How do you start an LLC?


Quick Answer

Starting a limited liability company requires a business owner to draft and file articles of organization with a state agency, according to the U.S. Small Business Administration. Preparing the articles of organization requires the owner to select a unique name for the company and arrange for a business address.

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Full Answer

Most states also require the articles of organization to identify a person or entity with a physical address within the state to receive official correspondence on behalf of the LLC, and some states require the articles to identify the company's owners and managers. Once the articles are drafted, the document must be filed with a state's business registrar, which is typically the Secretary of State's office, along with the appropriate filing fee, explains the SBA.

Other start-up activities to launch a new LLC include registering the company with the Internal Revenue Service and drafting an operating agreement to control the relationship between the owners, according to Harvard University's Digital Media Law Project. Obtaining a tax identification number, also called an employer identification number, from the IRS enables the LLC to open its first bank account. If the LLC plans to sell goods that are subject to state sales tax, it may be required to register with the department of taxation and obtain a resale certificate to do business. The LLC may also be required by state regulations to obtain licenses or permits before starting operations.

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