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How to Start an LLC

Starting an LLC involves more than filing a form with your state. You need to choose a suitable name, understand your ownership structure, appoint a registered agent, complete the required filing, and handle tax and licensing requirements.
This guide explains the main steps involved in creating an LLC, what you may need after formation, and the costs you should consider before getting started.
START YOUR LLC

1. Choose Your Business Name

Your LLC name is one of the first decisions you will make. It should meet your state's naming rules and be distinguishable from existing businesses.
Before settling on a name, check your state's business database. You may also want to search federal trademark records to identify potential conflicts.
  • Check Business Name Availability
  • Review State Naming Rules
  • Search Existing Businesses
  • Check Trademark Records
  • Choose a DBA Name
  • Reserve Your Business Name

2. Decide Who Will Own & Manage the LLC

An LLC can have one owner or multiple owners. The owners are called members.
You will also need to decide how the company will be managed. In a member-managed LLC, the owners handle daily decisions. In a manager-managed LLC, designated managers handle the company's operations. 
Think about ownership percentages, responsibilities, decision-making authority, and how important business decisions will be made.
  • Single-Member LLC
  • Multi-Member LLC
  • Member-Managed LLC
  • Manager-Managed LLC
  • LLC Ownership
  • LLC Operating Agreement

3. Select a Registered Agent

Most states require an LLC to maintain a registered agent. The agent receives certain official and legal documents for your company.
You can often serve as your own registered agent if you meet your state's requirements. You can also use a professional registered agent service.
The registered agent generally needs a physical address in the state where the LLC is registered and must be available as required by state law.
  • Choose a Registered Agent
  • Registered Agent Requirements
  • Professional Registered Agent
  • Registered Agent Address
  • State Filing Requirements
  • LLC Compliance Support

4. File Your Formation Documents

The next major step is submitting your LLC formation document to the appropriate state agency.
This document is commonly called the Articles of Organization. Some states use names such as Certificate of Organization or Certificate of Formation.
The information requested varies by state, but may include your LLC name, registered agent information, management structure, business address, and member or manager details.
Once the state approves your filing, your LLC officially exists under state law.
  • Articles of Organization
  • Certificate of Formation
  • State LLC Filing
  • Formation Documents
  • LLC Filing Requirements
  • Business Formation Records

5. Create Your Operating Agreement

An operating agreement explains how your LLC will operate.
It can cover ownership percentages, member responsibilities, voting rights, profit distribution, management, and procedures for adding or removing members.
Not every state requires an operating agreement, but creating one can help establish clear rules for the business and its owners.
  • Create an Operating Agreement
  • Member Responsibilities
  • Ownership Percentages
  • Voting Rights
  • Profit Distribution
  • LLC Management Rules

6. Apply for an EIN

After forming your company, determine whether you need an Employer Identification Number from the IRS.
An EIN is a federal tax identification number. Businesses may need one for purposes such as hiring employees, certain tax filings, and banking.
  • Apply for an EIN
  • Federal Tax ID
  • EIN for LLC
  • Business Tax Identification
  • IRS Business Requirements
  • EIN Application

7. Handle Licenses & Permits

Forming an LLC does not automatically give you permission to conduct every type of business.
Depending on your industry and location, you may need federal, state, county, or city licenses and permits.
Check the requirements that apply to your products, services, employees, and business location before beginning operations.
  • Business Licenses
  • Local Permits
  • State Licenses
  • Industry Requirements
  • Sales Tax Registration
  • Professional Licenses

How Much Does It Cost to Start an LLC?

