Nevada is probably the most popular state in which to form an LLC, so we'll focus on that here (other states should be quite similiar).

The first order of business toward setting up your Limited Liability Company is doing a "business entity search" with the state. Here you will check if the name you want to use for your business is taken. In Nevada you can use this LINK to search.

Once you've determined that the business name you'd like to use is available you'll need fill-out, and submit your Articles of Organization with the state. You can download that form HERE.

Line 1 (one) is the business name you chose from above (make sure to read the instructions on naming convention).

Line 2 (two) of this form asks you for name and address of a "resident agent." If you happen to be a Nevada resident..this can be you! If you're not a Nevada resident, you'll need to find a Resident Agent...luckily Nevada provides a handy list of resident agents HERE. Contact a few of the people on that list, and ask about their fees until you find someone you like.

Line 4 (four) "Management": This line asks if you want "Member management" or "Manager Management." Member management means your LLC has "members" who participate in votes pertaining to to the LCC, and can make legal binding decisions for the LLC. With a "manager managed" LLC there is a "Manager, and he/she has sole authority to run the LLC and make legal binding desicions. So, basically if you're company is more like a sole proprietorship...go with Manager Managed. If you're company is more like a Partnership...go with Member Managed.

Once you have your Articles of Organization filled out you'll need to mail it in, and of coarse..pay your fees. At the time of this writing the filing fee for Articles of Organization was $75, and you could opt for 24hr. expedite for another $125 (please double check that the fees haven't changed HERE. There are also options for a 2 hour expedite for $500, or 1 hour for $1000 if you're REALLY in a hurry.

That's it! Send off the form, and your fees and wait by the mailbox for your Limited Liability Company Charter.

Actually, that would be it if you just chose a Manager Managed LLC. There is an optional step in this case...an Operating Agreement. This is just an agreement between your LLC members as to what their responsibilies are. It's just a good idea to create an operating agreement so everyone knows what their part in the LLC is, and file it with the state.