As we start a fresh new year, perhaps you’ve decided this is the year you create your own business and control your career path. Having a great idea and bringing it to fruition is not only exciting, but it can also prove to be the best career decision you make. Before you get too far ahead of yourself, it’s important to investigate how you set up your own business. There’s a lot more involved than just creating a business name.
Here we’ll take a look at the five basic steps on how you can form an LLC in the US and get your business up and running.
Decide Which State to Form Your LLC In
A good place to start is by looking at the various states and deciding which one to form your LLC in. Why does this matter? Well, some states don’t have state taxes, so it would make more sense to form the business in those states. The three states that tend to stand out as “ideal” for forming an LLC are Nevada, Delaware, and Wyoming.
Pick Your Company’s Name
Now it’s time to pick the name for your LLC. While you may not think the name is a huge deal, in reality, the name you choose will have a big impact on the company. You want to choose something short, simple, and catchy and that hopefully represents the company. As well, you need to be sure the name you pick hasn’t already been chosen by another company. If it is already in use, it’s back to the drawing board.
Use a Registered Agent Service
While it’s easier to set up an LLC than it is to set up other types of corporations, there is still plenty to be aware of and it can be confusing. This is where a registered agent service can come in extremely handy, as they make the process smooth, fast, and simple, taking out all the confusion. Not only that but they offer customer service along the way, meaning you can go to them with any questions or concerns you may have.
As for choosing a registered agent, it’s important to do your research and paying close attention to the tools the agent offers, the level of customer service, pricing, the amount of experience they have, and what exact services are offered.
The LLC Needs to Be Filed with the State
The next step is to file your LLC documents with the state you are forming the company in. This document is called the “Articles of Organization”, and it is meant to discuss how your company will be organized and structured. It will need to be detailed and exact.
You Will Need an Employer Identification Number
At this point, you will also need to get an employer identification number (EIN), which is needed for taxation purposes. By following these five key steps, you’ll be well on your way to set up your LLC in the US.
