Forming an LLC

Here are the general steps you need to follow in order to form an LLC in compliance with applicable laws. Make sure to consult your state page for state-specific details.

1. Choose a business name for the LLC and check for availability.

  • As a general matter the name must (a) not be the same as that of another LLC on file with the state; (b) contain the words "Limited Liability Company," "Limited Company," or an abbreviation like "LLC"; (c) not contain certain words prohibited by state law, such as "Bank," "Insurance," "Corporation," or "City."
  • Although you are not required to do so, you should consider registering your business name as a federal and/or state trademark. Please see the Trademark for Business Naming section for details.

2. Prepare and file articles of organization with the appropriate state office, usually the Secretary of State.

  • There is a filing fee, which generally ranges between $70 and $200 depending on the state, but certain states have higher fees (e.g., Illinois ($500), Massachusetts ($500), and Texas ($300)). See the state pages on forming an LLC for details on state filing fees.

3. Negotiate and execute an operating agreement.

  • This step generally is not legally required, but it is highly advisable that the members of an LLC execute a formal operating agreement. Please see the Operating Agreement section for details.

4. Obtain any required local licenses.

  • As a business doing journalism, you are not required to obtain any federal or state licenses or permits relating to carrying on a particular trade. Most local or city governments, however, require every business to obtain a basic business license, sometimes called a tax registration certificate. You get this license from your city or county. The best way to get information about fees and procedures is to contact your county or city clerk's office or other local government authority. The local chamber of commerce and other small business owners might also be a good resource for information regarding local licenses and/or permits.

5. Determine what tax obligations the LLC has, and take care of any necessary registrations.

  • If you have any employees or more than one member, or you choose to have your single-member LLC taxed as a corporation, you need to apply for an Employer Identification Number (EIN) from the IRS. There is no filing fee. You can apply for an EIN:
  • by submitting the required information online at the IRS website. The EIN is issued immediately once the application information is validated;
  • by telephone at 1-800-829-4933 from 7:00 a.m. to 10:00 p.m. in your local time zone; or
  • If you have employees, the LLC likely will need to obtain a state employer identification number or account for tax purposes. You will also have to report any new hires as you make them. See the State Law: Forming an LLC section for details on state requirements.
  • You should be aware that, as the owner of a small business, you may be subject to additional federal, state and local taxes and informational filing requirements, such as self-employment taxes and employment withholdings and filings. Please see the Tax Obligations of Small Businesses section for details.

6. Open a bank account for your business.

  • It is a good idea to keep your business's finances separate from your personal accounts. A good way to do this early on is by opening a bank account for your business. You will probably need a Tax ID number (EIN), a copy of the articles of organization, and a resolution identifying authorized signers if those names are not listed in the articles. Here is one example of the documentation that banks ask for.

State Law: Forming an LLC

 

Choose your state from the list below for state-specific information on forming an LLC:

Forming an LLC in California

Here is an outline of the steps you need to follow in order to form an LLC in California. You should also read the general section on forming an LLC for information that is applicable in any state.

1. Choose a business name for the LLC and check for availability.

  • California law requires an LLC name to contain either the words "limited liability company" or the abbreviation "LLC" or "L.L.C." as the last words in the name. The words "limited" and "company" may be abbreviated to "Ltd." and "Co." Additionally, your business name may not be the same as, or deceptively similar to, that of any other California LLC or any foreign LLC registered to do business in the state.

2. Prepare and file articles of organization with the Secretary of State.

3. Negotiate and execute an operating agreement.

  • California requires an operating agreement in order to form an LLC. See Cal. Corp. Code. § 17050(a). There is no set criteria for the content of an operating agreement, but it typically includes topics such as how meetings are conducted, how the company will be managed, what capital contributions are required from each member, and how profits and losses will be allocated. The operating agreement does not need to be filed with the state. Please see the Operating Agreement section for details.

4. File a Statement of Information with the Secretary of State.

5. Obtain any required local licenses.

6. Determine what tax and other regulatory obligations the LLC has, and take care of any necessary registrations.

  • Request an Employer Identification Number (EIN) from the IRS. This can be done via its online application. There is no filing fee.
  • If you will be paying at least $100 to an employee or employees in a quarter (this does not include owners unless you have elected to have your LLC taxed as a corporation), you are subject to employment taxes and must register for a California employer account number within 15 days of paying that $100. You can register for employment taxes and get an account number online using the Employment Development Department's website. You must pay these taxes quarterly. For more information on being an employer, including tax information, see the California Employer's Guide.
  • California imposes an $800 minimum franchise tax on LLCs doing business in the state. This minimum tax is separate from any income, self-employment, or payroll tax. For details, see the California Franchise Tax Board's Limited Liability Company (LLC) page. For many, this $800 minimum tax could be a significant impediment to forming an LLC in California, especially if you have little or no expected income from your online publishing activities.

7. Open a bank account for your business.

  • It is a good idea to keep your business's finances separate from your personal accounts. A good way to do this early on is by opening a bank account for your business. You will probably need a Tax ID number (EIN), a copy of the articles of organization, and a resolution identifying authorized signers if those names are not listed in the articles. Here is one example of the documentation that banks ask for.

Other Notable Requirements for Maintaining an LLC in California

  • California requires certain documents to be kept at the LLC's principal place of business. A list of the required documents is located in Cal. Corp. Code § 17058.

Forming an LLC in Florida

Here is an outline of the steps you need to follow in order to form an LLC in Florida. You should also read the general section on forming an LLC for information that is applicable in any state.

1. Choose a business name for the LLC and check for availability.

  • Florida law requires an LLC name to contain the words "limited liability company," the abbreviation "L.L.C.," or the designation "LLC" as the last words of the name. Additionally, your business name must be distinguishable from other names on file with the Division of Corporations, and may not contain language stating or implying that the limited liability company is connected with a state or federal government agency or a corporation or other entity chartered under the laws of the United States.

2. Prepare and file articles of organization with the Department of State, Division of Corporations.

3. Negotiate and execute an operating agreement.

  • Florida does not require an operating agreement in order to form an LLC, but executing one is highly advisable. There is no set criteria for the content of an operating agreement, but it typically includes topics such as how meetings are conducted, how the company will be managed, what capital contributions are required from each member, and how profits and losses will be allocated. The operating agreement does not need to be filed with the state. Please see the Operating Agreement section for details.

4. Obtain any required local licenses.

5. Determine what tax and other regulatory obligations the LLC has, and take care of any necessary registrations.

  • Request an Employer Identification Number (EIN) from the IRS. This can be done via its online application. There is no filing fee.
  • Whenever you hire an employee in Florida, you must inform both the IRS and the State of Florida. You can find details of all the necessary steps including verifying work eligibility and withholding allowances on the Hiring Employees section of the IRS website. You can find state-level information about reporting new hires at the Florida New Hire Reporting Center.
  • As a small business owner or employer, there may be other informational returns that you have to file annually or semi-annually with the IRS. For more information, take a look at the IRS Guide To Information Returns.

6. Open a bank account for your business.

  • It is a good idea to keep your business's finances separate from your personal accounts. A good way to do this early on is by opening a bank account for your business. You will probably need a Tax ID number (EIN), a copy of the articles of organization, and a resolution identifying authorized signers if those names are not listed in the articles. Here is one example of the documentation that banks ask for.
Other Notable Requirements for Maintaining an LLC in Florida
  • Florida requires certain documents to be kept at an LLC's principal place of business. A list of the required documents is located in Fla. Stat. ch. 608.4101.

Forming an LLC in Georgia

Here is an outline of the steps you need to follow in order to form an LLC in Georgia. You should also read the general section on forming an LLC for information that is applicable in any state.

1. Choose a business name for the LLC and check for availability.

  • Georgia law requires that an LLC name contain the words "limited liability company" or "limited company" (it is permitted to abbreviate the word "limited" as "ltd." and the word "company" as "co.") or the abbreviation "L.L.C.", "LLC", "L.C." or "LC".
  • Additionally, your business name must be distinguishable from other names on file with the state, and may not exceed 80 characters, including spaces and punctuation.

2. Prepare and file articles of organization with the Secretary of State.

  • If the LLC will be managed by one or more managers, rather than all the members together, then you should put a clause saying that in your articles of organization. For general information on articles of organization, see the Articles of Organization page.

3. Negotiate and execute an operating agreement.

  • Georgia does not require an operating agreement in order to form an LLC, but executing one is highly advisable. There is no set criteria for the content of an operating agreement, but it typically includes topics such as how meetings are conducted, how the company will be managed, what capital contributions are required from each member, and how profits and losses will be allocated. The operating agreement does not need to be filed with the state. Please see the Operating Agreement section for details.

4. Obtain any required local licenses.

5. Determine what tax and other regulatory obligations the LLC has, and take care of any necessary registrations.

  • Request an Employer Identification Number (EIN) from the IRS. This can be done via its online application. There is no filing fee.
  • Whenever you hire an employee in Georgia, you must inform both the IRS and the State of Georgia. You can find details of all the necessary steps, including verifying work eligibility and withholding allowances, on the Hiring Employees section of the IRS website. You can find state-level information about reporting new hires at the Georgia New Hire Reporting Website.
  • As a business owner or employer, there may be other informational returns that you have to file annually or semi-annually with the IRS. For more information, take a look at the IRS Guide To Information Returns.

6. Open a bank account for your business.

  • It is a good idea to keep your business's finances separate from your personal accounts. A good way to do this early on is by opening a bank account for your business. You will probably need a Tax ID number (EIN), a copy of the articles of organization, and a resolution identifying authorized signers if those names are not listed in the articles. Here is one example of the documentation that banks ask for.
Other Notable Requirements for Maintaining an LLC in Georgia
  • Georgia requires certain documents to be kept at an LLC's principal place of business. A list of the required documents is located in Ga. Code Ann. § § 14-11-313 (link is to entire Georgia Code; click through to Title 14, Chapter 11, Article 3, and then locate the specific provision).

Forming an LLC in Illinois

Here is an outline of the steps you need to follow in order to form an LLC in Illinois. You should also read the general section on forming an LLC for information that is applicable in any state.

1. Choose a business name for the LLC and check for availability.

  • Illinois law requires that an LLC name contain the words "limited liability company," "L.L.C.," or "LLC." Additionally, your business name must be distinguishable from other names on file with the Secretary of State, and may not contain any of the following terms: "Corporation," "Corp.," "Incorporated," "Inc.," "Ltd.," "Co.," "Limited Partnership" or "L.P." Other more obscure limitations apply -- see 805 Ill. Comp. Stat. 180/1-10 (scroll down) for details.

