How to Start an LLC (2026): The Complete Step-by-Step Guide

Starting an LLC is one of the most common — and most misunderstood — first moves a new business owner makes. The good news: it is far simpler than most people expect. An LLC is created by a single administrative filing with your state, and in many states you can complete it online in an afternoon for the cost of one filing fee.

This guide walks through how to start an LLC from start to finish: the seven steps, what each one actually costs, how long it takes, and the mistakes that trip people up. It is written for first-time founders who want to do this correctly without paying for advice they don't need. If you're still deciding whether an LLC is even the right structure, start with our explainer on what an LLC is and how it compares to a sole proprietorship.

Before you start: what you'll need

None of this is complicated, but gathering it up front makes the filing itself take minutes instead of hours.

A quick note on expectations: "starting an LLC" is really two things bundled together. First, the legal formation — the state filing that brings the entity into existence. Second, the operational setup — the EIN, bank account, and agreements that let the LLC actually function and protect you. Skipping the second half is the single most common mistake, so this guide treats both as required.

Step 1: Choose the state to form your LLC in

For the overwhelming majority of founders, the right state is the one where you live and run your business. It sounds anticlimactic, but it is almost always correct.

You've probably heard that Delaware or Wyoming are "better" for LLCs. For most small businesses, that advice is a trap. If you live in California but form in Wyoming, you'll still be doing business in California — which means you have to register your Wyoming LLC as a foreign LLC in California anyway, paying two sets of fees, maintaining two registered agents, and filing in two states. You get the cost and complexity of both with the benefit of neither.

There are real exceptions:

• Non-US founders who have no physical U.S. presence have genuine flexibility, and a privacy-friendly state can make sense. Start with our best state for non-US founders guide.
• Holding companies and real-estate investors sometimes have legitimate reasons to use Delaware or Wyoming.
• If you're specifically weighing those two, see Wyoming vs Delaware.

Step 2: Choose and check your LLC name

Your LLC name has to satisfy a few state rules, and it has to actually be available. Two checks matter here.

State naming rules. Every state requires that your name:

1. Include an LLC designator — "LLC", "L.L.C.", or "Limited Liability Company."
2. Be distinguishable from every other business already registered in that state.
3. Avoid restricted words (like "bank," "insurance," or "university") unless you meet special requirements.

Availability. Search your Secretary of State's business database to confirm the exact name isn't taken. While you're at it, check that the matching domain name and key social handles are free — a legally available name is worthless if you can't build a brand around it. If you find the perfect name but aren't ready to file, most states let you reserve it for a small fee for 30–120 days.

Finally, if you'll operate under a different public-facing name than your legal LLC name, you'll file a DBA ("doing business as") — but that's optional and separate.

Step 3: Appoint a registered agent

Every LLC must have a registered agent: a person or company designated to receive official mail and legal documents (like lawsuit notices) on the LLC's behalf. This is a hard requirement in all 50 states, not an optional add-on.

Your registered agent must:

• Have a physical street address (not a P.O. box) in your formation state.
• Be available during normal business hours to accept documents.

You have three options:

1. Be your own agent. Free, but your address becomes public record and you must be reliably available during business hours — inconvenient if you work from home, travel, or value privacy.
2. Use a trusted person with a qualifying address in the state.
3. Hire a registered agent service (typically $100–$300/year). This keeps your home address off public records and means you never miss a legal notice.

For the full trade-off, read do you need a registered agent. If privacy matters to you, Northwest Registered Agent is the category's standout — it's built around not selling your data and includes a genuinely helpful support team.

Step 4: File your Articles of Organization

This is the step that actually creates your LLC. The Articles of Organization (called a Certificate of Formation or Certificate of Organization in some states) is the founding document you file with your state, usually through the Secretary of State's online portal.

It's shorter than it sounds. You'll typically provide:

• Your LLC name.
• Your principal business address.
• Your registered agent's name and address.
• The names of the members (or the organizer filing on their behalf).
• Your management structure — member-managed (owners run it) or manager-managed (you appoint managers).

Then you pay the state filing fee. This is the one cost you cannot avoid, and it varies widely by state:

Once the state processes and approves your filing, your LLC legally exists. You'll receive a stamped copy of your Articles or a Certificate of Formation — keep this; banks and other institutions will ask for it.

Should you file yourself or use a service?

Both are valid. Filing yourself costs only the state fee and isn't hard for a standard single-member LLC. A formation service does the paperwork for you, often bundles a registered agent and other extras, and reduces the odds of a rejected filing. Several start at $0 plus your state fee:

Bizee is the budget-focused pick and includes a free first year of registered agent service. ZenBusiness leans into guided, beginner-friendly onboarding with ongoing compliance tools. If you want to see two of them side by side, our ZenBusiness vs Bizee comparison breaks down exactly what's bundled.

Step 5: Create an operating agreement

An operating agreement is the internal rulebook for your LLC. It documents who owns what, how profits are split, how decisions get made, and what happens if a member leaves or the business dissolves.

Most states don't legally require one — but you should have it anyway, for two reasons:

1. It reinforces your liability protection. The operating agreement is a key piece of evidence that your LLC is a genuine, separate entity — not just you under another name. That separation is exactly what protects your personal assets.
2. Banks and partners ask for it. Many banks want to see it before opening a business account, and it prevents disputes among co-owners down the line.

For a single-member LLC, the agreement is short and simple. For a multi-member LLC, it's genuinely important — spelling out ownership percentages, profit distribution, voting rights, and exit terms before there's a disagreement. Our operating agreement explained guide covers what to include.

Step 6: Get an EIN from the IRS

An EIN (Employer Identification Number) is a federal tax ID for your business — think of it as a Social Security number for your LLC. You'll need it to open a business bank account, hire employees, and file business taxes.

Who needs one? In practice, almost everyone:

• Any LLC with more than one member.
• Any LLC with employees.
• Effectively anyone who wants a business bank account (banks require it).

A single-member LLC with no employees can technically use the owner's SSN, but there's no reason to — an EIN is free and keeps your personal SSN off business paperwork.

Step 7: Open a business bank account (and stay compliant)

Once your LLC is approved and you have your EIN, open a dedicated business bank account. This is not optional housekeeping — it's part of what keeps your liability protection intact. Mixing personal and business money ("commingling") is one of the fastest ways to give a court a reason to pierce the corporate veil and hold you personally liable.

To open one, you'll typically need your stamped Articles of Organization, your EIN, and your operating agreement. Our guide on how to open a US business bank account walks through it, including options for non-US founders.

From here, "starting" the LLC shades into running it. To stay in good standing:

• File your annual (or biennial) report and pay the associated fee. Miss it and the state can dissolve your LLC — see LLC annual report explained.
• Maintain your registered agent year over year.
• Keep finances strictly separate and track everything for tax time.
• Renew any business licenses or permits your industry or city requires.

Common mistakes to avoid

Every one of these is avoidable with a little upfront attention. For a fuller list with fixes, see common LLC mistakes.

How long does the whole process take?

The administrative work is quick — you can complete Steps 1 through 6 in a single focused afternoon. The wait is almost entirely on the state's side:

• Instant / online-approval states: minutes to a few hours.
• Standard processing: a few business days to two weeks.
• Mail-in or backlogged states: two to four weeks.

If you're on a deadline, most states sell expedited processing for an extra fee. And remember your EIN can be issued the same day you file, so the bank account and operating agreement don't have to wait on the state.