Getting an LLC up and running involves filing a short form with your state, paying a one-time fee, and handling a few follow-up tasks like getting a tax ID number and opening a business bank account. The whole process can take as little as a few days in most states, and filing fees range from $35 to $500 depending on where you live. Here’s how to walk through it step by step.
Choose a Name for Your LLC
Every state requires your LLC name to be distinguishable from other businesses already registered there. Before you get attached to a name, search your state’s business registry (usually on the Secretary of State website) to see if it’s available. Most states require the name to include “LLC” or “Limited Liability Company” somewhere in it.
If you want to secure the name before you’re ready to file, many states let you reserve it for a small fee, typically for 60 to 120 days. This is optional but useful if you need time to get your paperwork together.
Designate a Registered Agent
Every LLC needs a registered agent, which is a person or company designated to receive legal documents and official state notices on behalf of your business. Think of them as your LLC’s official point of contact for anything from lawsuit paperwork to annual report reminders.
A registered agent must have a physical street address in the state where your LLC is formed (a P.O. box won’t work) and must be available during normal business hours throughout the year. You can serve as your own registered agent if you’re a resident of that state, or you can hire a professional registered agent service. These services typically charge $50 to $300 per year and are worth considering if you don’t want your home address on public records or you’re not always reachable during business hours.
File Articles of Organization
This is the core step that officially creates your LLC. Articles of organization are a short document you file with your state, almost always through the Secretary of State’s website. The form asks for basic information:
- LLC name and principal business address
- Registered agent’s name and address
- Names of members, managers, or organizers
- Business purpose, which most people state broadly as “to engage in any lawful activity”
Filing is straightforward. Most states offer online submission, and many process it within a few business days. Some states offer expedited processing for an additional fee if you need it faster.
What It Costs to File
The one-time filing fee varies significantly by state. On the low end, you’ll pay around $35 to $50. On the high end, fees reach $425 to $500. Most states fall somewhere in the $50 to $200 range.
Beyond the initial filing, many states charge an annual fee or require an annual report to keep your LLC in good standing. These ongoing costs average about $91 per year nationally, though several states charge nothing at all for annual reports. A handful of states charge $300 or more annually. Check your state’s specific fees before filing so you know what to budget for year after year, not just at formation.
Missing your annual report deadline can result in late fees, and some states will administratively dissolve an LLC that falls behind. Set a calendar reminder so this doesn’t catch you off guard.
Get an Employer Identification Number
An EIN is a nine-digit number the IRS assigns to your business for tax purposes. You need one to open a business bank account, file taxes, and apply for business licenses. Getting an EIN is free and takes about five minutes on the IRS website (irs.gov). You’ll receive the number immediately after completing the online application.
Even single-member LLCs with no employees should get an EIN. While the IRS technically lets sole-member LLCs use the owner’s Social Security number, having a separate EIN keeps your personal number off invoices, tax forms, and bank paperwork.
Create an Operating Agreement
An operating agreement is an internal document that spells out how your LLC will be run: who owns what percentage, how profits and losses are divided, what happens if a member wants to leave, and how major decisions get made. Only a few states legally require one, but every LLC should have one regardless.
Without an operating agreement, your state’s default rules govern your LLC. Those default rules are generic and may not reflect what you and your co-owners actually agreed to. For single-member LLCs, an operating agreement still matters because it reinforces that the business is a separate legal entity from you personally. That separation is the whole point of forming an LLC in the first place. If your LLC looks too much like a sole proprietorship, a court could “pierce the veil” and hold you personally liable for business debts.
You can draft an operating agreement yourself using templates, or hire an attorney if your ownership structure is complex. At minimum, cover ownership percentages, profit distribution, management responsibilities, and what happens if someone dies or wants out.
Open a Business Bank Account
Once you have your articles of organization and EIN, open a separate bank account for your LLC. This is one of the most important steps for protecting your personal liability. If you mix personal and business funds in the same account, you weaken the legal separation between you and your LLC.
Most banks will ask for your filed articles of organization, your EIN confirmation letter, and a photo ID. Some also ask for your operating agreement. Shop around, as many banks offer free or low-cost business checking accounts for small LLCs.
Handle Licenses and Permits
Forming an LLC doesn’t automatically give you permission to operate your business. Depending on your industry and location, you may need a general business license, a professional license, or industry-specific permits. Food service, childcare, construction, and healthcare are common examples of industries with additional licensing requirements.
Check with your state’s business licensing office and your local city or county government. Some jurisdictions require a general business license for any commercial activity, while others only require permits for regulated industries.
Timeline From Start to Finish
If you have your information ready, you can complete the filing in a single sitting. Processing times vary: some states approve online filings the same day, while others take one to two weeks. Getting your EIN from the IRS is instant online. Opening a bank account usually takes one visit or a short online application.
Realistically, most people go from zero to a fully operational LLC in one to three weeks. The biggest delays usually come from deciding on a name, waiting for state processing, or gathering the documents your bank requires. If you plan ahead and have your name, registered agent, and member information lined up before you start, the process moves quickly.