2. Prepare and file articles of organization with the Secretary of State.

3. Negotiate and execute an operating agreement.

  • Illinois does not require an operating agreement in order to form an LLC, but executing one is highly advisable. There is no set criteria for the content of an operating agreement, but it typically includes topics such as how meetings are conducted, how the company will be managed, what capital contributions are required from each member, and how profits and losses will be allocated. The operating agreement does not need to be filed with the state. Please see the Operating Agreement page for details.

4. Obtain any required local licenses.

5. Determine what tax and other regulatory obligations the LLC has, and take care of any necessary registrations.

  • Request an Employer Identification Number (EIN) from the IRS. This can be done via its online application. There is no filing fee.
  • Whenever you hire an employee in Illinois, you must inform both the IRS and the State of Illinois. The IRS details all of the necessary steps to complete, including verifying work eligibility and withholding allowances certificates, on its page entitled Hiring Employees. You can find information on what to do on the state level on the New Hire Reporting section of the Illinois Business Portal.
  • If you have one or more employees in Illinois, you must carry workers' compensation insurance. You may choose to obtain workers' compensation insurance for yourself, but you do not need to. (If you have a workers' compensation policy for your employees, you must contact your insurance company if you DO NOT want to be covered.)
  • As a small business owner or employer, there may be other informational returns that you have to file annually or semi-annually with the IRS. For more information, take a look at the IRS Guide To Information Returns.

6. Open a bank account for your business.

  • It is a good idea to keep your business's finances separate from your personal accounts. A good way to do this early on is by opening a bank account for your business. You will probably need a Tax ID number (EIN), a copy of the articles of organization, and a resolution identifying authorized signers if those names are not listed in the articles. Here is one example of the documentation that banks ask for.
Other Notable Requirements for Maintaining an LLC in Illinois
  • Illinois requires certain documents to be kept at an LLC's principal place of business. A list of the required documents is located in 805 Ill. Comp. Stat. 180/1-40 (scroll down).

Forming an LLC in Indiana

Here is an outline of the steps you need to follow in order to form an LLC in Indiana. You should also read the general section on forming an LLC for information that is applicable in any state.

1. Choose a business name for the LLC and check for availability.

  • Indiana law requires that an LLC name contain the words "limited liability company," "L.L.C.," or "LLC." Additionally, your business name must be distinguishable from other names on file with the Secretary of State (limited exceptions apply).

2. Prepare and file articles of organization with the Secretary of State.

3. Negotiate and execute an operating agreement.

  • Indiana does not require an operating agreement in order to form an LLC, but executing one is highly advisable. There is no set criteria for the content of an operating agreement, but it typically includes topics such as how meetings are conducted, how the company will be managed, what capital contributions are required from each member, and how profits and losses will be allocated. The operating agreement does not need to be filed with the state. Please see the Operating Agreement section for details.

4. Obtain any required local licenses.

5. Determine what tax and other regulatory obligations the LLC has, and take care of any necessary registrations.

  • Request an Employer Identification Number (EIN) from the IRS. This can be done via its online application. There is no filing fee.
  • Whenever you hire an employee in Indiana, you must inform both the IRS and the State of Indiana. You can find details of all the necessary steps, including verifying work eligibility and withholding allowances, on the Hiring Employees section of the IRS website. You can find state-level information about reporting new hires at the Indiana New Hire Reporting Center website.
  • As a small business owner or employer, there may be other informational returns that you have to file annually or semi-annually with the IRS. For more information, take a look at the IRS Guide To Information Returns.

6. Open a bank account for your business.

  • It is a good idea to keep your business's finances separate from your personal accounts. A good way to do this early on is by opening a bank account for your business. You will probably need a Tax ID number (EIN), a copy of the articles of organization, and a resolution identifying authorized signers if those names are not listed in the articles. Here is one example of the documentation that banks ask for.
Other Notable Requirements for Maintaining an LLC in Indiana

Forming an LLC in Massachusetts

Here is an outline of the steps you need to follow in order to form an LLC in Massachusetts. You should also read the general section on forming an LLC for information applicable in any state.

1. Choose a business name for the LLC and check for availability.

  • Massachusetts law requires that an LLC name contain the words “limited liability company,” “limited company,” or the abbreviation “L.L.C.,” “L.C.,” “LLC,” or “LC”.
  • Your business name may not be the same as, or deceptively similar to, the name of any foreign or domestic limited partnership, corporation, or LLC on file with the Secretary of the Commonwealth.

2. Prepare and file a certificate of organization with the Secretary of the Commonwealth.

3. Negotiate and execute an operating agreement.

  • Massachusetts does not require an operating agreement in order to form an LLC, but executing one is highly advisable. There is no set criteria for the content of an operating agreement, but it typically includes topics such as how meetings are conducted, how the company will be managed, what capital contributions are required from each member, and how profits and losses will be allocated. The operating agreement does not need to be filed with the state. Please see the Operating Agreement page for details.

