In most states, the formation of an LLP as a newly established business is very similar to the creation of a general partnership. It should be noted, however, that the specific steps and requirements to start an LLP vary from state to state. Those seeking to create such an entity should make sure to find out what the requirements are in their particular state as well as the local jurisdiction(s) in which the business will be operating.
Regardless of these differences, the first step for all involved partners for a new LLP should be the establishment some kind of partnership agreement. There is generally no requirement that this agreement be in writing, nor that it be filed with the state, yet it is good business practice to have one officially written and signed by all parties in order to avoid later conflicts.
If the business will operate under a name that is different from the owner's name (i.e. an assumed name that does not include the surname of all of the partners), most states will require that an assumed name certificate be filed. This document informs the jurisdiction that the business is operating under an assumed name and indicates who the owners are. Usually, the assumed name certificate will be filed locally with the office of the county clerk in the county(s) where a business premise is either maintained or where business is conducted.
The LLP should also obtain a Federal Employer Identification Number from the IRS. This can be conducted online or by filling out Form SS-4, Application for Employer Identification Number.
Finally, the partners of the LLP should make sure to get all the necessary business permits and/or licenses for operation in their particular state. Again, this will vary across states and across industries so some research will be required.
