How to Start an LLC, Non-Profit, and Other Business Structures

Starting a business is an exciting venture, but choosing the right legal structure is a crucial first step. Whether you're looking to start an LLC, a non-profit, or another entity type, understanding the process can help set you up for long-term success. Here’s a comprehensive guide on how to get started, complete with key resources and links to government pages to make your journey smoother.

Limited Liability Company (LLC)

An LLC is one of the most popular business structures due to its flexibility, simplicity, and liability protection for its owners (called "members"). It combines the personal asset protection of a corporation with the tax flexibility and simplicity of a sole proprietorship or partnership.

Steps to Start an LLC:

1. Choose a Business Name Your business name must be distinguishable from existing entities registered in your state. It must also include "LLC" or "Limited Liability Company". Check your Secretary of State’s website to ensure the name is available.

   
   

2. Designate a Registered Agent A registered agent is a person or business entity responsible for receiving official documents on behalf of your LLC. This includes legal notices, state correspondence, and tax documents. The agent must have a physical address in the state where the LLC is registered.

   
   

3. File Articles of Organization This is the official paperwork to form your LLC, typically filed with the Secretary of State. This document includes basic details about your business such as its name, address, and members. There is usually a small fee associated with this filing.

   
   

4. Create an Operating Agreement An operating agreement outlines how the LLC will be run, including rules for decision-making, member responsibilities, and profit distribution. While not always legally required, it helps prevent internal disputes and provides a solid management framework.

   
   

5. Apply for an EIN An Employer Identification Number (EIN) is like a Social Security number for your business. It's required for tax reporting, opening business bank accounts, and hiring employees.

   • Apply for an EIN here

     
     

6. Register for State Taxes and Permits Depending on your business type and location, you may need state tax ID numbers, sales tax permits, or professional licenses. Check your state’s official business portal for detailed requirements.

   
   

Non-Profit Organization (501(c)(3))

Non-profit organizations serve public or charitable purposes rather than generating profits for owners. If you're looking to make a difference through education, religion, science, or community services, forming a non-profit may be the right choice.

Steps to Start a Non-Profit:

1. Develop a Mission Statement Your mission should clearly articulate the purpose of your organization and guide all future decisions. It should answer: Who do you serve? What do you do? Why does it matter?

   
   

2. Incorporate Your Non-Profit File Articles of Incorporation with your state’s corporation division (often the Secretary of State). This legal formation establishes your organization and provides liability protection to your board members and officers.

   
   

3. Apply for an EIN Just like any other business entity, your non-profit will need an EIN from the IRS to open bank accounts, hire employees, and file tax forms.

   • Apply for an EIN here

     
     

4. Apply for 501(c)(3) Tax-Exempt Status File IRS Form 1023 or the streamlined 1023-EZ (if you qualify) to apply for federal tax exemption. This process involves providing your bylaws, financial projections, and mission-related activities.

   • Learn about applying for 501(c)(3)

     
     

5. Register with Your State’s Charity Office Most states require non-profits to register before soliciting donations. This ensures accountability and transparency with public funds.

   
   

6. Create Bylaws and Hold Organizational Meeting Draft bylaws that define how your non-profit will be governed, including board roles, voting rules, and meeting schedules. Then hold an initial meeting with your board of directors to adopt the bylaws and take minutes for your records.

   
   

Other Business Structures

Sole Proprietorship

This is the simplest and most common form of business ownership. It doesn’t require formal registration unless you're using a trade name. However, you are personally liable for all business debts and obligations.

• Register a DBA (Doing Business As) name if you are using a name other than your legal name.

• Apply for an EIN if you have employees or plan to open a business bank account.

• IRS Sole Proprietor Information

  
  

Partnership

Ideal for two or more individuals sharing ownership and responsibilities. You can form a:

• General Partnership (GP) – Equal responsibility and liability.

• Limited Partnership (LP) – One or more partners have limited liability.

• Limited Liability Partnership (LLP) – Offers liability protection to all partners.

Create a Partnership Agreement to outline roles, profit sharing, and conflict resolution. Partnerships also require an EIN.

• IRS Partnership Information

  
  

Corporation (C-Corp or S-Corp)

A corporation is a legal entity separate from its owners, providing the strongest protection against personal liability.

• C-Corps are taxed as separate entities.

• S-Corps allow profits to pass through to shareholders to avoid double taxation.

You must:

• File Articles of Incorporation with your state.

• Create Corporate Bylaws and appoint a Board of Directors.

• Hold initial board meetings and issue stock certificates.

• IRS Corporation Information

  
  

Helpful Government Resources

• IRS Apply for EIN Online: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

• IRS Business Structures Overview: https://www.irs.gov/businesses/small-businesses-self-employed/business-structures

• SBA Start a Business Guide: https://www.sba.gov/business-guide

  
  

Choosing the right business structure is vital for both legal and operational success. Whether you're forming an LLC for flexibility, starting a non-profit to serve a cause, or going the route of a corporation for scalability, proper planning and registration are key. Use the resources above and consult with a legal or financial professional when needed.

And if you need hands-on help with forming your business, Anhinga Development is here to guide you every step of the way—from formation to growth strategy and beyond!

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About the Author: Crystal Wolf

Crystal Wolf is the founder and President of Anhinga Development LLC, a business consulting firm dedicated to helping entrepreneurs and organizations grow with confidence. With a background in finance and years of hands-on experience supporting businesses of all sizes, Crystal brings a unique blend of strategic insight, operational know-how, and creative thinking to every project. She is passionate about empowering others to turn their ideas into sustainable success and is a proud advocate for women- and minority-owned enterprises. Through Anhinga Development, Crystal has guided startups, nonprofits, and established companies through everything from formation to branding and digital transformation. When she’s not building business strategies, she’s inspiring future entrepreneurs to believe in the power of their vision.