Essentially, an LLC is a cross between a partnership and a corporation, providing advantages of both business structures.  The LLC provides its owners (called members) with limited liability exposure (hence the name) and with the relatively simple tax compliance of a partnership.
 
Forming an LLC is a fairly simple process.  The members of an LLC file Articles of Organization, along with a fee, as determined by the state where the LLC is being formed.  These documents are similar to articles of incorporation, which establish the LLC as a legal entity.  The LLC usually begins its’ legal existence on the same day that the articles of organization are filed.  One consistent requirement of an LLC is that the name of the business entity must include words or phrases that identify it as a limited liability company.  These include the specific words Limited Liability Company or the abbreviation LLC.
 
Members of an LLC can be individuals, corporations, partnerships, or other legal associations or entities.  In many states, two or more members are required to form an LLC, but others allow a single-member LLC to be created.  While your state may not require an operating agreement for your LLC, it is always a good idea to create one for your business.  The operating agreement spells out procedures for admitting new members, as well as procedures for the withdrawal of a member.
 
Note:  Please consult with your legal and financial counsel prior to establishing your business structure in order to ensure proper compliance with applicable rules and laws.
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