How to Create an LLC

Creating an LLC means filing formation documents with your state, choosing a registered agent, and getting an EIN. Follow this step-by-step guide.

Creating an LLC is a legal process, not just a paperwork exercise: you are registering a brand-new business entity with your state government. The core of the process is filing formation documents, naming a registered agent, and obtaining an EIN from the IRS.

You create an LLC by filing formation documents with your state's business filing office, paying the required fee, and then getting an EIN from the IRS for tax and banking purposes. Once the state approves your filing, your LLC legally exists as a separate entity.

What "Creating" an LLC Really Involves

Creating an LLC means establishing a separate legal person under state law. That entity can own property, sign contracts, open bank accounts, and be sued — all in its own name. The creation happens the moment your state approves your formation filing, not when you decide to start a business or buy a domain name.

This distinction matters for practical reasons. Until the state approves your filing, you are operating as an individual, and your personal assets are exposed to any business liability. The moment of approval is when the protection begins.

Step 1: Verify Your Name Is Available

Before you file, confirm your proposed name is not already taken in your state. Use the free name search on your Secretary of State's website and check that the name includes the required designator, such as "LLC." If you are not ready to file immediately, some states allow you to reserve a name for a small fee for a set period.

Step 2: Choose a Registered Agent

Your LLC needs a registered agent with a physical street address in the state where you file. The agent receives service of process and official mail for the company. You can act as your own agent in most states, or use a commercial registered agent service for roughly $50 to $300 per year. Many owners choose a service to keep their home address out of public records.

Step 3: Prepare and File Formation Documents

Prepare your formation documents — Articles of Organization in most states — with your LLC name, address, registered agent, and organizer information. File them online or by mail and pay the state fee, which ranges from approximately $40 to $500 depending on the state. Fees change frequently, so confirm the current amount on the official state website before you pay.

Step 4: Get an EIN and Open a Bank Account

After approval, apply for an EIN from the IRS — it is free and instant when you apply online. You will need the EIN to open a business bank account, which you should do as soon as possible so business income and expenses stay separate from your personal finances. For the full checklist, see how to start an LLC, and for the tax ID details, read how to get an EIN for your LLC.

Common Mistakes to Avoid When Creating an LLC

• Filing without checking name availability first.
• Using a PO box as the registered agent address.
• Mixing personal and business bank accounts.
• Skipping an operating agreement in multi-member LLCs.

As of 2026, most states process online LLC filings within a few business days, so you can go from idea to registered entity in under a week in many cases. After your bank account is open, you can start operating with confidence that your personal assets are protected.

Frequently Asked Questions

How do I create an LLC?

Choose a unique name, appoint a registered agent, and file formation documents with your state's business filing office. Pay the filing fee, then get an EIN from the IRS and open a business bank account. Most states accept online filings and approve them within a few business days.

What is the difference between creating and starting an LLC?

There is no legal difference — the terms are used interchangeably. Both mean filing formation documents with your state to register a new business entity, appointing a registered agent, and obtaining an EIN. The state's approval is what officially creates the LLC.

Do I need a lawyer to create an LLC?

No. Most LLC formations are simple enough to complete without a lawyer by filing directly with your state. A lawyer can help if you have partners, complex ownership, or specific asset-protection concerns. An operating agreement is often worth drafting with professional help.

What happens after my LLC is approved?

Once approved, you should get an EIN from the IRS, draft an operating agreement, and open a business bank account. You may also need business licenses depending on your industry and location. Then you can begin operating as a legal entity.