Small businesses require professional help to set up their LLCs. Developing a business in any of the states of the U.S. requires your LLC to have a registered agent.
Setting up an LLC for your company or business entity is essential for business success. It is vital to understand that LLC protects your personal assets in case of business bankruptcy. LLC also protects by providing your business with a tax shield.
Step By Step Guide To Open An LLC
Here is your guide to learning how to open an LLC step by step using this five-step guide. This guide will help you explain everything you need to open an LLC.
The focus will also help you understand the difference between LLC and other business structures and the cost of LLC formation.
Following are the steps to open an LLC anywhere in the U.S:
1. Pick The Business Name And Get It Registered
You can pick the right name for your business with creativity and market research. It is essential to check the availability of business names in the database of the respective state you will start your business. Once you have chosen the title, the next step is registering the business name.
You must register your business name according to your business needs. You may register the business name in four different ways.
- You may register at the state level to protect the business entity’s name.
- You may register at the federal level to protect the trademark of your business.
- You may register as Doing Business As(DBA), keeping in mind that it might not provide legal protection. However, this registration is required for legal concerns.
- You need to reserve and purchase the domain name for your business.
2. Select a Business Location
Understanding that selecting a location plays a vital role in business is critical. For example, location determines the amount of tax levied, the zoning rules and regulations, and laws to regulate your business. Therefore, location selection will be a strategic decision to establish your business.
You need to consider the location when calculating the cost of a startup. It is because the salaries, wage laws, rent rates, property values, insurance rates, and utilities vary significantly in the context of location.
3. Choose a Business Structure
The decision to choose a business structure dramatically impacts the business operations, taxes, and how much your personal assets are at risk in case of your business bankruptcy. Therefore, selecting a business structure is vital as it provides you with legal protections and further incentives.
It is suggested to review common business structures, i.e. sole proprietorship, partnership, LLC, and Corporation.
4. Register Your Business
Registering your business depends upon the structure you choose and the location you selected for your business entity.
Sometimes you don’t need to register your business, or you may register it as you have registered your business name with the state. For example, you won’t need to register if you are handling business with your legal name. However, not registering the business will not limit your liability to the company.
However, if you are an owner of an LLC or Corporation, you must get registered by the state agencies. For this, you must have a physical presence in the state and take in-person meetings.
You are earning a massive portion of your income from the state, and one of your company’s employees works there.
5. Select a Designated Registered Agent
It would help if you had a registered agent to establish an LLC in any of the states in the U.S.
The registered agent will deal with your company’s legal, official and regulatory requirements. The registered agent ensured the submission of all legal documents and submitted them to the in charge of the LLC.
All 50 U.S. states allow a person above 18 and a state resident to serve as the company’s registered agent.
There are very sophisticated registered agent service providers available online or within the state of operation that you can engage with to run the business operations.