# 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. - URL: https://explained.page/starting-an-llc - Language: en - Last checked: 2026-10-29 - Watch the 1-minute animated guide: https://explained.page/watch?start=starting-an-llc ## Step by step 1. **Starting a business?** An LLC is a popular way to set it up. Here’s what it is and how to start one, in plain words. 2. **An LLC helps protect your personal things.** If the business owes money or gets sued, your house and savings are usually kept separate. That protection has limits, so keep business and personal money apart. 3. **Pick a name, and check it’s free.** Search your state’s business list. The name usually has to end with “LLC.” 4. **File papers with your state.** They’re usually called Articles of Organization. There’s a state fee, and many states let you file online. 5. **Name a registered agent.** A person or company that accepts legal mail for the LLC, at an address in your state. It can be you. 6. **Get an EIN from the IRS.** It’s like a Social Security number for your business. It’s free on the IRS website, so don’t pay a site that charges for it. 7. **Open a separate bank account.** Keep business money and personal money apart. Mixing them can weaken your protection and make taxes harder. 8. **Keep it in good standing.** Many states require a yearly report and fee. Check local licenses and permits, and any sales tax rules too. 9. **Look it up the right way.** Search with your town or state in the words. Pick the official site: it usually ends in .gov. Skip ads and sites that charge for free forms. 10. **Partners, investors or big contracts?** An operating agreement sets the rules between owners. A business lawyer can write one that protects everyone. ## 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 ## 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. Source page: https://explained.page/starting-an-llc/questions/how-are-llcs-taxed ### Which state should I form in? Usually the state where you do business. Forming elsewhere can mean extra fees and filings. Source page: https://explained.page/starting-an-llc/questions/which-state-should-i-form-in ### How much does it cost to form an LLC? It depends on your state. State filing fees range from under $100 to several hundred dollars, and some states charge a yearly fee too. Source page: https://explained.page/starting-an-llc/questions/how-much-does-it-cost-to-form-an-llc ### Do I need an operating agreement? Some states require one, and it’s a good idea everywhere. It sets out who owns what, who decides, and what happens if someone leaves. Source page: https://explained.page/starting-an-llc/questions/do-i-need-an-operating-agreement ### Can I be my own registered agent? Usually yes, if you have a street address in the state and can be there during business hours to accept legal papers. Source page: https://explained.page/starting-an-llc/questions/can-i-be-my-own-registered-agent ### LLC or sole proprietorship: what’s the difference? A sole proprietorship is simple, but your personal things aren’t separate from the business. An LLC adds that separation and some paperwork and fees. Source page: https://explained.page/starting-an-llc/questions/llc-or-sole-proprietorship-whats-the-difference ### Do I need a business license too? Often yes. Your city, county or state may require licenses or permits depending on what you do. Check before you open. Source page: https://explained.page/starting-an-llc/questions/do-i-need-a-business-license-too ### Do I really need a separate bank account? Yes. Mixing personal and business money can weaken the protection an LLC gives you and makes taxes harder. Source page: https://explained.page/starting-an-llc/questions/do-i-really-need-a-separate-bank-account ## Official sources - [SBA: choose a business structure](https://www.sba.gov/) - [IRS: get an EIN (free)](https://www.irs.gov/) To find your local office, search for: - "[your state] secretary of state business search" - "[your city] business license" --- General information, not legal or professional advice. Rules differ by state. From explained.page (www.explained.page). Life’s stuff, explained simply.