Create a LLC

Create a LLC

How do you create a LLC?

To create a LLC you need to following the steps outlined below.  These are simple steps to walk you through the process of developing a LLC (Limited Liability Company).

Create a LLCStep 1 to Create a LLC: Choose a Name

Pick a name that best fits with your type of business and provides a clear picture of what your business does.  When you look to be tricky with the name to create a Google or Zappos, you can lose a lot of potential customers when the name is confusing to understand.

In addition, you need to decide if you want to use  LLC, L.L.C. or Ltd. Co. as the extension after your company name to show it’s a limited liability company.  You also need to decide if you are going to use a comma between the company name and LLC, such as (MyCompany, LLC).

There is no requirement in which way you go with or without a comma and using LLC, L.L.C. etc.  The key is to be consistent no matter what you decide.

Step 2 to Create a LLC: Pick the State

Pick the state you are going to file the LLC.  Are you operating your business online or across state lines?  Which state do you file in?  You should seek the advice of an attorney or tax professional in your area, but in most cases companies will file their entity in the state which they conduct the majority of their business from.  If your home offices are physical location for the business is located in Florida, then you should look to file your entity in Florida.

Some people say they don’t have a physical location, they can be anywhere with what they do.  In that case, pick the state you feel you spend the most amount of time and tend to do your banking from.

Step 3 to Create a LLC: Type of LLC

There are two ways to operate your LLC, as a Member managed LLC or a Manager managed LLC.  A member managed LLC has the daily operations of the business run by the owners (members) of the business.  In a Manager managed LLC the owners (members) hire someone to run the daily operations that is not an owner.  When you create a LLC it’s required to disclose which type of set-up you are using.

Step 4 to Create a LLC: Tax Status

The IRS wants it’s cut of your profits.  So the question is: “What type of tax treatment will your LLC get?”.  Well, that’s up to you.  You can decide how a LLC is taxed and it’s always best to seek the advice of a tax professional to know what’s best for you.  The default status is that of a partnership.  This allows for the flow through of profits directly to the members (owners) of the LLC

Step 5 to Create a LLC: Ownership

You must decide who the owners (members) of the LLC will be. You can hold ownership, or what’s referred to with LLC’s as “units”, either with another entity, foreigner or individual.  This is one of the many benefits of choosing an LLC.

Step 6 to Create a LLC: Incorporation Service

Choose the right incorporation service to file your entity.  There are plenty of online incorporation services and some are excellent, while others shouldn’t be operating online.  The two best online incorporation services we’ve found is and  Both offer great value and services.

About David Gass

David Gass is a serial entrepreneur and small business coach. He provides strategies and techniques for turning a business' online presence into profit. David is also a sought after speaker and author on the subjects of Entrepreneurship, Online Marketing, Buying and Selling Websites and Website Acquisitions. Connect with David Gass on Google+

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