Starting up a business of your own feels exciting and petrifying at the same time, just because it involves you having a legal structure to define its workability and onus towards the profits and losses that the business makes. Here’s when the concept of setting up an LLC or Limited Liability Corporation comes into play. To put it in simpler words, in the United States, a business structure known as a limited liability company (LLC) shields the owners of the company from personal liability for the debts or liabilities that occur in the name of the said company. Combining the characteristics of a partnership or sole proprietorship with those of a corporation, limited liability companies are often known as hybrid entities. 

Setting up an LLC in NYC requires the business owners to go through a defined procedure to acquire the rights, responsibilities, and status of a Limited Liability Corporation. Usually, State laws allow limited liability companies, but the rules governing them vary from state to state. And the people involved in an LLC are known as Members of the business.

Since ownership is not restricted in many states, anyone, including individuals, corporations, foreigners, foreign entities, and even other LLCs, can join the business. Although State laws restrict most banks and insurance companies from joining LLCs.

How To Form An LLC?

Although the steps that you take right from differ from state to state, let’s explore the standard course of action that is required for setting up an LLC in NYC – 

1. Determining the name of the business – Choosing a name is not difficult until it resonates with any already established LLC in your region. This can be easily accomplished by locating the business search database for your state, which is typically accessible on the website of Secretary of State or you can consider speaking with your legal team to help you through it. Many businesses are able to reserve their potential LLC name by paying a regulatory fee, that is set by the State in most cases.
2. Hiring a registered agent – Appointing a registered agent is the next step in setting up an LLC. A registered agent could be any entity, or yourself that accepts legal documents and files on your business’ behalf. In most states, you can hire a third-party legal contractor to help you with the complex legal paperwork and be named as your registered agent. 
3. Articles of Organization – While you’re in the process of forming your Limited Liability Corporation, you need to file articles of organization which is an inevitable step for any LLC. This document, also known as a certificate of organization, provides fundamental information about your LLC. Articles of organization are typically accessible on the website of your state’s Secretary of State. It may also require you to pay a filing fee that puts you on the front seat of forming your own LLC.
4. Establishing an Operating Agreement – As an LLC can be commenced by multiple partners or members of a business, it becomes imperative to create an Operating Agreement to document the functioning rights and organizational structure within the business members. Templates of an Operating Agreement can be easily extracted from the web or a third-party firm.
5. Finalizing the LLC – The last step to finish the procedure is to take care of essential business-related duties which include obtaining a business license to govern your business in the State, opening a bank account to handle your LLC finances, setting up EIN (Employee Identification number), etc. These petty but crucial tasks assist you in streamlining the operation of your LLC.

Conclusion

Launching an LLC could be a well-organized procedure if you seek guidance from a professional firm that takes charge right from the start. Since they would have the know-how of tackling complicated legal paperwork, you can assure yourself of a guaranteed service!