Want to start an LLC?
Starting a Limited Liability Company (LLC) is a great way to protect your personal assets while running a business. Whether you’re an entrepreneur, freelancer, or small business owner, an LLC offers flexibility, legal protection, and tax benefits. This guide will walk you through the exact steps to start an LLC and get your business up and running.
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What is an LLC?
An LLC (Limited Liability Company) is a legal business structure that combines the liability protection of a corporation with the tax benefits and simplicity of a sole proprietorship or partnership. It is one of the most popular business structures in the U.S. due to its ease of setup, limited liability protection, and flexibility in taxation.
Why Choose an LLC?
Limited Liability Protection – Your personal assets (house, car, savings) are protected from business debts and lawsuits.
Tax Flexibility – LLCs can be taxed as a sole proprietorship, partnership, S-Corp, or C-Corp.
Less Paperwork – Compared to corporations, LLCs have fewer regulations and compliance requirements.
Credibility & Branding – Having “LLC” in your business name adds professionalism and trust.
How to Start an LLC?
Step 1: Choose a State for Your LLC
Your LLC must be registered in a U.S. state. If you have a physical location, choose your home state. If you want to start an LLC remotely, consider business-friendly states like Wyoming, Delaware, or Nevada, which offer low fees, strong privacy, and tax advantages.
Step 2: Pick a Unique Name for Your LLC
Your business name must be unique and comply with state naming rules. To check availability:
Step 3: Appoint a Registered Agent
A registered agent is required for you to start an LLC. This can be an individual or a company that receives legal documents on your behalf. The agent must have a physical address in the state where your LLC is registered.
Tip: You can act as your own registered agent, but hiring a professional service ensures compliance and privacy. Visit BizFyle for hiring a qualified registered agent.
Step 4: File Your Articles of Organization
To officially register your LLC, file the Articles of Organization with the state government. This document includes:
- Your LLC’s name and address
- Registered agent information
- Business purpose (if required)
- LLC management structure (Member-managed or Manager-managed)
Filing Fees:
Each state has different fees, ranging from $50 to $300. Wyoming, for example, charges $102, while California charges $70 plus an annual $800 franchise tax.
BizFyle is here to help you.
Step 5: Create an Operating Agreement (Recommended)
An Operating Agreement outlines your LLC’s ownership and management structure. While not required in every state, it is highly recommended to prevent future disputes. It should include:
- Ownership percentage of each member
- Voting rights and decision-making processes
- Profit and loss distribution
- Rules for adding or removing members
Step 6: Get an EIN (Employer Identification Number)
An Employer Identification Number (EIN) is essential to start an LLC. It is required for tax purposes, hiring employees, and opening a business bank account. You can obtain it for free from the IRS website.
How to Apply for an EIN:
- Visit the IRS EIN Application page
- Click “Apply Online Now”
- Fill in your business details
- Receive your EIN instantly!
Step 7: Open a Business Bank Account
To separate personal and business finances, open a dedicated business bank account. Most banks require:
- Your EIN
- Articles of Organization
- Operating Agreement (some banks may request it)
- Personal Identification (Passport, Driver’s License, etc.)
Step 8: Register for State Taxes & Permits
Depending on your business type and location, you may need to register for state taxes and obtain business licenses. Check with your state’s Department of Revenue for:
Sales Tax Permit(if selling goods/services)
State Employer Taxes(if hiring employees)
Professional Licenses(for certain industries like law, healthcare, and real estate)
Step 9: File Annual Reports (If Required)
Many states require LLCs to file an annual report and pay a renewal fee to maintain good standing. Fees vary by state, typically ranging from $20 to $10.
Visit BizFyle now to start your LLC today!
LLC Costs by State (Examples)
|
State |
Filing Fee |
Annual Fee |
|
Wyoming |
$102 |
$60 |
|
Delaware |
$90 |
$300 |
|
Nevada |
$425 |
$350 |
|
Texas |
$300 |
No Annual Fee |
|
California |
$70 |
$800 (Franchise Tax) |
FAQs About Starting an LLC
It depends on the state. Online filings can take a few hours to a few days, while mail filings can take weeks.
Yes! Non-residents can start an LLC in the US and get an EIN. However, opening a business bank account may require a U.S. address or presence.
No, but legal guidance is helpful if you have complex business needs. Let bizfyle help you with the legal guidance.
LLC: Less paperwork, pass-through taxation, and flexibility.
Corporation (C-Corp/S-Corp): Better for large companies needing investors and issuing stock.
Yes! You can file a Name Change Amendment with your state.
Let BizFyle Handle Your LLC Formation!
Starting an LLC can be overwhelming, but BizFyle makes the process easy and stress-free. We handle everything from LLC registration, EIN application, compliance filings, and more!
Get started today at bizFyle.com
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