Forming an LLC is a six-step process that's the same in outline everywhere, even though the fees and forms differ by state. Here's the clear version, with the details that actually trip people up.
The six steps
- Choose your state. Most founders form in their home state. Non-residents and some businesses choose Wyoming, Delaware, or New Mexico for cost or privacy — see our state guides for the real fees.
- Name your LLC. Pick a name that's available in your state's registry and meets naming rules (it usually must include 'LLC'). Check the state's official business search before filing.
- Appoint a registered agent. Every LLC needs a registered agent with a physical address in the state. You can be your own if you're a resident there; non-residents need a commercial service.
- File the Articles of Organization. Submit the formation document to the state and pay the filing fee. Fees and processing times vary by state.
- Get an EIN. The IRS Employer Identification Number is your company's tax ID — needed for banking and taxes. US residents can apply online free; non-residents file Form SS-4 by fax or mail.
- Create an operating agreement & stay compliant. Draft an operating agreement (internal ownership rules) and calendar your annual report and any franchise tax so you stay in good standing.
Step 1 — Choose your state
If you live in the US and will operate from home, forming in your home state is usually simplest and cheapest. Forming in a "better" state like Delaware and then operating elsewhere often means registering twice and paying twice. Non-residents have a genuinely free choice — see our state guides for real fees.
Step 2 — Name your LLC
Your name must be unique in the state and follow its rules. Search the state's official business database first (we link to each one on the state pages), then reserve or file.
Step 3 — Appoint a registered agent
Required in every state. If you're a resident of the formation state you can serve as your own; otherwise use a commercial service. Learn more in what is a registered agent.
Step 4 — File the Articles of Organization
This is the document that legally creates your LLC. File it with the state and pay the fee. Processing times vary; many states offer expedited service for an extra fee.
Step 5 — Get your EIN
The EIN is your federal tax ID, needed to open a business bank account and file taxes. US residents apply free on the IRS site; non-residents follow a different path — see how to get an EIN.
Step 6 — Operating agreement & ongoing compliance
An operating agreement sets out ownership and management rules. Then calendar your annual report and any franchise tax so you don't fall out of good standing.
A formation service handles steps 2–6 for you. Compare the leading options in our best formation services guide, or if you're outside the US start with the non-resident guide.
Frequently asked questions
How long does it take to form an LLC?
It depends on the state and whether you pay for expedited processing — often a few business days to a few weeks.
How much does an LLC cost?
You pay a one-time state filing fee (varies by state) plus, if you use one, a registered-agent service (~$100–200/yr) and any formation-service fee.
Do I need a lawyer to form an LLC?
No. Most people form an LLC themselves or through a formation service. Complex ownership or tax situations may warrant professional advice.
Can I form an LLC in a state I don't live in?
Yes, but if you operate in your home state you may then need to register there as a 'foreign LLC' too, adding cost. Non-residents can form in any state.