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How to form an LLC In 6 Steps

Updated: Oct 6, 2020

1. The first thing you need to do is select your state. The best option is to form your LLC in the state where you live and where you plan to conduct your business. If your business will have a physical presence in a different state, then you need to register a foreign LLC in every state where you will do business. 

2. You need to name your LLC. Of course, you should already have a name figured out before you apply for one, but there are rules to your LLC mean. Your name must include the phrase limited liability company or the abbreviation LLC. Your name can’t include words that confuse your LLC with a government agency, and certain words are restricted and require additional paperwork before being approved. 

3. You need to choose a registered agent. A registered agent is a personal or business that sends and receives legal papers on your behalf. Most states require every LLC to nominate a registered agent. Our use I go on my Secretary of State‘s website and Pay for my fees myself and I just pay to renew my registered agent every year, it saves me about $100 a year.

4. File your LLC with the state, to make it official you need to file your information with the state. This is called the articles of organization, in some states, it’s called the certificate of formation or the certificate of organization. You also need to decide if your LLC will be member-managed or manager-managed.

5. Create an LLC operating agreement. Although all states don’t require an operating agreement I would suggest you have one if you were in business with a partner or partners, it never hurts to have a legal agreement in writing. There are six main sections of an operating agreement. 1. organization 2. management and voting 3. Capital contributions 4. