How to Start an LLC

8 min read · Last reviewed October 2026

Forming an LLC (limited liability company) is usually a single filing with your state, often done online in under an hour. The steps below work in every state; only the forms, fees, and a few extra requirements change.

How to start an LLC in 8 steps

1. Choose your state. Usually it's the state where you live and do business. Forming somewhere else (such as Delaware) generally means you'll also have to register in your home state as a foreign LLC and pay both states' fees.
2. Pick an available name. It must be distinguishable from businesses already on the state registry and include "LLC" or "Limited Liability Company." Search the Secretary of State's business database before you file.
3. Appoint a registered agent: a person or company with a physical street address in the state who can accept legal papers during business hours. You can be your own agent if you meet those requirements.
4. File Articles of Organization (some states call it a Certificate of Formation) with the Secretary of State or equivalent, and pay the state filing fee.
5. Write an operating agreement that sets out ownership, voting, profit splits, and what happens if a member leaves. Most states don't require you to file it, but banks and partners often ask for it.
6. Get an EIN (Employer Identification Number) from the IRS. It's free and is usually issued online in one session.
7. Open a business bank account and keep business money separate from personal money. Mixing funds is one of the main ways owners lose liability protection.
8. Get local licenses and put recurring filings on your calendar, especially your state's annual or biennial report.

How much does it cost to form an LLC?

Most of the cost is the state filing fee, plus any yearly fees to keep the LLC active. A few examples from official state sources:

• Florida: $125 to file ($100 filing fee + $25 registered agent designation). The annual report costs $138.75 and is due by May 1; filing late adds a $400 penalty.
• California: $70 to file Articles of Organization online, plus $20 for the Statement of Information. California LLCs also owe the Franchise Tax Board an $800 annual tax.
• New York: $200 to file. Within 120 days you must also publish a notice in two newspapers for six weeks and file a Certificate of Publication ($50), or the LLC's authority to do business can be suspended.
• Delaware: $110 to file a Certificate of Formation, plus an annual LLC tax due June 1.

Want a fixed price? Compliance Watchers forms LLCs in any state for a $149 service fee plus the state's filing fee, and we can get your EIN for you.

How long does it take?

Online filings in many states are approved the same day or within a few business days. Mailed filings, busy seasons, and states with manual review can take several weeks. Most states offer paid expedited processing.

Information you'll need

• LLC name and principal address
• Registered agent name and street address
• Names of members or managers (required in some states)
• Whether the LLC is member-managed or manager-managed
• The organizer's name and signature

Member-managed or manager-managed?

In a member-managed LLC, the owners run the business day to day. In a manager-managed LLC, the owners appoint one or more managers (who may or may not be members) to run it, which suits passive investors. Most small LLCs are member-managed.

How an LLC is taxed

By default, the IRS treats a single-member LLC as a "disregarded entity," so profits are reported on the owner's personal return, and a multi-member LLC as a partnership. An LLC can instead elect to be taxed as a corporation or an S corporation. Talk to a tax professional before electing.

Common mistakes to avoid

• Filing in Delaware or Wyoming while doing business at home, then paying for two states' filings and annual fees.
• Using a home address as the registered agent address when you don't want it on the public record.
• Skipping the operating agreement, which leaves disputes to your state's default rules.
• Missing the annual report deadline. Late fees add up, and the state can administratively dissolve the LLC.

After the state approves it

Approval is the start, not the finish. Next come your EIN, bank account, local licenses, and the annual report. These guides walk through it:

• I Formed My LLC. Now What? — the first-month checklist
• Do I Need an EIN?
• Can I Be My Own Registered Agent?
• When Does a Business Need to Register in Another State?
• LLC formation service — $149 plus the state fee, any state

Related service: Business Registration Services →