How to Start an LLC
Starting an LLC is one of the smartest decisions you can make for your business. This guide walks you through everything you need to know to form your LLC quickly and correctly.
What is an LLC?
A Limited Liability Company (LLC) is a business structure that combines the personal liability protection of a corporation with the tax benefits and flexibility of a sole proprietorship or partnership. LLCs protect your personal assets from business debts and lawsuits while offering operational flexibility and tax advantages.
Personal Asset Protection
Your personal assets (home, car, savings) are protected from business liabilities and debts.
Tax Flexibility
Choose how your LLC is taxed - as a sole proprietor, partnership, S-Corp, or C-Corp.
Professional Credibility
An LLC adds legitimacy to your business, making it easier to work with vendors and customers.
6 Steps to Form Your LLC
Choose Your LLC Name
Select a unique name that complies with your state's naming requirements. It must include "LLC" or "Limited Liability Company" and cannot conflict with existing business names.
Select a Registered Agent
Designate a registered agent who will receive legal documents on behalf of your LLC. This can be an individual or a professional service that maintains a physical address in your state.
File Articles of Organization
Submit your Articles of Organization (or Certificate of Formation) with your state's Secretary of State office. This document officially creates your LLC and includes basic information about your business.
Create an Operating Agreement
Draft an operating agreement that outlines ownership percentages, member responsibilities, and operating procedures. While not required in all states, it's crucial for protecting your limited liability status.
Get an EIN
Obtain an Employer Identification Number (EIN) from the IRS. This federal tax ID number is required for hiring employees, opening business bank accounts, and filing taxes.
Open a Business Bank Account
Separate your personal and business finances by opening a dedicated business bank account. This maintains your LLC's liability protection and simplifies bookkeeping.
DIY vs. Using a Formation Service
Do It Yourself
Use a Formation Service
Compare LLC Formation Services
Here's a comprehensive comparison of the top LLC formation services. We recommend using a service to ensure your LLC is formed correctly and to get ongoing compliance support.
| Service | Pricing | Processing Time | Registered Agent | Operating Agreement | EIN Service | Support | Compliance | Features | |||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Base | Note | Standard | Expedited | Price | Details | Price | Price | Channels | Tools | App/Attorney | |
| ZenBusiness Best Overall Value ★★★★★ 4.9 | $0 | + state fees | 7-10 days | 1 day +$79 | $199/yr | Not included | $99 | $99 | Phone, Chat, Email | Worry-Free Compliance Free 1st year | 📱 |
| Bizee Fastest Formation ★★★★★ 4.6 | $0 | + state fees | 3 weeks | 1 day +$49 | $119/yr | Free Year 1, Then $119/yr | $99 | $70 | Limited | Alerts only Basic monitoring | - |
| Inc Authority Free Formation ★★★★★ 4.4 | $0 | + state fees | 7-10 days | 2 days +$99 | $119/yr | Free Year 1, Then $119/yr | $50 | $70 | Phone, Chat | Basic tools Included | - |
| Tailor Brands Best for Branding ★★★★★ 4.3 | $0 | + state fees | 3 weeks | Not available | $119/yr | Free Year 1, Then $119/yr | ✓ Free | ✓ Free | Chat, Email | Basic alerts Included | - |
| LegalZoom Best for Legal Support ★★★★★ 4.2 | $0 | + state fees | 5-14 days | 1 day +$99 | $249/yr | Not included | $99 | $159 | Phone, Chat | Premium only Extra cost | ⚖️ |
| Rocket Lawyer Legal Documents ★★★★★ 4 | $99.99 | + state fees | 5-7 days | Not available | $149/yr | Not included | ✓ Free | $99 | Phone, Chat | Document library With membership | 📱 ⚖️ |
| BetterLegal Speed & Simplicity ★★★★★ 3.9 | $299 | all-inclusive | 2 days | Standard speed | Included | Included in base price | ✓ Free | ✓ Free | Phone, Email | Limited Basic support | - |
| Active Filings Traditional Service ★★★★★ 3.8 | $199 | + state fees | 5-10 days | 2 days +$100 | $119/yr | Free Year 1, Then $119/yr | $99 | $70 | Phone, Email | Basic tools Limited | - |
| Filenow Budget Option ★★★★★ 3.6 | $99 | + state fees | 7-10 days | 3 days +$50 | $125/yr | +$125/yr, Not included | $40 | $50 | Email only | None | - |
| Northwest Basic Formation ★★★★★ 3.4 | $39 | + state fees | 7-10 days | Not available | $125/yr | Available | $39 | $70 | Email only | None | - |
Ready to Start Your LLC?
Join thousands of entrepreneurs who've successfully formed their LLCs