Starting a business sounds like an exciting adventure. While an Illinois business venture sounds great in conversation and looks pretty good on paper, some are afraid the dive in a take the necessary steps to form a business. Maybe they are afraid of failing, or perhaps the task of getting everything put together is daunting.
It is thus important that individuals understand what goes on in the business formation and planning process, as this can help one establish a sound and successful start to a business.
There are many ways business owners can go about starting a business, but the first step is to decide the type of business they want. Because they do not want to open themselves up to liabilities, a limited liability company, or an LLC, is often appealing.
When looking at the basics of forming an LLC, this can be broken down into five fairly easy steps. The first is to determine the name of your business and ensure that it is not taken by another company. This name must also conform to any state rules. Next, paperwork typically referred to as the "Articles of Organization" must be filed and any filing fees associated with it must be paid.
Third, an operating agreement should be drafted. This document will dictate how the LLC with be run. It also can outline the rights and responsibilities of all LLC members. In some states, this fourth step is required, which is to publish a notice that you intend to form an LLC. Finally, all necessary licenses and permit required by your type of business need to be obtained.
This is just a basic outline of the steps typically required to form an LLC. Much thought and preparation should go into starting a business, and anyone with questions regarding this or any other type of business formation should take the time to understand the process and what steps are necessary.