What paperwork you need to start a new LLC will vary depending on the state in which you register your limited liability company. Fortunately, although limited liability companies exist purely in state law, there are some uniform laws among the states that result in similar LLC registration practices no matter where you live.
Setting up a limited liability company is similar to incorporating a business. Both business structures offer you limited liability, but the LLC is much simpler to form. Because the method of company formation you select has a large impact on the function and growth of your business, ensure that the LLC is the appropriate entity before beginning the process.
The basics of how to start an LLC can be summarized in five steps:
Limited liability companies are very flexible business entities, and this applies to ownership restrictions as well. The owners of an LLC are called members. A single member can own an LLC by him or herself, but a partnership of members, a group of members, or even a group of businesses can own an LLC. Limited liability companies are creatures of state law, which means every jurisdiction in the United States will have slightly different rules. The limitations on ownership, however, are fairly consistant across the country.
Choosing your business’s name is one of the more important decisions you must make when starting a home business. This name will be at the core of your company’s branding and will generally be the first thing potential customers see when evaluating your company. Selecting the correct name for your home business is about more than just finding a clever or catchy title; you must also ensure that your chosen name does not infringe on any other business’s trademarks.