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How To Form A Llc

An LLC, which is a limited liability company, is owned by its members. The LLC structure is similar to any other corporation. In order to form an LLC, there are certain considerations to review at the outset, which must then be followed up with the formal corporate formation process. Initial considerations include the management of the business, the officers of company, the assets of the company and how the earnings will be distributed. Once all of these items are considered, the LLC must be formally established. Every state has different laws which indicate exactly how the LLC must be established. Generally, however, the LLC must contain a name which is not already in use. Once the name is identified and verified for usage, the LLC's Articles of Incorporation must be filed with the Secretary of State where the LLC is formed. The specific method of filing and all requirements are contained in the applicable law of the state.

Fast Facts

  • In many states, LLCs may name the Secretary of State as the official entity authorized to receive service of process for the LLC
  • The LLC may be managed by its members or a separate management team may perform these tasks

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