Choosing a Structure for Your Pet Care Business - Series - Part 3

The Basic Steps for Forming an LLC or Corporation

The rules governing LLCs and corporations are state-specific. The following discussion focuses on the law in Louisiana. Other state’s laws may be similar. This is just an overview of the process.

How to Form an LLC

1. Decide on a name. The name of your business must be unique. The name must contain the words "limited liability company", the abbreviation "L.L.C.", or the abbreviation "L.C." For more information about the name, take a look at L.A. R.S. 12:1306. Your state's LLC office can tell you how to check if your proposed name is available for use. In Louisiana, go to the Secretary of State Corporations Database to search the list of names already taken.
2. File the articles of organization. Prepare and file the Articles of Organization with your state's LLC filing office, which is the Secretary of State in Louisiana. This document contains basic information about the LLC. You can download the form from this page.
3. Draft an Operating Agreement. This agreement provides rules for the operation of the business. It may include provisions regarding the owners’ percentage interests in the business, their rights and responsibilities, and voting.
4. Find out if you require licenses and permits and apply for them. Before you begin doing business, you need to obtain the required licenses and permits. In Louisiana, you can take advantage of the Secretary of State’s, First Stop Shop, to learn about the permits you might need.

How to Form a Corporation

1. Choose a name. Again, the name must be unique. Access the Louisiana Secretary of State Corporations Database to search for names already taken. The name must include “Corporation", "Incorporated" or "Limited", or the abbreviation of any of those words, or may contain the word "Company" or the abbreviation "Co." if the latter word or abbreviation is not immediately preceded by the word "and" or the symbol "&". See L.A. R.S. 12:23 for other rules regarding the corporation name.
2. File articles of incorporation. This document contains basic information about the corporation and is filed with the secretary of state or your state's filing office. You can download the form from this page.
3. Draft By-laws. This document contains the governing rules of the corporation, such as voting requirements, when and where meetings are held and corporate officer responsibilities.
4. Appoint a Board and Have a Meeting. Appoint a board of directors and have the first meeting. At first meeting, the directors adopt the by-laws, appoint officers, authorize the issuance of shares of stock, and make other preliminary decisions.
5. Issue stock. Issue shares of stock to the owners of the corporation.
6. Find out if you require licenses and permits and apply for them. As with an LLC you need to obtain the required licenses and permits before doing business. In Louisiana, you can take advantage of the Secretary of State’s, First Stop Shop, to learn about the permits you might need.

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