The Steps to Start an LLC

Though sharing some of the protective characteristics of corporations, an LLC, or limited liability company is actually an unincorporated association. Some of the advantages of an LLC include its eligibility for pass-through income taxation, and the limited liability of all members involved.

The first step taken to start an LLC involves its naming. Your LLC cannot have the same name as any other LLC on file with your state's LLC division. To check the availability of your intended name you must consult with the LLC division which is usually part of the corporations division at your secretary of state office. In addition to being original, your name cannot infringe on copyrights of any other business or organization.

When your name has been selected and approved, the next step required to start an LLC is the filing of what are called the Articles of Organization with the Secretary of State. Also sometimes referred to as a "certificate of organization" or "certificate of formation" in some states, these articles are not difficult to file. Usually a simple form with blanks, you must fill in the approved name of your LLC, its address of operation, and the names of all people involved, known as members. Usually the only fee charged to start an LLC, filing the Articles of Organization costs anywhere between $100 and $800, depending on which state you are in. You may also be required to signify one person, or registered agent, who will serve as the receiver of all legal documents that may be sent to the LLC if situations involving lawsuits may arise.

In addition, some states may require you to publicly announce the start of an LLC via newspaper notice. They will sometimes require this to be published for multiple weeks after the formation of an LLC, followed by the submission of an affidavit of publication through the LLC division.