4. Obtain any required local licenses.

5. Determine what tax and other obligations the LLC has, and take care of any necessary registrations.

  • Request an Employer Identification Number (EIN) from the IRS. This can be done via its online application. There is no filing fee.
  • Whenever you hire an employee in Massachusetts, you must inform both the IRS and the Commonwealth of Massachusetts. You can find details of all the necessary steps, including verifying work eligibility and withholding allowances, on the Hiring Employees section of the IRS website. You can find state-level information on reporting new hires at the Massachusetts New Hire Reporting Center website.
  • As a business owner or employer, there may be other informational returns that you have to file annually or semi-annually with the IRS. For more information, take a look at the IRS Guide To Information Returns.

6. Open a bank account for your business.

  • It is a good idea to keep your business's finances separate from your personal accounts. A good way to do this early on is by opening a bank account for your business. You will probably need a Tax ID number (EIN), a copy of the certificate of organization, and a resolution identifying authorized signers if those names are not listed in the certificate. Here is one example of the documentation that banks ask for.
Other Notable Requirements for Maintaining an LLC in Massachusetts
  • Massachusetts LLCs must file an Annual Report with the Secretary of the Commonwealth every year after the date of formation. The filing fee is $500, and you can file the form using the online filing system of the Secretary of the Commonwealth. There is no pre-printed form available, but according to the official guidelines the information required is the same as that included in the certificate of organization.
  • Massachusetts requires certain documents to be kept at an LLC's principal place of business. A list of the required documents is located in Mass. Gen. Laws ch. 156C, § 9.

Forming an LLC in Michigan

Here is an outline of the steps you need to follow in order to form an LLC in Michigan. You should also read the general section on forming an LLC for information that is applicable in any state.

1. Choose a business name for the LLC and check for availability.

  • Michigan law requires that an LLC name contain the words "limited liability company" or the abbreviation "L.L.C." or "L.C.," with or without periods or other punctuation. Additionally, your business name may not include the words "corporation" or "incorporated" or the abbreviation "corp." or "inc.," and must be distinguishable from other names on file with the state.

2. Prepare and file articles of organization with the Department of Labor & Economic Growth, Bureau of Commercial Services, Corporation Division.

  • If the LLC will be managed by one or more managers, rather than all the members together, then you should put a clause saying that in your articles of organization (in Article V of the fill-in-the-blank form). For general information on articles of organization, see the Articles of Organization page.

3. Negotiate and execute an operating agreement.

  • Michigan does not require an operating agreement in order to form an LLC, but executing one is highly advisable. There is no set criteria for the content of an operating agreement, but it typically includes topics such as how meetings are conducted, how the company will be managed, what capital contributions are required from each member, and how profits and losses will be allocated. The operating agreement does not need to be filed with the state. Please see the Operating Agreement page for details.

4. Obtain any required local licenses.

5. Determine what tax and other regulatory obligations the LLC has, and take care of any necessary registrations.

  • Request an Employer Identification Number (EIN) from the IRS. This can be done via its online application. There is no filing fee.
  • Whenever you hire an employee in Michigan, you must inform both the IRS and the State of Michigan. You can find details of all the necessary steps, including verifying work eligibility and withholding allowances, on the Hiring Employees section of the IRS website. You can find state-level information on reporting new hires at the Michigan New Hire Reporting Center website.
  • As a business owner or employer, there may be other informational returns that you have to file annually or semi-annually with the IRS. For more information, take a look at the IRS Guide To Information Returns.
  • As of January 1, 2008, a new business tax regime -- called the Michigan Business Tax -- takes effect in Michigan, and it applies to LLCs. Under the new law, qualifying small businesses in Michigan will pay a tax equal to 1.8% of adjusted business income. Probably all small online publishing businesses will qualify -- the law requires that officers/employees not be paid more than $160,000, gross receipts not exceed $18 million, and business income not exceed $1.3 million. For more information on the Michigan Business Tax, see the Michigan Business Tax FAQ on the Michigan Department of Treasury website.

6. Open a bank account for your business.

  • It is a good idea to keep your business's finances separate from your personal accounts. A good way to do this early on is by opening a bank account for your business. You will probably need a Tax ID number (EIN), a copy of the articles of organization, and a resolution identifying authorized signers if those names are not listed in the articles. Here is one example of the documentation that banks ask for.
Other Notable Requirements for Maintaining an LLC in Michigan
  • Michigan LLCs must file an Annual Statement with the Department of Labor & Economic Growth every year before February 15. The filing fee is $25, and you can file the form online via the FILEonline Service. If the LLC is formed after September 30 in a particular year, the Annual Statement is not required on the first February 15 following formation.
  • Michigan requires certain documents to be kept at an LLC's principal place of business. A list of the required documents is located in Mich. Comp. Laws § 450.4213.

Forming an LLC in New Jersey

Here is an outline of the steps you need to follow in order to form an LLC in New Jersey. You should also read the general section on forming an LLC for information that is applicable in any state.

1. Choose a business name for the LLC and check for availability.

  • New Jersey law requires that an LLC name contain the words "Limited Liability Company" or the abbreviation "L.L.C." Additionally, your business name must be distinguishable from other names on file with the state.
  • For information about checking the availability of your desired business name in New Jersey, see the Check Business Name Availability page on the Division of Revenue's website.

2. Prepare and file a certificate of formation with the Division of Revenue.

3. Negotiate and execute an operating agreement.

  • New Jersey does not require an operating agreement in order to form an LLC, but executing one is highly advisable. There is no set criteria for the content of an operating agreement, but it typically includes topics such as how meetings are conducted, how the company will be managed, what capital contributions are required from each member, and how profits and losses will be allocated. The operating agreement does not need to be filed with the state. Please see the Operating Agreement page for details.

4. Obtain any required local licenses.

5. Determine what tax and other regulatory obligations the LLC has, and take care of any necessary registrations.

  • Request an Employer Identification Number (EIN) from the IRS. This can be done via its online application. There is no filing fee.
  • All new businesses must register with the Division of Revenue using the Business Registration Application. Upon registering, you will receive the forms, returns, instructions, and other information needed to comply with New Jersey law.
  • Whenever you hire an employee in New Jersey, you must inform both the IRS and the State of New Jersey. You can find details of all the necessary steps, including verifying work eligibility and withholding allowances, on the Hiring Employees section of the IRS website. You can find state-level information on reporting new hires at the New Jersey New Hire Reporting Directory.
  • As a small business owner or employer, there may be other informational returns that you have to file annually or semi-annually with the IRS. For more information, take a look at the IRS Guide To Information Returns.
  • New Jersey also imposes $150 per member annual fee on LLCs that have income from New Jersey sources. The fee is paid when filing Form NJ-1065, which is the New Jersey partnership tax return. For details, see the NJ Business Portal page Taking Care of Business: Partnerships.

6. Open a bank account for your business.

  • It is a good idea to keep your business's finances separate from your personal accounts. A good way to do this early on is by opening a bank account for your business. You will probably need a Tax ID number (EIN), a copy of the certificate of formation, and a resolution identifying authorized signers if those names are not listed in the certificate. Here is one example of the documentation that banks ask for.
Other Notable Requirements for Maintaining an LLC in New Jersey
  • New Jersey requires certain documents to be kept at an LLC's principal place of business. A list of the required documents is located in N.J. Stat § 42:2B-25 (link is to the entire code, you need to click through to Title 42, Article 2B, and then locate the specific provision).

Forming an LLC in New York

Here is an outline of the steps you need to follow in order to form an LLC in New York. You should also read the general section on forming an LLC for information that is applicable in any state.

1. Choose a business name for the LLC and check for availability.

  • New York law requires that an LLC name contain the words "Limited Liability Company" or the abbreviation "L.L.C." or "LLC". Additionally, your business name must be distinguishable from other names on file with the Department of State. There are a large number of words that cannot be included in the name without prior approval. For a full list, see N.Y. Ltd. Liab. Co. Law § 204 (link is to entire code, you need to click on the LLC section, then choose Article 2 and locate the specific provision).
  • You can search for the availability of your proposed name by writing to the Department of State, Division of Corporations, 41 State Street, Albany, NY 12231. The written inquiry should state that you wish to determine the availability of a business name (or names) and list the name (or names) to be searched. There is a $5 fee for each name, which must accompany the request. Searching the availability of a name does not reserve the name.

2. Prepare and file articles of organization with the Department of State.

  • If the LLC will be managed by one or more managers, rather than all the members together, then you should put a clause saying that in your articles of organization. For general information on articles of organization, see the Articles of Organization page.

3. Publish a notice of LLC formation and file a Certificate of Publication.

  • Publish a notice of formation for six consecutive weeks in a newspaper assigned to you by your county recorder's office. The State of New York website has a directory of New York county web sites, which you can reference to find the recorder for the county in which you will be doing business. Once this step is completed, you must file a Certificate of Publication form with the Department of State. There is a $50 filing fee.

4. Negotiate and execute an operating agreement.

  • New York requires an operating agreement in order to form an LLC. It may be entered into before, at the time of, or within 90 days after filing articles of organization. There is no set criteria for the content of an operating agreement, but it typically includes topics such as how meetings are conducted, how the company will be managed, what capital contributions are required from each member, and how profits and losses will be allocated. The operating agreement does not need to be filed with the state. Please see the Operating Agreement page for details.

5. Obtain any required local licenses.

6. Determine what tax and other regulatory obligations the LLC has, and take care of any necessary registrations.

  • Request an Employer Identification Number (EIN) from the IRS. This can be done via its online application. There is no filing fee.
  • Whenever you hire an employee in New York, you must inform both the IRS and the State of New York. You can find details of all the necessary steps, including verifying work eligibility and withholding allowances, on the Hiring Employees section of the IRS website. You can find state-level information on reporting new hires at the New York New Hire Home Page.
  • As a small business owner or employer, there may be other informational returns that you have to file annually or semi-annually with the IRS. For more information, take a look at the IRS Guide To Information Returns.
  • The State of New York does not collect a corporate income tax from limited liability companies, but does require an annual filing fee from multi-member LLCs who are treated as partnerships for tax purposes. According to a recent bulletin from the New York State Department of Taxation and Finance, single-member LLCs that are treated as disregarded entities for tax purposes are not subject to the annual fee. For LLCs with more than one member, the fee is $50 x the number of LLC members, with a minimum fee of $325 and a maximum fee of $10,000. Multi-member LLCs must pay the fee and submit the Filing Fee Payment Form within thirty days of the end of the LLC's tax year.
  • If your business is located or does any business in New York City, you may be subject to the NYC Unincorporated Business Tax. This tax mainly applies if you have at least $75,000 in gross revenues or $35,000 in profits. For more information, see New York City Taxes.

