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How to Start an LLC: A Step-by-Step Guide for 2026

How to Start an LLC: A Step-by-Step Guide for 2026

Forming an LLC (Limited Liability Company) is one of the most important first steps for any small business owner. It protects your personal assets, makes your business look more legitimate, and opens the door to business bank accounts, credit, and contracts.

The good news: it's not complicated. Here's exactly how to do it.

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Step 1: Choose Your State

Most small business owners should form their LLC in the state where they live and do business. You'll hear people say "form in Delaware" or "form in Wyoming" for tax advantages, but for most solo founders and small businesses, the savings don't outweigh the hassle of operating as a foreign LLC in your home state.

Just pick your home state. The process and cost are nearly identical everywhere.

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Step 2: Choose a Name

Your LLC name must:

  • Be unique in your state (check your state's business name database)
  • Include "LLC" or "Limited Liability Company" at the end
  • Not use restricted words like "Bank," "Insurance," or "Attorney" without proper licensing

Tip: Your legal LLC name doesn't have to be your business name. You can operate under a different name by filing a DBA ("doing business as").

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Step 3: Appoint a Registered Agent

Every LLC needs a registered agent, a person or company designated to receive legal documents on behalf of your business.

You can be your own registered agent (if you have a physical address in the state), or you can use a registered agent service for $50–$150/year. Services like Northwest Registered Agent or ZenBusiness handle this for a reasonable fee.

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Step 4: File Your Articles of Organization

This is the official document that creates your LLC. You file it with your state's Secretary of State office.

What you'll need:

  • Your LLC name
  • Your registered agent's name and address
  • Your principal business address
  • Names of the LLC members (owners)

Cost: $40–$500 depending on the state. Most states charge $50–$150.

Time: Usually processed within 1–5 business days online, though some states can take weeks by mail.

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Step 5: Create an Operating Agreement

An operating agreement is an internal document that outlines how your LLC is run, ownership percentages, how profits are split, how decisions are made, and what happens if a member leaves.

Most states don't require one, but you should have one anyway. It protects you legally if there's ever a dispute.

Single-member LLC (just you)? You still want one, it reinforces the legal separation between you and the business.

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Step 6: Get Your EIN

An EIN (Employer Identification Number) is like a Social Security number for your business. You'll need it to:

  • Open a business bank account
  • File business taxes
  • Hire employees (if applicable)
  • Apply for business credit

It's free and takes 10 minutes at IRS.gov. Apply online and you'll get your EIN instantly.

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Step 7: Open a Business Bank Account

The whole point of an LLC is to separate your personal and business finances. That only works if you actually keep them separate.

Open a dedicated business checking account as soon as your LLC is formed. Most banks require your Articles of Organization and EIN to open one.

Popular options: Relay, Mercury (great for startups), or your local bank.

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Step 8: Register for State Taxes (If Needed)

If your business sells physical products, you'll likely need to register for a sales tax permit in your state. If you have employees, you'll need to register for payroll taxes.

Service businesses selling only services often don't need a sales tax permit, but check your state's rules to be sure.

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How Much Does It Cost to Form an LLC?

| Expense | Cost |

|---|---|

| State filing fee | $40–$500 |

| Registered agent | $0–$150/year |

| Operating agreement (DIY) | Free |

| EIN | Free |

| Business bank account | Free–$25/mo |

Total to get started: $50–$300 in most states.

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How Long Does It Take?

Most states process LLC filings in 1–5 business days online. Some states offer same-day or next-day expedited processing for an extra fee.

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What Comes After Your LLC?

Forming the LLC is just the first step. After that, you'll need to:

  • Set up accounting (QuickBooks, Wave, or FreshBooks)
  • Get any licenses or permits required for your industry
  • Set up your business operations (website, payment processing, etc.)

The full roadmap looks different depending on your industry and stage.

*FoundersPie builds a personalized, step-by-step roadmap for your specific business, covering everything from LLC formation through your first customers and beyond. Start your free plan →Start your free plan →https://getfounderspie.com*