How to Form an LLC

Forming Your LLC Online

At Why Pay a Lawyer?, we make it easy for you to form an LLC online in less than 10 minutes. Simply enter some basic information about yourself and the LLC you want to form. Here's what you'll need to do to start an LLC today:

1. Choose the state where you will form your company. This is usually the state where you conduct the majority of your business or where you live.


2. Tell us the name you would like to give your LLC.


3. Give us the names and addresses of your company's owners (members). This can be just you, or it can be multiple owners. “Members” own the LLC; “managers” run it.
   


4. Give us the names and addresses of your LLC’s operators (managers). This can be just you, or it can be multiple operators.


5. Give us a 4-6 word description of the purpose of the LLC (for example, “sell widgets on the internet”). The LLC will be able to do about any legal thing outside this description, but most states require an initial purpose.
   


6. Give us the information needed to get the LLC and federal EIN number.
   


7. Pay us using your credit card, debit card or electronic check.
   

Our online LLC order form makes starting an LLC quick and easy. If you prefer to place your order by phone or need personal assistance, call an LLC Business Specialist at 1-888-494-9729.

Process for Forming an LLC

When you're ready to start a small business, WPA takes care of the time-consuming formalities of filing official documents with the state government. Here's what happens after you submit your online order to us:

1. Your LLC formation order is assigned to a Business Specialist who checks your company name for availability. If your preferred name is unavailable because of a conflict with an existing record or LLC with that State's office, we will contact you and get a new name from you.
   
   
2. We complete LLC formation documents (usually called the Articles of Organization and Operating Agreement). In states where your signature is not required, we will forward your LLC formation documents to the state immediately via our network of state offices. We can serve you in all 50 states and the District of Columbia. There is no such thing as a federal LLC.
   
   
3. Some states require a signature on the documents we complete. If the state you have chosen requires your signature on the documents, we will send you the forms and forward them to the state as soon as you return the signed documents to us.
   
   
4. The turnaround time varies by state, but many states will approve your LLC formation within one to three business days. Some states, but not WPAL, charge an “expedite” fee for even faster service. This is an option for you.
   
   
5. Once the state approves your LLC formation, we will return the official documents for your new LLC to you along with any other package options you purchased and all the requested documents. Customers will receive their official LLC documents via express mail, FedEx, or UPS Delivery.

Choosing a Name for Your LLC

The name of your LLC must comply with the rules of your state's LLC division. (Typically, this office is combined with the corporations division within the secretary of state's office.) While requirements differ from state to state, generally:

• The name cannot be the same as the name of another LLC on file with the LLC office
• The name must end with an LLC designator, such as "Limited Liability Company" or "Limited Company," or an abbreviation of one of these phrases (such as "LLC," "L.L.C.," or "Ltd. Liability Co."), and
• The name cannot include certain words prohibited by the state, such as Bank, Insurance, Corporation or City (state rules differ on which words are prohibited).

Besides following your state's LLC naming rules, you must make sure your name won't violate another company's tradename or trademark.

Once you have a legal and available LLC name, you don't usually need to register it any further with your state. When you file your articles of organization, your business name will be automatically registered, and no one else can use the name you picked.

Filing Articles of Organization

Must an LLC be formed in the same state in which it will operate? Generally, no.

Sometimes, and in some businesses, you can go from state to state without further registration. Typically, if the business requires a license (for example, plumber or insurances), you will need to register in each state or create a different LLC in each state (with all states’ LLCs owned by a “parent” LLC, if you wish). Call us on this – we will have lots of tips here.

Official Filing Fees

One disadvantage of forming an LLC instead of a partnership or a sole proprietorship is that you'll have to pay a filing fee to the state when you submit your articles of organization. In most states, the fees are modest -- typically around $50. A few others take a bigger bite: California, for example, charges an $800 annual tax on top of its filing fee. Also, some states require an annual renewal fee, others do not. These too are modest.

Registered Agent or Statutory Agent

You will be required to list the name and address of a person -- usually one of the LLC members -- who will act as your LLC's "registered agent," or "agent for service of process." Your agent is the person designated to receive legal papers in any future lawsuit involving your LLC. That person need not be a member or a manager, and he or she must live in the state where the LLC was formed.