How to Form an LLC

Forming an LLC is a one-page filing in most states. Learn what the Articles of Organization needs, DIY vs. service costs, and how to avoid the top formation mistakes.

Forming an LLC comes down to one core filing: your state's formation document (Articles of Organization). Everything else — the agent, the EIN, the bank account — happens around that filing. Here's what you actually submit and how to keep it cheap and mistake-free.

What You File

The formation document is short, usually one or two pages, asking for:

• The LLC's official name (must include "LLC" or approved variant)
• The registered agent's name and street address
• The LLC's principal office address
• Organizer names and signatures
• Management type (member-managed or manager-managed)

No business plan, no financials, no attorney review required. You submit it to your Secretary of State online, pay the filing fee, and receive a stamped certificate of formation.

DIY vs. Formation Service

DIY: use your state's official portal — usually cheapest but with zero hand-holding. Formation service: a company like the ones we recommend prepares the document, files it, and often throws in a registered agent for the first year. Services cost roughly $0–$400 plus your state's fee. The tradeoff is convenience and accuracy, not legality — either route gives you the same LLC.

Before choosing, understand the true cost to form an LLC, which varies dramatically by state.

State Requirements After Filing

Forming the LLC is just the start. Depending on your state, you may also need to:

• Publish a notice in a local newspaper (New York, Nebraska, Arizona)
• Pay a franchise tax or annual fee (California, Texas, Delaware)
• File a Statement of Information on a schedule (California, Nevada)
• Register for state tax IDs or workers' comp

Budget for these ongoing obligations — the LLC cost by state table shows exactly what each state charges year one and year two.

Common Formation Mistakes to Avoid

• Mixing funds — opens your personal assets to liability.
• Skipping the operating agreement — leaves ownership murky.
• Using your home address publicly — a registered agent keeps it private.
• Missing annual filings — automatic dissolution in most states.
• Forming in the wrong state — you're bound by your business's home state; see the Delaware and Wyoming guides before chasing a famous state.

Frequently Asked Questions

What is the difference between forming and starting an LLC?

Forming is the legal act of filing Articles of Organization with the state. Starting includes everything after: EIN, bank account, operating agreement, and launch. You can't start legally without forming first.

Can I form an LLC without a registered agent?

No. Every state requires a registered agent with a physical address in the state. You can name yourself, but a service keeps your address private and ensures deadlines are met.

How fast can I form an LLC?

Online filings in most states approve in 1–2 weeks; expedited service gets you a certificate in 24–72 hours. Delaware and Wyoming same-day options exist for a premium.

Which state is easiest to form an LLC?

Wyoming, New Mexico, and Delaware are known for low fees and fast approval. But you should generally form where your business operates — the 'best' state only matters for holding companies.