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How to Start an LLC in 8 Simple Steps (2026)
A clear, step-by-step guide to starting an LLC in any US state, whether you live in the US or abroad: what to file, what it costs, how long it takes, and the mistakes that cause trouble later.
To start an LLC, choose a state, pick an available name, appoint a registered agent, and file Articles of Organization with the Secretary of State. Then get an EIN from the IRS, sign an operating agreement, open a business bank account, and keep up with your state’s yearly filings. Most LLCs are approved within a few days to two weeks.
Written by the LLCPronto team (8 years forming LLCs, 22,000+ clients) and reviewed by Arslan Ameer, founder.
What Is an LLC?
An LLC (limited liability company) is a business that a US state creates when you file Articles of Organization. It is separate from you, so in most cases your personal savings are protected from the business’s debts. Owners are called members. For federal tax, a one-owner LLC is treated as part of its owner by default, and a multi-owner LLC is treated as a partnership.
How to Start an LLC: 8 Steps
1. Choose your state
If you live in the US, form your LLC in the state where you live or run the business; forming elsewhere usually means registering twice. If you live outside the US, you can choose any state, and most founders pick Wyoming or New Mexico for low yearly costs. Compare all states on our LLC by state page.
2. Pick an available name
Your name must be unique in that state and end with “LLC” or “Limited Liability Company”. Search the Secretary of State’s business database before you decide. Avoid words like “Bank” or “Insurance”, which need special approval.
3. Appoint a registered agent
Every LLC needs a registered agent with a street address in the state to receive legal papers. You can be your own agent only if you have an address there. Our packages include an agent for the first year.
4. Choose how the LLC is managed
| Type | Who runs it | Best for |
|---|---|---|
| Member-managed | All owners run the business | Most small LLCs and solo founders |
| Manager-managed | Owners appoint one or more managers | Investors who do not want daily involvement |
5. File Articles of Organization
File with your state’s Secretary of State (some states call it a Certificate of Formation or Certificate of Organization) and pay the state filing fee. Most states accept online filing, and approval can be same-day to two weeks.
6. Get an EIN
An EIN is your LLC’s federal tax ID, needed for banking, payments and taxes. US owners with an SSN can apply online; international owners apply with Form SS-4 by phone, fax or mail. The IRS charges nothing.
7. Create an operating agreement
This document sets out who owns the LLC, how profits are shared and how decisions are made. Few states require you to file it, but banks often ask for it, and it is essential with partners.
8. Open a bank account and stay compliant
Open a business bank account to keep LLC money separate. Then put your state’s annual report or fee in your calendar, and if your LLC is owned by a non-US person, file Form 5472 each year.
How Much Does It Cost to Start an LLC?
Every state charges a one-time filing fee, and most LLCs also pay for a registered agent. With LLCPronto you pay one all-in price that already includes the state fee, a registered agent for one year and your EIN, from $190. After the first year, you pay only your state’s yearly filing (none in some states) and the agent renewal. See every state on our pricing page.
How Is an LLC Taxed?
| LLC type | Default federal tax treatment | Main form |
|---|---|---|
| One owner (US) | Profits pass to the owner’s personal return | Schedule C |
| One owner (non-US) | Disregarded entity; information return required | Form 5472 + pro forma 1120 |
| Two or more owners | Partnership | Form 1065 |
| Elected corporation | Taxed as a C or S corporation (S corporation is only for eligible US owners) | Form 1120 or 1120-S |
Tax depends on your situation. Our tax team, including M. Hassan, CPA, handles Form 5472 and US tax questions for our clients.
LLC Pros and Cons
| Pros | Cons |
|---|---|
| Protects personal assets in most cases | Yearly fees in many states (California charges $800) |
| Simple to run | Investors often prefer a C corporation |
| Flexible taxes | US owners usually pay self-employment tax |
| Owners can live anywhere in the world | Foreign-owned LLCs must file Form 5472 |
Starting an LLC From Outside the US
You can do every step online without an SSN, a visa or a US visit. The differences: the EIN is applied for by phone or fax, banking depends on your country, and a foreign-owned LLC files Form 5472 each year. See our non-resident LLC guide and, for founders in Pakistan, our US LLC from Pakistan page.
Common Mistakes When Starting an LLC
- Forming in the “cheapest” state when you live and work in another US state, which means paying twice.
- Skipping the operating agreement.
- Mixing personal and business money, which can weaken liability protection.
- Missing the annual report, which can get your LLC dissolved.
- Using different spellings of the LLC name on the EIN, bank and platforms.
More LLC Guides
- What is an LLC? Meaning and benefits
- Single-member LLC: taxes and rules
- LLC operating agreement
- LLC name search
- LLC vs sole proprietorship
- LLC vs S corp
- DBA vs LLC
- Articles of Organization
- How long does it take to get an LLC?
- LLC taxes
- LLC vs Inc
- LLC vs LTD
- EIN vs ITIN vs SSN
- What is Form 1120?
How to Start an LLC: FAQs
Can you create an LLC by yourself?
Yes. Every state lets you file online yourself. You choose a name, appoint a registered agent, file Articles of Organization with the Secretary of State and get an EIN. A service saves time and avoids mistakes, especially if you live outside the US.
How much does it cost to start an LLC?
You pay a one-time state filing fee, which varies by state, plus a registered agent and sometimes an EIN service. With LLCPronto you pay one all-in price that includes all three, from $190. See every state on our pricing page.
Can I start an LLC for free?
No. Every state charges a filing fee to create an LLC. The EIN from the IRS is free, and you can be your own registered agent if you have an address in the state, but the state filing fee always applies.
How long does it take to start an LLC?
From the same day to about two weeks for state approval, depending on the state and whether you file online. The EIN can be issued the same day by the IRS phone line for international applicants, or online for US owners with an SSN.
What is the biggest disadvantage of an LLC?
Yearly costs and paperwork. Many states charge an annual report fee or franchise tax, and some, like California, charge $800 a year. US owners also usually pay self-employment tax on profits.
Can a non-US resident start an LLC?
Yes. No state requires LLC owners to be US citizens or residents. Founders abroad usually choose Wyoming or New Mexico. Read our non-resident LLC guide.
Do I need an operating agreement?
Most states do not require you to file one, but you should have it. Banks often ask for it, and it protects the LLC’s separate status, especially if you have partners.
Do I need a business license?
It depends on your city, county and industry. The LLC itself is a state filing; local licenses and permits are separate. Online businesses often need none, but check your local rules.
Start Your LLC the Easy Way
One all-in price with the state fee, registered agent and EIN included.
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