Limited Liability Corporation

Starting A Limited Liability Corporation - Step By Step Process

The process of starting a limited liability corporation comprises of a number of steps. It is not legal for all types of businesses to form and operate a limited liability corporation. The business bodies like banks and insurance companies are not authorized to open such corporation. Also, in some states like California, the professionals like doctors, lawyers and accountants are prevented to start such corporations.

Converting The Existing Business Model To LLC

The sole proprietorship as well as a partnership can be easily converted to Limited Liability Corporation in order to save the various assets associated with business. Some states provide a simple form for converting a partnership to a limited liability corporation that is popularly known as certificate of conversion. In the case of lack of this certificate, regular articles of organization are required to be presented to create a limited liability corporation.

Starting From Scratch

If you are thinking of starting a limited liability company (LLC), below is a list of steps to take before you open a limited liability corporation. The laws and rules for starting a limited liability corporation are different from one state to another and also depend upon the nature of business operated by you. You are advised to check these rules and laws at the authorized offices of concerned department.

Ø      The first step to start a limited liability corporation is to select a name for your limited liability corporation. The name you select must not violate any rule and regulation. Moreover, some other corporation must not possess it. It is in the rulebook of certain states that LLC must be included in the name of your corporation.

Ø      An online organization, that help in the process of starting a limited liability corporation, might help you in searching the suitable name for your corporation and also, to check the availability of a particular name.

Ø      The next step in the process is to register the name selected by you for Limited Liability Corporation that should be included as the fictitious business name.

Ø      The third step in the process is to form and sign a limited liability corporation Operating Agreement. Under this agreement, it is mentioned about the share of each owner in the business firm. The responsibility of each and every member is also mentioned in this document along with profit or loss share of each member.

Ø      The forth step includes the formation of Articles of Organization for the corporation. These documents contain the basic information about your business and its existence in a particular state. The information consists of name and address of the corporation and information about registered agent. Then these documents are filed with the Secretary of State office in your state.