How to setup a limited liability company

By design, forming a new limited liability is fairly easy--although not necessarily quick. Here's how the process typically works.

First, you prepare and submit articles of LLC formation or articles of organization to the appropriate state agency. (Usually, the appropriate government office will be part of the state's secretary of state office. The actual name of the office work group may be something like "corporation division" or "corporations office.")

Note: A handful of states also require new limited liability companies to take additional steps beyond submitting the limited liability formation articles. For example, Arizona requires you to give public notice in a local newspaper. And New York requires an operating agreement.

Next, you file for any needed business licenses.

Finally, if the limited liability company will owe the federal or state government a tax return or if the LLC will employ people, you apply to the Internal Revenue Service for an employer identification number.

Note that in some cases, much of this work can be done online. You can therefore be done with your end of the work in a few minutes. How long the state takes to process your paperwork, however, can take anywhere from a few minutes to a few days or several months.