How to start an llc business is a popular choice among small business owners for the liability protection, management flexibility, and tax advantages this form of business entity often provides. But before you jump in, it’s important to understand the benefits and disadvantages of this type of business structure, where to form your llc, how to get started and other key topics that will help you make informed decisions.

First Steps: Choose a Name

The name you choose for your LLC can have major implications on how your business is viewed. Be sure to perform market research so you can select a name that is legal, brandable and stands out in the minds of your potential clients.

Second Step: File Articles of Organization

In New York, LLC formation documents (Articles of Organization) are filed with the Secretary of State and must meet specific requirements. These vary from state to state, but typically include the LLC’s name, a signature and other important information about the formation.

Third Step: Appoint a Registered Agent

The law requires that every LLC designate an agent to receive and respond to legal documents on behalf of the company. In New York, this person or business must be a resident of the state or have a physical address within the state.

Raising Capital for Your Business LLC: Strategies and Options

You will need to open a business bank account before you can start collecting payments and transferring funds from your clients. The process of opening a bank account will require key business documents, such as your Articles of Organization and operating agreement.