How to form an LLC, step by step
The details vary by state, but nearly every LLC is formed the same way. Here are the six steps, what each one costs, and where a formation service can save you time.
Choose and check your LLC name
Your name must be distinguishable from other businesses registered in your state and usually must end with “LLC,” “L.L.C.,” or “Limited Liability Company.” Words like “Bank” or “Insurance” are typically restricted.
- Search your Secretary of State’s business name database.
- Check that a matching domain and social handles are available.
- Run a quick search of the USPTO trademark database to avoid conflicts.
- Not ready to file? Many states let you reserve a name for a small fee.
Appoint a registered agent
Every LLC must list a registered agent: a person or company with a physical address in the state who accepts lawsuits and official state mail during business hours. You can serve as your own agent, ask a trusted person, or pay a commercial registered agent service.
File Articles of Organization
This is the filing that legally creates your LLC. (Some states call it a Certificate of Formation or Certificate of Organization.) It usually asks for the LLC name, registered agent, principal address, management structure (member-managed or manager-managed), and organizer’s signature.
State filing fees range from about $35 to $500. Processing can take anywhere from same day to several weeks; many states offer paid expedited processing. Some states also require a newspaper publication notice or an initial report shortly after formation.
Find your state’s exact fee and form: see our state LLC guides(CA, TX, FL,NY, IL, OH,GA, NC,PA, MI).
Create an operating agreement
An operating agreement sets out who owns what percentage, how decisions are made, how profits are distributed, and what happens if a member leaves or the business closes. Only a few states require one, but banks often ask for it — and it strengthens your liability protection by showing the LLC is a separate entity. Single-member LLCs should have one too.
Get an EIN
An Employer Identification Number is your business’s federal tax ID. You’ll need one to open a business bank account, hire employees, or file certain returns. It’s free from the IRS and can be obtained online in minutes.
Open a business bank account
Keeping business money separate from personal money is one of the most important things you can do to preserve your liability protection. Banks typically ask for your filed Articles, EIN confirmation, and operating agreement.
After you form: stay in good standing
- File your state’s annual or biennial report and pay any franchise tax on time.
- Get any required city, county, or state business licenses and permits.
- Register for state sales tax or payroll tax accounts if they apply to you.
- Keep your registered agent information current.
- Check whether you need to file a beneficial ownership information (BOI) report with FinCEN — rules for U.S. companies changed in 2025, so confirm the current requirements.
Where a formation service fits
Every step above can be done yourself. A formation service is a convenience: it checks your name, prepares and submits the Articles, can serve as your registered agent, and often bundles an operating agreement template, EIN filing, and compliance reminders. It makes the most sense if you value your time, are unfamiliar with your state’s portal, or want ongoing registered agent and reminder services in one place. It makes the least sense if your state’s online filing is simple and you’re happy being your own agent.
Last updated October 2026. This is general information, not legal or tax advice.