4 Steps to Creating an LLC

The Close-up image of a firm handshake between two colleagues in office.When creating an LLC, you’ll have to complete each of the following steps without error.

4 Steps to Creating an LLC

  1. Pick a Name – It sounds like an easy enough task, but there are rules for coming up with a name for a limited liability company. For example:
    1. The name cannot match any other LLC on file
    2. The name must not include any word or phrase which is prohibited by the state.
    3. The name must include the phrase “limited liability company” or an abbreviation at the end. This includes “LLC,” “L.L.C,” and “Ltd. Liability Co.”
    4. The name cannot be in violation of another business’ trademarked property.
  2. Certificate of Organization – After you have settled on a name for your LLC, you will have to file the appropriate paperwork with the state’s LLC office. The documents you are required to file in order to get a certificate of organization will ask for details about the proposed LLC. You will also have to name a registered agent. This person, usually one of the LLC members, will receive any legal paperwork regarding any lawsuits or other legal action involving the LLC.
  3. Operating Agreement – Even though an operating agreement is not usually required by law, you would be well advised to create one anyway. This agreement should contain all rules of ownership and operation of the company.
  4. Obtain Licenses/Permits – Upon completion of the first three steps, you will have an official LLC. However, you can’t open up for business just yet. Before you open the doors, you have to obtain all required licenses and permits for operating your business, which may include a seller’s permit, business license, zoning permit, and/or federal employer identification number.

Forming a limited liability company can be complicated without the assistance of an experienced business lawyer, but it can be broken down into four steps.

The Manalapan business attorneys with Garland & Mason, LLC have a wealth of knowledge and experience in all aspects of business law, and love to be a part of the success of any small business.



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