How to Create an LLC 

Starting a Limited Liability Company (LLC) is one of the most popular ways to structure a new business in the United States.

LLCs combine liability protection with flexible management and tax benefits, making them a strong choice for entrepreneurs across industries.

Let Northwest Guide You Through the Process

Tip: Also read the 10 steps to starting a new business, by Northwest Registered Agent

LLC Formation Checklist: 9 Steps to Start an LLC

Starting an LLC is easier when you follow the process step by step. Use this checklist as a quick reference while forming your business.

✅ 1. Choose the State Where You’ll Form Your LLC

For most small businesses, this is the state where you’ll operate. If you form your LLC in another state, you may also need to register as a foreign LLC where you conduct business.

✅ 2. Choose a Business Name

Select a unique business name that complies with your state’s LLC naming requirements. Before filing, search your state’s business name database to confirm the name is available.

✅ 3. Choose a Registered Agent

Every LLC must designate a registered agent with a physical address in the state. The registered agent receives legal documents, government notices, and important compliance mail on behalf of your business.

✅ 4. File the Articles of Organization

Submit your Articles of Organization (sometimes called a Certificate of Organization or Certificate of Formation) with the appropriate state filing office and pay the required filing fee.

✅ 5. Create an Operating Agreement

An operating agreement outlines your LLC’s ownership, management structure, and operating procedures. Even when not required by state law, it’s recommended for every LLC.

✅ 6. Apply for an EIN

Obtain an Employer Identification Number (EIN) from the IRS. Most LLCs need an EIN to hire employees, open a business bank account, and file certain tax forms.

✅ 7. Open a Business Bank Account

Separate your personal and business finances by opening a dedicated business bank account. This helps simplify accounting and supports your LLC’s liability protection.

✅ 8. Obtain Required Licenses and Permits

Depending on your business activities and location, you may need local, state, or federal business licenses, permits, or professional registrations before you begin operating.

✅ 9. Stay Compliant

Keep your LLC in good standing by filing annual or periodic reports, paying any required state fees or taxes, maintaining a registered agent, and keeping your business information current.

✔ Quick LLC Startup Checklist

• ✅ Choose the state where you’ll form your LLC

• ✅ Choose an available business name

• ✅ Appoint a registered agent

• ✅ File your Articles of Organization

• ✅ Create an operating agreement

• ✅ Apply for an EIN

• ✅ Open a business bank account

• ✅ Obtain required licenses and permits

• ✅ Stay compliant with ongoing state requirements

– If you operate outside your formation state, file for a Foreign LLC registration.

LLC vs S-Corp vs C-Corp

Frequently Asked Questions (FAQs)

1. How much does it cost to start an LLC?
The cost to start an LLC varies depending on the state. Filing fees typically range from $50 to $500. Additional costs may include registered agent services, name reservation fees, and state-specific publication requirements. It’s important to check your state’s specific fees before filing.

2. Do I need an attorney to start an LLC?
No, you are not required to hire an attorney to form an LLC. Many entrepreneurs file the paperwork themselves or use an online LLC formation service. However, consulting an attorney can be helpful if your LLC has complex ownership arrangements or if you want legal advice specific to your situation.

3. Can a single person form an LLC?
Yes, a single person can form a Single-Member LLC (SMLLC). This structure still provides liability protection and tax flexibility, and it’s a popular option for freelancers, consultants, and solo entrepreneurs.

4. How long does it take to form an LLC?
The processing time to form an LLC depends on the state. Some states offer instant or same-day processing for online filings, while others may take several days or weeks. Expedited processing is available in many states for an additional fee.