How to Start an LLC

Start your LLC the right way. Step-by-step guide covering name checks, registered agent, Articles of Organization, EIN, bank accounts, and compliance for all 50 states.

Starting an LLC takes about a week and a few hundred dollars in most states. The process is the same nationwide — only the forms, fees, and filing office change. Here is the exact sequence, step by step.

Step 1: Choose Your LLC Name

Your name must be unique in your state, include a required designator ("LLC," "L.L.C.," or "Limited Liability Company"), and avoid restricted words like "bank" or "insurance" unless you have special licensing. Search your Secretary of State's business registry first, then check that the matching domain is available. If your preferred name is taken, your state will accept a similar name as long as it isn't confusingly similar. Once chosen, many states let you reserve the name for 30–120 days while you finish the paperwork.

Step 2: Appoint a Registered Agent

Every LLC must have a registered agent with a physical street address in the state of formation, available during business hours to accept legal mail. You can be your own agent, but a professional registered agent service keeps your address off public records and never misses a deadline — most cost $50–$150 a year.

Step 3: File Your Formation Paperwork

File Articles of Organization with your state's filing office — online, by mail, or through a formation service. You'll provide the LLC name, registered agent, principal address, and the names of the organizers. Standard processing takes 1–2 weeks; most states offer 24-hour expedited service for an extra fee.

Filing fees range from about $35 to $500, so check your state's exact cost before you budget. See what it costs to form an LLC in your state.

Step 4: Write an Operating Agreement

An operating agreement is the LLC's internal rulebook: ownership percentages, profit splits, voting, management duties, and what happens if a member leaves. It's legally required in a few states (California, New York, Missouri) and strongly recommended everywhere — without one, your state's default rules govern your LLC.

Step 5: Get an EIN

Apply for an EIN directly on the IRS website — it's free and takes about ten minutes. You'll need it to open a bank account, pay taxes, and hire employees. LLCs with a single member and no employees can skip the EIN and use the owner's SSN, but a separate EIN keeps your finances clean.

Step 6: Open a Business Bank Account & Stay Compliant

Open a separate business checking account in the LLC's name using the EIN and your Articles of Organization. Keeping business and personal money separate is the single most important habit for preserving your liability shield — called "piercing the corporate veil," judges dissolve the protection when owners mix funds.

After formation, maintain your LLC: file the annual report your state requires ($0–$800 per year depending on state), pay franchise taxes where they apply, and keep your registered agent and business address current. Skipping these filings can dissolve your LLC automatically.

Frequently Asked Questions

How long does it take to start an LLC?

Most states process online filings within 1–2 weeks. Expedited filing can drop that to 24–72 hours for an extra fee, and a few states approve the same day.

Can I start an LLC online?

Yes. File directly with your state's website, or use an online formation service that prepares and files everything for you. Both routes produce the same legal result.

Do I need a lawyer to start an LLC?

No. Formation is a routine filing most owners complete without a lawyer. An online service or your state's own forms are sufficient for the vast majority of LLCs.

What if I don't have a business yet?

You can form an LLC before you start operating. Many owners register first, then set up banking and launch — just file any required annual reports in the meantime.