How to form an LLC, step by step

Written and fact-checked by Alan Maldonado · Updated Oct 13, 2026 · 7 min read

Forming an LLC takes one filing with a state and a few steps around it. You can do every step yourself; a formation service does the same filing for you and charges for the convenience. Here is the whole process in order.

1. Pick the state

You form the LLC in one state. The SBA explains that the state where you form treats it as a domestic company, and every other state where it does business treats it as a foreign company, which has to register there too and usually pay that state’s fees as well.

For most people that makes the choice simple: form in the state where you live and work. Forming in Wyoming or Delaware rarely saves money if the business really operates somewhere else, because you end up paying both states. Our guide to foreign qualification explains when that second registration applies.

The state you pick also sets what you pay every year after the first. Here is what six popular states charge over the first three years:

2. Choose a name and check it is available

States generally set two basic rules for the name:

• It must say it is an LLC. Delaware requires “the words ‘Limited Liability Company’ or the abbreviation ‘L.L.C.’ or the designation ‘LLC’.” Florida, New York and Wyoming have similar lists, and Texas also accepts “limited company.” California adds “LLC” if you leave it out.
• It must be distinguishable from the names already on the state’s records. Florida, for example, does not count a different suffix, an article, “and” versus ”&”, singular versus plural or punctuation as a difference.

Search the state’s records before you file:

• Wyoming: business search
• Delaware: entity name search. Delaware also lets you reserve a name for 120 days for $75.
• Florida: Sunbiz search
• California: bizfile search. The state calls this a preliminary check, not a formal approval.
• New York: public inquiry
• Texas: searches on its SOSPortal cost $1 each; you can also ask at no charge at (512) 463-5555 or [email protected]. Texas says a final decision is made only when it processes your filing.

3. Name a registered agent

Every LLC needs a registered agent: a person or company with a physical street address in the state that receives legal papers and official notices for the LLC. You name it in your formation document.

You can often be your own agent if you live in the state: Wyoming allows it for a resident who is at least 18, with a physical Wyoming address and a valid email, and Delaware says that “if the business is physically located in Delaware, then the business may act as its own registered agent.” California and Texas do not let the LLC itself be the agent. A P.O. box doesn’t work as the agent’s address (Wyoming accepts one only alongside a street address). In New York the Secretary of State is designated to receive legal papers, so a separate agent is optional.

If you can’t or don’t want to be your own agent, a registered agent service costs money every year, and it is often what makes an LLC cost more in year two than in year one. Our guide to registered agents covers the rules, and the calculator shows what each provider charges for it over three years.

4. File the formation document

This is the step that creates the LLC. Most states call the document Articles of Organization; Delaware and Texas call it a Certificate of Formation. You file it with the Secretary of State (or the state’s Division of Corporations), usually online (Delaware takes uploads of the completed form), and pay the state’s filing fee.

How long it takes varies. Wyoming says an online filing is active right away and a mailed one takes up to 15 business days. California publishes its current backlog on a processing dates page. Delaware sells expedited service, from next-day to one-hour, for an extra fee. Every state page lists that state’s fees with links to its fee schedule.

5. Write an operating agreement

An operating agreement sets out who owns the LLC and how it is run: ownership shares, how decisions are made, what happens if a member leaves. It is an internal document; you keep it, you don’t file it with the state.

Whether you must have a written one depends on the state. New York requires it: members must adopt a written operating agreement, which may be signed before, at the time of or within 90 days after filing. Delaware, Florida and Wyoming define it as an agreement that can be written, oral or implied. Even where it is optional, a written agreement helps when you open a bank account or bring in a partner. You don’t need to buy one: templates are widely available, and some formation services pre-select one at checkout for a fee.

6. Get an EIN

An EIN is your LLC’s federal tax ID. The IRS issues it for free: “You never have to pay a fee for an EIN.” Apply after the state has formed your LLC; the IRS warns that applying before can delay the application. Online, you get the number as soon as the application is approved, but the online application requires a principal place of business in the US and a responsible party with an SSN or ITIN; owners abroad without them apply by fax, mail or phone. Our guide on how to get an EIN covers who needs one and how to apply.

7. Open a business bank account

Keep the LLC’s money separate from yours. The SBA says a business account offers limited personal liability protection “by keeping your business funds separate from your personal funds,” and that it “helps you stay legally compliant and protected.” Banks typically ask for the EIN, the formation document and your operating agreement.

8. Handle what comes right after

A few states have requirements soon after you form:

• New York: within 120 days, publish a notice once a week for six weeks in two newspapers chosen by the county clerk, then file a Certificate of Publication ($50). If you don’t, the LLC’s authority to do business is suspended. The state does not publish what the newspapers charge.
• California: file a Statement of Information (Form LLC-12, $20) within 90 days of forming, then every two years.
• Wyoming, Delaware and Texas have no initial report; their yearly obligations start later.

One federal filing no longer applies: FinCEN’s August 2026 rule says “U.S. companies are exempt from BOI reporting requirements,” so an LLC formed in the US does not file a beneficial ownership report.

9. Keep it in good standing

Forming the LLC is a one-time step; keeping it is not. Most states expect an annual or biennial report and fee, and some charge a minimum tax no matter what you earn. Our guide to yearly obligations and the compliance calendar show what each state charges and when it is due.

Do it yourself or use a service?

Both get you the same LLC. Doing it yourself costs the state fee and your time, plus a registered agent if you can’t be your own. A service files for you and usually bundles a registered agent, but many advertise a low first year and charge more after, and some pre-select extras such as an EIN or an operating agreement that you can get for free or write yourself.

If you use a service, compare what you pay over three years, not the first-year price. The calculator adds your state’s fees to each provider’s charges, and the ranking sorts providers by that total.

Watch for pre-selected extras

Checkouts often add services for you: a managed annual report, an EIN, an operating agreement, expedited processing, a monthly plan. Each one has a box or a radio button already selected, and the price adds up if you click through. Here is what keeping everything that comes selected adds to the first year, provider by provider:

Before you pay, go through the order screen by screen and keep only what you need. The calculator shows any provider’s cost with and without its pre-selected extras.

Sources

Checked October 13, 2026.

• SBA, Register your business and Open a business bank account
• Wyoming Statutes, Title 17 (17-29-102, 17-29-108); Wyoming Secretary of State, Articles of Organization instructions, business FAQs and registered agent FAQs
• Delaware Code, Title 6, Chapter 18 (18-101, 18-102); Delaware Division of Corporations, How to form a new business entity, Expedited services and Fee schedule
• Florida Statutes, 605.0102, 605.0112 and 605.0113
• Texas Business Organizations Code, Chapter 5; Texas Secretary of State, SOSPortal, Name filing FAQs, Form 205 instructions and Formation FAQs
• California Secretary of State, Form LLC-1, Name availability, Business entities FAQs and LLC forms
• New York LLC Law, §204, §206 and §417; New York Department of State, Forming an LLC and Certificate of Publication
• IRS, Get an employer identification number
• FinCEN, Beneficial ownership information

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