How to Form an LLC

Forming an LLC requires filing formation paperwork, appointing a registered agent, and obtaining an EIN. See the exact steps and what they cost.

Forming an LLC is the act of creating a legal entity through your state's business filing office, and it follows the same basic path in every state: name, registered agent, formation paperwork, and an EIN. The exact forms and fees vary, but the sequence does not.

You form an LLC by filing formation paperwork with your state, appointing a registered agent, and obtaining an EIN from the IRS — a process that typically costs between $40 and $500 in state fees and takes anywhere from a few days to a few weeks.

The Formation Process in Brief

Formation is the legal moment your business becomes a separate entity. It happens when the state approves your formation documents, which are called Articles of Organization in most states and a Certificate of Formation in others. From that point forward, the LLC can own property, sign contracts, and be sued in its own name. The approval date is your LLC's official start date, and it is the date you will use on tax filings and bank paperwork.

Step 1: Choose a Name and Check Availability

Your LLC name must be unique in your state and include a designator such as "LLC." Search the state's business name database to confirm availability, and consider reserving the name if you are not filing right away. Avoid restricted words like "bank" or "insurance" unless you hold the relevant license.

Step 2: Appoint a Registered Agent

Every LLC must name a registered agent with a physical street address in the state of formation. The agent accepts legal documents and official mail for the company. You can serve as your own agent in most states, or use a commercial service for roughly $50 to $300 per year to keep your personal address out of public records.

Step 3: File Formation Paperwork

Complete your formation documents with the LLC name, principal address, registered agent, and organizer details, then file them online or by mail with the Secretary of State. Pay the filing fee at the time of submission. Fees range from approximately $40 to $500 depending on the state and change frequently, so confirm the current amount on the official state website before you pay.

Step 4: Obtain an EIN and Understand the Costs

After approval, apply for an EIN from the IRS. The application is free, takes about ten minutes online, and issues your number immediately. You need the EIN to open a business bank account, file taxes, and hire employees. For the full walkthrough, see how to get an EIN for your LLC.

The main cost of formation is the state filing fee, which ranges from approximately $40 to $500. Many states also charge an annual report or franchise fee, typically $50 to $300 per year. Optional costs include a registered agent service and a formation service if you prefer not to file yourself. For a complete breakdown, see how much an LLC costs.

What Happens After Formation

Once your LLC exists, draft an operating agreement, open a business bank account, and check whether your industry requires licenses or permits. The operating agreement and bank account can be completed the same week, so most owners are fully operational within days of approval. As of 2026, most states process online formations within a few business days, so the gap between filing and operating is short. For the full checklist, review how to start an LLC.

Frequently Asked Questions

How do I form an LLC?

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

What paperwork is needed to form an LLC?

The primary document is your formation filing, called Articles of Organization or a Certificate of Formation. It requires your LLC name, address, registered agent, and organizer information. You will also need an EIN from the IRS after approval, plus an operating agreement if you want one.

How much does it cost to form an LLC?

State filing fees range from approximately $40 to $500, with most states charging $50 to $200. Ongoing costs include annual report fees in many states and optional registered agent services. Fees change frequently, so confirm the current amount with your Secretary of State.

How long does it take to form an LLC?

Online filings are typically approved in 1 to 5 business days, while mail filings take 2 to 8 weeks depending on the state. Expedited processing is available in many states for an extra fee. The EIN is issued instantly after you apply online.