An LLC is a business structure that protects your personal assets from business debts and lawsuits.

Can I form an LLC myself?

Yes, but hiring a professional service like ZenBusiness ensures accuracy and saves time.

Do I need a registered agent?

Yes. A registered agent receives legal documents on behalf of your LLC and ensures compliance.

How long does LLC approval take?

Approval takes 1–21 days, depending on the state and filing method.

What’s an operating agreement?

An internal document outlining ownership, roles, and profit-sharing (not filed with the state).

Which state is best for forming an LLC?

Your home state is easiest, but Wyoming and Delaware offer tax advantages.

LLCs have pass-through taxation by default but can elect S-Corp or C-Corp tax treatment.

Can a non-US resident form an LLC?

Yes, but you’ll need a registered agent with a U.S. address.

What happens if I don’t file annual reports?

Your LLC may lose good standing, face penalties, or be dissolved.

Can I change my LLC name later?

Yes, by filing an amendment with your state (fees apply).

Forming an LLC Made Simple for Your Business

Q: How much does it cost to start an LLC?

Costs range from $100 to $800+, including state fees, registered agent services, and optional add-ons.

Q: What’s the difference between an LLC and a sole proprietorship?

An LLC offers personal asset protection; a sole proprietorship does not.

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!

Special Offer alert!

form your LLC with Northwest for $39 (60% off). Details inside.

What is an LLC?

We’ll walk you through a basic overview of the LLC business structure, including how it’s formed, taxed, and maintained.

How to Start an LLC…

Benefits of Forming an LLC

LLCs offer limited liability protection, managerial & tax flexibility, and low maintenance costs.

benefit of forming an LLC…

Best State to Form an LLC

Wondering which state to form your LLC in? The answer is a lot simpler than you may think.

Best state to form an LLC…

How to Start an LLC: Step-by-Step Guide to Launch Your Business

Learn how to start an LLC in 2025 with this easy guide. Includes formation steps, tax benefit and costs Protect your assets today!

Starting a business is exciting, but protecting your personal assets is crucial. That’s where forming a Limited Liability Company (LLC) shines. This guide simplifies how to start an LLC, answering common questions and breaking down costs, state rules, and pitfalls to avoid. Let’s turn your business idea into a legally protected reality!

Quick Answer: How to Start an LLC

To start an LLC, you must choose a business name, select a registered agent, file Articles of Organization with your state, create an Operating Agreement, obtain an EIN, and comply with state requirements like annual reports or business licenses.

What is an LLC?

An LLC (Limited Liability Company) is a legal business entity that protects your personal assets while offering flexibility in taxation and management. It’s one of the most popular structures for small businesses in the U.S.

🛡️ Personal Asset Protection: Your home, car, and savings stay safe if your business faces debt or lawsuits.
💸 Tax Flexibility: Profits “pass through” to your personal tax return (no double taxation!).
📋 Easy Setup: Most states approve LLCs in days with minimal paperwork.

Why Choose an LLC?

Here’s why entrepreneurs love LLCs:

Protect Personal Assets: Keep your savings and home separate from business risks.
Credibility Boost: Clients trust “LLC” more than a sole proprietorship.
Tax Choices: Opt for pass-through, S-Corp, or C-Corp taxation.
No Annual Meetings: Skip the corporate formalities.

Step-by-Step Guide to Starting an LLC

Step 1: Pick Your Formation State

Decide whether you will form an LLC in your home state or a different state for tax benefits. Most people choose their home state for simplicity, but some states offer perks:

State	Publication	Annual Fee
How to Start an LLC in Arizona	must publish a notice in a general circulation newspaper	$0
How to Start an LLC in Texas	Not required	$0 for most LLCs (however a Public Information Report must be filed every year)
How to Start an LLC in New York	must publish a notice in two newspaper within 120 days.	$9
How to Start an LLC in Nebraska	must publish a notice in a local newspaper	$13
How to Start an LLC in Florida	Not required	$138.75

💡Pro Tip: If operating in multiple states, register as a Foreign LLC in each.

Step 2: Choose Your LLC Name

Your LLC name must:

- Must be unique in your state
- Include “LLC” or “Limited Liability Company”
- Do a name availability search on your state’s Secretary of State website
  Icon: Magnifying glass

💡 Stuck? Use a DBA (“Doing Business As”) name for branding flexibility.

Step 3: Select a Registered Agent

A registered agent receives legal mail for your LLC. Options:

Yourself (if you’re always available at a local address).
Professional Service ($50–$300/year for privacy + convenience).

Step 4: File Articles of Organization

Submit Articles of Organization (or Certificate of Formation) to your state.

