How to Set Up an LLC

How to set up an LLC the right way: a before, during, and after checklist covering your name, registered agent, filing, EIN, bank account, and compliance.

Before You File: Get Your Foundation Ready

Setting up an LLC is a three-phase project: prepare before you file, file correctly, then build the infrastructure that comes after. Here's how to set up an LLC without missing a step. Good setup starts before you touch a form — first, decide which state to form in, and for most owners that's the state where they operate.

Next, choose a business name and confirm it's available in that state's database. Finally, decide who your registered agent will be: yourself, a trusted contact, or a professional service. Having these three decisions locked in makes the actual filing take about 30 minutes instead of a whole afternoon.

During Filing: What to Prepare

When you file your Articles of Organization, you'll need your chosen name, your registered agent's name and physical address, and a mailing address for the LLC. Have a payment method ready for the filing fee, which runs from about $50 to $500 depending on your state.

File online if your state offers it — it's faster, cheaper, and you'll get a confirmation immediately. Keep a copy of the approved document; you'll need it for bank accounts and licenses. Most states also let you download a certified copy for a small fee if a bank or landlord asks for one.

After Filing: Turn Your LLC Into a Working Business

Approval is where the real setup begins. Work through these steps in order:

1. Get an EIN from the IRS — it's free and takes about 10 minutes online.
2. Write and sign an operating agreement covering ownership, profits, and management.
3. Open a business bank account using your EIN and formation documents.
4. Set up bookkeeping — a simple spreadsheet or accounting software from day one.
5. Check for business licenses, sales tax permits, and zoning rules in your city and state.

Each step is quick on its own, but together they're what make your LLC real in the eyes of banks, customers, and the IRS. Do not skip the bookkeeping step — even a simple spreadsheet from day one saves you hours at tax time and keeps your liability protection clean.

The Complete Setup Checklist

• Choose your formation state
• Pick an available, compliant business name
• Appoint a registered agent
• File the Articles of Organization
• Get your EIN from the IRS
• Write and sign an operating agreement
• Open a business bank account
• Set up bookkeeping and accounting
• Obtain required licenses and permits
• Mark your annual report and tax deadlines on the calendar

What Setup Costs in the First Year

Your first-year bill is mostly the state filing fee: $50 to $500. Add $0 to $300 for a registered agent if you don't serve as your own, and $0 to $300 if you use a formation service. The EIN is free, and an operating agreement costs nothing if you write it yourself. Many owners set up an LLC for under $200 total. If you form in a state with a low filing fee and act as your own registered agent, your total setup cost can be under $100.

See our full breakdown in how much it costs to start an LLC.

Common Setup Mistakes

The biggest mistakes are skipping the operating agreement, using a personal bank account, and missing annual report deadlines. Each one is easy to avoid with a little planning. Set reminders for your state's annual report and tax dates the same week you form the LLC, and you'll stay compliant without thinking about it. It also helps to keep a folder with your formation documents, EIN confirmation, and operating agreement in one place — you will reach for them constantly in the first year.

Need the full process from the top? Start with how to start an LLC.

Frequently Asked Questions

What do I need before setting up an LLC?

Three things: a chosen formation state, an available business name, and a registered agent. Lock those in first and the filing itself takes about 30 minutes. You'll also want a payment method ready for the state filing fee.

How long does LLC setup take?

The filing takes under an hour, and most states approve online filings within a few business days to 6 weeks. The full setup — EIN, operating agreement, bank account, licenses — can be finished in a single week once your LLC is approved.

Do I need a business bank account for my LLC?

Yes. A separate business account keeps your liability protection intact, makes taxes far easier, and lets you accept payments in the LLC's name. You'll need your EIN and formation documents to open one.

What should I do right after forming my LLC?

Get your EIN, write and sign your operating agreement, open a business bank account, and check for licenses and permits. Then mark your annual report and tax deadlines on the calendar so you never miss a filing.