Start an LLC: Step-by-Step Guide
Your complete guide to forming an LLC, written for first-time founders. If business structures feel overwhelming, you are not alone — here is how an LLC works, what it costs, and how Incofile files it for you from $0 + state fee.
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Launch Your LLC with Confidence
Starting your LLC is a big step. With Incofile you get the guidance, support and tools to make it simple and stress-free.
State filing fees are set by each state and shown before you pay.
Key Questions and Answers
A Comprehensive Guide for Startups
1. What is an LLC?
A Limited Liability Company (LLC) is a legal business structure that separates you from your business. If the company owes money or is sued, your personal assets — home, savings, car — are generally protected. It combines the liability protection of a corporation with the simplicity and pass-through taxation of a sole proprietorship or partnership.
An LLC is created by filing Articles of Organization (called a Certificate of Formation in some states) with the Secretary of State and paying the state's filing fee.
2. Is starting an LLC right for you?
An LLC is the right fit for most small businesses: freelancers and consultants, e-commerce sellers, real-estate investors, local service businesses and non-US founders opening a US company. It is simple to run, flexible on ownership, and keeps your personal assets separate.
Consider a C-Corporation instead if you plan to raise venture capital or issue stock options, and a Nonprofit if your purpose is charitable. Still unsure? Take our two-minute entity quiz or compare all entity types.
Form My LLC
Here is how you start your LLC in six straightforward steps — and how Incofile handles each one for you.
1Name your LLC
Your business name is the first impression you make, so pick something distinctive that is not already taken in your state. Most states also require a designator such as "LLC" or "Limited Liability Company" at the end of the name.
2Provide an address
Your LLC needs a principal business address. It can be your home, an office or a virtual address. Check your state's rules — many will not accept a P.O. Box.
3Assign a registered agent
A registered agent receives legal notices and state mail for your company and must be physically available during business hours at an address in your state. You can act as your own agent, but a professional service protects your privacy and makes sure nothing is missed.
4List the members and managers
Depending on the state, your Articles of Organization name the owners (members) and whether the company is member-managed or run by appointed managers. We ask for this in the order form and complete the state's exact fields for you.
5State the purpose of your LLC
Most states let you state a general purpose such as "any lawful business". A general statement keeps the door open if your business changes direction later; a few states or regulated professions require something more specific.
6File the Articles of Organization
This is the document that legally creates your LLC. It is filed with your Secretary of State together with the state fee. Once approved you receive your stamped Articles and can apply for an EIN, open a bank account and start trading.
Types of LLCs
Understanding the different types of LLCs helps you choose the right one for your business.
Single-member LLC
An LLC with one owner. The simplest structure for freelancers and solo founders; taxed as a sole proprietorship by default while still giving you limited-liability protection.
Multi-member LLC
Two or more owners. Taxed as a partnership by default, with profits split according to your operating agreement rather than strictly by ownership percentage.
Member-managed LLC
All owners take part in running the business day to day. This is the default in most states and suits small owner-operated companies.
Manager-managed LLC
Owners appoint one or more managers (who may or may not be members) to run the company. Useful when some owners are passive investors.
Series LLC
One "parent" LLC with separate series underneath, each with its own assets and liabilities. Popular with real-estate investors; only some states (for example Delaware, Texas, Nevada and Illinois) allow it.
Professional LLC (PLLC)
For licensed professions such as doctors, lawyers, architects and accountants. Some states require licensed professionals to use a PLLC instead of a standard LLC.
Family LLC
An LLC owned by family members, often used to hold and pass on family property or a family business while keeping control within the family.
L3C (low-profit LLC)
A hybrid for social enterprises that put a charitable or educational purpose first but may still earn a modest profit. Recognised in a handful of states.
Benefits of an LLC
Every careful founder weighs the pros and cons. Here is why an LLC could be your business's best friend — and where it has limits.
Pros
Cons
What to Expect from Incofile Services and Support
Tell us about your company in a ten-minute order form. We check your name, prepare the Articles of Organization, file them with the state and keep you updated at every step in your client portal. Your approved documents, EIN and compliance reminders all live in one place.
No subscriptions, no upsell maze — one price, shown before you pay, and a real person on the phone when you have a question.
Form Your LLC Now
Support
Real people, real answers
Most LLC filings are straightforward, but every state has its quirks — from name designators to publication rules. Our team checks every order by hand and answers by name, by phone, chat or email, Mon – Fri, 9 a.m. – 6 p.m. CST.
Non-US founder? We do this every day: EIN without an SSN, ITIN applications, a US business address and a registered agent in your state.
Contact Incofile supportFormation and Compliance
State-by-State LLC Rules
Filing fees, processing times, annual report deadlines and name rules all differ by state. Our state guides lay out the exact cost and steps for your state, with figures checked against the Secretary of State.
Frequently Asked Questions
Do I need to form an LLC to start a business?
No — if you simply start trading you are a sole proprietor (or a partnership if there are two or more of you). But that leaves your personal savings, car and home exposed to business debts and lawsuits. Forming an LLC creates a separate legal entity, which is why most founders choose it.
How much does it cost to form an LLC?
Incofile charges a one-time service fee (Silver is $0) plus your state's filing fee, which is set by the state and shown before you pay. There are no monthly charges. Expect ongoing costs too: most states require an annual or biennial report, and a registered agent if you do not act as your own.
How long does it take to form an LLC?
We prepare and submit your Articles of Organization within one business day. State approval then takes anywhere from the same day to a few weeks depending on the state; expedited filing is available where the state offers it.
Is an LLC a corporation?
No. An LLC is its own type of entity. It gives you the same limited-liability protection as a corporation, but with far fewer formalities, flexible management and pass-through taxation by default. Unlike a corporation, an LLC cannot issue stock.
How are LLCs taxed?
By default a single-member LLC is taxed like a sole proprietorship and a multi-member LLC like a partnership — profits pass through to the owners' personal returns. An LLC can also elect to be taxed as an S-Corporation (IRS Form 2553), which can reduce self-employment tax once profits are high enough. Speak with an accountant about what suits you.
Can I form an LLC if I live outside the United States?
Yes. Non-residents can own a US LLC in every state. Incofile can act as your registered agent, provide a US business address and obtain your EIN even if you have no SSN or ITIN.
How do I change my LLC after it is formed?
Changes to your Articles of Organization — name, address, management — are filed as an Amendment with your Secretary of State. Incofile can prepare and file Articles of Amendment for you.
Do I need a registered agent?
Every state requires an LLC to name a registered agent with a physical address in the state to receive legal and official mail. You can be your own agent, but your address becomes public and you must be available in business hours. Every Incofile package includes one year of registered agent service free.
Ready to Start Your LLC?
Most LLC orders are prepared and submitted within one business day.
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