Six Steps to Set Up Your LLC In 2021

Are you ready to get the business you’ve dreamed of started? Ready to take that big step and finally make your side hustle official? We took so many lessons away from 2020 and the main one is that tomorrow is not promised. The time is now! Not sure how to start an LLC? Here are six steps to help you get started.

CHOOSE THE STATE

Before choosing the state you’ll be forming your LLC in, determine if you do business mainly in your state or do you sell products and services in other states? That’s the difference between a domestic LLC and a foreign LLC.

CHOOSE LLC NAME

After you’ve chosen your state, you should consider what name you’d like to give your LLC. Whatever it is, it should contain the phrase “LLC”, “Limited Liability Co.” or “Limited Liability Company”.

SELECT REGISTERED AGENT

Next you need to select a registered agent to receive all legal papers connected to your LLC. This registered agent can be a person or another entity authorized to receive these legal papers.

FILE YOUR A.O.

To file the Articles of Organization, you will need your LLC name, the name and address of your registered agent, a statement of purpose for the LLC, and the names of the initial members or managers (depending on state).

CREATE AN OPERATING AGREEMENT

This is an important document that contains the internal operations of the LLC, including rules on holding meetings, the powers of members and company managers, voting, elections, and quorums.

GET YOUR EIN

Your LLC (as a legal entity) will probably be required to obtain a Federal Employer Identification Number (EIN or FEIN). Most banks will require you to give your EIN before you’ll be able to open a bank account for your LLC.