Entrepreneurs in Georgia have numerous options when they want to start a new business. They could form a partnership with someone they trust or a sole proprietorship that they want to run on their own. Other times, possibly because they worry about legal and financial liability, they may prefer to start a more complex business entity. A limited liability company (LLC) is a simpler option than a corporation that offers some very valuable benefits for a business owner.
Many people talk themselves out of starting an LLC because they believe that the process is too complex. Thankfully, those who know the steps required may have an easier time turning their concept into a functional business.
Choose and research a name
Every business needs to have a name that differentiates it from competitors. In Georgia, those hoping to start an LLC will need to have a unique name not already in use by an established organization. It will therefore be necessary to first choose a possible business name and then compare that with the state database of existing business entities. In some cases, a name that seems clever or unique might already be in use elsewhere in the state, which will force someone to adjust their choice and possibly their plans for marketing.
Develop an operating agreement
An LLC could have multiple people cooperating to fund and establish the organization. It could also effectively be a sole proprietorship. Either way, it will be necessary to put together a written operating agreement that discusses how the company will function and the role of each person with an ownership interest. The documents will also need to name someone as the registered agent who will receive all formal communication about the organization.
Register with the state
Every LLC requires formal registration. Entrepreneurs will need to submit paperwork to the Georgia Secretary of State to register the company. After initially registering, it may also be necessary to obtain an Employer Identification Number for federal tax purposes.
People often require guidance and support to manage the complexities of starting a new LLC. Knowing the right steps to take can help an entrepreneur go from developing an excellent idea to running an organization with minimal challenges and delays in the process.
