Starting a new business can be a daunting task, and can often seem overwhelming for owners who are trying to get their company off of the ground. One of the best ways to protect both an owner and their business assets is to form what is known as a limited liability company or LLC. While this process can seem complicated at first glance, learning how to form a LLC is not as difficult as it appears.

An LLC allows a company, rather than an owner to accept most of the financial burden if the business fails and cannot pay its bills. This limits the amount that an individual may have to pay out of pocket if orders cannot be fulfilled or services cannot be completed. In order to form an LLC, an owner will have to start by drawing up a business plan, determining a business name, and then designating a registered agent to act on behalf of the business with the state. Private companies offer registered agent services, and lawyers can also perform this task. The next steps in setting up an LLC will be registering with the Secretary of State, obtaining a tax number and business address, then applying for a local business license and getting to work.

In learning how to form a LLC, it is also important to consider trademarking a name for a company in order to protect it. To do this, a company must first develop a name and then perform a trademark search, which can be done online via the US government website. If the desired name is not taken, a business may either choose to fill out an online form or apply via paper forms, and may contact the Trademark Assistance Center for help in filling out the correct paperwork. A trademarked business name ensures that only a single business can use the name and design associated with it, and provides grounds for a legal challenge should the need arise. Along with an LLC, a trademarked name can help protect the interests of a company and an owner.



Cody Smith is the author of this article on LLC Operating Agreement. Find more information on How To Form a LLC here.