Forming an LLC Made Simple for Your Business
Starting an LLC doesn’t have to be difficult or costly.
With our free, easy-to-follow guides, you can breeze through the process of how to start an LLC. Simply select your state and get started on your LLC today!
How to Start an LLC?
We’ll walk you through a basic overview of the LLC business structure, including how it’s formed, taxed, and maintained.
Benefits of Forming an LLC
LLCs offer limited liability protection, managerial & tax flexibility, and low maintenance costs.
Best State to Form an LLC
Wondering which state to form your LLC in? The answer is a lot simpler than you may think.
How to Form Your LLC Today
Starting your own business might sound complicated — but forming an LLC doesn’t have to be. In fact, you can start your LLC today by following below easy steps.
Choose a state for your LLC
First, decide which state you want to form your LLC in. You can choose your home state or another state that’s better for your business needs. Some states have lower fees or easier rules.
Pick a name for your company
Choose a name that is unique and easy to remember. It should not be the same as another business in your state. The name should also clearly show what your business does.
Choose a registered agent
A registered agent is a person or company who gets important mail and legal papers for your business. They must live in the state where your LLC is formed. Some states require this, but even if yours doesn’t, it’s still a good idea to have one.
File your LLC paperwork
Each state asks for different forms to start an LLC. These are called “formation documents.” You can send these forms to your state’s Secretary of State office or use a company that helps people file LLCs.
Write an LLC Operating Agreement
Some states don’t ask for this paper, but it’s still a smart idea. An operating agreement explains how your business will run, who is in charge, and how you’ll handle money and decisions.
Get an EIN (Employer Identification Number)
You’ll need an EIN from the IRS. It’s like a Social Security Number but for your business. You need an EIN to open a business bank account and to hire workers. You can get one online from the IRS for free.
Open a business bank account
It’s important to keep your personal money separate from your business money. A business bank account helps you do that. It also helps protect your business if someone takes legal action against you.
Get business licenses and permits
Depending on your type of business and where you're located, you may need certain licenses or permits to operate legally. Check with your city, county, and state to find out what you need. This might include health permits, sales tax licenses, or professional licenses.
What is an LLC?
An LLC means Limited Liability Company. It is a way to set up your business that protects your personal money and belongings (like your home or car) if something goes wrong with the business.
An LLC is a mix between a corporation and a partnership, but it avoids some of their problems. That’s why many people choose to use it.
You can use an LLC to:
Run a business
Hold things like real estate, cars, boats, or even airplanes
What’s the best state to start an LLC?
You should start your LLC in the state where you do business. For most people, that’s their home state.
If you’re a real estate investor, you should form the LLC in the state where your property is located. That’s where your business is legally operating.
How much does it cost to start an LLC?
As of 2025, the average cost to start an LLC is $132, but it can be anywhere from $50 to $150 in most states.
👉 You can check LLC filing fees for all 50 states here: LLC filing fees by state
States where forming an LLC is expensive
Some states charge more than average to start an LLC. Here are a few examples:
Alaska – $250
Massachusetts – $500
Tennessee – $300
Texas – $300
But don’t form your LLC in another state just to save money. It will likely cost more in the end.
If you form an LLC outside your home state, you’ll have to register that LLC as a Foreign LLC in your own state, and pay fees in both states.
LLC Annual Reports (Ongoing Yearly Fees)
Most states ask LLCs to file an Annual Report and pay a yearly fee. The average cost in the U.S. is $91. Most states charge between $50 and $100 every year.
States with No Annual LLC Fee
A few states don’t charge an annual fee (or charge a very small one), including:
Arizona
Idaho
Minnesota
Mississippi
Missouri
New Mexico
Ohio
South Carolina
Texas
States with Expensive Annual Fees
Some states charge a lot more every year. For example:
California – $800
Delaware – $300
Maryland – $300
Massachusetts – $500
Nevada – $500
Tennessee – $300
Washington D.C. – $300
“Hidden” LLC Costs
Even if a state’s annual fee is low, it may have other hidden fees.
For example, in Connecticut, the annual report is only $20. But they also charge a Business Entity Tax of $250 every other year.
👉 Always check your state’s full rules to see all possible costs before you form your LLC.
LLC Registered Agent Fees
You need to list a Registered Agent for your LLC. This person or company will receive legal papers for your business.
If you, a friend, or a family member is the Registered Agent, it costs nothing.
If you want to hire someone, a Registered Agent service costs around $100 to $300 per year.
We recommend Northwest Registered Agent. They charge $125/year and offer great customer support.
What is a Registered Agent?
A Registered Agent (also called a Resident Agent or Statutory Agent) is someone who agrees to get important mail and legal papers for your LLC.
All states (except a few) require you to list a Registered Agent when you start your LLC.
The Registered Agent must:
Be someone you trust
Have a real street address (not a P.O. Box)
Be available during business hours to receive documents
Many companies try to make you pay for this service, but they don’t tell you that you or someone you know can be your own Registered Agent.
