Business
How to start an LLC
An LLC (Limited Liability Company) is the most common business structure for small businesses. It separates your personal assets from business liabilities and is simpler to maintain than a corporation.
LLCs are formed at the state level. Each state has its own filing fees, processing times, and ongoing requirements (annual reports, franchise taxes).
Last reviewed: June 5, 2026
What you will need
- ✓Chosen LLC name (verified as available in your state)
- ✓Registered agent name and address
- ✓Principal business address
- ✓Articles of Organization (completed on state website or PDF form)
Steps
Choose your state of formation
Most small businesses form their LLC in the state where they primarily operate. Forming in Delaware or Wyoming for tax reasons only makes sense if you are raising outside investment or operating in multiple states — for a simple local business, form where you operate.
Choose and check your business name
Your LLC name must be unique in your state and must include "LLC," "L.L.C.," or "Limited Liability Company." Check name availability through your state Secretary of State's website. Optionally, search the federal trademark database to ensure no conflicts.
Appoint a registered agent
Every LLC must have a registered agent — a person or company with a physical address in the state who can receive legal documents on behalf of the business. You can serve as your own registered agent or hire a registered agent service for $50–$150 per year.
File Articles of Organization with your state
This is the core filing that legally creates your LLC. It typically includes the LLC name, registered agent, and principal office address. Submit it through your state Secretary of State's website and pay the filing fee.
Create an Operating Agreement
An Operating Agreement governs how your LLC is managed and how profits are split among members. Most states do not legally require one, but you should have one regardless — especially with multiple members. It can be as simple as a one-page document.
Get an EIN from the IRS
An Employer Identification Number (EIN) is your business's federal tax ID, equivalent to a Social Security number for the LLC. You need it to open a business bank account and hire employees. Apply free through IRS.gov — you receive your EIN instantly online.
Open a business bank account
Keeping business and personal finances separate is both legally important and practically necessary. Bring your EIN, Articles of Organization, and Operating Agreement to a bank to open a business checking account.
Comply with ongoing state requirements
Most states require LLCs to file annual or biennial reports and pay a fee to stay in good standing. Some states also impose franchise taxes. Missing these filings can result in administrative dissolution of your LLC.