7. Open a bank account for your business.

  • It is a good idea to keep your business's finances separate from your personal accounts. A good way to do this early on is by opening a bank account for your business. You will probably need a Tax ID number (EIN), a copy of the articles of organization, and a resolution identifying authorized signers if those names are not listed in the articles. Here is one example of the documentation that banks ask for.
Other Notable Requirements for Maintaining an LLC in New York
  • New York requires certain documents to be kept at an LLC's principal place of business. A list of the required documents is located in N.Y. Ltd. Liab. Co. Law § 1102 (link is to entire code, you need to click on the LLC section, then choose Article 11 and locate the specific provision).

Forming an LLC in North Carolina

Here is an outline of the steps you need to follow in order to form an LLC in North Carolina. You should also read the general section on forming an LLC for information that is applicable in any state.

1. Choose a business name for the LLC and check for availability.

  • North Carolina law requires that an LLC name contain the words "limited liability company" or the abbreviation "L.L.C." or "LLC," or the combination "ltd. liability co.," "limited liability co.," or "ltd. liability company."

2. Prepare and file articles of organization with the Secretary of State.

3. Negotiate and execute an operating agreement.

  • North Carolina does not require an operating agreement in order to form an LLC, but executing one is highly advisable. There is no set criteria for the content of an operating agreement, but it typically includes topics such as how meetings are conducted, how the company will be managed, what capital contributions are required from each member, and how profits and losses will be allocated. The operating agreement does not need to be filed with the state. Please see the Operating Agreement page for details.

4. Obtain any required local licenses.

5. Determine what tax and other regulatory obligations the LLC has, and take care of any necessary registrations.

  • Request an Employer Identification Number (EIN) from the IRS. This can be done via its online application. There is no filing fee.
  • If you have an employee or employees, you need to register for NC employment taxes at any of the taxpayer service centers located throughout the state. The Department of Revenue has a directory of taxpayer service centers that will guide you to the most convenient location.
  • Whenever you hire an employee in North Carolina, you must inform both the IRS and the State of North Carolina. You can find details of all the necessary steps, including verifying work eligibility and withholding allowances, on the Hiring Employees section of the IRS website. You can find state-level information on reporting new hires at the North Carolina New Hire Reporting website.
  • If you have three or more or employees other than you and your fellow LLC members, you are required to carry workers' compensation insurance. The North Carolina Industrial Commission administers the program. Its website has a useful FAQ.
  • As a small business owner or employer, there may be other informational returns that you have to file annually or semi-annually with the IRS. For more information, take a look at the IRS Guide To Information Returns.

6. Open a bank account for your business.

  • It is a good idea to keep your business's finances separate from your personal accounts. A good way to do this early on is by opening a bank account for your business. You will probably need a Tax ID number (EIN), a copy of the articles of organization, and a resolution identifying authorized signers if those names are not listed in the articles. Here is one example of the documentation that banks ask for.
Other Notable Requirements for Maintaining an LLC in North Carolina
  • North Carolina LLCs must file an Annual Report with the Secretary of State every year after the date of formation. The filing fee is $200. You fill out the form online at the Online Annual Report Editor page.
  • North Carolina requires certain documents to be kept at an LLC's principal place of business. A list of the required documents is located in N.C. Gen. Stat. § 57C-3-04.

Forming an LLC in Ohio

Here is an outline of the steps you need to follow in order to form an LLC in Ohio. You should also read the general section on forming an LLC for information that is applicable in any state.

1. Choose a business name for the LLC and check for availability.

  • Ohio law requires that an LLC name contain the words "limited liability company" or one of the following abbreviations: "LLC," "L.L.C.," "limited," "ltd.," or "ltd". Additionally, your business name must be distinguishable from other names on file with the Secretary of State (limited exceptions apply).
  • The Secretary of State's website has advice and links to help you check the availability of your desired business name.

2. Prepare and file articles of organization with the Secretary of State.

3. Negotiate and execute an operating agreement.

  • Ohio does not require an operating agreement in order to form an LLC, but executing one is highly advisable. There is no set criteria for the content of an operating agreement, but it typically includes topics such as how meetings are conducted, how the company will be managed, what capital contributions are required from each member, and how profits and losses will be allocated. The operating agreement does not need to be filed with the state. Please see the Operating Agreement page for details.

4. Obtain any required local licenses.

5. Determine what tax and other regulatory obligations the LLC has, and take care of any necessary registrations.

  • Request an Employer Identification Number (EIN) from the IRS. This can be done via its online application. There is no filing fee.
  • If you have an employee or employees in Ohio, you need to register for Ohio employment taxes using the Ohio Business Gateway.
  • Whenever you hire an employee in Ohio, you must inform both the IRS and the State of Ohio. You can find details of all the necessary steps, including verifying work eligibility and withholding allowances, on the Hiring Employees section of the IRS website. You can find state-level information on reporting new hires at the Ohio New Hire Reporting Center.
  • If you have an employee or employees in Ohio, you need to obtain workers’ compensation coverage or be granted the privilege of self-insurance for liabilities. The Ohio Bureau of Worker's Compensation administers the program.
  • As a small business owner or employer, there may be other informational returns that you have to file annually or semi-annually with the IRS. For more information, take a look at the IRS Guide To Information Returns.

