How to Make an LLC

How to make an LLC in six simple steps, from picking a name to opening a bank account. A beginner friendly guide to forming your own company for under $200.

What an LLC is, in plain English

Learning how to make an LLC is easier than most people expect. You do not need a lawyer, and you can finish the whole process in a weekend. An LLC, short for limited liability company, is a legal structure that separates your personal money from your business debts. This guide breaks the process into six core steps that work in every state.

An LLC is a business structure created by filing paperwork with your state. It gives you limited liability, which means creditors of the business generally cannot come after your house, car, or savings. It also gives you flexible taxes, because profits pass through to your personal return instead of being taxed at the company level. For a deeper look, read our what is an LLC guide.

What you need before you start

You need very little to make an LLC. Have a name in mind, a physical address in your state, and a way to pay the filing fee, which runs from about $40 to $500. You also need to decide who will be your registered agent. Most owners can gather everything they need in under an hour.

You do not need a business plan, a website, or any customers to form the LLC. You also do not need a lawyer or an accountant for the filing itself. The state only wants your name, your agent, and your fee. Everything else, like the operating agreement and bank account, comes after the filing is approved.

Step 1: Pick a name

Your LLC name must be unique in your state and must include a designator like LLC or Limited Liability Company. Search your Secretary of State's business database to check availability before you file. Avoid words that suggest a regulated business, such as bank or insurance, unless you hold the right licenses. You can reserve a name for a small fee if you are not ready to file yet.

Step 2: Choose a registered agent

Every LLC must have a registered agent with a physical street address in the state. The agent receives legal papers and official mail for your company. You can be your own agent, but many owners use a service to keep their home address off public records. See our registered agent guide to compare your options.

Step 3: File your articles of organization

The articles of organization is the official form that creates your LLC. You file it with the Secretary of State, either online or by mail. The form asks for your name, agent, and business address. Filing fees range from about $40 in some states to $500 in others. Most states approve online filings within a few business days.

Filing online is faster and cheaper than mailing paper forms in most states. The online portal usually accepts a credit card and gives you a confirmation number right away. Some states also offer expedited processing for an extra fee, which can turn a two week wait into a same day approval.

Step 4: Write an operating agreement

An operating agreement is a written document that explains who owns the LLC, how it is managed, and how profits are split. Most states do not require one, but it is the smartest document you can create. It prevents disputes and makes banks and investors take you seriously. Our operating agreement guide explains what to include.

Step 5: Get an EIN and open a bank account

After your filing is approved, get an Employer Identification Number from the IRS. It is free and takes about 10 minutes on the IRS website. You need the EIN to open a business bank account and to pay taxes. Then open a separate business account so your personal and business money never mix. That separation is what keeps your liability protection intact.

Frequently Asked Questions

How much does it cost to make an LLC?

Most owners spend $40 to $500 on the state filing fee, plus $0 to $150 per year for a registered agent if they use a service. The EIN is free. Many states let you form an LLC for under $200 total.

Do I need a lawyer to make an LLC?

No. You can file the paperwork yourself online in most states. A lawyer is only worth the cost if your business is complicated, like a partnership with several owners or a heavily regulated industry.

How long does it take to make an LLC?

The state filing takes a few days to a few weeks depending on your state. The EIN is issued instantly, and a bank account can be opened the same day. Most people finish everything within two weeks.

Can I make an LLC by myself?

Yes. A single person can form and own an LLC in every state. You file the articles of organization, get an EIN, and open a bank account, all without any partners.

Is an LLC the same as a corporation?

No. An LLC is more flexible and usually simpler to run. A corporation has a board of directors, formal meetings, and stricter record keeping, while an LLC is managed under a simple operating agreement.