How to form an LLC

The LLC formation process is an easy one, or at least once you've done it thousands of times it can be called easy. And that is what it is for me as I've personally filed thousands of LLC and Corporations. But even with all of this practice and know how, I approach it each time with a little apprehension because I want to make sure that it is done perfectly the first time. I really don't like it when I filing will get rejected by the Secretary of State, and I am sure that you won't like it either.

How many Steps are there to filing an LLC?

There is not one simple answer as to how many steps it will take to file a limited liability company. The reason that there isn't just one answer, is that there are 50 states who all do things a little differently, and they want to highlight certain expected items that must be submitted with a filing.

For a person, or lawyer, who wants to be super specific and thorough in their filing they may be able to submit a similar document that will get approved in most states. In general though, and just to give you a ballpark type of idea, there are less than 10 important data fields that must be submitted to the Secretary of State or Corporations Division of your state.

Complete the Required Paperwork

The paperwork, or necessary filing information must be prepared in accordance with teh laws and states for your state. This means essentially that you cannot just send in any old information to the filing agency, instead it means that there are very specific rules, regulations, and laws that must be closely followed.

You will need to supply information such as the proposed business name, the Registered Agent information, Member information, business address, mailing address, member info, and possibly manager info.

Review Paperwork for Errors and Omissions

A lot of people wonder what happens when there is a problem with the filing, and what exactly will occur when the inevitable problem arises. In most cases, the filing fees will be returned in full with the rejected paperwork. In most cases, the exact check that you mailed in will be return to the filer along with the rejected forms.

When this occurs, there will usually be an additional letter which describes the reasons why the rejection occurred and also what needs to be corrected before your submission is sent back into the corporate office.

Loss of Expediting Fees
The usual case where I have seen a loss in fees, or fees withheld by the State, is when an additional expedited fee is send in to the state. This is typically the only situation where the filer will loose any fees that they sent into the office.

Submit Articles of Organization to the Secretary of State

Within our pages, we have a lot of information related to the Secretary of State offices, as well as phone numbers, website addresses, and possible email addresses. With this information, you can contact the state to ask them questions, submit your articles, and to possibly call them for an update on the status.

The last filing I submitted, which was recently, ended up calling the State of California multiple times to check on the status of the filing. The filing was ultimately rejected, and I anticipated this was going to happen because there was a slight timeline delay. The reason that my filing was rejected, was due to a slight error in the address of my registered agent address. Once the address information was corrected, the submission was sent back to the state office and then it was approved.

Pay the Required Filing Fee

Each state has a filing fee that is specific for their state, so be sure to follow what is required.