How to Start an LLC in 6 Steps
Learn how to start an LLC for $0 + state fees. Follow 6 clear steps — from naming your LLC to filing your Articles of Organization — and form your business today.
Bizee Editorial Staff
Editorial Team
Introduction
Forming an LLC takes 6 steps: choose your state, name your LLC, designate a registered agent, file your Articles of Organization, create an operating agreement, and get your Employer Identification Number (EIN). State filing fees range from $50 to $500. The formation filing itself can be $0 when you use Bizee.
Step 1: Choose your formation state
Form your LLC in the state where you plan to do business. LLCs are formed under state law, and the state you choose governs your LLC's internal rules, filing requirements, and tax obligations. Most entrepreneurs form in their home state — it's the most straightforward path.
You can form an LLC in any U.S. state regardless of where you live. But if you form in one state and do business in another, you'll need to register as a foreign LLC in the states where you operate — which means paying additional fees and meeting those states' requirements. For most small business owners, forming in your home state keeps things simpler and less expensive.
Step 2: Name your LLC
Your LLC name must be distinguishable from other registered businesses in your state and must include a designator like "LLC," "L.L.C.," or "Limited Liability Company." Check availability through your state's Secretary of State business entity search before you get attached to a name.
Beyond the state search, check the U.S. Patent and Trademark Office database for federal trademark conflicts. A name that's available at the state level can still create legal problems if it's already trademarked. Most states also prohibit names that imply government affiliation or suggest a regulated profession — things like "FBI" or "Bank" — without prior approval.
Step 3: Designate a registered agent
Every LLC needs a registered agent — a person or business designated to receive legal documents and official correspondence on behalf of your LLC. The registered agent must have a physical street address in the state where your LLC is formed and must be available during normal business hours.
You can serve as your own registered agent if you meet your state's requirements, but many business owners use a registered agent service instead. Using a service keeps your personal address off public records and ensures you don't miss a legal notice because you were out of the office. Missing service of process can mean a court proceeding moves forward without you.
Step 4: File your Articles of Organization
Filing Articles of Organization — sometimes called a Certificate of Organization — with your state's Secretary of State office is the step that officially creates your LLC. The document typically includes your LLC's name, your registered agent's information, and your management structure.
State filing fees range from $50 to $500 depending on where you form. You pay the state fee directly — it's not something any formation platform can waive. Processing times vary by state and filing method. Some states approve filings in a few business days; others take several weeks. Expedited processing is available in most states for an additional fee.
Step 5: Create an operating agreement
An operating agreement is a legal document that defines how your LLC is owned and run — member ownership percentages, profit and loss allocation, management structure, and voting rights. Not every state requires one, but creating one is worth doing regardless of whether your state mandates it.
Without an operating agreement, your LLC falls back on your state's default rules — which may not reflect how you actually want to run things. The operating agreement is an internal document and doesn't need to be filed with the state. For single-member LLCs, it also helps reinforce that your business is a separate legal entity, which matters if your liability protection is ever challenged.
Step 6: Get your EIN
An Employer Identification Number (EIN) is a federal tax ID issued by the IRS. You'll need one to open a business bank account, hire employees, and file federal taxes. Single-member LLCs with no employees can sometimes use a Social Security number instead, but an EIN keeps your personal number off business documents.
You can apply for an EIN for free at irs.gov. Online applications are processed immediately and give you your EIN the same day. The IRS online application is available Monday through Friday, 7 AM – 10 PM ET. Fax applications take about 4 business days. Mail applications can take 4 to 5 weeks. Most business owners apply online — it's the fastest path and there's no cost.
What it costs to form an LLC
The unavoidable cost of forming an LLC is the state filing fee, which ranges from $50 to $500 depending on your state. That fee goes directly to the state and can't be waived. Everything else — formation filing, registered agent service, operating agreement — depends on how you choose to handle it.
The EIN itself is free through the IRS. A registered agent service typically runs $100–$300 per year if you use a third party. Formation filing assistance can be $0 — you pay the state fee, and the filing work is handled for you. The total out-of-pocket cost for most entrepreneurs is the state fee plus whatever ongoing services they choose.
LLC compliance after formation
Forming your LLC is the start, not the finish. Staying in good standing with your state means meeting ongoing requirements — filing periodic reports, paying annual fees, and keeping your registered agent information current. The specific requirements and deadlines vary by state.
Most states require an annual or biennial report to keep your LLC active. Missing a report deadline can result in late fees, and if you go long enough without filing, the state can administratively dissolve your LLC — which means losing your liability protection and your business name registration. Check your state's Secretary of State website for your specific deadlines.
FAQ
It depends. The formation filing itself can be $0 — some platforms handle the paperwork at no charge. But every state charges a filing fee to officially register your LLC, and that fee ranges from $50 to $500. You'll always pay the state fee. What you can avoid paying is a separate charge for the formation filing work on top of it.
Yes. A single person can form and own an LLC — this is called a single-member LLC. You don't need a partner, attorney, or accountant to file. You'll need to complete your state's Articles of Organization, designate a registered agent, and pay the state filing fee. An attorney can help if your situation is complex, but it's not required.
It depends on your state. Some states process LLC filings in a few business days; others take several weeks. Most states offer expedited processing for an additional fee if you need faster approval. Once your Articles of Organization are approved, you can apply for your EIN the same day — the IRS online application is processed immediately.
The state filing fee is the main cost — it ranges from $50 to $500 depending on your state. The EIN is free through the IRS. If you use a registered agent service, expect to pay $100–$300 per year. Formation filing assistance can be $0 when you use a platform that covers the filing work and you pay only the state fee.
It depends on your state. Some states require an operating agreement; others don't. Either way, creating one is worth doing. Without it, your LLC falls back on your state's default rules, which may not match how you want to run your business. For single-member LLCs, an operating agreement also helps show that your business is a separate legal entity.
Yes, every LLC is required to have a registered agent. A registered agent is a person or business that receives legal documents and official state correspondence on behalf of your LLC. The agent must have a physical street address in your formation state and be available during normal business hours. You can serve as your own registered agent or use a registered agent service.
There's no income threshold that requires you to form an LLC. You can earn any amount as a sole proprietor without forming an entity. The reason to form an LLC isn't about income — it's about liability protection and tax flexibility. Without an LLC, your personal finances are on the hook for any business debts or legal claims. A tax professional can help you figure out the right timing for your situation.
No. Every state charges a filing fee to register an LLC, and no platform can waive that fee — it goes directly to the state. What "free LLC" typically means is that the formation filing work itself costs $0, and you pay only the required state fee. State fees range from $50 to $500 depending on where you form.
