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What are the steps of forming a Limited Liability Company?

Limited Liability Companies, also known as LLCs, are one of many options available to Georgian business owners like you. It is a hybrid structure that offers the best of other different types of business models, making it versatile and flexible.

The U.S. Small Business Administration says that there are state-by-state variations on forming an LLC. However, the main steps are the same no matter where you go and include:

  •          Choose a name
  •          Create an Operating Agreement and file the Articles of Organization
  •          Get all your permits and licenses
  •          Hire your employees

Choosing a name is the first step. Keep in mind that it can’t be the same as the name of any other LLC in your state, and it must have a mention of LLC somewhere in the name. Likewise, you can’t use restricted words, so be sure to know which are prohibited.

Creating the Operating Agreement may not be necessary by state law, but it’s considered a smart thing to have anyway since it helps you ma your organization and finances. It also creates regulations and rules for workers to follow. The “articles of organization” will allow your LLC to be legitimized, making it a crucial item.

When it comes to your permits and licenses, what you need will differ depending on what your job is doing. Check to see what your state, locality and industry standards say that you need before you start hiring your employees. Make sure to check the federal regulations before you start hiring as well.

In some cases, you may have to announce your business as well by publishing a statement in a local paper. Once all of these steps are completed, you will have yourself a legitimate, approved LLC ready to begin operations.

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