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How to start an LLC

An LLC puts a legal wall between your business and your personal money. Forming one is six steps, and they're the same in every state — only the fees, the timelines, and the ongoing report change. Here are the steps, then pick your state for the exact fee and the official filing link.

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  1. 1. Pick a name and check it's available

    Your LLC name has to be different from every other business registered in the state and usually has to include "LLC" or "Limited Liability Company". Every state has a free business-name search — use it before you get attached to a name.

  2. 2. Appoint a registered agent

    Every state requires a registered agent: a person or company with a physical street address in that state, available during business hours to receive legal mail. You can be your own agent, or pay a service (~$100–$150/year) to keep your home address off the public record.

  3. 3. File the Articles of Organization

    This is the actual filing that creates the LLC. You file it directly with the state's filing office (usually the Secretary of State) and pay the state fee. File it yourself on the state's website — you do not need a filing company, and they mark up the fee.

  4. 4. Get an EIN from the IRS

    Free, online, takes a few minutes. You need it to open a business bank account, file taxes, and hire. Even a single-member LLC should get one so you're not putting your SSN on forms.

  5. 5. Write an operating agreement

    An internal document that says who owns the LLC and how it runs. Most states don't require it, but banks and the IRS treat it as proof the LLC is separate from you — which is the whole point of forming one. You keep it; you don't file it.

  6. 6. Register for state taxes and calendar the ongoing report

    Register with the state tax agency for sales tax or payroll withholding if they apply. Then find your state's annual or periodic report deadline and put it on your calendar — miss it enough times and the state dissolves your LLC.

What changes from state to state

The filing fee swings from about $35 to $500. Some states have no ongoing report at all (Missouri, New Mexico, Ohio, Arizona, South Carolina); others charge up to $300 a year. A few approve online filings instantly; others take weeks. The lowest filing fees right now: Montana ($35), Kentucky ($40), Arkansas ($45), Arizona ($50), Colorado ($50). Fees last reviewed September 2026.

Start an LLC in your state

Common questions

How much does it cost to start an LLC?

The one-time state filing fee ranges from about $35 (Montana) to $500 (Massachusetts); most states are $50–$150. After that, most states charge an annual or biennial report fee ($0–$300 depending on the state), and a registered agent service runs ~$100–$150/year if you don't act as your own. An EIN from the IRS is always free.

How long does it take to form an LLC?

It depends entirely on the state. Some (Colorado, Kentucky, several others) approve online filings instantly. Others take 1–3 weeks for standard processing. Nearly every state offers paid expedited processing.

Do I need a lawyer or a filing service to start an LLC?

No. Every step can be done directly on your state's website and the IRS site, for the state's actual fee with no markup. A lawyer is worth it for complex ownership or high-liability businesses; a filing service mostly just charges you extra to submit a form you can submit yourself.

LLC or sole proprietorship — which should I choose?

A sole proprietorship requires no filing, but your personal assets (house, savings, car) are exposed if the business is sued or can't pay a debt. An LLC costs the state filing fee and a bit of upkeep, and puts a legal wall between the business and your personal finances. If anyone could plausibly sue your business, form the LLC.

Can I form my LLC in a different state to save money?

Usually not worth it. If you operate in your home state, you have to register there as a "foreign LLC" anyway — so you end up paying two states. Form the LLC where you actually live and work unless you have a specific reason not to.

Related: How to start a business (the full 9 steps) · What it costs to start, by state · Do I need an LLC? · What is an EIN? · vs. LegalZoom

AI-generated guidance is for educational purposes only and is not legal, tax, or investment advice. Disclosures · Trust center