6. Open a bank account for your business.

  • It is a good idea to keep your business's finances separate from your personal accounts. A good way to do this early on is by opening a bank account for your business. You will probably need a Tax ID number (EIN), a copy of the articles of organization, and a resolution identifying authorized signers if those names are not listed in the articles. Here is one example of the documentation that banks ask for.
Other Notable Requirements for Maintaining an LLC in Ohio
  • Ohio requires certain documents to be kept at an LLC's principal place of business. A list of the required documents is located in Ohio Rev. Code § 1705.28.

Forming an LLC in Pennsylvania

Here is an outline of the steps you need to follow in order to form an LLC in Pennsylvania. You should also read the general section on forming an LLC for information that is applicable in any state.

1. Choose a business name for the LLC and check for availability.

  • Pennsylvania law requires that an LLC name contain the words "company," "limited," "limited liability company," or an abbreviation of one of those terms. Additionally, your business name must be distinguishable from other names on file with the Department of State (limited exceptions apply). There are a large number of words that cannot be included in the name without prior approval. For a full list, see 15 Pa. Cons. Stat. § 1303 (link is to entire code, choose Title 15, Part II, Subpart B, Article B, Chapter 13, Subchapter A, and then locate the specific provision).
  • The Name Availabilities page on the Pennsylvania Department of State's website has additional information about checking the availability of your desired business name in Pennsylvania. You can also use the Search for a Business Entity page.

2. Prepare and file a certificate of organization with the Department of State.

  • If the LLC will be managed by one or more managers, rather than all the members together, then you should put a clause saying that in the certificate of organization (see box 5 of the form certificate). For general information on the certificate of organization (usually called "articles of organization"), see the Articles of Organization page.

3. File a Docketing Statement.

  • When you file a certificate of organization, you must also file a Docketing Statement with the Department of State. The Docketing Statement contains only basic business information including the name and type of business organization and a description of business activities. There is no fee to file this form.

4. Negotiate and execute an operating agreement.

  • Pennsylvania does not require an operating agreement in order to form an LLC, but executing one is highly advisable. There is no set criteria for the content of an operating agreement, but it typically includes topics such as how meetings are conducted, how the company will be managed, what capital contributions are required from each member, and how profits and losses will be allocated. The operating agreement does not need to be filed with the state. Please see the Operating Agreement page for details.

5. Obtain any required local licenses.

6. Determine what tax and other regulatory obligations the LLC has, and take care of any necessary registrations.

  • Request an Employer Identification Number (EIN) from the IRS. This can be done via its online application. There is no filing fee.
  • Whenever you hire an employee in Pennsylvania, you must inform both the IRS and the Commonwealth of Pennsylvania. You can find details of all the necessary steps, including verifying work eligibility and withholding allowances, on the Hiring Employees section of the IRS website. You can find state-level information on reporting new hires at the Pennsylvania New Hire Reporting website.
  • If you have an employee or employees in Pennsylvania, you are required to carry workers' compensation insurance. The Pennsylvania Department of Labor & Industry administers the program.
  • As a small business owner or employer, there may be other informational returns that you have to file annually or semi-annually with the IRS. For more information, take a look at the IRS Guide To Information Returns.
  • LLCs are required to pay the Pennsylvania capital stock tax, depending on their income and net worth. The amount of tax is determined by first adding net income divided by .095 to net worth multiplied by .75 (NI/.095 + .75*NW). If the number you get is less than $300,000, you do not owe capital stock tax. If the number you get is greater than $300,000, the tax will amount to .389% (.00389) of all dollars over $300,000. The capital stock tax is being phased out and will no longer be in effect starting in 2011. Most small online publishing operations probably will not have sufficient net worth or income to trigger this tax obligation.

7. Open a bank account for your business.

  • It is a good idea to keep your business's finances separate from your personal accounts. A good way to do this early on is by opening a bank account for your business. You will probably need a Tax ID number (EIN), a copy of the certificate of organization, and a resolution identifying authorized signers if those names are not listed in the certificate. Here is one example of the documentation that banks ask for.
Other Notable Requirements for Maintaining an LLC in Pennsylvania
  • Pennsylvania does not have a specific statutory provision stating what documents and records must be stored at an LLC's principal place of business. Nevertheless, it is a good idea to keep certain records -- see the LLC Records page for details.

Forming an LLC in Texas

Here is an outline of the steps you need to follow in order to form an LLC in Texas. You should also read the general section on forming an LLC for information applicable in any state.

1. Choose a business name for the LLC and check for availability.

  • Texas law requires that an LLC name contain the words "limited liability company," "limited company," or an abbreviation of one of these phrases. Additionally, your business name must not be the same as, or deceptively similar to, any other names on file with the Secretary of State.
  • The Texas Secretary of State can provide a preliminary determination of business name availability. Call (512) 463-5555, dial 7-1-1 for relay services, or e-mail your name inquiry to corpinfo@sos.state.tx.us.

2. Prepare and file a certificate of formation with the Secretary of State.

  • If the LLC will be managed by one or more managers, rather than all the members together, then you should put a clause saying that in the certificate of formation (see Article 3 of the form certificate). For general information on the certificate of formation (usually called "articles of organization"), see the Articles of Organization page.

