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Who Can Create an LLC?

LLCs can be formed by any legal entity, including corporations and individuals. A corporation can only become a Limited Liability Company when it is only one of the partners in the LLC. Individuals can create LLCs on their own so long as they have the necessary legal capacity. In most states, including Indiana, California, and Tennessee, legal capacity simply means that you are a legal adult who has not been deemed incapable of making decisions because of mental disability.

What Paperwork Is Required?

All states require an Operating Agreement. The Operating Agreement establishes the rights and responsibilities of the members and, generally, your basic business or purpose statement. You must put this together, even if you are the only one who will be involved in the LLC. In many states, you must submit this operating agreement to the state’s Small Business Administration along with their formal paperwork requirements and the filing fee. Filing fees range anywhere from $90 to $2000, depending on your state.

What Permits and Licenses Are Required?

After you file all the paperwork with the state, you must then obtain the necessary licenses and permits for the kind of business you are running. If you aren’t sure what you’ll need, you can visit your local courthouse. The clerk’s office typically has all the information you’ll need for this step. You must then publish a notice of intent to form your LLC in the newspaper. This particular requirement for forming an LLC is becoming less universal, but it still required in a number of states, including Virginia and Indiana.

This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.


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