LLC guide · Start here
How to start an LLC, step by step.
Every state follows the same basic path. Pick the state and the name, name a registered agent, file your articles, then set up the paperwork, tax ID, and accounts that let the business run.
8 minute read Reviewed
The short version
- Most owners form in the state where they live and work.
- The filing itself is short; the details around it are what take thought.
- An EIN is free from the IRS.
- Plan for the steps after approval: licenses, a bank account, and yearly reports.
The steps at a glance
Here is the full path, in the order most owners take it:
- 1
Choose your state
Usually the state where you live and do business.
- 2
Choose and check your name
It has to be distinguishable from names already on the state's record.
- 3
Appoint a registered agent
A person or company with an address in the state to accept legal mail.
- 4
File articles of organization
Submit them to the state's business filing office with the fee.
- 5
Write an operating agreement
Your internal rules for ownership, money, and decisions.
- 6
Get an EIN
The business's federal tax ID from the IRS.
- 7
Handle state follow-ups
Initial reports or publication rules in some states.
- 8
Get licenses, permits, and a bank account
So the business can operate and keep money separate.
1. Choose your state
For most small businesses, the right state is home. You can form an LLC in any state, but if you form in one state and operate in another, you will usually need to register in your home state as a foreign LLC too. That means two sets of fees, two registered agents, and two sets of reports.
Forming out of state can make sense for holding companies or businesses with specific plans. The foreign vs. domestic LLC guide explains the tradeoffs.
2. Choose and check your name
Your LLC name must include a designator such as "LLC" or "Limited Liability Company," and it must be distinguishable from other businesses already registered in the state. Search the state's business database first, then check trademarks and domains so the name works beyond the filing.
The LLC name guide covers naming rules, restricted words, and reserving a name.
3. Appoint a registered agent
Every LLC needs a registered agent: a person or company with a physical street address in the state who is available during business hours to accept lawsuits and official notices. You can be your own agent if you meet the requirements, or use a registered agent service to keep your home address off the public record.
4. File your articles of organization
This is the filing that creates the LLC. Depending on the state, it may be called articles of organization, a certificate of formation, or a certificate of organization. It lists the name, addresses, registered agent, and how the LLC is managed. Most states accept it online.
Processing time depends on the state, its current workload, and whether you pay for expedited service where it is offered. The articles of organization guide covers what goes on the form and common reasons filings get rejected.
5. Write an operating agreement
The operating agreement sets out who owns what, how money comes in and goes out, and how decisions get made. It usually is not filed with the state, but a few states expect every LLC to have one, and banks often ask for it. See the operating agreement guide.
6. Get an EIN
An Employer Identification Number is the business's federal tax ID. You need one to hire, to file partnership returns, and in practice to open most business bank accounts. It is free from the IRS. Owners with a Social Security number or ITIN can apply online; others apply by fax or mail with Form SS-4. Our EIN assistance can prepare it for you.
7. After the state approves it
Approval is the starting line. What usually comes next:
- State follow-ups. Some states ask for an initial report soon after formation, and a few, like New York, require publishing a notice of formation.
- Licenses and permits from your city, county, or state, plus a sales tax permit if you sell taxable goods or services.
- A business bank account, usually opened with your approved articles, EIN, and operating agreement.
- A compliance calendar for annual reports and tax deadlines.
- A records folder with your filings, EIN letter, and agreement in one place.
This guide is general information, not legal or tax advice. Rules differ by state and change over time, so check your state's official website or a licensed professional before you act. YaH Brands is not a law firm or an accounting firm.
Rather hand the paperwork to someone? We file, track, and keep you on schedule, and a real person answers when you call.
Services for this step
Every service is available on its own. Add only what your business needs.
- LLC filingPrepare the LLC filing you choose.
- Registered agentKnow who receives official notices for your business.
- EIN application assistanceGet oriented to your business tax ID application.
- Business license & permit researchFind out which permissions your business may need.
- Business banking assistanceGet your business account application organized.
Keep reading
All LLC guides- Start here7 min read
What is an LLC?
What a limited liability company is, how it protects you, how it is taxed, and when forming one makes sense for a new business.
Read the guide - Start here6 min read
What an LLC costs
Every cost to plan for when you form an LLC, from the state filing fee to registered agent, licenses, annual reports, and franchise taxes.
Read the guide - Set it up5 min read
Articles of organization
What articles of organization are, what goes on them, what they are called in different states, how to file, and why filings get rejected.
Read the guide
From the blog
All articles
Common questions
It depends on the state. Some approve online filings quickly and others take longer, especially by mail or in busy seasons. Many states offer expedited processing for an added fee.
Yes. You can file directly with your state. A filing service is useful if you want the details handled and checked for you.
A multi-member LLC needs one. A single-member LLC with no employees may not be required to have one, but most banks ask for it, and it keeps your Social Security number off business forms.
Usually only with a specific reason. If you operate in another state, you will typically need to register there as well, which adds cost and paperwork.