A Limited Liability Company (LLC) is a business structure that protects your personal assets in case your company gets sued. Your personal assets include belongings like your home, car, and personal bank accounts.
LLCs are formed at the state level, so the rules and costs vary by state.
That said, starting an LLC costs between $30 and $350. And in most states you can get an LLC online immediately, or within 2 weeks.
How to Start an LLC, Step-by-step
Here are the 5 steps to forming an LLC:
- Choose an LLC Name
- Select a Registered Agent
- File Articles of Organization
- Create an Operating Agreement
- Get an EIN
Here are the steps to starting an LLC in all 50 states
1. Search your LLC Name
The first step to starting your LLC is making sure your LLC name is available in your state.
You need to do this because two businesses in the same state can’t have the same name.
First, search your business name and compare it to existing businesses in your state.
You can make sure the LLC Name you want is unique from existing businesses using your state’s Business Records Search. (We provide links to your state’s Business Records Search, and instructions to use it in our step-by-step state guides linked in the drop-down above.)
Second, familiarize yourself with the naming rules in your state (so your LLC gets approved).
2. Choose a Registered Agent
The next step is to choose a Registered Agent.
An LLC Registered Agent is a person or company who accepts legal documents and state notices on behalf of your Limited Liability Company.
Note: In some states, Registered Agents are also called “Resident Agent” or “Statutory Agent.
These terms all mean the same thing.
Who can be an LLC Registered Agent?
In most states, you have 3 options for who can be the Registered Agent for your LLC:
- You
- A friend or family member
- A Registered Agent Service
The Registered Agent for your LLC must have a physical street address in the state where your LLC is located. PO Boxes aren’t allowed, except in Ohio.
And it’s important to know that the Registered Agent’s name and address will be listed on public records.
If you don’t have an address in your LLC’s state, or you want more privacy, you can hire a Registered Agent Service for your LLC.
We recommend LLC BANKS Registered Agent
Our favorite feature about LLC BANK’s Registered Agent Service is they’ll let you use our office address throughout your LLC filing. This way, you can keep your address off public records.
We’ll also scan any mail sent to your LLC and upload it to your online account.
LLC BANK has excellent customer service, and they’re who we trust to be our own Registered Agent.
3. File LLC Articles of Organization
To start an LLC, you need to file LLC Formation paperwork with the state called the LLC Articles of Organization.
Note: In some states, the Articles of Organization is called a Certificate of Organization or a Certificate of Formation.
These terms all refer to the same thing: the LLC paperwork you file to form a Limited Liability Company.
Your LLC formation documents are filed with the Secretary of State (or similar government office, depending on your state).
What information is required for the LLC Articles of Organization?
The information required for your LLC Articles of Organization varies a bit by state.
That said, most LLC formation documents require:
- Your LLC’s name
- Your LLC’s business purpose
- Your LLC’s main business address
- Your Registered Agent’s name and physical address
- Whether the LLC will be a Member-managed vs Manager-managed LLC
- How long you’d like your LLC to exist
- The signature from one or more LLC Organizer(s)
How long does it take to start an LLC?
How long it takes to start an LLC depends on where you form your LLC.
Some states process LLC Articles of Organization immediately if you file online. Other states take anywhere from a few days, to a few weeks.
And if you file by mail, you’ll need to add on mail turnaround times, too.
That said, many states allow you to speed up your LLC filing by paying an extra fee.
How much does it cost to file the LLC Articles of Organization?
There is a one-time fee to create your LLC, called the LLC filing fee.
And how much it costs varies by state. The cost is usually between $50 and $150, but some states charge more than $200.
If you want to file your Articles of Organization yourself, or read about your state’s specific filing fee, you can use our free, step-by-step LLC Formation Guides for every state (linked above).
Or, you can hire a company like LLC BANKS to do it for you.
4. Create an LLC Operating Agreement
You can think of your LLC’s Operating Agreement as a “companion” document to the Articles of Organization.
The Articles of Organization creates your LLC, and the Operating Agreement shows who owns the LLC.
It also keeps a record of important information like your business entity structure, profit shares, business roles, and the business rules the LLC Members have agreed on.
Why do I need an Operating Agreement for my LLC?
Having a record of the LLC’s rules helps the LLC Members to resolve any business disagreements.
Also, some banks require an Operating Agreement when you open an LLC bank account.
And having an LLC Operating Agreement will be very helpful if you ever end up in court. Reason being, it helps prove that your LLC is being run properly.
That’s why we recommend that all LLCs have an Operating Agreement – including Single-Member LLCs.
Furthermore, an Operating Agreement for a Limited Liability Company is an “internal document“. Meaning, you don’t need to file it with any state agency or the IRS (Internal Revenue Service). Just keep a copy with your business records.
5. Get an EIN for your LLC
The next step is to get an EIN Number for an LLC from the IRS.
Note: An EIN Number is also called a Federal Tax ID Number or Federal Employer Identification Number.
An EIN Number is used to:
- identify your LLC for tax purposes
- open a business bank account
- apply for business licenses and permits
How can I get an EIN?
US Citizens/US Residents: If you have an SSN or ITIN, you can apply for an EIN online. Follow these instructions: Apply for an EIN online.
Non-US Residents: You can’t get an EIN online, but you can still get one by fax or by mail. Follow these instructions: How to get an EIN without an SSN or ITIN.
