4 Simple Steps to Forming an
LLC for a Painting Business
Plus tips on how to name your LLC
A Limited Liability Company (LLC) makes a person's financial liability limited to a fixed sum, most commonly the value of a person's investment in a company or partnership. If a company with limited liability is sued, then the claimants are suing the company, not its owners or investors. Owners of an LLC are called members. Most states also permit “single-member” LLCs, those having only one owner.
Forming an LLC is important when starting a painting business.
4 Simple Steps to Forming an LLC:
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Select your state
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Name your LLC
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Choose a registered agent
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Certificate of formation
1. Selecting Your State
For most new painting business’s, it is best to form your LLC in the state where you live and where you plan to conduct your business. If your business will have a physical presence in different states, then you will need to register a foreign LLC in every state where you will do business.
There are benefits to starting your LLC in a state that has business-friendly laws, such as Delaware or Nevada. Usually, this is not worth the extra fees and paperwork of having to register your LLC in multiple states.
2. Naming Your LLC
For many LLC owners, choosing a name for their painting business is probably one of the most important things to do. After all, you want a business name that’s unique and does a good job telling what type of business you are. You want something that’s memorable, but at the same time easy to pronounce.
Pick a few top minded names for your LLC, then see if they pass these 7 credentials:
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Make it legal- Some words required like, Limited Liability Company, LLC, or L.L.C. and some are restricted words, things like Bank, or Insurance.
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Make it memorable- Choose a name for your LLC that's catchy, sticks in peoples mind and easy to pronounce.
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Make it meaningful- Be sure to relate the name to painting. Having the word painting in the LLC name is a great idea.
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Make it original- Find inspiration from other painting companies. Be sure not to copy any other painters LLC.
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Make it distinctive- Be sure to differentiate your painting business from your competition.
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Make it domain ready- Naming your website the same as your L.L.C. is good for branding. Too long of a domain name can be daunting to type so stick with something shorter when possible.
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Make it social media friendly- Like your website, you want to keep social media labels consistency with your LLC.
3. Choose A Registered Agent
A registered agent is a responsible 3rd party that sends and receives legal papers on your behalf.
These documents include official correspondence like legal summons and document filings, which your registered agent will receive and forward to you.
Most states require every LLC to nominate a registered agent. Your registered agent must be a resident of the state you're doing business in, or a corporation authorized to conduct business in that state.
You can be your own registered agent, although it is convenient to have a 3rd party for this arrangement. This gives your peace of mind. Plus if you go away, your registered agent will be available to send and receive documents for your painting business as needed.
4. Certificate of formation
To officially create an LLC, you will need to file your documents with the state.
The most common name for this document is "Articles of Organization," "Certificate of Formation" or "Certificate of Organization". Your LLC formation document outlines the organizational structure of your business. This is done through the secretary of the state.
CONCLUSION
Forming an LLC for a painting company is really simple. It’s the first step to starting a true professional painting business. Following the basic steps outlined in this article and get started today.
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