How to Start an LLC in the USA
Forming a Limited Liability Company doesn’t have to be confusing. Follow these eight clear steps to register your business, protect your personal assets, and get up and running the right way.
Before You Start
A Limited Liability Company (LLC) separates your personal assets from your business, gives you flexible tax options, and looks more credible to clients and banks than operating as a sole proprietor.
Every state has its own filing agency, fees, and rules, but the core process is nearly identical everywhere. Before filing anything, decide two things: which state you’ll register in (usually the state where you actually do business), and whether you’ll manage the LLC yourself or hire a formation service or attorney to handle the paperwork for you.
The 8 Steps to Form an LLC
Choose your state
Most businesses register in the state where they physically operate. Registering in another state (like Delaware or Wyoming) usually means paying fees in both states, so it rarely pays off for small, local businesses.
Pick and check your business name
Your name must be unique within your state and usually needs to include “LLC” or “Limited Liability Company.” Search your state’s business name database first, and check that a matching domain name and social handles are available.
Search your state’s Secretary of State siteAppoint a registered agent
A registered agent is a person or service with a physical address in your state who receives legal notices and state mail on your LLC’s behalf. You can act as your own agent, but many owners use a professional service for privacy.
File your Articles of Organization
This is the document that legally creates your LLC. File it with your state’s business filing agency (often called the Secretary of State) along with the required filing fee. Most states now accept this filing online.
Write an Operating Agreement
Not every state requires this by law, but it’s essential for multi-member LLCs and smart even for single-member ones. It spells out ownership percentages, profit splits, voting rights, and what happens if a member leaves.
Get an EIN from the IRS
An Employer Identification Number is your business’s federal tax ID. It’s free, takes minutes online through the IRS website, and is required to open a bank account, hire employees, or file business taxes.
Open a business bank account
Keep business and personal money completely separate. Mixing funds is one of the fastest ways to lose your liability protection if the LLC is ever challenged in court.
Handle licenses, permits & ongoing filings
Depending on your industry and location, you may need local licenses or permits. Most states also require an annual or biennial report and fee to keep your LLC in good standing — mark the deadline so you don’t miss it.
Typical Costs
Exact fees vary by state, but expect the following ranges:
| Item | Typical Cost | Frequency |
|---|---|---|
| State filing fee | $40 – $500 | One-time |
| Registered agent service | $0 – $150/year | Annual (optional if self-serving) |
| Annual/biennial report fee | $0 – $300 | Annual or every 2 years |
| Business licenses & permits | Varies by industry & city | One-time or annual |
| EIN from the IRS | Free | One-time |
How Long It Takes
Processing times depend on your state and whether you pay for expedited filing.
Mistakes to Avoid
This is the single most common way owners accidentally lose their liability protection.
Without one, your state’s default rules apply — which may not reflect how you and your partners actually want to run things.
Many states will dissolve an LLC automatically for missed filings, which can jeopardize your liability protection.
Filing in a state you don’t operate in usually means paying fees twice — once there, once in your home state.
Who This Guide Is For
Frequently Asked Questions
Can I form an LLC by myself, without a lawyer?
Do I need to live in the state where I form my LLC?
How is an LLC taxed by default?
What happens if I miss my annual report filing?
Final Thoughts
Starting an LLC in the USA comes down to eight repeatable steps: pick a state and name, appoint a registered agent, file your Articles of Organization, write an operating agreement, get an EIN, open a bank account, and stay current on licenses and annual filings. Follow them in order, keep your finances separate from day one, and your LLC will be built on solid ground.
