How to Start an LLC in 2026: Step-by-Step Guide

Starting an LLC is one of the smartest moves you can make as a business owner. It protects your personal assets, gives you tax flexibility, and makes your business look more legitimate to clients and vendors. The good news: the process is straightforward, and you can have your LLC up and running in as little as a few days.

Here’s exactly how to do it in 2026, whether you’re filing yourself or using an LLC formation service.

Step 1: Choose Your State

Most people should form their LLC in the state where they live and do business. Despite what you may have read about Wyoming or Delaware being “the best” states for LLCs, forming in a different state usually means you’ll need to register as a foreign LLC in your home state anyway — paying double the fees.

There are exceptions. If you run an online-only business with no physical presence in any state, or if you’re a real estate investor holding property in multiple states, it may make sense to form elsewhere. We break down the numbers in our guide to the cheapest states to form an LLC.

State filing fees range from $40 (Kentucky) to $500 (Massachusetts). The average sits around $100-$150.

Step 2: Name Your LLC

Your LLC name must be unique in your state’s business registry and must include “LLC” or “Limited Liability Company.” Before settling on a name:

1. Search your state’s business database. Every Secretary of State website has a free name search tool.
2. Check domain availability. Even if you don’t plan to build a website tomorrow, securing a matching .com is smart.
3. Search the USPTO trademark database. You don’t want to build a brand around a name that’s already trademarked.

If your desired name is available but you’re not ready to file yet, most states let you reserve a name for 60-120 days for $10-$25.

Step 3: Choose a Registered Agent

Every LLC needs a registered agent — a person or company designated to receive legal documents and official state mail on behalf of your business. Your registered agent must have a physical street address (not a P.O. box) in the state where your LLC is formed.

You have three options:

• Be your own registered agent. Free, but your address becomes public record, and you must be available during business hours.
• Ask a friend or family member. Also free, but puts a burden on someone else.
• Hire a registered agent service. Costs $100-$300 per year. Keeps your address private and ensures you never miss important documents.

Most LLC formation services include a registered agent for the first year. Northwest Registered Agent is known for including it at no extra cost with their formation package, and ZenBusiness bundles it into their paid tiers. See our full registered agent comparison for more options.

Step 4: File Your Articles of Organization

This is the official step that creates your LLC. You’ll file “Articles of Organization” (called “Certificate of Formation” in some states) with your state’s Secretary of State office. The form typically asks for:

• Your LLC name
• Principal business address
• Registered agent name and address
• Whether the LLC is member-managed or manager-managed
• Name(s) of organizers

Filing methods:

• Online — Fastest. Most states process within 1-5 business days.
• By mail — Slower. Expect 2-4 weeks for processing.
• Through an LLC service — Services like ZenBusiness, Northwest Registered Agent, or Bizee handle the filing for you, often catching errors that cause rejections.

If speed matters, check whether your state offers expedited processing. It usually costs $50-$100 extra and cuts the timeline to 1-2 business days. Some formation services include rush processing in their premium packages.

Step 5: Get an EIN (Employer Identification Number)

An EIN is like a Social Security number for your business. You need one to open a business bank account, hire employees, and file taxes. The IRS issues EINs for free, and you can get one online in about 5 minutes.

We have a complete walkthrough in our guide on how to get an EIN for your LLC.

Important: Don’t pay anyone for an EIN. Some services charge $50-$100 for this, but the IRS provides them at no cost through their website (irs.gov). The only reason to pay is convenience — some formation packages include it as part of a bundle.

Step 6: Create an Operating Agreement

An operating agreement is an internal document that outlines how your LLC will be run. It covers ownership percentages, profit distribution, voting rights, and what happens if a member wants to leave.

Even if your state doesn’t legally require one (and many don’t), you absolutely should have an operating agreement. Banks often ask for it when you open a business account, and it protects you in disputes.

Single-member LLCs need one too. Without an operating agreement, a court might decide your LLC isn’t truly separate from you personally, which defeats the whole purpose of forming one. Check out our operating agreement guide for a walkthrough of what to include.

Step 7: Open a Business Bank Account

Mixing personal and business finances is one of the fastest ways to lose your LLC’s liability protection. Open a dedicated business checking account as soon as your LLC is approved.

You’ll typically need:

• Your Articles of Organization (or Certificate of Formation)
• Your EIN confirmation letter
• Your operating agreement
• A government-issued photo ID

We cover the full process, including which banks offer the best accounts for small LLCs, in our guide to opening a business bank account.

Step 8: Handle Licenses, Permits, and Ongoing Compliance

Depending on your business type and location, you may need:

• Business license — Most cities and counties require one. Fees range from $50-$400.
• Professional licenses — Required for certain industries (contractors, accountants, real estate agents, etc.).
• Sales tax permit — If you sell physical products or taxable services.
• DBA (Doing Business As) — Only needed if you operate under a name different from your official LLC name.

You’ll also need to stay on top of annual requirements. Most states require an annual report (sometimes called a “statement of information”) with a filing fee. Miss this, and your LLC can fall out of good standing — or even be dissolved.

Should You Use an LLC Formation Service?

You can absolutely file everything yourself. The process isn’t complicated for most states. But formation services save time, reduce the chance of errors, and often include registered agent service bundled in.

Here’s a rough comparison:

	DIY	Formation Service
Cost	State fee only ($40-$500)	State fee + $0-$299 service fee
Time investment	2-4 hours of research and filing	10-15 minutes to fill out a form
Error risk	Higher if unfamiliar with requirements	Lower — they file thousands per year
Registered agent	You arrange separately	Often included

If you want help choosing, our best LLC formation services comparison ranks the top options side by side. For budget-conscious founders, both Bizee and ZenBusiness offer free formation tiers (you pay only the state fee).

What Comes After Formation?

Once your LLC is official, focus on these three things:

1. Separate your finances — Open that business bank account and get a business credit card.
2. Understand your tax obligations — LLCs have flexible tax treatment. Read our guide on LLC tax benefits to understand your options.
3. Set up basic bookkeeping — Track income and expenses from day one. You’ll thank yourself at tax time.

Starting an LLC doesn’t have to be intimidating. Most founders complete the entire process in a single afternoon. Pick a name, file the paperwork, get your EIN, and you’re in business.