How To LLC Formation

An LLC is a limited liability company, not a limited liability corporation as I often hear. The first state to create a LLC statute was Wyoming in 1977. All states now allow LLC's and it has become one of the most popular business formations. Some advantages are its ease of recordkeeping and flexibility.

The owners of an LLC are called members, not partners. If your really anal make sure you refer to your fellow owners as members. Lawyers advise this because a court case once used this as a factor as to why a LLC didn't get limited liability. I call my fellow owners partners because most people understand this better.

If you are at this site, you probably know something about limited liability companies. You want one for your business so that you are not personally liable for the companies debts and liabilities. But you can read elsewhere about why you want a LLC. I want to help you form an LLC. You can go to an attorney and pay at least $500, probably a lot more, but since you have found this site you don't need to. Your own formation of an LLC should be possible after reading the following pages.

So how does one go about the formation of a limited liability company? The formation of a LLC is really not that hard if you know what your doing. If you're a beginner however, it can be tedious and time consuming.

The first step in the formation of an LLC is filing with the state. This can be done online at your state's "Secretary of State" webpage. You can do this yourself but my suggestion is to use an online formation company. It has become relatively cheap online and will save you a lot of time and headache from dealing with state employees. You will inevitably do something wrong yourself and the online LLC filer will take care of this for you. They will also obtain a tax ID number for you, which can also be a headache. If you are a single member LLC it is not a requirement that you have a tax ID number but banks will need one to open a LLC bank account. The online filer will guide you through all steps, such as selecting a registered agent, articles of incorporation, etc. Again, you can do this yourself but it will require a lot of research to figure all this information out. Use an online filer to save a lot of time and headache. The formation of an LLC is much easier with an online filer.

After that is done you are officially a limited liability company. Congratulations! The next step is to create an operating agreement. Click on the above link to find out how.

Below is a list of each state's LLC code section. You do not need to understand each code section because they are written by lawyers for lawyers, but you should be familiar with your states LLC code. You can look them up by entering the below code section at Findlaw.

Alabama LLC Formation Code § 10-12-1

Alaska LLC Formation Code § 10.50.010

Arizona LLC Formation Code §29-601

Arkansas LLC Formation Code § 4-32-101

California LLC Formation Code § 17000

Colorado LLC Formation Code § 7-80-101

Connecticut LLC Formation Code § 34-100

Delaware LLC Formation Code § 18-101

District of Columbia § 29-1001

Georgia LLC Formation Code § 14-11-100

Florida LLC Formation Code § 608.401

Hawaii LLC Formation Code § 428-101

Idaho LLC Formation Code § 53-601

Illinois LLC Formation Code § 805.180

Indiana LLC Formation Code §23-18-1-1

Iowa LLC Formation Code § 490A.100

Kansas LLC Formation Code § 17-601

Kentucky LLC Formation Code § 275.001

Louisiana LLC Formation Code § 12:1301

Maine LLC Formation Code § 31-601

Maryland LLC Formation Code §4A-101

Massachusetts LLC Formation Code § 156C

Michigan LLC Formation Code § 450.4101

Minnesota LLC Formation Code § 322B.101

Mississippi LLC Formation Code § 79-29-101

Missouri LLC Formation Code § 347.010

Montana LLC Formation Code § 35-8-101

Nebraska LLC Formation Code § 21-0621

Nevada LLC Formation Code § 86.010

New Hampshire LLC Formation Code § 304-C:1

New Jersey LLC Formation Code § 42:2b-1

New Mexico LLC Formation Code § 53-19-1

New York LLC Formation Code § 34-1-101

North Carolina LLC Formation Code § 57C-1-101

North Dakota LLC Formation Code § 10-32-01

Ohio LLC Formation Code § 1705.01

Oklahoma LLC Formation Code § 18.208

Oregon LLC Formation Code § 315-49-63.001

Pennsylvania LLC Formation Code § 15-89A

Rhode Island LLC Formation Code § 7-16-1

South Carolina LLC Formation Code § 33-43-101

South Dakota LLC Formation Code § 47-34A-101

Tennessee LLC Formation Code § 48-281-101

Texas LLC Formation Code § 1529N

Utah LLC Formation Code § 42-2c-101

Vermont LLC Formation Code § 3001(1)

Virginia LLC Formation Code §13.1-1000

Washington LLC Formation Code § 25.15.005

West Virginia LLC Formation Code § 318-1-101

Wisconsin LLC Formation Code § 183

Wyoming LLC Formation Code § 17-15-101

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