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How to Start an LLC

Seven steps, in the order you actually do them.

Forming an LLC is more paperwork than difficulty. Here are the seven steps, in order — most people complete them in a week.

1. Pick your state and name

Usually your home state. Check name availability on the Secretary of State site and follow naming rules (it must include "LLC").

2. Choose a registered agent

A person or service with an in-state address to receive legal mail. You can be your own for free.

3. File the Articles of Organization

The formation document, filed with the state and the one-time fee. See the cost calculator for your state.

4. Write an operating agreement

Not always required but strongly recommended — it sets ownership, roles and rules. Single-member LLCs benefit too.

5. Get an EIN

Free from the IRS; needed for a bank account, hiring and taxes.

6. Open a business bank account

Keep business and personal money separate — it’s what preserves your liability protection.

7. Stay compliant

File annual reports, pay any franchise tax, and keep your registered agent current. Then decide whether an S-corp election saves you tax.

Tip: you can do all of this yourself — formation services charge for convenience, not necessity.