The cost depends on the state where you form your company.
The state filing fee is usually the primary formation expense, but it is not necessarily the only cost. You may also have expenses for registered agent services, business licenses, permits, publication requirements in certain states, and ongoing state filings.
Some states also charge recurring fees or taxes to maintain an LLC.
Before forming your company, check the current requirements in your state so you understand both initial and ongoing costs.
  • State Filing Fees
  • Registered Agent Fees
  • Business License Costs
  • Annual Report Fees
  • State Taxes
  • Ongoing LLC Costs

Open a Business Bank Account

Once your LLC is formed, consider opening a dedicated business bank account.
Keeping business income and expenses separate from personal finances can make accounting easier and help maintain clear business records.
A bank may request documents such as your formation approval, EIN, identification, ownership information, and operating agreement.
  • Business Banking
  • LLC Bank Account
  • Business Financial Records
  • Separate Business Finances
  • Business Accounting
  • Financial Management

Set Up Your Business Address

Your LLC may need different types of addresses for formation, banking, licensing, mail, and daily operations.
If you work from home or operate remotely, you may want to explore business address options that meet the requirements of the specific filing or service.
Always check whether an address is accepted for its intended purpose before using it.
  • Business Address
  • Business Mailing Address
  • Virtual Business Address
  • LLC Business Address
  • Private Business Address
  • Business Mail

Keep Your LLC in Good Standing

Forming your LLC is only the beginning. You may have ongoing state and local requirements after your company is approved.
Depending on your state, you may need to file annual or biennial reports, maintain a registered agent, renew licenses, pay state fees or taxes, and update company information when required.
Create a calendar for your important deadlines and keep copies of your filings and payment confirmations.
  • Annual Report Filing
  • LLC Compliance
  • Registered Agent Maintenance
  • State Filing Deadlines
  • License Renewals
  • Business Records

What Comes After LLC Formation?

Once your company is registered, focus on getting it ready to operate.

Set Up Your Finances

Open a business bank account and create a system for tracking income and expenses.

Handle Tax Requirements

Understand your federal, state, and local tax responsibilities.

Get Required Licenses

Check the licenses and permits required for your industry and location.

Protect Your Business

Consider insurance and other measures that may help manage business risks.

Build Your Business Presence

Set up your website, business email, domain, phone number, and other customer-facing information.

Track Compliance

Keep up with annual reports, renewals, taxes, and other recurring obligations.

Build Your LLC Step by Step

Creating an LLC becomes easier when you break the process into individual tasks. Start with your name and ownership structure, complete the state filing, and then handle tax, licensing, banking, and compliance requirements.
RegisterMyBizNow can help with several services you may need along the way.
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Why We Use Email & Text

We are very busy helping clients register their businesses. To give your files our full attention and complete your work fast, we do not take phone calls. Operating entirely by email or text allows us to focus on your needs without interruptions.
We review all messages quickly and will reply within 48 hours or less.

Frequently Asked Questions

Everything you need to know about setting up your limited liability company.

The general process includes choosing a business name, selecting a registered agent, preparing and filing formation documents with your state, creating an operating agreement, obtaining an EIN when required, and handling applicable licenses and permits.

To create an LLC, choose an available business name, decide how the company will be managed, select a registered agent, file the required formation document with your state, and complete the applicable tax and licensing steps.

The main steps to form an LLC include choosing a name, selecting a registered agent, filing the Articles of Organization or equivalent document, preparing an operating agreement, getting an EIN when required, and obtaining necessary licenses.

There is no single nationwide price. State filing fees vary, and additional costs may include registered agent services, licenses, permits, annual reports, and state taxes or fees.

No. Many states use Articles of Organization, while others may use names such as Certificate of Organization or Certificate of Formation.

Most states require LLCs to maintain a registered agent. The specific rules and qualifications vary by state.

Yes. A single-member LLC has one owner and is permitted in most states.

Yes. An LLC can have two or more members. The members can establish ownership and management arrangements in an operating agreement.

EIN requirements depend on your circumstances. An LLC may need one for employees, certain tax obligations, banking, or other business activities.

Requirements vary by state. Even when one is not mandatory, an operating agreement can document ownership, management, voting, and other internal rules.

Possibly. LLC formation and business licensing are separate requirements. Your industry and location determine which licenses and permits may apply.

After formation, you may need to obtain an EIN, open a business bank account, arrange insurance, obtain licenses, set up accounting, and track ongoing state requirements. 

Many states require LLCs to file annual or biennial reports. Requirements and deadlines vary by state.

Many states allow LLC formation documents to be filed online. The available filing methods depend on the state.

RegisterMyBizNow offers LLC formation and related business services, including registered agent, EIN, business address, and compliance services.