How to Start an LLC
To form an LLCLimited Liability Company — A business structure that protects your personal assets from business debts and lawsuits.Click for official info ↗, you file Articles of Organization with your state. This costs $50–$500 in state fees. You get a free EINEmployer Identification Number — A federal tax ID number for a business, like an SSN for the company. Issued free by the IRS.Click for official info ↗ from the IRSInternal Revenue Service — The US federal tax agency. It collects federal income taxes, issues refunds, and administers ITINs.Click for official info ↗. You sign an operating agreement. You do not need a lawyer.
At a glance
- Cost:
- $50–$500 state fee + $0 EIN
- Total time:
- 1–3 weeks
- Steps:
- 8 steps
- Where to apply:
- uspto.gov
Last reviewed October 2026 against official sources. Re-checked annually · next review due October 2027.
The Steps
Follow these in order
Each card shows the phase, expected time, and any cost. Data checked against official US sources(October 2026).
0 of 8 steps
- Before You Go 30 min
Choose your state
Form the LLC in the state where you will do business. Delaware/Wyoming only make sense for investors. They also make sense in some special cases. In other cases, your home state is the cheapest choice. It is also the easiest choice.
Click to mark as done
- Before You Go 1 hour
Pick and check a name
Your name must include "LLC" or "Limited Liability Company". No other LLC in your state can have the same name. Search the business name list of your Secretary of State. Find it on your state government's official .gov site. Also check the USPTO trademark database.
Click to mark as done
- Before You Go 30 min
Choose a registered agent
This person/company gets legal mail for the LLC. You can be your own agent. You must have a real address in the state. Or you can pay a service about ~$100–$300/year.
Click to mark as done
- Fill / Prepare 30 min
File Articles of Organization
File online with your Secretary of State. The cost is $50–$500 depending on your state. The form is short. It asks for the LLC name, the agent, the members, and how the LLC will be run.
Click to mark as done
- Fill / Prepare 15 min
Get an EIN from the IRS
Apply for free at irs.gov/ein. It takes 10 minutes. You get the number right away. Never pay another company or person for this. Non-citizens without an SSNSocial Security Number — A 9-digit number issued by the Social Security Administration. It is the main US identity number for work, taxes, and credit.Click for official info ↗ can still get an EIN. They can fax Form SS-4.
Click to mark as done
- Fill / Prepare 1 hour
Sign an operating agreement
You need this document even if your LLC has only one member. It proves your LLC is separate from you. This is key for protecting you from business debts and claims. Free templates are easy to find.
Click to mark as done
- Submit & Pay 1–2 weeks
Handle licenses, banking, and taxes
Open a bank account just for the LLC. Never mix your own money with business money. Check if your type of business needs licenses. If you sell goods, sign up for state sales tax.
Click to mark as done
- Follow Up yearly
Follow the rules each year
Most states ask for a report each year. Or they charge a franchise tax ($0–$800). California charges $800/year. If you miss it, the state can close your LLC.
Click to mark as done
Be Careful
Don't make these mistakes
Forming the LLC in the wrong state. Form the LLC in the state where you will do business. Delaware or Wyoming only make sense for investors or in some special cases. In other cases your home state is the cheapest and easiest choice.
Picking a name without checking it. Your name must include "LLC" or "Limited Liability Company". No other LLC in your state can have the same name. Search the business name list of your Secretary of State and check the USPTO trademark database.
Paying someone for an EIN. Apply for free at irs.gov/ein. It takes 10 minutes and you get the number right away. Never pay another company or person for this.
Skipping the operating agreement. You need this document even if your LLC has only one member. It proves your LLC is separate from you. This is key for protecting you from business debts and claims.
Mixing your own money with business money. Open a bank account just for the LLC. Never mix your own money with business money. Mixing money can also cost you the protection an LLC gives you.
FAQ
Frequently Asked Questions
Can a non-US resident form an LLC?
Yes. You do not need to be a citizen. You do not need to live in the US. You need a registered agent in the state. You can get an EIN without an SSN. Apply by fax or mail with Form SS-4 to get your EIN.
LLC or S-corp — which is better?
An LLC is simpler. It works well for most small businesses. Choosing to be taxed as an S-corp can save you self-employment tax. It helps once your net profit is about $40k–$60k+. But it adds payroll work and rules. Ask an accountant when you reach that point.
Does an LLC protect me from everything?
No. An LLC protects your own assets from business debts and lawsuits. It does not protect you from your own careless acts. It does not protect you from fraud. It does not protect you for unpaid payroll taxes. It also does not protect you if you mix your own money with business money.
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