How to Start an LLC in 7 Steps (2026 Guide)

Forming a limited liability company is one of the least glamorous, most valuable things you'll do as a business owner. It's paperwork. But that paperwork is what separates your personal savings, house, and car from the debts and lawsuits of your business.

The good news: you don't need a lawyer, and you don't need to overthink it. Here's exactly how to start an LLC, step by step, in the order the states actually expect you to do it.

What You'll Need Before You Start

Before you file anything, have three things ready:

A business name that isn't already taken in your state.
A physical address in the state where you're forming (a registered agent's address counts).
A form of payment for the state filing fee, which runs roughly $35 to $500 depending on where you form, with a national average around $132 in 2026 (Chamber of Commerce).

If you're still deciding whether an LLC is even the right structure, read what an LLC is first, then compare it against a sole proprietorship and a corporation. Most solo founders and small partnerships land on the LLC because it's cheap, flexible, and protects personal assets without corporate formality.

Step 1: Choose Your State

You usually form your LLC in the state where you actually do business. If you live and operate in Ohio, form in Ohio - our Ohio LLC guide shows what that looks like in practice. Don't get seduced by "form in Delaware or Wyoming to save on taxes" advice unless you have a specific reason - if you operate elsewhere, you'll end up registering as a "foreign LLC" in your home state anyway and paying two sets of fees.

The state you pick determines your filing fee, your annual report requirements, and how much your LLC costs to maintain over time - Florida's yearly report, for instance, is a recurring cost first-timers often overlook.

Step 2: Name Your LLC

Your name has to be unique within your state and usually must include "LLC," "L.L.C.," or "Limited Liability Company." Run a search on your Secretary of State's business database to confirm it's available. While you're there, check that the matching domain name is free too.

If your brand is a real asset - a name customers will remember - consider protecting it beyond your state filing. Learn how to trademark a name once you've confirmed availability. Registering an LLC does not give you nationwide trademark rights; those are separate.

Most states also let you reserve a name for a small fee if you're not ready to file yet.

Step 3: Appoint a Registered Agent

Every LLC needs a registered agent: a person or company with a physical address in your state who accepts legal documents and government notices on your behalf during business hours.

You can be your own registered agent, but many owners don't. If you work from home, your address becomes public record. If you travel, you might miss a lawsuit notice. A professional service solves both problems for around $100 to $300 a year. Our guide to the best registered agent services breaks down the trade-offs.

Step 4: File Your Articles of Organization

This is the step that legally creates your LLC. You file a document - called the Articles of Organization in most states, or a "Certificate of Formation" in states like Texas (our Texas LLC walkthrough covers that filing in detail), Delaware, and Washington - with your Secretary of State.

It's short. You'll provide:

Your LLC name
Your registered agent's name and address
Your business address
The names of the members (owners)
Whether the LLC is member-managed or manager-managed

Most states let you file online and approve it within a few business days. Once it's approved, your LLC officially exists. Curious about the full price tag? See how much it costs to start an LLC for a state-by-state breakdown, and if budget is tight, there are legitimate ways to form an LLC for free (you still pay the state fee, but skip the service markup).

Step 5: Create an Operating Agreement

An operating agreement is an internal document that spells out who owns what percentage, how profits are split, how decisions get made, and what happens if a member leaves. A handful of states legally require one; most don't. Write one anyway.

For a single-member LLC, it reinforces that your business is a separate entity - which matters if anyone ever challenges your liability protection in court. For a multi-member LLC, it's the document that prevents partnership disputes from turning into lawsuits. You don't file this with the state; you keep it with your records.

Step 6: Get an EIN from the IRS

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

Here's the part people get wrong: the EIN is completely free directly from the IRS. You can apply online at IRS.gov and receive your number in about five minutes (IRS.gov). Ignore any third-party site charging you for it. Our full walkthrough on how to get an EIN number covers the online application field by field.

Step 7: Open a Business Bank Account

The final step is also the one that makes your liability protection real. Mixing personal and business money - "commingling" - is the fastest way for a court to disregard your LLC and come after your personal assets. It's called "piercing the corporate veil," and it's exactly what an LLC is supposed to prevent.

Open a dedicated business checking account using your EIN and your approved Articles of Organization. From that point forward, every dollar the business earns and spends flows through that account. It also makes tax season dramatically simpler.

After You Form: Staying Compliant

Forming the LLC is the start, not the finish. To keep it in good standing:

File your annual (or biennial) report and pay any required fee. Miss it and your state can dissolve your LLC.
Pay any state franchise tax if your state charges one (California's, for example, is a flat $800 minimum).
Get required licenses and permits for your industry and location.
Keep business and personal finances separate - always.

If you want a service to handle formation and compliance reminders for you, compare the best LLC services rather than piecing it together yourself. And if the LLC is just one piece of a larger plan, our broader guide on how to start a business covers what comes next - funding, structure, and getting your first customers.

Frequently Asked Questions

How long does it take to form an LLC? Online filings are often approved in 3 to 10 business days, though some states offer same-day expedited processing for an extra fee.

Do I need a lawyer to start an LLC? No. The vast majority of single-member and small multi-member LLCs are formed without one. Consider a lawyer only for complex ownership structures or if you're raising outside investment.

Can I form an LLC by myself? Yes. Every step above can be done directly through your Secretary of State and the IRS without hiring anyone.

The Bottom Line

Forming an LLC comes down to seven steps: pick your state, name it, appoint a registered agent, file your Articles of Organization, write an operating agreement, get your free EIN, and open a business bank account. None of them require a lawyer, and the whole thing can be done in an afternoon plus a few days of state processing.

Ready to make it official? Start by confirming your name is available in your state, then file - you'll have a legitimate, protected business by the end of the week.

Sources: Chamber of Commerce, IRS.gov