How to Start an LLC: The Complete Guide

What is an LLC?

An LLC (Limited Liability Company) is a business structure that separates your personal assets from your business. If the business is sued or takes on debt, your personal savings, home, and car are generally protected — that's the "limited liability."

LLCs are popular with solo founders and small businesses because they combine that protection with pass-through taxation(profits flow to your personal tax return, avoiding the "double taxation" corporations can face) and far less paperwork than a corporation. They also add credibility — customers, banks, and vendors take a registered LLC more seriously than an informal side hustle.

LLC vs. sole proprietorship vs. corporation

A sole proprietorship is the default when you start doing business on your own — no filing, but no liability protection either. An LLC adds that protection with minimal ongoing work. A C-corporation is usually only worth it if you plan to raise venture capital or issue stock options; investors often expect a Delaware C-corp. An S-corpisn't a separate entity at all — it's a tax election an LLC can make later to potentially save on self-employment tax. For most people starting out, the LLC is the right first step.

How to start an LLC, step by step

1. Choose the state to form in

   Most founders form their LLC in their home state — where they live and run the business. Forming in another state (like Delaware or Wyoming) usually means paying that state’s fees plus registering as a "foreign" LLC back home, which adds cost and paperwork. Unless you have a specific reason, start in your home state.

2. Pick and check your business name

   Your LLC name has to be unique in your state and include a designator like "LLC" or "Limited Liability Company." Search your state’s business registry to confirm it’s available before you file, and check that a matching domain and social handles are free.

3. Appoint a registered agent

   Every state requires an LLC to have a registered agent: a person or company with a physical in-state address that receives legal and government mail during business hours. You can be your own agent (your address becomes public record) or use a registered agent service.

4. File your Articles of Organization

   This is the document that officially creates your LLC. You file it with your state’s Secretary of State (or equivalent) and pay the state filing fee. Once it’s approved, your LLC legally exists.

5. Get your EIN from the IRS

   An EIN (Employer Identification Number) is your business’s federal tax ID. You need it to open a business bank account, hire employees, and file taxes. It’s free directly from the IRS and can be issued the same day online.

6. Write an operating agreement

   An operating agreement spells out who owns the LLC, how profits are split, and how decisions get made. Not every state requires one, but you should have it — it prevents disputes and reinforces the liability protection your LLC provides.

7. Open a business bank account

   Keep business and personal money completely separate — mixing them can put your personal liability protection at risk. Bring your approved formation documents and EIN to open the account.

8. Handle licenses, permits, and ongoing compliance

   Depending on your industry and location, you may need local or state licenses. Most states also require an annual (or biennial) report and fee to keep your LLC in good standing. Put those deadlines on your calendar from day one.

How much does it cost to start an LLC?

The unavoidable cost is your state filing fee, which ranges from about $40 to $500+ depending on where you form. Some states also charge an annual report fee to keep your LLC active. Beyond that, you only pay for the help you choose — like a registered agent or assistance getting your EIN.

You can look up the exact fee for your state on our form-an-LLC-by-state pages — for example Delaware, Wyoming, or Texas. Easier Filing passes every state fee through at cost and never marks it up.

Common mistakes to avoid

The most common ones: forming in the "wrong" state because of hype (most people should just form at home); mixing personal and business money, which can undermine your liability protection; skipping the operating agreement; and missing the annual report deadline, which can cause the state to dissolve your LLC. A little care up front — or having a specialist handle it — avoids all four.

Do it yourself, or have it done for you?

You can absolutely file an LLC yourself directly with your state — it's an administrative process, not a legal one. The trade-off is time and the risk of small errors that get your filing rejected or your EIN application bounced. Many founders would rather answer a few questions and have a specialist prepare and file everything correctly, get the EIN, and hand back one tidy packet — so they can focus on the actual business.

How to start an LLC: FAQ

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