LLC means Limited Liability Company.
A Limited Liability Company, most commonly called an LLC, is a legal business structure that protects your personal assets (your home, car, and personal bank accounts) in the event your company is sued.
An LLC is most often used to operate a business (you can have multiple business in one LLC), but LLCs can also be used to take title to assets.
The owners of an LLC are called “Members”
An LLC can be owned by one person (called a Single-Member LLC).
Or an LLC can be owned by two or more people (called a Multi-Member LLC).
Why do people form an LLC?
The primary reason to form an LLC is for personal asset protection.
By forming an LLC you create a “protective wall” between your business and your personal assets.
Your personal assets include everything that you own: your home, cars, trucks, bank accounts, investment properties, boats, jewelry, etc.
LLCs are affordable to set up
You’ll pay a one-time filing fee to form your LLC.
The setup fee is cheap compared to forming other types of business entities (like a Corporation).
Losing your personal assets is much more expensive than setting up your LLC.
And even if your state has higher filing fees, they are well worth the assurance of knowing your assets are fully protected.
How do I form an LLC?
- Pick a name for your LLC.
- Prepare your Articles of Organization, Certificate of Organization, or Certificate of Formation. File by mail or file online with the Secretary of State and pay the state filing fee.
- Wait a few business days for your LLC to be approved.
That’s how to form an LLC. Yes, there are few more steps, like Operating Agreement, Federal Tax ID Number (EIN), and Annual Report, but these are the basic steps to getting your LLC started.
If you’re ready to get started, select the state and we will help you step by step in filing an LLC.