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How to Start an LLC in 6 Steps

Our helpful guide covers all of the steps on how to start an LLC, from naming your business to filing the right paperwork.

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Frequently Asked Questions When Starting an LLC


Can I Form an LLC With Just One Member?

In short: yes, you can form an LLC with just one member.

When forming your LLC remember this mantra: all I need is me, myself and I! This is true from the brainstorming stage all the way to the filing process. While you can always add in more team members as you go, you won’t need anyone but yourself to form an LLC.


Do I Need to Secure Registered Agent Services for My LLC?

You must secure a registered agent and keep them active at all times in order to form an LLC and keep your business in compliance. However, you do have some wiggle room with who that registered agent is, as you can use an internal employee or hire an outside company to act as your company’s representative. And if you work with us, you can get 12 months of registered agent services completely free!


What Is an Operating Agreement, and Do I Need One?

An operating agreement contains details of the financial, legal and managerial rights of all LLC members. This can include how profits are shared, how members may leave the business and who will contribute to the capital for the business.

While you aren’t legally required to have an operating agreement, we highly recommend it. This internal document is crucial to the structure of your business and allows your team to get on the same page in terms of rights and responsibilities. Want to create an operating agreement but don’t know where to start? We’ve got a template for that.


What’s the Best State for Forming an LLC?

While it often makes the most sense to form your business in your home state, the best states for forming an LLC are Delaware, Nevada, Texas and Florida, due to their business-friendly rules and regulations.

Keep in mind, however, if you choose to form an LLC outside of your home state, you'll likely be required to pay additional Foreign LLC filing fees.


Do I Need an LLC for My Business?

Determining if your business needs an LLC is done on a case-by-case basis. If you're a solopreneur or a freelancer, a sole proprietorship may work for you, but we don't typically recommend them as you won't get the liability protection that an LLC provides.


How Is an LLC Taxed?

An LLC is taxed through a “pass-through” taxation method, meaning that the profits and losses will pass to the personal income of the members and owners. Single-member LLCs will be taxed as a sole proprietorship while multiple-member LLCs will be taxed the same as a partnership.

Though these general tax explanations may not apply to everyone, so make sure to speak to an accountant or tax professional to fully understand your personal tax liability.


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