How to Make an LLC for a Small Business

There are many in the world of small business who have thought about setting up an LLC. The point of an LLC is to provide protection from major liability issues. For those who might not know, LLC stands for limited liability company. This exists separately from the members, or owners, therefore making sure the owners are not personally responsible for debts that might arise, such as those that might follow a lawsuit. In order to start an LLC, there are a few important steps to follow.

First, it is important to choose a name for the business. The only thing businesses need to remember is that this name cannot be the same name as another company. It is helpful to head to an online directory to search and see if the name is already taken. If not, then go ahead and reserve the name. While small business owners might not be ready to sign LLC operating agreement forms immediately, it is still a good idea to reserve the name.

Then, establish an operator agent, who is the person who agrees to receive forms for any lawsuits or subpoenas. In addition, this agent is going to receive other official documents as well. This agent has to be a resident of the state who is over the age of 18. Sometimes, there are professionals who serve as agents for multiple companies for a small fee.

Once this is done, it is time to set up the LLC operating agreement. This form describes how the LLC is going to be run. It specifies, members, ownership interests, the allocation of profits and losses, and even how meetings will be held. If someone dies, it also specifies who steps up next. This document will also need to specify how the company is dissolved in case it goes out of business.

Finally, it will be time to file paperwork with the state for the LLC. There are usually articles of organization that need to list the name, address, length of existence, the registered agent, and the purpose of the LLC. Once this is done, the organization should get a certificate from the state saying that the LLC has been formed. It is important to use this certificate to obtain business licenses, tax ID numbers, and a bank account for the LLC.

These are a few of the most important steps that everyone has to follow if they are interested in setting up an LLC. An LLC is a great way to protect the business’s members and owners against liability that might be incurred by the business along the way. Following these steps will make forming an LLC straightforward.


Alex is a small business blogger with a focus on entrepreneurship and growth. With over 5 years of experience covering the startup and small business landscape, Alex has a reputation for being a knowledgeable, approachable and entrepreneurial-minded blogger. He has a keen understanding of the challenges and opportunities facing small business owners, and is able to provide actionable advice and strategies for success. Alex has interviewed successful entrepreneurs, and covered major small business events such as the Small Business Expo and the Inc. 500|5000 conference. He is also a successful entrepreneur himself, having started and grown several small businesses in different industries.