Incorporate LLC.

An LLC, also known as a Limited Liability Company, is very ideal for small business since there is a limited number of business partners needed. It is actually quite a young concept of business, having been passed into a law only sometime in Wyoming in the late seventies. For clarity though, a Limited Liability Company is not a corporation. It is also not a partnership. Although, it may be confused as either of the two, an LLC has the benefits of both a corporation and a partnership.

Before anything else, let's differentiate a Limited Liability Company:

• In the real sense of the word, you do not actually go through the process of incorporation for an LLC. You only have to systemise and put the company in order by filing necessary papers in the state where you do your business.
• As opposed to the company, there are no shareholders to an LLC, only members. There are no directors to report to and no shareholders to formally get consent from, when business decisions are made.
• Incorporated Limited Liability Companies are controlled by its owner-members and as such, they have their own manner of carrying out business operations and other agreements.
• An LLC does not need any of those paper works and formalities of incorporating a company, such as filing of articles and reports, which most states require.
• If you opt to make your business entity an LLC, you can choose to file your taxes not as a corporation, but as a partnership.
• An LLC benefits from a lot of tax advantage. For instance, businesses that have otherwise become a Limited Liability Company are taxed for one time only. Furthermore, there is no need to pay a corporate tax and a separate personal income tax by business owners.

In essence, to incorporate a Limited Liability Company allows for some flexibility. It can either be considered as a sole proprietorship (if there only one owner), or a partnership (if it comprises more than one owner). But it may also be a C Corporation or an S Corporation. You can probably say that an LLC is a lighter version of a corporation, minus all the red tape and paper work.

To organise a limited liability company is not a complicated process. You just need to consider the following steps in order to do it:

• Come up with a good name for the business
• Decide on a strategic business location
• Find an agent with a valid address. He or she will provide you with the professional service to be able to complete the process of registering your small business as a Limited Liability Company. He or she will also give you good business advice on incorporating a limited liability company.
• File your Articles of Organization. Submit this to the Secretary of State
• Pay the corresponding fees.

And that's it, it's done.

By doing this simple procedure, you can essentially incorporate your limited liability company.

As with any business venture, consult a legal expert and get counsel before entering into anything.