My answer to How set up llc for consulting business?
Answer by Ken Larson:
Go to the Secretary of State web site for the state in which you reside and download the application for Articles of Incorporation for an LLC. Complete the application, attach the required fee and mail the form to the address indicated.
After receiving articles of incorporation, go to the IRS web site and register your business. You may wish to consider the benefits of Subchapter “S” (disregarded entity – in IRS parlance). This allows you to pass the revenue and expenses for your company through to your individual tax return and avoid paying taxes as a company.
An operating agreement is strongly recommended if you have more than one founder, to clarify the ownership %, as well as who can sign for the company, buying another owner out, what happens in the event of an owner death and other important matters.
Please see the “References” file in the “BOX” at the right margin of the site linked below for articles on the tax implications of LLC’s and a sample operating agreement. They are free downloads courtesy of: