Launching a company through LLC formation marries liability protection with tax flexibility. In the US, a limited liability company shields personal assets while allowing pass-through taxation or an S-corp election when useful. Success starts by treating the entity as real: plan the setup, document decisions, and separate finances from day one.
Choose a state intentionally. Most founders form where they operate to avoid extra registrations, while some pick Delaware for predictability. Confirm a unique name and appoint a registered agent to receive legal notices at a physical address; missing service can jeopardize your defense.
File the Articles of Organization with your state, listing the company name, principal office, management structure, and agent details. Pay the fee and wait for approval. After acceptance, request an IRS EIN online; you will need it to open a bank account, hire staff, and issue tax forms.
Draft an internal Operating Agreement covering ownership, voting, capital contributions, profit distributions, and what happens if a member exits. Even a single-member LLC benefits, because banks and investors expect clear governance. Include procedures for admitting partners and resolving disputes to avoid costly deadlocks.
Maintenance is about rhythm. File annual reports on time, pay franchise taxes where required, renew licenses, and track sales and employment tax obligations. Keep clean books, store contracts and resolutions, and sign documents in the company's name to preserve the liability shield. Avoid commingling and document major decisions.
As you grow, watch multistate nexus and register as a foreign LLC wherever you have employees, inventory, or a recurring place of business. If your needs change, adjust tax classification, issue profits interests to attract talent, or wind up responsibly by notifying creditors and filing final returns. Discipline today prevents headaches tomorrow.