The procedure to start an LLC (Limited Liability Company) for a small business can vary depending on the state in which the business will be operating. However, in general, most states require the following steps:
- Choose a business name: Your LLC name must be unique and distinguishable from other business names on file with the state.
- File articles of organization: File the articles of organization with the state government agency responsible for LLCs. In most states, this is the Secretary of State. The articles of organization typically include information such as the business name, registered agent, and purpose of the LLC.
- Obtain an EIN: Obtain an Employer Identification Number (EIN) from the IRS. This is a unique number assigned to your business for tax purposes.
- Create an operating agreement: An operating agreement is a document that outlines the ownership and management structure of your LLC. It is not required in all states but it is highly recommended.
- Comply with state regulations: Depending on the state, you may need to file annual reports or pay annual fees to keep your LLC in good standing.
- Register for state taxes: Depending on the state, you may need to register your LLC for state taxes, such as sales tax.
Please note that the above-mentioned steps are the general steps for starting an LLC and the specifics of these steps and requirements may vary from state to state. It is always best to consult with a lawyer or a professional who is familiar with the laws of the state where the LLC is to be registered.