How To Set Up an LLC?

By Patrick Banks

Posted 4 weeks agoGROWTH


The US state courts get more than 100 million cases yearly, according to the Institute for the Advancement of the American Legal System. This staggering number can be scary if you are an entrepreneur or a business owner. It shows that the odds of your business getting sued are relatively high.
If your business gets sued, you can be on the losing side of the lawsuit. When this happens, it can be both financially and emotionally crippling. If your company lacks the necessary resources to pay o the plainti, they might go after your personal assets. This might be needed to fulfill the judgment ordered by the court.
Good thing there is a workaround that can help you protect your personal assets.
By structuring your business as a limited liability company (LLC) from its inception, you will mitigate the risks of losing your personal assets if a lawsuit is filed against your company. An LLC is a hybrid business structure in the US with the benefits of sole proprietorship or partnership tax obligations and a corporation’s limited liability. They are called dierently in some countries, but in the UK, it is called private limited company.
Incorporating your venture into an LLC early on will help you have peace of mind. Instead of worrying, you can focus all your energy on making the business grow.

If you are planning to form an LLC, here is a guide on how to set it up.
Think of a Business Name
Choosing a name that truly represents your business would be best, as having a solid brand name can help propel your business in more ways than one. Marketing is a significant factor in a business’s success.
However, your business name should also comply with state law guidelines, which include having the word “limited” in it. Also, check the availability of the name in the state where you want to set up your company. Make sure there’s no existing business with the same name.
To check the availability of the business name you want, you may go to the website of the government agency in your state that handles business filings.
Hire a Registered Agent
All US states mandate that LLCs should have a registered agent. Their primary duty is to manage and receive legal documents. It is important to note that your agent should notify you as soon as possible once these documents arrive. They will then communicate or send these papers to the person in charge of your LLC.
Fill Out Your State’s LLC Articles of Organization Form
The name of this form diers from state to state. In some, it is called the articles of organization; in others, they call it the certificate of formation. However, despite having dierent names, it serves one purpose: to make your LLC legal.
You can use the same website for your business name research to find your state’s form.
It is vital to note that each state will have dierent guidelines and requirements for making an LLC.
Business information you need to provide: – Name of the business

  • Address of the business
  • Purpose of the business
  • Management of the LLC
  • Duration of the LLC
  • Registered agent’s contact information (some states require the agent’s signature) The states of New York and Nebraska mandate that before you even file for the articles of organization, you will need to publish your intent of registering your LLC to the newspaper.
    File Your Certificate of Formation or Articles of Organization
    The fee for filing your articles of organization or certificate of formation will vary from state to state. But when your documents get approved, the state will issue a certificate indicating that your LLC has become a legal entity. With that, you may proceed with opening a bank account for your business. You may also request an Employer Identification Number (EIN) if you haven’t done so already.
    Submit the Operating Agreement to Your State
    An operating agreement is where you find important information about an LLC, such as financial, legal, and management rights, as well as the roles of each member. Most states don’t require this; however, it is best practice to have one.
    Hire Someone to Take Care of Your LLC Formation for You
    With all the technicalities and dierent guidelines and regulations of each state, it can be pretty daunting to incorporate your LLC. However, you can confidently start your US business with the help of your registered agent.
    They can help you with the following: – Complete LLC formation
  • Obtaining an EIN
  • Set up a US business bank account – Payment processing
  • US mailing address
  • US state and tax filings with the Internal Revenue Service
    Set Up an LLC in the US Even if You’re a Foreigner
    The US is well known for being one of the most business-friendly countries in the world. Non-US residents can even operate an LLC here. With the help of this guide, a foreigner can become a business owner in the country and even open a bank account without having a US address.

Set Up an LLC in the US Even if You’re a Foreigner


The US is well known for being one of the most business-friendly countries in the world. Non-US residents can even operate an LLC here. With the help of this guide, a foreigner can become a business owner in the country and even open a bank account without having a US address.

About the author Patrick Banks

Patrick is a Berlin-based dating advisor, motivational speaker, a huge fitness and vegan diet enthusiast and the main editor at Wingman Magazine, specialised in men's health. His ultimate goal is to share with men around the world his passion for self-development and to help them to become the greatest version of themselves. He believes a healthy body and successful social interactions are two main keys to happiness.

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