taxing body. Please refer to LLC Tax and Annual Filings Requirements: 50 State Guide for more details on LLC tax registration regulations.
 
7. How Should Annual Reports Be Filed?
LLCs must submit an annual report to many states along with a filing fee. These costs can be substantial in some areas; in California, they can go as high as $800 annually.
 
8. Is My LLC Able to Operate Outside of California?
You must register your LLC in that state and appoint a registered agent for service of process if you want to conduct business in a state other than the one in which it was created.
 

If you have any questions about this article or similar matters, please contact our office, the Law Office of Yoel Molina, P.A., at fd@molawoffice.com or 305-548-5020, option 1