Create a Limited Liability Company

Perhaps the most notable vehicle to come about in the business industry is the LLC, or Limited Liability Company. Many assume that it is a never-before-heard-of practice but in reality merchants, financiers and others related to the business industry have been looking for ways to reduce or eliminate their losses for years. So, to form a limited liability company may not be exactly a new concept, yet it is still quite appealing.

You may think that with all of the advantages an LLC business offers it must be a fairly difficult and expensive endeavor. However, you would be wrong, as most experts say that with all of the LLC information available, the process is much easier and less expensive than forming a corporation and it just may be the best decision you have ever made.

It is necessary to check with your state to see what rules they may have pertaining to naming your LLC business. States requirements do vary but generally the rules state that the name you choose cannot already belong to another business, it may not have words that are prohibited by the state, such as Bank, Insurance, etc. When you form a limited liability company, your company name must end with an LLC designator such as "LLC" or "L.L.C."

Of course, as with everything else, there are some disadvantages as well. Corporations can be around forever, whereas an LLC business is dissolved when a member dies or undergoes bankruptcy. A sole proprietorship or partnership is a little less complex and includes less paperwork than a LLC, yet that certainly does not mean that the paperwork is not worth the effort.

Some states have specific requirements to be followed when you form a limited liability company, but there are some that are fairly common in all states. For instance, after naming your company, you will be asked to file the Articles of Organization, normally through the Secretary of State. This entails choosing a business name and making sure it is compliment with your states laws, and listing the names and addresses of the organizers (though 1 is usually sufficient) and stating the nature of your business or purposes to be followed.