How to Start an LLC: A Step-by-Step Guide

A Limited Liability Company (LLC) is a business structure that separates your personal assets from your business debts. If your company is sued or can't pay its bills, your house, car, and personal savings are generally protected — that's the entire reason most founders choose an LLC over operating as a sole proprietor.

It also comes with simpler paperwork than a corporation: no board of directors, no mandatory shareholder meetings, and profits pass straight through to your personal tax return unless you elect otherwise.

Your state won't let two active businesses share the same name. Before you fall in love with a name, search your state's business registry to confirm it's free, and check that the matching domain and social handles are available too — even though that part isn't legally required.

Every LLC needs a registered agent: a person or company with a physical address in the formation state who agrees to accept legal mail and state notices on the company's behalf during business hours. You can act as your own agent if you have a physical address in that state, but many founders — especially those forming a U.S. LLC from outside the country — use a registered agent service instead.

This is the one document that actually creates your LLC. It's filed with the state (not the federal government) and typically asks for your business name, address, registered agent, and management structure, along with a filing fee that varies by state.

An operating agreement isn't always filed with the state, but it's the document that governs how your LLC actually runs — who owns what percentage, how decisions get made, and what happens if a member wants out. Skipping this is one of the most common regrets founders have once a dispute comes up.

An Employer Identification Number (EIN) is issued free by the IRS and works like a social security number for your business. You'll need it to open a business bank account, hire employees, and file taxes. Keeping business and personal finances in separate accounts is also what actually preserves your liability protection — mixing the two is one of the fastest ways to lose it.