For many people, the question of incorporating is one of the first questions they deal with in a new business. How should they incorporate? What type of company should they be in the eyes of the state? What does this mean for their taxes, their structure, and their overall future? For others, these questions are long-since settled: setting up organizations like Limited Liability Corporations (LLCs) is just another part of doing business in today’s environment. But if you want to get from A to B and understand what exactly an LLC requires, where do you start?

Well, right here. Because in this article, we’re going to talk all about the legal forms that you need to not only start, but run an LLC so that everything is clear, legal, and ready for tax season. Let’s get started.

Starting an LLC

One of the most important things you can ever do in your life is start a business, because depending on how that business grows, its finances can affect not only your future, but dramatically have a reach on just about every other area of your life. If you have a business that takes up all your time, it can put a strain on relationships and even your health. But if you have a business that is booming and plenty of free time as the business manager, then suddenly things don’t seem so bad.

With that in mind, starting an LLC is also an important decision to make, which is why you’ll want to pay close attention to the articles of organization, or the initial filing papers, that essentially tells the state what your LLC is going to be called. When you file these papers, you’re also committing yourself to a certain tax structure and a certain organizational structure that will have to remain in place for the entire duration this business is an LLC.

If you have other people in your LLC, you’ll also want to start out with an “operating agreement,” or what is essentially a contract between all of you defining each person’s role within the LLC.

Running an LLC

Running an LLC will mean that you have to encounter many of the various tax forms that any business would have to encounter - filing the right paperwork to hire people, file taxes, and generally run business as any other company would. But if you want to define specific forms relating to an LLC, it’s important that we do so now.

Many of these issues relate to tax forms, and the good news about LLCs is that there’s a great amount of flexibility in the way you file taxes. For example, if you are a sole proprietor LLC, you can file taxes essentially as a sole proprietor, even if you have to report that your income goes to your LLC. These tax forms will not be very different from the tax forms you currently file now if you’re already a sole proprietorship.