- The steps to take when creating your LLC
- Helpful resources to guide the process
- Under which conditions to seek legal assistance
- Maintaining the protection of the corporate veil
The primer below walks you through each of the main steps you need to take to form your LLC.
Like most things in the world of business and finance, the main elements of creating an LLC are pretty straightforward. It's in the customization of the process to best fit your specific needs where things can get more complex.
Most of you should be able to navigate the vast majority of this process on your own without having to pay a lot for legal services. That said, paying for experienced legal guidance quickly becomes a good value the more complicated your situation becomes. The more business partners you have, the bigger the scale of your operations, the more revenue you anticipate making, the more litigation risk within your new company's industry — these are just some of the factors that justify involving a lawyer's help.
Accept this primer for what it is: an overview of the fundamental steps to take and considerations to make when creating an LLC. I'm not a lawyer, and the laws impacting LLC formation/taxation differ by jurisdiction (usually by state) and change over time (as with the recently-passed Tax Cuts & Jobs Act of 2017). DON'T take this as personal legal advice. Use it as intended: as a jumping-off point to the LLC creation process. For those who do create an LLC, I highly recommend at least having a lawyer review your documentation (if you're not contracting with one to manage the whole process for you), as well as seeking advice from your accountant for all related tax matters.
OK, with those important disclaimers made clear, lets move on to the process…