What Is an LLC?
An LLC (Limited Liability Company) is a business structure that protects your personal assets from business debts and lawsuits.
It is the most popular choice for small businesses because it is simple, flexible, and affordable.
Learn more about how LLCs compare to other structures in our business entity types guide or our LLC vs Corporation comparison.
9 Steps to Form Your LLC
Choose your state
Most people form in their home state. But some states offer specific advantages. See our guide on the best state to form an LLC for a detailed comparison.
Pick a business name
Your name must be unique in the state. Search the state's business database to make sure it is available. Most states require "LLC" or "Limited Liability Company" in the name.
Appoint a registered agent
Every LLC needs a registered agent in its formation state. You can be your own agent, use a friend or family member, or hire a professional service.
File Articles of Organization
This is the official formation document. It includes your LLC name, registered agent info, principal address, and organizer information. File it with the Secretary of State.certificate of formation
Pay the filing fee
Fees range from $40 to $500 depending on the state. Compare costs on our filing fees comparison page.
Create an Operating Agreement
While not required in every state, an Operating Agreement defines how your LLC will be managed. It covers ownership percentages, voting rights, profit sharing, and procedures for adding or removing members.
Get an EIN
An Employer Identification Number (EIN) is your business's tax ID. You need it to open a bank account, hire employees, and file taxes. Apply for free on the IRS website.EIN vs State Business ID
Open a business bank account
Keep your personal and business finances separate. This is essential for maintaining your LLC's liability protection. You will need your Articles of Organization, EIN, and Operating Agreement.
File your first annual report
Most states require an annual report within the first year. Some require it sooner. Check your state's requirements so you do not miss the deadline.annual report requirements
How Much Does It Cost?
The cost to form an LLC depends on your state. Here is a rough breakdown:
For exact state fees, check our filing fees comparison page.