How to start an LLC, step by step

An LLC, a limited liability company, is a business that the state recognizes as separate from you. The state that forms it keeps a public record of it. That record names a registered agent: the person or company who can be handed a lawsuit for the business. This guide covers each step, with the agent step in more detail because it is the one people skip past.

The steps at a glance

1. Pick the state. Usually the one where you work.
2. Check the name. Search the state’s business records.
3. Name a registered agent. A person or company with a street in that state.
4. File the articles of organization. Online with the state office, with the fee.
5. Write an operating agreement. Your own rules for the company. Usually not filed.
6. Get an EIN. Free from the IRS.
7. Open a business bank account. Keep company money apart from yours.
8. Put the yearly filing on the calendar. Most states want an annual report.

1. Pick the state

Form the LLC in the state where you live and work, unless you have a clear reason not to. If you form somewhere else, you will usually have to register in your home state too. That second filing is called foreign qualification. It means two sets of fees, two yearly filings, and two registered agents. Foreign qualification covers how that works.

2. Check the name

Search the state’s business records for the name you want. The state will reject a name that is too close to one already on file. The name usually has to say it is an LLC. Read the naming rule on the articles form before you file.

3. Name a registered agent

Every state asks for a registered agent on the articles. This is the step to slow down on. The agent is the person or company at a street in the state who can be handed court papers for the business. Handing those papers over is called service of process. The agent is not a mailbox. In Michigan and Ohio, among others, the street cannot be a P.O. box.

Some states use a different name for the same job. Michigan and Maryland say resident agent. Ohio and Arizona say statutory agent. Resident agent vs registered agent and What is a statutory agent? cover those.

You have three real choices:

• You. If you live in the state and are at a fixed street during business hours, you can usually serve. Your name and that street go on the public record. Can I be my own registered agent? covers the trade-off.
• Someone you trust. A friend, a relative, or your lawyer, if they qualify and agree. Some states want a signed acceptance from them.
• A commercial agent. A company that does this for a yearly fee and forwards what arrives. What is a commercial registered agent? covers what you get. How much does a registered agent cost? covers the price after year 1.

The street you list is the one people will search. What is a registered agent address? covers why that is often not your home or office. The state scorecards, such as Michigan and Indiana, list each state’s agent rules and grade the commercial agents there.

Some states charge for the agent line itself. Florida’s LLC fee table lists a $25 registered agent designation fee on top of the $100 filing fee.

4. File the articles of organization

The articles are a short form. They usually ask for the LLC’s name, its principal address, the registered agent and the agent’s street, and who is organizing it. Some states also ask whether members or managers run it.

File online where you can. It is faster and you get a receipt. Two examples, read October 20, 2026:

• Michigan. LARA says an LLC is formed by filing the Articles of Organization with the Bureau, and that you can start online at michigan.gov/fileonline.
• Florida. The Division of Corporations lists $100 for the articles and $25 for the registered agent designation. A certified copy ($30) and a certificate of status ($5) are optional.

Some states call the form a certificate of formation or a certificate of organization. The job is the same.

5. Write an operating agreement

An operating agreement is the company’s own rulebook. It says who owns what share, who makes decisions, how money comes out, and what happens if an owner leaves. Most states do not want a copy filed. Write one anyway, even for a one-owner LLC. A bank may ask to see it. If you have partners, it is the document you will reach for the first time you disagree.

6. Get an EIN

An EIN is the business’s federal tax number. The IRS says you can get one online in minutes, for free, and that you never have to pay a fee for an EIN. It also says: “Beware of websites that charge for an EIN.” Apply at the IRS site directly. The online tool must be finished in one session and times out after 15 minutes of inactivity. If approved, the number is issued right away.

How the IRS taxes the LLC depends on how many owners it has. The IRS says a one-member LLC is treated as disregarded from its owner by default, and an LLC with two or more members is treated as a partnership. An LLC can choose to be taxed as a corporation instead. Ask an accountant before you change that.

7. Open a business bank account

Use the EIN and the filed articles to open an account in the LLC’s name. Pay business bills from it and only from it. Mixing personal and company money makes taxes harder and can weaken the line between you and the business.

8. Put the yearly filing on the calendar

Most states want a short yearly or every-other-year update, and a fee. Michigan’s LLC annual statement is $25 and due February 15. Indiana’s Business Entity Report is due every other year. Miss it and the state can dissolve the company. LLC annual report lists the dates and fees for several states.

One federal filing you can likely skip: FinCEN’s beneficial ownership report. FinCEN’s page says U.S. companies are exempt. A rule published March 26, 2025 removed the requirement for companies created in the United States, and a later final rule made the exemption permanent. Ignore letters that say otherwise and ask for a fee.

Mistakes that cost people later

• Listing a home street without thinking. The agent street is public. If you do not want your home on the record, use an office or hire an agent.
• Naming a friend who then moves. If the agent leaves the state or stops answering, lawsuits and state notices go nowhere. Change the agent the day it happens. How to change a registered agent on an LLC covers the filing.
• Paying a third party for the EIN. The IRS gives it out for free.
• Forgetting year 2. The state fee, the yearly report, and the agent’s renewal price all come back. A free first year from an agent company is not the price you keep.
• Forming in a state you never work in. Then you pay that state and your own.