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Incorporate LLC? Make That: Form a Limited Liability Company

Although people use them interchangeably, incorporate LLC doesn't properly describe the process of making your business a limited liability company. You incorporate your business to create a corporation, but you file "articles of organization" or "formation" to create an LLC. Unlike the involved process that is incorporation, the steps to form a limited liability company are minimal, and comparatively easy to master.

In most states, there is only one document required to create an LLC. This filing document is called the articles of organization or formation. Many states provide a simple, layperson-friendly form that can be used for this filing. A lawyer is not required to review or file the articles of organization, (although you may want to work with a lawyer or agency, if your LLC filing does not fit the standard mold). In some states, you may be required to publish a notice in the local paper that you plan to form an LLC, before your filing can take place.

The certificate of organization can usually be downloaded from your state's department for business incorporation, or it can be requested by mail. Visit your state's ".gov" home page to link to the department that handles filings for your state. Some states even supply e-mail help for private business owners who are filing their own LLC articles.

Once your filing is approved, your LLC is fully legal and operational. At that point you should immediately complete the other steps that will prepare your business to function in all spheres as a limited liability company. These include:

Write a detailed LLC operating agreement, which spells out the responsibilities and rights of the LLC owners.

Transfer or apply for any licenses, permits or identification numbers that should now be held in the name of you new LLC

If you plan to issue stock in your LLC, you must determine if you qualify for the SEC exemption, which excuses you from stock registration requirements.

Forming your limited liability company - incorporate LLC - will generally protect your personal assets from any lawsuit brought against the company, and it will spur you to hammer out an operating agreement that details exactly how your company is to be run, and who will be responsible for decision making. You can't be too prepared when success knocks at your door.

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Want more information about registering a company? Visit our Guide. Check out incorporation fees by each state.

Tip: Did you know that Delaware and Nevada are top two incorporation states?

Ready to register a company? Choose one of these great online incorporators:
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Information here does not constitute a legal advice. Please contact an attorney or accountant for specific expertise.

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