Fabrizio & Brook, P.C.
(248) 362-2600
An Unwavering Commitment To Success

4 steps to creating a limited liability company

If you're looking to create a new company, one of the first things you have to decide is what type of business you want to form. The type of business you start heavily impacts how you manage it, and it also becomes a deciding factor in how you can finance your business. One type of business you might consider is a limited liability company.

An LLC doesn't come with all the complexities of a corporation, but it does provide some financial protection for your personal assets. To figure out if an LLC is the right choice for you, you should first talk to a professional who is familiar with business litigation and law. Once you decide an LLC is the right format, you'll have to choose a business name.

A lawyer can help you find out if the name you want is already taken. An LLC name has to be unique in your state and not contain certain types of prohibited words.

After you register your business name, you'll need to file articles of organization with the appropriate state office. This differs by state, which is another reason why you might want to work with a professional on setting up your LLC. If you have multiple owners or members for your LLC, you'll next want to create an operating agreement. Since this is a business contract that might be used in future litigation, make sure you have an experienced lawyer vet the document.

Finally, you will need to purchase any application permits or licenses required to do business in your area. This is especially important for niche businesses such as restaurants that might require specific permits.

Source: Small Business Association, "Limited Liability Company," accessed Oct. 21, 2016

No Comments

Leave a comment
Comment Information