How to open a company in the United States
FORM AN LLC

Simple Steps to Save You Time and Money

A limited liability company (LLC) is one of the most popular business structures, offering limited liability protection and protection from pass-through taxation.

LLC stands for limited liability company. Forming an LLC is the simplest way of structuring your business to protect your personal assets

in the event your business is sued.

An LLC is the most popular business structure chosen by small business owners that offers:

1. Personal liability protection of a corporation
2. Pass-through taxation benefits of a sole proprietorship or partnership.

Form an LLC in 7 Steps

A limited liability company (LLC) is a business structure that offers the benefit of limited liability protection and flexible tax options. Read our step-by-step guide below to learn how to start an LLC today.

1. Select Your State
2. Name Your LLC
3. Choose a Registered Agent
4. File Your LLC with the State
5. Create an LLC Operating Agreement
6. Get an EIN
7. File a BOI Report

Step 1: Select Your State

For most new business owners, the best state is to form an LLC in the state where you live and plan to do business in. If your business will have a physical presence (e.g., storefronts, offices, sales reps, etc.) in different states, you’ll need to register a foreign LLC in those states. Use our state-specific guides below to learn how to start an LLC in your state:

• Alabama
• Alaska
• Arizona
• Arkansas
• California
• Colorado
• Connecticut
• Delaware
• District of Columbia
• Florida
• Georgia
• Hawaii

• Idaho
• Illinois
• Indiana
• Iowa
• Kansas

• Kentucky
• Louisiana
• Maine
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Mississippi

• Missouri
• Montana
• Nebraska
• Nevada
• New Hampshire

• New Jersey
• New Mexico
• New York
• North Carolina

• North Dakota
• Ohio
• Oklahoma
• Oregon

• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• Tennessee
• Texas
• Utah
• Vermont
• Virginia
• Washington
• West Virginia
• Wisconsin
• Wyoming

Step 2: Name Your LLC

You’ll need to complete a LLC name search online to make sure your LLC name is unique, and you’ll need to meet your state’s naming guidelines. These are some common state LLC naming rules:

• Your company name must include the phrase “limited liability company” or one of its abbreviations (LLC or L.L.C.).
• Your company name can’t include words that could confuse your LLC with a government agency (FBI, Treasury, State Department, etc.).
• Restricted words (e.g., Bank, Attorney, University) may require additional paperwork and a licensed individual, such as a doctor or lawyer, to be part of your LLC.

State LLC Name Guides & Searches

Use the table below for state-specific LLC naming guidelines and direct access to each Secretary of State’s business name search database. Select a state for naming rules or click ‘Business Name Search’ link for your state to confirm name availability.

Step 3: Choose a Registered Agent

A registered agent is a person or business that sends and receives legal papers on behalf of your company. These documents include official correspondence like legal summons and state filing notices.

Most states require every business to nominate a registered agent when forming an LLC. Your registered agent must be a resident of the state you’re doing business in or a corporation authorized to conduct business in that state.

Step 4: File LLC Articles of Organization

To officially create an LLC, you’ll need to file your formation documents with the state’s business division, usually part of the Secretary of State. In some states, the Articles of Organization are known as the Certificate of Formation or Certificate of Organization.

You can typically complete file formation documents yourself online, by mail, by fax, or in person. However, we recommend hiring an LLC formation service to file for you.

Step 5: Create an LLC Operating Agreement

An LLC operating agreement is a legal document that outlines the ownership structure and member roles of an LLC.

Although most states don’t officially require you to have an operating agreement, it’s still a good idea to create one when forming an LLC. There are six main sections of an operating agreement:

• Organization
• Management and Voting
• Capital Contributions
• Distributions
• Membership Changes
• Dissolution

Step 6: Get an EIN

An Employer Identification Number (EIN), also known as a Federal Employer Identification Number (FEIN), or Federal Tax Identification Number (FTIN), is like a Social Security number (SSN) for your LLC. You’ll need an EIN to hire employees or open a business bank account.

You can get your EIN for free on the IRS website, via fax, or by mail. If you’d like to learn more about EINs and how they can benefit your LLC, read our What Is an EIN article.

Step 7: File a BOI Report

Beginning January 2024, LLC owners are required to file a Beneficial Ownership Information (BOI) Report with the US Financial Crimes Enforcement Network (FinCEN). Existing LLCs can file their report any time between January 1, 2024, and January 1, 2025, while new LLCs will need to file within 90 days of formation.

This contains similar information to that of your Articles of Organization, such as your LLC name and member information, and can be filed online for free. Failure to file an accurate report on time can result in a $500 per day fine or even a jail sentence of up to two years.

Note: There are certain filing exemptions, such as for large companies (i.e., more than 20 full-time employees), tax-exempt entities, and publicly traded companies.