How to Create an LLC

Many people who decide to create a formal business entity (such as the corporation or LLC) choose the LLC, because it provides limited liability without having to file a separate return and pay taxes on behalf of the business entity. Each state’s requirements are different, but to form an LLC, you need to take the following steps.

  1. Name it. Choose an available business name that complies with your state's LLC rules.

  2. File articles. File formal paperwork, usually called articles of organization, and pay the filing fee (ranging from about $100 to $800, depending on your state's rules).

  3. Create operating agreement. Create an LLC operating agreement, which sets out the rights and responsibilities of the LLC owners (referred to as "members").

  4. Publish notice. Publish a notice of your intent to form an LLC (required in only a few states).

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