Starting an LLC takes five steps: choose a state, pick a name, appoint a registered agent, file your Articles of Organization and set up the essentials after approval. Most founders finish the paperwork in under an hour, and the state usually approves it within days to a few weeks.
A limited liability company (LLC) separates your personal assets from your business debts and keeps taxes simple. It is the most popular structure for new US businesses, and anyone can form one — you do not need to be a US citizen or live in the United States. New to the idea? Read what an LLC is and how it works.
Step 1: Choose your state
You can form an LLC in any of the 50 states. The right choice depends on where the business actually operates:
- Your home state is usually best if you work from a US location, have employees there or sell in person. Forming elsewhere often means registering again at home as a "foreign LLC" and paying two sets of fees.
- Wyoming is popular with online sellers and non-US founders for its low fees, simple rules and privacy. See Wyoming LLC requirements and costs.
- Delaware suits companies planning to raise money from investors. See Delaware LLC costs.
- New Mexico has no annual report for LLCs, which keeps yearly costs low.
Compare fees and rules in our guide to the best state to form an LLC, or read the guide for your state, for example Texas, Florida or California. Forming from abroad? Start with LLC formation for non-US residents.
Step 2: Choose a name for your LLC
Your LLC name must follow your state's rules. In almost every state it must:
- End with "LLC", "L.L.C." or "Limited Liability Company".
- Be clearly different from every other business already registered in that state.
- Avoid restricted words such as "Bank", "Insurance" or "Attorney" unless you hold the right license.
Check availability with our free business name search, or get ideas from the business name generator. If you plan to build a brand, also run a trademark search so another company cannot force you to rename later.
Step 3: Appoint a registered agent
Every LLC must name a registered agent: a person or company with a physical street address in the state of formation who accepts lawsuits and official state mail during business hours. You can be your own agent if you live in that state, but your address then becomes public record and you must be available every business day.
Most owners use a professional service. Incofile's registered agent service is included free for the first year with every formation package, and every document we receive is scanned to your client portal the same day.
Step 4: File your Articles of Organization
The Articles of Organization (called a Certificate of Formation in some states, such as Texas and Delaware) is the document that creates your LLC. It usually lists:
- The LLC name and principal address.
- The registered agent's name and address.
- Whether the LLC is managed by its members or by managers.
- The organizer who signs and submits the filing.
You file online or by mail with the Secretary of State and pay the state filing fee, which ranges from about $35 to $500 depending on the state. Processing takes anywhere from the same day to several weeks; many states offer expedited handling for an extra fee. See every state's fee in the LLC cost calculator and typical approval times in how long it takes to form an LLC.
Step 5: Set up your LLC after approval
Once the state approves your filing, your LLC exists. Finish these steps before you start trading:
- Get an EIN. Your federal tax ID from the IRS, needed for a bank account, payroll and most payment platforms. It is free from the IRS; Incofile can get your EIN for you, including for owners without an SSN.
- Sign an operating agreement. It sets ownership, profit sharing and decision rules. A few states require one, and banks often ask for it. Read our operating agreement guide.
- Open a business bank account. Keeping business and personal money separate protects your limited liability.
- Get licenses and permits. Requirements depend on your city, state and industry. See do I need a business license and our business license research service.
- Plan your yearly filings. Most states require an annual report. Foreign-owned single-member LLCs must also file IRS Form 5472 every year.
Companies formed in the United States no longer need to file a beneficial ownership (BOI) report with FinCEN under its current rules, but check FinCEN.gov for updates.
How much does it cost to start an LLC?
The total is the state filing fee plus any service you choose. Filing yourself costs only the state fee; a formation service adds a fee in exchange for name checks, a registered agent, document preparation and support. Yearly costs usually include a state annual report and registered agent renewal. Full breakdown: how much it costs to start an LLC and Incofile packages and pricing.
Common mistakes to avoid
- Forming in a "cheap" state when you really operate in your home state, then paying twice.
- Choosing a name without checking trademarks.
- Applying for the EIN before the state approves the LLC, which creates name mismatches banks reject.
- Mixing personal and business money, which can cost you your liability protection.
- Missing the annual report deadline, which leads to late fees and eventually dissolution.
Start your LLC with Incofile
Incofile has helped founders form US companies since 2013. We check your name, file your documents within one business day, act as your registered agent free for the first year and keep everything in a client portal you can open 24/7 — with one-time pricing and real people who answer by name. Whether you found us by searching Incofile, inco file or inkfile, you are in the right place: start your LLC online in about ten minutes.