Ask AI: How do I start an LLC

Starting a Limited Liability Company (LLC) involves several steps: 1. Name Your LLC: You need to come up with a unique name for your business. The name should adhere to your state's rules for LLC names. Typically, this includes including "LLC" or "Limited Liability Company" in the name and ensuring it doesn't infringe on any trademarks. 2. Choose a Registered Agent: A registered agent is an individual or business entity that agrees to accept legal papers on your LLC's behalf should it be sued. Most states require an LLC to have a registered agent. 3. File 'Articles of Organization': This is a simple document that includes information about your business like the LLC's name, its address, and sometimes the names of members. There is usually a fee to file this form. 4. Create an Operating Agreement: Many states don't require an LLC to have an Operating Agreement, but it's generally a good idea to have one. It outlines the ownership and operating procedures of the LLC. 5. Get an EIN from the IRS: Most LLCs are required to get an EIN from the IRS. This is also known as an Employer Identification Number and is used to identify a business entity. 6. Register for State and Local Taxes: Depending on your geographical location and the nature of your business, you may need to register for state and local taxes. This could be sales taxes, employer taxes, etc. 7. Acquire Business Licenses and Permits: The requirements for this can differ significantly depending on the state, locality, and specific industry. 8. Annual Reports: Some states require LLCs to file annual reports and/or pay a franchise tax. Remember to seek legal advice to ensure that starting an LLC is the right decision for you and to verify the process of setting it up as it is based on your state’s rules.