1. Decide where the business will be formed
For many small businesses, the relevant state is where the business actually operates. If you are considering forming in a different state, understand that you may still have registration and compliance obligations where you do business. Legal and tax consequences should be reviewed with the appropriate professional.
2. Choose the name and registered agent
Check your state’s naming rules and availability process. LLC filings commonly require registered-agent information so the company has a designated person or service for official notices.
3. File the state formation document
The filing is usually made with the secretary of state or similar state agency. The document name varies by state, often “Articles of Organization” or “Certificate of Formation.” Save the approved filing and any state confirmation in your permanent company records.
4. Organize ownership and operating records
Keep the operating agreement or other ownership records, member information, initial resolutions if used, and a clean folder for future amendments and state notices.
5. Address federal and banking setup
The IRS says corporations and LLCs should form the entity with the state before applying for an EIN. Once the business is formed, organize the EIN confirmation and the documents your bank requests. Then establish a bookkeeping system before transaction volume grows.
6. Create a compliance calendar
Add recurring state reports, licenses, tax deadlines identified by your professionals, registered-agent renewals, and internal bookkeeping close dates to one calendar. Requirements vary by state and activity, so confirm the obligations that apply to your business.