A limited liability company (LLC) is a legal business entity where owners have limited personal liability even if they participate in management.
To form a limited liability company:
- Choose a name which complies with your state law for LLCs
- Prepare and file Articles of Organization with your state LLC office.
- Draw up the Operating Agreement among the owners.
- Set up a bank account for the LLC.
- Develop a financial plan.
- Set up a record keeping system.
- Insure the business.
- Lease or purchase the place of business.
- Lease or purchase any supplies and equipment needed.
- Hire and train employees.
- Open the doors for business.
- LLCs are a relatively recent business form adopted from international business models.
- Only recently have LLCs become legal in all 50 states.
- State and federal laws may not agree so legal advice is critical.
- A Limited Liability Corporation is like a partnership, but more flexible and without the legal liabilities.