A good way to earn more revenue while maintaining the leeway and freedom of a privately owned business is forming a limited liability company or LLC for short. Nowadays, so many LLC formation services are reaching out to business owners because they want to help them take their business to the next level. By becoming a limited liability company, business owners can get the protection of a company with the flexibility of a sole proprietorship. We sure hope you’re started taking an interest in LLC because we will give you the information to form one!
Choose an LLC Name
You can start by choosing a name for your LLC because a name represents a company’s identity, but remember, identity theft is not a joke, so you have to pick a name that another LLC has not yet used. Next, your selected LLC name should be in compliance with the governing state rules, which means you have to put LLC, Limited Liability Company, or Limited Company on the end of your company name. Finally, remember that a name is an identity, so you should choose wisely and not going for something unprofessional and childish that can backfire on you in the future.
File Articles of Organization
An article of organization is a mandatory document that is required by the secretary of the state to be filled upon your LLC’s formation. Some states call them certificate of formation while some others call them certificate of organization; nevertheless, what’s important is you file them and submit them on the secretary of the state’s website with the filing fee of around $100.
Choose Your Registered Agent
Every LLC in existence is required a registered agent to represent them when the LLC is facing legal actions. Your registered agent will have a hold on your company address, and they can act on your behalf on accepting legal papers and documents. Furthermore, you can choose your own LLC member as a registered agent should you be willing to do so.
Comply with the Regulation and Requirements
Every company under the state law must comply with paying federal taxes, which means you have to get EIN or Employee Identification Number from the IRS website. You would also have to own a business license to substantiate your claims that your company has been established, properly registered, and is legal to do business. Lastly, you would need to register with the state taxing authority to comply with the state’s tax regulation.
Submit Annual Report
The states require LLCs to submit their annual report with the filing fee, including giving the governing state authorities the information pertaining to your company’s activities, board of directors’ names, member names, company address, registered agent, etc., for the whole year their operation.
The Bottom Line
Creating an LLC is an excellent way to boost your revenue, gain more customers, and upgrade your business to the next level. The question is, do you know how to form an LLC? Well, you should have known how after reading our article, but if you still need help, many LLC formation services are available; just give them a call, and they will help you take your business to the next level!