Complete LLC Formation Guide
Step-by-step guide to forming your LLC. Learn the process, requirements, and best practices for starting your limited liability company.
Start Your Business
Form your LLC with confidence
Essential Tools for LLC Formation
Use our interactive tools to help you through the LLC formation process.
Cost Calculator
Calculate the total cost of forming an LLC in your state, including filing fees and service provider costs.
Calculate CostsBusiness Structure Quiz
Not sure if an LLC is right for you? Take our quiz to determine the best business structure for your needs.
Take QuizForeign Qualification
Planning to do business in multiple states? Use our checklist to determine if you need foreign qualification.
Check RequirementsStep-by-Step LLC Formation Process
Follow these 8 essential steps to form your LLC successfully.
Choose Your Business Name
Select a unique name that complies with your state's naming requirements. The name must include "LLC," "Limited Liability Company," or an approved abbreviation.
Requirements:
- Must be unique in your state
- Cannot include restricted words (Bank, Insurance, etc.)
- Must include LLC designation
- Cannot be misleading or deceptive
💡 Pro Tip:
Check name availability on your state's Secretary of State website before filing. You can also reserve a name for a small fee if you're not ready to file immediately.
Select Your State of Formation
Choose where to form your LLC. Most businesses form in their home state, but some choose Delaware or Nevada for specific benefits.
Home State Formation:
- Simpler compliance
- Lower costs
- Local business presence
- Easier banking setup
Delaware Formation:
- Business-friendly laws
- Privacy protection
- Court of Chancery
- Higher compliance costs
⚠️ Important:
If you form in a different state than where you operate, you'll need foreign qualification in your home state, which adds complexity and costs.
Appoint a Registered Agent
A registered agent receives legal documents and official correspondence on behalf of your LLC. This is required in all states.
Registered Agent Requirements:
- Must have a physical address in the state
- Available during business hours
- Can be an individual or professional service
- Must accept service of process
💼 Professional Service:
Consider using a professional registered agent service for privacy, reliability, and compliance. Many formation services include this for the first year.
File Articles of Organization
Submit your LLC formation documents to the state. This is the official step that creates your LLC as a legal entity.
Required Information:
- LLC name and address
- Registered agent information
- Business purpose (varies by state)
- Member/manager information
- Filing fee payment
✅ Filing Options:
File directly with the state, use an online formation service, or hire an attorney. Online services typically cost $50-$300 and include additional features.
Create an Operating Agreement
While not required in all states, an operating agreement is essential for defining ownership, management, and operational procedures.
Key Sections:
- Member information and ownership percentages
- Management structure and voting rights
- Profit and loss distribution
- Buyout and dissolution procedures
- Meeting requirements and record keeping
📋 Template Available:
Use our Operating Agreement Guide to create a comprehensive document tailored to your needs.
Obtain an EIN (Employer Identification Number)
Apply for an EIN from the IRS. This is your business's tax ID number and is required for opening bank accounts and hiring employees.
EIN Application:
- Free application on IRS website
- Immediate approval for online applications
- Required for multi-member LLCs
- Needed for business bank accounts
🔗 Apply Online:
Visit the IRS EIN application page to get your number instantly.
Open a Business Bank Account
Separate your business and personal finances by opening a dedicated business bank account. This is crucial for maintaining liability protection.
Required Documents:
- Articles of Organization
- EIN confirmation letter
- Operating Agreement
- Government-issued ID
- Initial deposit
🏦 Banking Guide:
See our Business Bank Account Guide for detailed requirements and recommendations.
Comply with Ongoing Requirements
Maintain your LLC's good standing by meeting ongoing compliance requirements, including annual reports and tax filings.
Ongoing Requirements:
- Annual reports to the state
- Tax filings (federal and state)
- Maintaining registered agent
- Keeping business records
- Renewing licenses and permits
📅 Stay Compliant:
Check our LLC Compliance Guide for detailed requirements and deadlines for your state.
Quick Links
External Resources
Need Professional Help?
Consider using a professional LLC formation service for guidance and compliance.
View Our ResourcesReady to Form Your LLC?
Use our tools and guides to start your business with confidence. Get accurate cost estimates and step-by-step guidance.
📋 Important Disclaimer:
This guide provides general information about LLC formation. Laws and requirements vary by state. We recommend consulting with a qualified attorney or tax professional for specific legal and tax advice related to your situation. This information is for educational purposes only and should not be considered legal, tax, or financial advice.