If you have started or are considering starting a new business, you should take some time to think about the best ways to protect both your business and your personal assets. Many new business owners choose to form a Limited Liability Company, or LLC, to give them and their business a number of benefits and protections.
Creating an LLC is a relatively simple and straightforward process, and it creates a business structure that can give you a number of advantages in the marketplace. There are a several things you need to form an LLC, and were going to cover four of them here to help you get started.
You Need the Right Company Name
The name of your company is obviously important. Your company’s name serves a commercial purpose for branding, but if you are forming an LLC, there will be some added considerations to make when choosing your company name.
Wherever you form your LLC, geographically, your company name needs to adhere to the local LLC laws. It must also be unique, so you should perform a search online or with your local authority to make sure your name is not already in use. You could also choose to trademark your company’s name, which may be advantageous if you are planning for expansion, franchising, or selling a unique product or service.
Choose a Commercial Business Address
For the purposes of forming an LLC, your business will need a registered commercial business address for communication from local government regulators and legal notifications.
This doesn’t necessarily need to be the same address you use to provide your services to your customers, but it does need to be a full physical street address. A P.O. Box, will not be enough to satisfy most local requirements. The address should be tended to by a secretary or receptionist, or it can be a personal home address.
You Need a Registered Agent
An LLC must have a registered agent wherever it plans to operate. Their details will be included in your company’s registration, and will usually be required to have a different postal address than the commercial business address. Their details will be included on all state legal documentation.
Your registered agent is an individual or third-party service that receives correspondence from the government and legal notices, just as the business address does, and handles and processes these documents on behalf of the Limited Liability Company. The registered agent keeps up-to-date files, records, and correspondence duplicate in accordance with all local regulations.
Plan Ahead for Your Liabilities
Though an LLC has ‘limited’ liabilities, your company is still liable for taxation and insurance requirements, and should plan ahead for these.
Most states require you to pay a fee to file business taxes, whether or not your business owes taxes that year. You should have a good understanding of your company’s tax liabilities, and plan ahead by maintain good records.
Insurance is another requirement, and will help protect you, your business, your employees and your customers from accidents or negligence.
Many states have specific insurance requirements for businesses that you must have to operate legally. When you are ready to start, you should use an online limited liability company formation service to help guide you through process of forming your LLC, and make sure that complies with state regulations.
Limited Liability Companies are the most popular business structure in the world. Every day, hundreds of new LLCs are formed to help people start new businesses and projects, and grow the economy. Forming an LLC is a quick and relatively inexpensive way to get your business trading and start generating profits.
