What are the basics of forming an LLC?

Starting a new business can be exciting and terrifying all at once. When getting your start, it is best to get you up and running with as little hassle as possible.

But it can seem daunting at the start. According to FindLaw, many people may be afraid to start a Limited Liability Company (LLC). There are some easy steps to conquer first that we are here to help you with.

Name your business
A straightforward but sometimes difficult step, you will need a name that is both original and recognizable. Florida’s Division of Corporations has a search function to make sure your name is not taken previously. You will also need to specify that your business is an LLC while also avoiding state restricted terms (like “bank”, “insurance” and “credit union”).

Draft your articles of organization
Florida requires this document as it codifies your starting members, what your business’s purpose is as well as detail any registered agent working for you or stock information if necessary.

Consider an operating agreement
It is not a requirement in Florida to have an operating agreement but the state recommends you have one. The operating agreement sets down a number of rules and regulations that you and your company members adhere to. Management rules and provisions for buy-sell agreements or unexpected death that you settle ahead of time can alleviate a lot of headache if things change with the business.

An LLC is a handy way to limit your risk when starting a new business, but it is only useful if your business is complying with all relevant laws. Make sure of it before you start.

FindLaw Network