How to Register an LLC
Choose a unique name for your LLC. Brainstorm a name that's catchy and creative—you want something people will remember! Aim for something unique and try multiple combinations. For example, JT Trucking LLC might not be a good choice since it's pretty generic, but James R Thompson Transportation LLC is likely to be available. Search the internet for potential business names to make sure there aren't other businesses near you with similar mames.
Designate a registered agent for your LLC. The registered agent is the person or business you appoint to accept business mail and legal service on behalf of your company. The main point of registering your business in a state where you do business is providing information about your registered agent. Essentially, if you're going to be doing business in the state, the state wants to know how to tell you that someone is suing you. That's why you need a separate registered agent in every state where you do business. If you do business in multiple states, you'll need to find someone in each state who will act as your registered agent. Most businesses just use a registered agent service, such as New Business Filing, that has offices in all states.
Fill out your state's LLC organization form. You don't need to hire a lawyer (although you can) to draw up your paperwork to form an LLC. Each state has its own form and fees that are designed to meet the requirements of the state law that governs LLCs, which is why you will need to file in each state you will be doing business in. Since these business structures only exist under state law, that's all you really need to be concerned about. While these forms are designed to be relatively straightforward, they might include legal terms that you don't know the full definition of. New Business Filing offers expert filing assistance to help you figure out what information you need to provide so you can get it right the first time, saving you time and money.
Create an Operating Agreement. An operating agreement outlines the ownership and operating procedures of the LLC. While it's not legally required, creating an operating agreement helps prevent future conflicts among members. Most start-ups typically don't require a complex Operating Agreement, but for more complex agreements you might want to consult a lawyer.
Obtain an EIN. Even if you don't have any employees, your LLC still needs an employer identification number (EIN). This number is basically like your business's Social Security number—it enables you to keep your own finances separate rom your business's and is required to open a business bank account. Reporting and tax requirements for your LLC depend on what tax status you've elected for your buisness and how much profit your business is making.
Maintain your LLC registration status. Different states have different ongoing requirements for registered LLCs. Typically, you're expected to file an annual return and pay annual fees. Your state tax board might require additional documentation. It's super important to keep up with all of these deadlines so that your registration doesn't lapse. It's typically much cheaper and easier to renew a registration than it is to reapply. With New Business Filing, you can sign up for a subscription service that does this automatically each time your annual report is due, keeping you in compliance with the state.
Where to Register Your LLC
Financial Crimes Enforcement Network (FinCEN) Starting January 1, 2024, most businesses are required to report beneficial ownership information (BOI) to FinCEN. You will need to provide information about any of the people who directly or indirectly own or control the company. For example, if the 2 members of your LLC were you and your children's trust, the beneficial owners would include you and each of your children who is a beneficiary of the trust. You must update your BOI Report with FinCEN if the ownership of your company ever changes hands, or if personal information of any of the owners change, such as their name or address.
Other federal agencies Depending on your line of work, you might need to register your business with various federal executive branch agencies. These agencies enforce regulations in a number of industries, including: Agriculture Alcoholic beverages Firearms, ammunition, and explosives Radio and television broadcasting Transportation and logistics
State and local tax offices Generally, if you're selling goods, the state is going to expect you to collect sales tax and transfer it to the state. You might also be expected to register with your state's franchise board or with another state tax agency. Check with your state's secretary of state to find out exactly what taxes you're expected to pay and what returns you're expected to submit each year. Keep track of the deadlines for reporting and returns for each state so you don't miss one and end up having to file for costly extensions.
State and local business names databases States require each business operating in that state to register its name—and many larger cities have their own databases as well. As an LLC, you're typically also required to use the abbreviation "LLC" or "limited liability company" in your name. If you don't want to include "LLC" in your brand name, you might also get a "DBA." This allows your LLC to do business as whatever your brand is. States also call these trade names, fictiious names, or assumed business names (ABNs). Registering your name offers you limited state trademark protection because no new company can register a name that is the same or similar to yours. DBAs, on the other hand, don't offer any protection at all. Some states require you to register your name even if your headquarters is in another state. For example, if you have a chain of bookstores in Tennessee and North Carolina, you might need to register the name of your company in both states where you have stores.
State and local business licensing offices These requirements vary depending on where your business is located and what kind of business you operate. Generally, businesses don't require a "license" just to operate, although your specific industry might require a license to perform the activity of your business, such as if you are a doctor or an electrician. Some local areas may also require a general license, especially for a brick-and-mortar business in a chartered city. Check with local authorities to determine if you need a general license.
Other state and local agencies Depending on the type of business you're running, you're likely to have other state and local government agencies where you need to register. Often these registrations include some sort of inspection requirement and have to be renewed every year. For example, if you're opening a restaurant and bar, you would likely need to register with state and local sanitation agencies and alcohol control agencies, in addition to your regular operating permits.
Other state governments If you operate in multiple states, you might get confused about where to register. A good general rule is to ask yourself, "Where does my business have a physical presence?" If there are physical offices in multiple states, it's likely you'll need to register in those states to retain liability protection. If your business does business across state lines but doesn't have a physical presence there, you're generally not required to register in the other state. It's still a good idea to get an attorney to draw up contracts as necessary to ensure your home state is your jurisdiction for liability purposes. This is a lot to keep track of. That's where a service like New Business Filing can really come in handy by streamlining the filing process for you. And although they don't provide legal advice, they can educate you on common practices.
Want a Simpler Registration Process? Try New Business Filing
Let New Business Filing handle the paperwork for you. As a small business owner, you've got enough on your plate. It's easy for deadlines and notices to slip through the cracks. But with New Business Filing taking care of your registrations, you can rest easy that your business will be filed correctly and on time, everytime! The streamlined process of New Business Filing can also save you a lot of time if you have to register in several different states at once. Using this type of service allows you to get back to running your business while someone else takes care of all of the government paperwork. Just give them the information and they'll take care of the rest.
LLC Registration FAQs
How much does it cost to set up an LLC? The LLC is a form that's designed to be simpler and more straightforward, which makes it great for small businesses. It's also a lot cheaper than incorporation. In most states, you can complete all the filings and registrations you need for under $1,000. Doing business in multiple states means paying filing and annual fees in multiple states, too. That's something to keep in mind as your business expands and grows.
How long does it take to set up an LLC? It can take anywhere from a few weeks to a few months, depending on how busy the state office is. Some offices may also be busier toward the end of the fiscal and calendar years, when applications can take a lot longer to be approved. One of the benefits of using New Business Filing is that they can take care of the paperwork while you get on with your business. You won't be held up waiting for applications to process before you can move on to the next step. It can take years for a trademark application to be approved, but you still have similar protection as long as your application is pending.
What are the benefits of an LLC? Most small business owners like LLCs because they get the limited liability of a corporation and the simple operating structure of a sole proprietorship or partnership, not to mention the tax versatility. LLCs are also far simpler and less expensive to set up than corporations and can usually be set up more quickly. Without the limited liability, if someone sued your business, they could potentially go after your assets as well. But as a member of an LLC, the only thing you risk is whatever you initially invested in the business. Because they have fewer formalities and documentation requirements, it's generally a lot easier to change things with an LLC, including ownership, than it would be with a corporation.
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