Starting an LLC, explained simply
An LLC can keep business debts and lawsuits separate from your personal things, within limits. To start one: pick a name that’s free in your state, file Articles of Organization and pay the state fee, name a registered agent, get a free EIN from the IRS, open a separate business bank account, and file any yearly reports.
Your checklist
- Pick a name that’s free
- File Articles of Organization
- Name a registered agent
- Get a free EIN from the IRS
- Open a business bank account
- Check local licenses
- File yearly reports
Rather read it? Here’s the whole thing.
What an LLC does
An LLC (limited liability company) usually keeps business debts and lawsuits separate from your house and savings. The protection has limits, especially if business and personal money get mixed.
The steps
- Pick a name: check your state’s business list. It usually must end in “LLC.”
- File with the state: usually called Articles of Organization. There’s a state fee, and many states let you file online.
- Registered agent: a person or company at an address in your state that accepts legal mail. It can be you.
- EIN: like a Social Security number for the business. It’s free on the IRS website.
- Bank account: keep business and personal money separate.
Afterward
Many states require yearly reports and fees. Check city and county licenses, permits and sales tax rules.
Do you need a lawyer?
For a one-person LLC, many people file themselves. With partners, investors or big contracts, a business lawyer can write an operating agreement that protects everyone.
Common questions
How are LLCs taxed?
By default, a one-owner LLC is taxed like a sole proprietor and a multi-owner LLC like a partnership. Some choose other options. Ask a tax professional.
Which state should I form in?
Usually the state where you do business. Forming elsewhere can mean extra fees and filings.
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Not yet reviewed by an expert. Last checked 2026-10-29. This is general help, not legal, medical or professional advice. Rules are different in every state.