🏢 How to Register an LLC
A Limited Liability Company (LLC) is the most popular structure for small businesses because it separates your personal assets from business liabilities. LLCs are formed at the state level through the Secretary of State's office. Steps and fees vary by state.
📋 Documents you'll need
- A unique business name that meets your state's LLC naming rules
- A registered agent with a physical address in the state of formation
- Articles of Organization (the main formation document)
- An operating agreement (recommended, sometimes required)
- An EIN from the IRS for banking and taxes
🪜 Step-by-step
- Choose and check the availability of your LLC name on your state's business database.
- Appoint a registered agent to receive legal documents on the LLC's behalf.
- File the Articles of Organization with your Secretary of State and pay the filing fee.
- Create an operating agreement outlining ownership and management.
- Get an EIN from the IRS (free) and open a business bank account.
- Handle ongoing requirements: annual reports, franchise taxes, and any licenses or permits.
| Estimated cost | State filing fees vary widely (from modest to a few hundred dollars); some states also charge annual report or franchise-tax fees. |
|---|---|
| Typical timeline | Online filings are often approved within a few business days to two weeks, depending on the state and whether you pay for expedited processing. |
Frequently asked questions
What is a registered agent?
A registered agent is a person or company with a physical address in your formation state who receives legal and government mail for your LLC. You can be your own agent or hire a service.
Do I need an operating agreement?
Even where it's not legally required, an operating agreement is strongly recommended. It defines ownership percentages, management, and how profits are split, which helps prevent disputes.
Single-member vs multi-member LLC?
A single-member LLC has one owner and is taxed like a sole proprietorship by default; a multi-member LLC has two or more owners and is taxed like a partnership. Both offer liability protection.