A limited liability company is one of the simplest ways to keep business debts separate from your personal assets. The paperwork is not hard, but the order matters.
This walkthrough covers how to create an LLC from the first decision through the filings that keep it in good standing. Fees differ by state, so treat your Secretary of State’s website as the final word.
Step 1: Choose Your Formation State
The first decision in how to create an LLC is where to form it. Most small businesses form in the state where they operate. Form in Delaware or Wyoming instead and you usually still register as a foreign LLC at home, which means two filing fees and two sets of annual reports.
Step 2: Run a Business Name Check
Your LLC name must be distinguishable from entities already on file in that state and usually needs a designator such as “LLC.” Search the Secretary of State’s database, then the USPTO trademark database, since a name that clears the state can still conflict with a federal trademark.
Step 3: Appoint a Registered Agent
Every state requires an LLC to name a registered agent with a physical street address in that state. The agent accepts lawsuits and official notices for the company during normal business hours.
You can act as your own agent if you live in the state, but your address then appears on the public record.
Step 4: File Articles of Organization
This is the filing that legally creates the company. Some states call it a certificate of formation or certificate of organization. It usually lists the LLC name, registered agent, principal address, and whether members or managers run the business.
Filing fees vary widely, so check the current fee on the state website before you submit. A guide that explains how to create an llc in your particular state can also show which optional provisions are worth including.
Step 5: Draft an Operating Agreement
An operating agreement sets out ownership percentages, voting rights, profit splits, and what happens if a member leaves or dies. Only a few states require one by law, but banks and investors often ask to see it.
Single-member owners benefit too. A written agreement helps show the business is separate from you, which supports the liability protection that is the whole point of learning how to create an LLC.
Step 6: Get an EIN From the IRS (It Is Free)
An Employer Identification Number is your company’s federal tax ID. Apply directly on IRS.gov, where the online application costs nothing and the number is issued immediately once approved. The IRS specifically warns business owners about websites that charge for an EIN.
You will need it to open a bank account and file certain returns, even with no employees.
Step 7: Confirm Your BOI Reporting Status
For a period, new LLCs had to file a beneficial ownership information (BOI) report with FinCEN under the Corporate Transparency Act. That is no longer the case for domestic companies. FinCEN finalized a rule in August 2026 confirming that companies formed in the United States are exempt from BOI reporting.
The requirement now applies only to foreign entities registered to do business in a US state, so a US-formed LLC has no BOI report to file.
Step 8: Apply for Licenses and Permits
Licensing depends on your city, county, state, and industry. A freelance designer may need only a general business license, while a food truck may need several permits plus inspections. Sellers of taxable goods typically need a sales tax permit from the state revenue department.
Step 9: Open a Business Bank Account
Keep LLC money in an LLC account. Banks commonly ask for the approved articles, the EIN confirmation letter, the operating agreement, and ID for each owner. Any checklist on how to create an LLC puts this step early, because mixing personal and business funds weakens your liability shield.
Step 10: Keep Up With Ongoing Compliance
Most states require an annual or biennial report with a fee, and some add a franchise tax. Missing these can bring penalties or administrative dissolution, so calendar every due date during your first month.
Online LLC Filing vs Paper Filing
Most states now let you create an LLC online through the Secretary of State’s portal. Online LLC filing usually means built-in error checks, card payment, and faster approval than mailed forms, which often take weeks.
Paper is still accepted in many states, but mistakes send the form back by mail and restart the clock. If you want to get your LLC online in one sitting, gather the name, agent details, principal address, and management structure before you start. People still deciding how to create an LLC can also use a filing service to prepare and submit the documents.
Conclusion
Once you know how to create an LLC in the right sequence, the work takes only a few hours: state, name, agent, articles, operating agreement, EIN, licenses, bank account, and a compliance calendar.
Knowing how to create an LLC is the easy part. Staying organized afterward is what keeps the liability protection intact, so save copies of every approval and set reminders for each annual deadline.