3. Negotiate and execute an operating agreement.

  • Texas does not require an operating agreement in order to form an LLC, but executing one is highly advisable. There is no set criteria for the content of an operating agreement, but it typically includes topics such as how meetings are conducted, how the company will be managed, what capital contributions are required from each member, and how profits and losses will be allocated. The operating agreement does not need to be filed with the state. Please see the Operating Agreement page for details.

4. Obtain any required local licenses.

5. Determine what tax and other regulatory obligations the LLC has, and take care of any necessary registrations.

  • Request an Employer Identification Number (EIN) from the IRS. This can be done via its online application. There is no filing fee.
  • If you have an employee or employees in Texas, you are subject to Texas employment taxes. You can register online using the Texas Employer Portal. For more information on being an employer in Texas, request a copy of the Employer Handbook.
  • Whenever you hire an employee in Texas, you must inform both the IRS and the State of Texas. You can find details of all the necessary steps including verifying work eligibility and withholding allowances on the Hiring Employees section of the IRS website. You can find state-level information about reporting new hires at the Texas Employer Portal.
  • As a small business owner or employer, there may be other informational returns that you have to file annually or semi-annually with the IRS. For more information, take a look at the IRS Guide To Information Returns.
  • LLCs are subject to Texas's franchise tax. LLCs pay the greater of .25 percent of capital or 4.5 percent of earned surplus. LLCs that owe less than $100 do not pay any tax. In addition, LLCs do not owe any tax if the gross receipts from their entire business for both taxable capital and taxable earned surplus are each less than $150,000 during the period upon which the tax is based. These LLCs must file an abbreviated information report. Please see the Texas Franchise Tax on Corporations page for details.

6. Open a bank account for your business.

  • It is a good idea to keep your business's finances separate from your personal accounts. A good way to do this early on is by opening a bank account for your business. You will probably need a Tax ID number (EIN), a copy of the certificate of formation, and a resolution identifying authorized signers if those names are not listed in the certificate. Here is one example of the documentation that banks ask for.

Other Notable Requirements for Maintaining an LLC in Texas

  • Texas requires certain documents to be kept at an LLC's principal place of business. A list of the required documents is located in two statutory provisions: Texas Bus. Orgs. Code § 3.151 (link is to entire code, choose Title 1, Chapter 3 and then scroll down to the specific provision) and Texas Bus. Orgs. Code § 101.501 (link is to entire code, choose Title 3, Chapter 101 and then scroll down to the specific provision).

Forming an LLC in the District of Columbia

Here is an outline of the steps you need to follow in order to form an LLC in the District of Columbia. You should also read the general section on forming an LLC for information that is applicable in any state.

1. Choose a business name for the LLC and check for availability.

  • DC law requires an LLC name to contain the words "limited liability company" or the abbreviation "L.L.C." or "LLC". Additionally, your business name may not contain the words "Corporation", "Incorporated", "Limited Partnership", or the abbreviations "Corp.", "Inc.", or "L.P.", and may not be the same as, or deceptively similar to, that of any other foreign or domestic LLC, corporation, or limited partnership (including registered "fictitious" names).

2. Prepare and file articles of organization with the Department of Consumer and Regulatory Affairs.

  • If the LLC will be managed by one or more managers, rather than all the members together, then you should put a clause saying that in your articles of organization. For general information on articles of organization, see the Articles of Organization page.

3. File a Written Consent to Act as a Registered Agent form with the Department of Consumer and Regulatory Affairs.

  • The Department of Consumer and Regulatory Affairs website has the required form for you to fill out.

4. Negotiate and execute an operating agreement.

  • The District of Columbia does not require an operating agreement in order to form an LLC, but executing one is highly advisable. There is no set criteria for the content of an operating agreement, but it typically includes topics such as how meetings are conducted, how the company will be managed, what capital contributions are required from each member, and how profits and losses will be allocated. The operating agreement does not need to be filed with the state. Please see the Operating Agreement page for details.

5. Obtain any required local licenses.

  • The District of Columbia issues what is known as a Basic Business License (BBL) to new local businesses. The Department of Consumer and Regulatory Affairs website has a helpful Basic Business License Information page, which includes an online interface to help you determine whether you need a BBL.

6. Determine what tax and other regulatory obligations the LLC has, and take care of any necessary registrations.

  • Request an Employer Identification Number (EIN) from the IRS. This can be done via its online application. There is no filing fee.
  • Register for District of Columbia business taxes using the FR-500 Combined Business Tax Registration service. This service will tell you what taxes you will be responsible for (including income and employment taxes), guide you to what forms you will need to file, and tell you when they must be filed.
  • Whenever you hire an employee in the District of Columbia, you must inform both the IRS and the District of Columbia. The IRS details all of the necessary steps to complete, including verifying work eligibility and withholding allowances certificates, on its page entitled Hiring Employees. Information on what to do on the District level will be detailed when you register for taxes using the FR-500 Combined Business Tax Registration service.

7. Open a bank account for your business.

  • It is a good idea to keep your business's finances separate from your personal accounts. A good way to do this early on is by opening a bank account for your business. You will probably need a Tax ID numb