Start to Incorporation:
How to Register Your Own LLC
A step-by-step walkthrough covering everything from choosing your state to staying compliant — written for first-time founders, not lawyers.
What Is an LLC and Do You Need One?
Understanding the structure before you fileA Limited Liability Company (LLC) is a business structure that blends the personal liability protection of a corporation with the simplicity and tax flexibility of a sole proprietorship or partnership. When you form an LLC, your personal assets — your home, savings, and car — are legally separated from your business debts and lawsuits.
The Core Benefit: If your LLC gets sued or can’t pay its bills, creditors generally can’t come after your personal belongings. This is called the corporate veil — and it’s the #1 reason entrepreneurs form an LLC.
LLC vs. Sole Proprietorship
Most freelancers and small business owners start as sole proprietors without realizing it. The moment you earn money from a business activity, you’re a sole proprietor by default. The problem? You’re personally liable for everything. An LLC changes that equation with minimal additional complexity.
Who Should Form an LLC?
- Freelancers, consultants, and independent contractors who want liability protection
- Small business owners selling products or services
- Real estate investors (each property in a separate LLC is common)
- Online sellers on Amazon, Etsy, or Shopify
- Anyone who wants to separate personal and business finances clearly
- Entrepreneurs seeking credibility with vendors and clients
Tax Note: By default, a single-member LLC is taxed as a disregarded entity (like a sole proprietor). You can also elect S-Corp or C-Corp tax treatment once your income grows. This flexibility makes the LLC the most popular structure for small businesses.
Choose Your Formation State
Home state vs. “business-friendly” statesYou can form an LLC in any U.S. state regardless of where you live. But for most small business owners and solopreneurs, forming in your home state is the right call. Here’s why:
State Filing Fees: What to Expect
Every state charges a filing fee for Articles of Organization. These range from $50 to $500+. Here’s a quick look at the most popular states:
* Fees change. Always verify on your state’s Secretary of State website before filing.
California Warning: CA charges an $800/year minimum franchise tax even if your LLC earns nothing. Know this before registering there.
Pick & Reserve Your LLC Name
Rules, availability checks, and trademarksYour LLC name is more than a label — it’s a legal identifier. Most states require that your name include “LLC,” “L.L.C.,” or “Limited Liability Company” and that it’s distinguishable from all other registered businesses in the state.
Name Requirements (All States)
- Must include “LLC,” “L.L.C.,” or “Limited Liability Company”
- Cannot include words like “Bank,” “Insurance,” “Government,” without special licensing
- Must be unique within your state’s business registry
- Cannot be misleading or imply a different type of entity
How to Check Name Availability
Every state has a free online business name search tool on the Secretary of State’s website. Search for your desired name — exact match AND similar names — before filing. Once your LLC is approved, the name is reserved automatically.
Pro Tip: Check federal trademark availability at USPTO.gov in addition to your state registry. A name can be available in your state but already trademarked nationally — which can create expensive legal problems later.
If you’re not ready to file but want to lock in a name, most states allow a name reservation for a small fee ($10–$50), holding it for 60–180 days.
DIY vs. Formation Service: Which Is Better?
An honest breakdown of both approachesYou have two ways to file your LLC: do it yourself through your state’s website, or use a formation service to handle the paperwork. Both work — the right choice depends on your time, budget, and comfort with government forms.
Our Top Formation Service Picks
- Registered agent included (1st year)
- Worry-free compliance guarantee
- Fast 2–3 day filing
- Operating agreement template
- Privacy-first filing approach
- Registered agent included
- No upsells or hidden fees
- Human customer support
- Completely free base plan
- Registered agent (1st year free)
- EIN application included
- Business tax consultation
Full Service Comparison Table
We tested 8 LLC formation services side-by-side. Here’s how they stack up on the things that actually matter.
| Service | Base Price | Reg. Agent | EIN | Op. Agreement | Rating | Action |
|---|---|---|---|---|---|---|
 ZenBusiness Best Overall |
$0 + state | ✓ 1 yr free | ✓ Add-on | ✓ | ★★★★★ 4.9/5 |
|
 Northwest Best Privacy |
$39 + state | ✓ Included | ✓ | ✓ | ★★★★★ 4.8/5 |
|
 Bizee Best Free Plan |
$0 + state | ✓ 1 yr free | ✓ | ✓ | ★★★★☆ 4.5/5 |
|
 LegalZoom Most Recognized |
$0 + state | ✓ Add-on | ✓ Add-on | ✓ | ★★★★☆ 4.3/5 |
|
 Tailor Brands Best Branding Bundle |
$0 + state | ✓ 1 yr free | ✓ | ✗ | ★★★★☆ 4.2/5 |
|
 Rocket Lawyer Best Legal Docs |
$99.99/mo | ✓ Add-on | ✓ | ✓ | ★★★★☆ 4.1/5 |
|
 Inc Authority Good Free Option |
$0 + state | ✗ | ✗ | ✗ | ★★★☆☆ 3.8/5 |
|
 Swyft Filings Fast Turnaround |
$0 + state | ✓ Add-on | ✓ | ✓ | ★★★☆☆ 3.7/5 |
Prices reflect base plan cost + applicable state fees. Registered agent and EIN may be included or available as add-ons depending on plan tier. Updated May 2026.
File Your Articles of Organization
The core filing that creates your LLCThe Articles of Organization (also called a Certificate of Formation or Certificate of Organization in some states) is the official document that creates your LLC. You file it with the Secretary of State’s office and pay the filing fee.
What You’ll Need to Include
- Your LLC’s full legal name (including “LLC” designation)
- Principal place of business address
- Registered agent name and address
- Member/manager information (varies by state)
- LLC purpose (most states accept “any lawful purpose”)
- Organizer’s name and signature
Processing Times by Method
After filing, the state reviews and officially approves your LLC. Timelines vary widely:
Effective Date: Your LLC legally exists from the date your Articles are approved (or the effective date you specify). Don’t sign contracts or open bank accounts in the company’s name before this date.
Appoint a Registered Agent
Required by every state — here’s what it meansEvery LLC must designate a registered agent — a person or company with a physical address in your formation state who agrees to receive legal and government documents on your behalf. This includes lawsuits, tax notices, and compliance reminders.
Your Three Options
Best Deal: ZenBusiness and Northwest Registered Agent both include 1 year of free registered agent service with LLC formation — saving you $100–$125 in the first year.
Get Your EIN from the IRS
Your LLC’s federal tax identification numberAn Employer Identification Number (EIN) — also called a Federal Tax ID — is a 9-digit number the IRS assigns to your business. Think of it as a Social Security Number for your LLC. Even if you have no employees, you’ll need one to open a business bank account, file taxes as a business, and hire contractors.
How to Get an EIN (It’s Free)
- Apply directly on IRS.gov/EIN — completely free, takes 10 minutes
- Your EIN is issued immediately online (for U.S.-based applicants)
- International applicants must call or fax the IRS
- Some formation services include EIN filing as a paid add-on ($50–$75)
Timing: You can apply for your EIN as soon as your LLC is officially formed. There’s no waiting period. Apply immediately so you can open your business bank account right away.
Draft Your Operating Agreement
The internal rulebook every LLC needsAn Operating Agreement is an internal document that defines how your LLC is run — who owns what percentage, how decisions are made, how profits are distributed, and what happens if a member wants to leave. Only a handful of states legally require it, but every LLC should have one.
Why It Matters Even for Solo LLCs
Without an operating agreement, your LLC is governed by your state’s default LLC rules — which may not align with your intentions. Banks, investors, and business partners often request a copy. It also reinforces the legal separation between you and your LLC (protecting the corporate veil).
Key Sections to Include
- Ownership percentages and member contributions
- Profit and loss allocation rules
- Voting rights and decision-making procedures
- Procedures for adding or removing members
- Dissolution process if you close the LLC
- Manager vs. member-managed designation
Free Templates: Most formation services include an operating agreement template. For a single-member LLC, a simple template is all you need. Multi-member LLCs may benefit from an attorney-drafted agreement.
Open a Business Bank Account
Essential for protecting the corporate veilOne of the most important steps after forming your LLC is opening a dedicated business bank account. Mixing personal and business finances is the most common way entrepreneurs inadvertently pierce the corporate veil — eliminating the liability protection your LLC provides.
What You’ll Need to Open the Account
- Your LLC’s Articles of Organization (or Certificate of Formation)
- Your EIN (Employer Identification Number)
- Operating Agreement (many banks require it)
- Your personal government-issued ID
- Initial deposit (varies by bank)
Don’t Skip This: Commingling personal and business funds is one of the most common reasons courts will “pierce the corporate veil” and hold LLC members personally liable. Always keep them separate.
Ongoing Compliance & Annual Reports
How to keep your LLC in good standingForming your LLC is just the beginning. To keep it in good standing, you must file annual or biennial reports, pay required fees, and stay current on tax obligations. Failing to do so can result in penalties, dissolution, or loss of your liability protection.
Annual Compliance Checklist
- File annual report / statement of information with your state
- Pay annual franchise tax or renewal fee (if applicable)
- Keep registered agent information current
- File federal and state tax returns
- Pay estimated quarterly taxes (if applicable)
- Update operating agreement if ownership changes
- Renew any required business licenses
- File BOI (Beneficial Ownership Information) report with FinCEN
FinCEN BOI Report: As of 2024, most LLCs must file a Beneficial Ownership Information report with FinCEN. New LLCs have 90 days from formation; existing LLCs had a 2024 deadline. Non-compliance can result in $500/day fines. Learn how to file →
Related Guides & Resources
Deepen your knowledge on LLC formation, compliance, and choosing the right services.
How to Form an LLC Step by Step
The complete walkthrough of each phase of LLC formation from start to finish.
How Much Does It Cost to Start an LLC?
State-by-state fee breakdown plus a full cost comparison of formation services.
LLC vs. Sole Proprietorship: Which Is Better?
A side-by-side look at liability, taxes, and costs to help you decide the right structure.
Frequently Asked Questions
Common questions about forming and running an LLC.
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