the first step is to choose which legal structure is right for your business. however, in order to obtain that protection, there are a number of documents that the business owner or owners must file with the state government prior to conducting business. prior to filing, however, one must choose the name of the business entity and register it with the state in which it will be conducting business. as previously stated, the form is simple, and requires the business’s name, address and the names of the members who will be participated in business ownership. additionally, it will require the details of any agents the owners authorize to accept legal documents on the business’s behalf. this includes detailing how shares should be dealt with in the event of an owners passing or leaving the business.

an llc is a legal entity created within the state you reside in and mixes aspects of a partnership and corporation. in the same manner as a corporation, llc owners cannot be held liable for debts incurred by the business. pass-through taxation means that losses and profits pass from the business to individual members. moreover, you do not need help from an attorney to create an llc, and you may file the necessary legal documents on your own.