How to Create an LLC

How to create an LLC: file Articles of Organization with your state, choose DIY or a formation service, and budget $50 to $500. Here's the full walkthrough.

The One Document That Creates Your LLC

If you want to know how to create an LLC, the answer starts with one document: the Articles of Organization. Filing it with your state's business office is what legally brings your company into existence. Depending on your state it's called the Articles of Organization, Certificate of Formation, or Certificate of Organization, and it's filed with the Secretary of State or a similar office.

You can file it yourself online, by mail, or in person, or you can pay a formation service to prepare and submit it for you. The legal result is identical either way.

What Goes on the Articles of Organization

The form is short — usually one or two pages. You'll provide:

• Your LLC's legal name, including the LLC designator
• The name and address of your registered agent
• A mailing address for the company
• The names of the members or organizers (in some states)
• Whether the LLC will be member-managed or manager-managed

That's it. You don't file your operating agreement, EIN, or business licenses with this form — those come later.

DIY Filing vs. a Formation Service

Filing yourself costs only the state fee and takes about 30 minutes of form-filling. You'll need to check name availability, prepare the document, and pay with a credit card or check. It's a perfectly good option if you're comfortable with forms.

A formation service handles the name check, prepares and files the paperwork, and often includes a registered agent for the first year. You pay $0 to $300 on top of the state fee for the convenience. Services are especially useful if you're forming in a state you don't live in or want to avoid missing compliance deadlines. Either way, keep a copy of your approved Articles of Organization — you will need it for bank accounts, leases, and licenses.

What It Costs to Create an LLC

State filing fees range from about $50 to $500 depending on where you file. A few examples: Kentucky charges around $40, Texas around $300, and Massachusetts around $500. If you use a formation service, add its fee on top. The EIN from the IRS is always free.

For a full budget breakdown, see our guide to how much it costs to start an LLC.

How Long It Takes

Online filings are often approved in a few business days, while mailed filings can take 1 to 6 weeks. Most states offer expedited processing — sometimes same-day or next-day — for an extra fee that can range from $25 to $500. If you're in a hurry, file online and pay for expedited service. If you are not, standard processing is perfectly fine — your LLC's effective date is usually the filing date, not the approval date.

After the State Approves Your Filing

Approval is the beginning, not the end. Once your LLC exists you should:

1. Get an EIN from the IRS (free, takes 10 minutes)
2. Write and sign your operating agreement
3. Open a business bank account in the LLC's name
4. Check for business licenses and permits in your city and state

These steps turn your legal entity into a working business. You can also start hiring employees, signing contracts, and opening vendor accounts in the LLC's name once the EIN is in hand.

Common Mistakes to Avoid

The most common errors are picking a name that's already taken, listing an invalid registered agent address, and skipping the operating agreement. Another big one: using a personal bank account after forming the LLC, which can weaken your liability protection. Take the extra hour to set things up properly and you'll avoid headaches later.

For the full step-by-step process, read how to start an LLC.

Frequently Asked Questions

Can I create an LLC online?

Yes. Every state now accepts online filing of the Articles of Organization, and it's usually the fastest and cheapest method. You'll pay the filing fee with a credit card and typically get approval in a few business days.

Do I need an operating agreement to create an LLC?

Most states don't require one to file, but you should create one anyway. It defines ownership, profit splits, and decision-making, and it strengthens your liability protection by proving the LLC is a separate entity.

What happens after I file my Articles of Organization?

Once the state approves your filing, your LLC legally exists. Next you'll get an EIN, write an operating agreement, open a business bank account, and check for any licenses or permits your business needs.

Can I create an LLC in a different state?

Yes, but if you operate in your home state you'll need to register there as a foreign LLC, which adds fees and filings. Most small businesses are better off forming in the state where they actually do business.