Free formation guide
Forming an LLC: your step-by-step path to limited liability.
A limited liability company, or LLC, is one of the most popular business structures for new entrepreneurs because it separates personal assets from business debts while keeping paperwork simpler than a corporation. If you are choosing between structures or ready to file, this page walks through what actually happens when you form an LLC, in the order it happens.
The path
What forming an LLC actually involves.
Six steps, in the order they happen. None of them require a middleman; every filing goes directly to a government agency at the government's own price.
- 1
Choose your state of formation
Your formation state does not always have to be the state where you live or operate. For most entrepreneurs, though, home state is the right answer: forming somewhere famous for business while operating at home usually means registering in both states and paying twice. Every state's official filing office is linked in our free state directory, so you can compare before you commit.
- 2
Select and clear a business name
Your name has to meet your state's naming rules and be distinguishable from every entity already registered there. Search the state's business registry first, and check the matching web domain at the same time, because a name you cannot own online is a name you will outgrow.
- 3
Appoint a registered agent
Every state requires a registered agent: a person or company with a physical address in the formation state who can accept legal documents on behalf of your company during business hours. If you live in the state, you can usually be your own.
- 4
File Articles of Organization
Sometimes called a Certificate of Formation, this is the state filing that legally creates the LLC. File it directly with your Secretary of State or equivalent agency and pay only the state's own filing fee. Fees vary by state and change over time, so check the live number on your state's official site rather than trusting a stale figure.
- 5
Draft an operating agreement
Most states do not require one, but every LLC should have one. It writes down who owns what, how money moves, and how decisions get made, which matters the moment there is more than one owner or any disagreement about profit splits.
- 6
Apply for your EIN
Once your LLC is approved, apply for an Employer Identification Number. The IRS issues it directly at irs.gov at no charge, and it becomes the number your bank, payroll, and tax filings all run on.
Learn from others
Common mistakes entrepreneurs make when forming an LLC.
Many new entrepreneurs file their formation documents before locking in a name search or registered agent, which causes delays or rejected filings. Others skip the operating agreement entirely, which becomes a real problem the moment there is more than one owner or a dispute over profit splits arises. Taking the steps in order, rather than rushing to "get it filed," tends to save more time than it costs.
Filing before the name clears
A name conflict bounces the whole filing back. Search the state registry (and the domain) before you pay anything.
No registered agent lined up
Most states require agent details at the time of filing. Decide who it is, and where, before you start the form.
Skipping the operating agreement
Nobody misses it until there is money to split or a partner walking away. Put it in writing while everyone is still friendly.
The bigger picture
LLC vs other structures.
An LLC is not the only option. Corporations, sole proprietorships, and public benefit corporations each carry different tax treatment, liability protection, and investor expectations. If you are unsure an LLC is the right fit, it is worth comparing structures before filing, since converting later carries its own cost and paperwork. Start with the full beginner overview at how to register a business, which walks every entity type from zero.
Keep moving
The rest of the formation path, all free.
How to get an EIN number →
The step right after your LLC is approved: the free federal tax ID from the IRS, and the mistakes that slow it down.
How to register a business →
The complete beginner overview: every entity type, every decision point, from zero to registered.
State-by-state directory →
Every US state's official filing office in one searchable directory, so you file directly and pay only the state fee.
Tools on this platform
The tools that do the heavy lifting with you.
Business Name Generator →
Brandable names with the matching domain checked for each, before you run the state name search.
Contracts Directory →
Editable agreements including an LLC operating agreement starter, in Word and PDF.
Business Plan Builder →
A researched business plan draft you edit and own, ready before the bank or a lender asks for one.
Business Calculators →
30+ free calculators for pricing, break-even, runway, and the taxes to set aside once the LLC earns.
Questions
Good to know.
What is an LLC, in plain English?
A limited liability company. It is one of the most popular structures for new entrepreneurs because it separates your personal assets from the business's debts while keeping the paperwork simpler than a corporation. If the business owes money, your house and savings are not automatically on the line, provided you keep business and personal finances properly separate.
How much does it cost to form an LLC?
The state filing fee varies significantly by state and changes over time, which is why we do not print a number here. Your state's official filing office shows the current fee, and our free directory at /register-a-business links every state's official office directly. Filing yourself means paying only that state fee.
Do I need a lawyer to form an LLC?
Most single-owner LLCs are formed without one, directly on the state's own website. Where professional help earns its money is the edge cases: multiple owners with complicated splits, outside investors, licensed professions, or forming out of state. When in doubt, a one-time consultation is far cheaper than unwinding a wrong structure later.
Is an LLC the right structure for me?
Not always. Corporations, sole proprietorships, and public benefit corporations each carry different tax treatment, liability protection, and investor expectations. If you plan to raise venture capital, investors generally prefer corporations. If you are unsure, compare structures before filing, since converting later carries its own cost and paperwork. Our full registration overview at /how-to-register-a-business walks the whole decision.
What comes right after the LLC is approved?
Get the EIN free from the IRS, open a dedicated business bank account, and put the operating agreement in writing. Then check whether your industry or city needs licenses or permits before you operate.
The LLC is paperwork. The business is the point.
Form it right, then get back to building. The free account keeps every step, from the name to the plan, in one place.