Starting an LLC- How to Start an LLC | What is LLC

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As humanity entered the modernization period from the early period, the population of humans grew up rapidly. It became a very important task to provide them with all the lively resources; that is the time when the “Industrial Revolution” struck in. It is the time when industries and companies were started to set up for mass production of goods and services to fulfill the need of a rapidly growing population. There are various types of companies that one can start, such as Private Company, Public Company, LLC, etc. Here in this brief article, I will introduce you to the LLC (Limited Liability Company) and will describe how to start an LLC, so read till the end to clear all your doubts.

What is LLC (Limited Liability Company)?

A company is a separate entity that is created by and can only be ended by the law; it is an artificial person who is directed by a group of people called directors. A company doesn’t have a single owner; it has several people who individually hold a certain percentage of the company they are called shareholders. LLC (Limited Liability Company) is a company whose partners have limited liability up to the value of the shares they hold, LLC is very safe from the aspect of the owner as thy don’t have to worry about the losses apart from the value of their shares. In LLC, the total loss of the company doesn’t need to be faced by one or two people, instead, it is divided among all the shareholders.

How to Start an LLC (Limited Liability Company)?

Starting an LLC can be a difficult task as it requires good knowledge in law and business, I will recommend you to hire a lawyer to help you out in the process, but if you have a basic knowledge of the law, then the steps below will help you start an LLC.

Step 1 (Choosing Name)

  • The very first step is to check the laws of your country as well state as the name choose must comply with the laws, in some places you can choose a name with which a company already exist or you can’t choose a name that hurt sentiments of any group of people.
  • The next step is to choose a name for your LLC, this step is very important as the name you choose should describe the work your company does, it should be appealing, easy to pronounce and remember.
  • The next step to check that the name you have chosen is available or not because if it is not registered, then you cannot register an LLC with that name.
  • Reserve your business name before forming an LLC or do as stated by the law of your region.
  • Think about whether you have to trademark your business name or not; if you do so, then no one around the world can use the same name to form a company.

Step 2 (Setting Up Your LLC)

  • The next step is to file your “articles of incorporation” to start an LLC you must file the articles of incorporation with the secretary of registrar office of your state.
  • There a lot of paperwork to be done in the formation of LLC; it is a better option for an agent to handle all the paperwork.
  • As LLC is a separate legal entity, a bank account is needed for this process; the next step is to open a bank account with a business name.
  • Once all the legal work is done, the last step is to find investors and other resources to start the operations of the company.

Features of LLC (Limited Liability Company)

LLC (Limited Liability Company) has several features that distinguish it from other private and public companies, let’s have a look at some of the effective features of LLC.

Separate Legal Existence – A LLC has a distinct legal entity independent of its members. It can own property, make contacts, and file cases in its own name. Shareholders are not the join owners of the property of the company. In the same manner, a creditor of a company is not a creditor of its members.

Limited Liability – As the company has a separate legal entity, its members cannot be held liable for the debts of the company. The liability of every member is limited to the nominal value of shares bought by him.

Merit and Demerit of LLC (Limited Liability Company)

Although LLC is one of the best types of companies with very minimal risk of loss, as every coin has two faces, LLC also has some advantages and minor disadvantages. Let’s have a quick look.


  • Large Capital Resources – The LLC is a great opportunity for investors to invest as the risk of loss is very less. Hence it becomes easy to raise capital for such a company; the number of shares can be unlimited or as per the financial need of the company as described by the board of directors.


  • Lower Profits – Usually, the profit is lower as compared to other companies because, in an LLC, the profits depend directly on the number of shares a person holds, more shares more profit, and the profit per share is also fixed.


To serve the needs of the huge population, industries are factors to consider, the economy of a country is judged by the turnover of its industries. There are several types of company for production of goods and services, among all of the LLC is considered most reliable as its source of capital is huge and the risk of loss is minimal due to the shares, here in this short article I described how to start an LLC and mentioned some of its features, merits, and demerits. If you still have any doubts or queries related to the topic, feel free to ask me down in the comment section, I will get back with an appropriate answer soon.