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Step-by-Step Guide

How to Start an LLC in 2026

7 steps. One afternoon. Every state. This guide walks you through the entire LLC formation process — from choosing your state to opening a business bank account.

2–4 hours total $100–$500 total cost Works in all 50 states
1

Choose Your State

5 minutes · Free

Form your LLC in the state where you live and do business. Despite what you may have read about Delaware or Wyoming, your home state is the right choice for 90% of small businesses. Forming elsewhere means paying fees in two states instead of one.

Tip: Only consider a different state if you have no physical presence anywhere (fully online) or you're seeking specific investor-friendly laws (venture-backed startups → Delaware).

2

Choose Your LLC Name

15–30 minutes · Free

Your LLC name must be unique in your state and include "LLC" or "Limited Liability Company." Search your state's Secretary of State business database to check availability. Most states let you search online for free.

Tip: Check domain availability too. If yourcompany.com is taken, consider alternatives before you commit to the name.

3

Appoint a Registered Agent

5 minutes · $0–$299/year

Every LLC needs a registered agent — a person or company that accepts legal documents on your behalf. You can be your own registered agent (free) or hire a service. A professional registered agent keeps your home address off public records and ensures you never miss a legal notice.

Tip: Eleet AI provides registered agent service for $100/year in all 50 states — the lowest price from any national provider.

4

File Articles of Organization

15–30 minutes · $50–$500 (state filing fee)

This is the official document that creates your LLC. File it with your state's Secretary of State. Most states accept online filing. You'll need: LLC name, registered agent name and address, organizer name, and management structure (member-managed or manager-managed).

Tip: Processing time varies: some states (Texas, Florida) take 2–3 business days. Others (New York, California) take 1–2 weeks. Expedited processing is available in most states for an extra fee.

5

Create an Operating Agreement

30–60 minutes · $0–$99

An operating agreement defines how your LLC is managed: ownership percentages, profit distribution, voting rights, and what happens if a member leaves. Most states don't require one, but every LLC should have one — even single-member LLCs. Without it, your state's default rules govern your business.

Tip: Single-member LLCs: an operating agreement helps maintain liability protection by showing your LLC is a separate entity from you personally.

6

Get an EIN (Employer Identification Number)

5 minutes · Free (IRS) or $49 (filing service)

An EIN is your LLC's tax ID number, like a Social Security Number for your business. You need it to open a business bank account, hire employees, and file taxes. Apply free at IRS.gov (online, instant approval) or use a filing service if you want it handled for you.

Tip: Apply online at IRS.gov during business hours (7 AM – 10 PM ET, Mon–Fri) for instant approval. The paper/fax method takes 4–6 weeks.

7

Open a Business Bank Account

30–60 minutes · Free (most banks)

Never mix personal and business finances. Open a dedicated business checking account using your EIN and Articles of Organization. This protects your personal liability shield — commingling funds is the #1 reason courts "pierce the corporate veil" and hold LLC owners personally liable.

Tip: Many banks offer free business checking for small LLCs. Bring your Articles of Organization, EIN confirmation letter, operating agreement, and government-issued ID.

Total Cost Breakdown

Item Cost Range Notes
State filing fee $50–$500 One-time. Varies by state.
Registered agent $0–$299/yr $0 if you self-serve, $100/yr with Eleet AI.
Operating agreement $0–$99 Free templates available; $99 for professional prep.
EIN $0–$49 Free from IRS directly.
Business bank account $0 Free at most banks.
Total (typical) $100–$500 Depends on state + services chosen.

After You Form: First Week Checklist

  • ☐ Open a business bank account (bring Articles of Organization + EIN letter)
  • ☐ Get a business credit card (keeps expenses separate from day one)
  • ☐ Set up basic accounting (Wave, QuickBooks, or even a spreadsheet)
  • ☐ Check city/county business license requirements
  • ☐ Consider business insurance (general liability at minimum)
  • ☐ Calendar your annual report due date (varies by state)

Frequently Asked Questions

How long does it take to start an LLC?
You can complete all the paperwork in a single afternoon. State processing times vary: Texas and Florida approve in 2–3 business days, while New York and California may take 1–2 weeks. Expedited processing (usually $50–$100 extra) is available in most states for same-day or next-day approval.
How much does it cost to start an LLC?
Total costs typically range from $100 to $500 depending on your state. The main cost is the state filing fee ($50–$500). Add a registered agent ($100/year with Eleet AI), and optionally an operating agreement ($99) and EIN filing service ($49). The EIN itself is free if you apply directly with the IRS.
Can I start an LLC by myself?
Yes. A single-member LLC is the most common business structure in the United States. You are the sole owner (member) and can manage the LLC yourself. The formation process is identical to a multi-member LLC — you just list yourself as the only member.
Do I need a lawyer to start an LLC?
No. LLC formation is straightforward paperwork that doesn't require legal expertise. Services like Eleet AI handle the entire process from $199 all-in (including state filing fee and first-year registered agent). A lawyer may be worth consulting if you have a complex multi-member ownership structure or unusual liability concerns.
What is the difference between an LLC and a sole proprietorship?
A sole proprietorship has no liability protection — your personal assets (home, car, savings) are at risk if your business is sued or can't pay its debts. An LLC creates a legal barrier between your business and personal assets. The LLC also gives your business more credibility and makes it easier to open bank accounts and get contracts.
Do I need a business license in addition to an LLC?
Possibly. An LLC is a business structure, not a business license. Depending on your industry and location, you may need additional licenses or permits (city business license, professional license, health permits, etc.). Check with your city and county clerk's office for local requirements.
Can I form an LLC in a state where I don't live?
Yes, but it usually doesn't make financial sense. If you form in another state but operate in your home state, you'll need to register as a "foreign LLC" in your home state — paying fees in both states. For 90% of small businesses, forming in your home state is cheaper and simpler.
What ongoing requirements does an LLC have?
Most states require an annual report ($0–$300) and maintaining a registered agent. Some states have franchise taxes (California: $800/year). You'll also need to file taxes, maintain your operating agreement, keep business and personal finances separate, and renew any business licenses.

Related Guides

How Much Does an LLC Cost? → Best State to Form an LLC → LLC vs Corporation → What Is an EIN? → What Is a Registered Agent? → Business Compliance Checklist →

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