This document officially forms your LLC with the state
Filing fees vary ($40–$500 depending on state)

Need Help? ZenBusiness handles filings for $0 + state fees.

Step 5: Create an Operating Agreement

Not always required, but highly recommended

Outlines ownership, management, and decision-making

Defines profit-sharing and roles.
Strengthens legal protection.

📝 Free Template: Download from the SBA.

Step 6: Get an EIN (Employer Identification Number)

An Employer Identification Number (EIN) is free from the IRS and needed for:

Hiring employees.
Opening business bank accounts.
Filing taxes.

🖥️ Apply Online: IRS EIN Assistant (15 minutes).

What to Do After Forming Your LLC?

Once you’ve formed your LLC, follow these critical steps to stay compliant and protect your business.

1. Open a Business Bank Account

Why it’s important:

Keeps personal and business finances separate (vital for liability protection).
Simplifies accounting and tax filing.

Pro Tip: Look for banks offering free business checking accounts (e.g., Novo or BlueVine).

2. Obtain Licenses & Permits

Requirements vary by location and industry:

Sales Tax Permit: Needed if selling products (register with your state’s revenue department).
Industry-Specific Licenses:
- Food service → Health department permit.
- Contractors → State licensing board approval.

3. File Your Annual Report

Most states require this to keep your LLC active.

This keeps your business information up-to-date with the state

Miss the deadline? Your LLC may be dissolved or face penalties.

4. Handle LLC Taxes

How LLCs are taxed:

Single-Member LLC: Profits reported on Schedule C (personal tax return).
Multi-Member LLC: Files Form 1065 (partnership taxes).
S-Corp/C-Corp Election: Can reduce self-employment taxes (Form 2553).

Key Tax Deadlines:

Federal: April 15 (or October 15 with extension).
State: Varies (e.g., April 15 in Texas, June 15 in California).

How Much Does It Cost to Start an LLC?

State Filing Fees: $40–$500
Registered Agent Service (optional): $50–$300/year
Operating Agreement Template (optional): $0–$100
EIN: Free from the IRS
Total Estimate: $50–$800+

Expense	Cost Range
State Filing Fee	$40–$500
Registered Agent	$50–$300/year
Operating Agreement	$0–$300/year
EIN	Free
Total First-Year Cost	$100–$800+

DIY vs. Professional LLC Formation

Factor	DIY	Professional Service
Cost	State fees only	$0–$300 + state fees
Time	1–3 weeks	As fast as 1–2 days
Best For	Budget-conscious	Busy entrepreneurs

Why Hire a Pro? Avoid errors, save time, and get registered agent services bundled.

Special offer:

Form your LLC with Northwest for $39 + state fee and get a free year of Registered Agent service.

(Read our Northwest Registered Agent review.)

For detailed step-by-step instructions for forming an LLC in your state, choose your state from below

Key Takeaways

Protect Your Assets: An LLC separates personal and business finances.
Choose Your State Wisely: Home state = simplicity; Wyoming/Delaware = tax perks.
File Correctly: Submit Articles of Organization and get an EIN.
Stay Compliant: File annual reports and keep an operating agreement.

Ready to launch? Start your LLC with ZenBusiness today!

❓FAQs: People Also Ask

1. Do I need an attorney to form an LLC?

No, most people file themselves or use a formation service.

2. Can I start an LLC online?

Yes, all 50 states allow online LLC formation.

3. What’s the difference between an LLC and a sole proprietorship?

LLC offers liability protection, while sole proprietors are personally liable for business debts.

4. Do I need an Operating Agreement for a single-member LLC?

It’s not required in most states but strongly recommended.

5. How long does it take to start an LLC?

Usually 1–2 weeks depending on your state’s processing time.

6. Can I be my own registered agent?

Yes, as long as you have a physical address in the state and are available during business hours.

7. Does an LLC protect my personal assets?

Yes, it separates your personal and business liabilities.

8. Can an LLC have multiple owners?

Yes, called members. LLCs can be single- or multi-member.

9. Do I need a new EIN if I change my LLC name?

No, but you must notify the IRS and your state.

10. Can I form an LLC in a different state?

Yes, but you may need to register as a foreign LLC in your home state.

Final Thoughts: Starting Your LLC the Right Way

Starting an LLC doesn’t have to be complicated. By following these steps and understanding the legal requirements, you’ll have your business up and running the right way — with protection, flexibility, and legitimacy.

About Us

We specialize in guiding individuals through the process of forming LLCs across all states, while also offering a range of comprehensive business services tailored to entrepreneurs.