How to File an LLC in Any State

Why an LLC Instead of a Sole Proprietorship

An LLC creates a legal wall between your business debts and your personal assets. Without an LLC or corporation, a lawsuit or unpaid business bill can reach your savings, home, or personal car. The LLC is the simplest formal structure that provides that separation while keeping taxes relatively uncomplicated.

Single-member LLCs are taxed like sole proprietorships (pass-through). Multi-member LLCs default to partnership taxation. You can also elect S corporation treatment later if that saves money. The key point is that the entity itself does not typically pay federal income tax—the owners do.

Step 1: Name Your LLC and Check Availability

Every state requires a name that is not already in use by another registered business. The name must include a designator like “LLC,” “L.L.C.,” or “Limited Liability Company.” Avoid names that sound like government agencies or use restricted words without permission (bank, insurance, university).

Check name availability on your secretary of state’s website. Most states let you search instantly. If the exact name is available, most states let you reserve it for 30–120 days for a small fee while you prepare paperwork.

Consider whether you want a DBA (doing business as) or trade name if you plan to operate under a different public-facing name. That is a separate filing, usually with the county clerk.

Step 2: Pick a Registered Agent

Every LLC must have a registered agent—a person or company with a physical street address in the formation state who accepts legal mail and service of process during normal business hours.

You can be your own registered agent if you have a physical address in the state and are available during business hours. The downside is that your address becomes public record and you may get served with a lawsuit at your office or home.

Professional registered agent services cost $50–$300 per year and keep your address private. They also forward official mail promptly and remind you of annual report deadlines. Northwest Registered Agent, ZenBusiness, and LegalZoom are common providers.

Step 3: File Articles of Organization

This is the main formation document. You file it with the secretary of state or equivalent agency. Most states let you file online in 15–30 minutes. The form asks for the LLC name, registered agent name and address, principal office address, management structure (member-managed or manager-managed), and the organizer’s signature.

State filing fees range from $40 (Kentucky) to $800 (Massachusetts). Most states charge $100–$200. Online filing is usually the fastest—sometimes approved the same day. Mail filing can take 2–4 weeks.

Many states now require a beneficial ownership information (BOI) report with FinCEN within 90 days of formation. This is a federal filing, separate from the state. It asks for the names, addresses, and ID documents of anyone who owns or controls 25% or more of the company.

Step 4: Draft an Operating Agreement

An operating agreement spells out who owns what percentage, how profits and losses are split, how decisions are made, what happens if a member wants to leave, and how the LLC can be dissolved. Even single-member LLCs should have one—it reinforces the separation between you and the entity in the eyes of courts and the IRS.

A handful of states (California, Delaware, Maine, Missouri, Nebraska, New York) require an operating agreement by law. Even if your state does not require one, skipping it is a risk. A simple one-page agreement is far better than nothing.

You do not file the operating agreement with the state. Keep it with your business records. You can use a free template from your state bar association, an online legal service, or hire a business attorney.

Step 5: Get an EIN from the IRS

An Employer Identification Number (EIN) is like a social security number for your business. You need it to open a bank account, file taxes, hire employees, and in many states register for state taxes.

Applying takes about 5 minutes on the IRS website. It is free—do not pay a third party to get one for you. You can get the number immediately online. International applicants can apply by phone or fax.

Even a single-member LLC without employees should get an EIN. Using your social security number for business purposes increases identity theft risk and blurs the line between personal and business activity.

Step 6: Open a Business Bank Account and Register for Taxes

Open a separate business checking account once you have your EIN. Do not run business income and expenses through your personal account—this weakens the LLC’s liability protection (called piercing the corporate veil) and makes bookkeeping a mess.

Check whether your state requires a sales tax permit if you sell physical goods or taxable services. Most states have an online registration portal. You may also need to register with your state’s department of revenue for income tax withholding if you have employees.

Set aside 25–30% of profit for taxes in a separate savings account. For a single-member LLC, you will pay self-employment tax (15.3%) plus your marginal income tax rate on net profit.

Annual Requirements After Formation

Most states require an annual or biennial report with a small fee ($10–$500). Missing the deadline can trigger late fees and eventually administrative dissolution of your LLC. Set a calendar reminder.

Some states impose a franchise tax or annual LLC fee regardless of revenue. California has an $800 minimum annual franchise tax. Texas has a franchise tax based on revenue above a threshold. Know your state’s schedule before you form.

Update your BOI report with FinCEN within 30 days of any change to beneficial owners or their information. This is a new federal requirement and penalties for noncompliance are significant ($500 per day).