The Difference Between an LLC and an INC

In recent times, the LLC (Limited Liability Company) has become the most popular legal structure for small businesses wishing to incorporate. LLC requirements differ from state to state. setting up an LLC can be relatively easy, it can usually be done in 1 to 4 hours, depending on complexity of the company.

The first thing you have to do is obtain a copy of your state's LLC Articles of Organization form from your state's Secretary of State Office. After contacting them, find out if the state in which you are incorporating requires you to post a notice in the newspaper.

Select a name for your business that complies with your state's rules for LLC business names. Whatever name you choose for your business, it must end with an LLC designator, such as "Limited Liability Company", "LLC", etc. Also, your name should not conflict with another LLC on file in the state in which you are filing.

When you Fill out the LLC Articles of Organization form, the only things you need to notify the state pertaining to your LLC are your business name, its business purpose, principal office address, the "registered agent" for receiving any legal documents, and the names of the initial members.

Prior to filing your Articles of Organization, publish a notice in your local newspaper of your intention to form an LLC. Along with the appropriate filing fee that range from $40 to $900, depending on the state, submit your Articles of Organization form. You have now legally fulfilled your LLC requirements for your company.

Since LLC Operating Agreement is not required by the state, it can be created after the legal filings are taken care of. If you are the only owner of the LLC, then you don’t have to file your LLC Operating Agreement. If there is more than one owner, it’s always feasible to make a written agreement of the terms.