How to Start an LLC

How to start an LLC in 8 steps: choose your state, pick a name, appoint a registered agent, file Articles of Organization, and get your EIN. Start today.

Learning how to start an LLC is simpler than most people expect. In most states you can finish the entire process in a week or two, and the core filing itself takes less than an hour. The eight steps below walk you through it from start to finish.

Step 1: Choose Your Formation State

Most small businesses should form their LLC in the state where they actually operate. That keeps taxes, filings, and compliance simple. If you run a purely online business with no physical location, you have more freedom — some owners pick states like Delaware or Wyoming for lower fees or stronger privacy, though you'll still need to register as a foreign LLC in your home state.

Step 2: Pick a Compliant Business Name

Your LLC name must be unique in your state and include a designator like LLC or Limited Liability Company. Most states let you check name availability free on the Secretary of State website. Avoid words that are restricted, like bank or insurance, unless you hold the right licenses.

You don't need a trademark to form an LLC, but a quick search of the USPTO database is smart if you plan to build a national brand.

Step 3: Appoint a Registered Agent

Every LLC must have a registered agent — a person or company with a physical address in your formation state who accepts legal mail and service of process during business hours. You can be your own registered agent, but many owners hire a service for $50 to $300 a year so they never miss important documents.

Step 4: File Your Articles of Organization

This is the document that legally creates your LLC. It asks for your LLC name, registered agent, and a mailing address, and it's filed with your state's business office online or by mail. Filing fees run from about $50 in states like Kentucky to $500 in Massachusetts, and standard processing takes 1 to 6 weeks. Most states offer expedited filing for an extra fee.

Step 5: Write an Operating Agreement

An operating agreement is an internal document that spells out ownership percentages, profit splits, voting rules, and what happens if a member leaves. Most states don't require one, but you should write it anyway — it prevents disputes and keeps your liability protection intact. Single-member LLCs benefit too, since the document proves the business is a separate entity.

Step 6: Get an EIN

An Employer Identification Number, or EIN, is your LLC's federal tax ID. You need one to open a bank account, hire employees, and file business taxes. It's free from the IRS and takes about 10 minutes online — you'll get your number immediately after applying.

Step 7: Open a Business Bank Account

Separate business accounts are essential. They keep your liability protection intact, make tax time easier, and let you accept payments in the LLC's name. You'll need your EIN, formation documents, and a copy of your operating agreement to open an account.

Step 8: Check Licenses and Permits

Depending on your industry and location, you may need a business license, sales tax permit, or professional license before you start operating. Check with your city, county, and state — a quick call to your local small business office usually answers the question in minutes. Some industries, like food service, construction, and childcare, have extra requirements, so it is worth confirming before you open your doors.

That's the whole process. Once your LLC is approved, you can start operating right away — just keep your annual report and tax deadlines on the calendar. For a deeper look at the paperwork, see how to create an LLC, or plan your budget with our guide to LLC startup costs.

Frequently Asked Questions

How long does it take to start an LLC?

The filing itself takes under an hour, but state processing typically takes 1 to 6 weeks. Many states approve online filings in a few business days, and expedited service can cut the wait to 24 to 48 hours for an extra fee.

Do I need a lawyer to start an LLC?

No. Most owners file directly with their state or use an online formation service without a lawyer. A lawyer is worth consulting if you have partners, complex ownership, or a high-risk business.

Can I start an LLC by myself?

Yes, absolutely. The DIY route costs the least — just the state filing fee — and the forms are straightforward. Online formation services are a convenient middle ground if you'd rather not handle the paperwork.

What's the fastest state to form an LLC in?

States with fully online filing and quick turnaround include Wyoming, New Mexico, and Delaware, which can approve filings in 1 to 3 business days. Your home state's expedited option is usually the fastest practical choice.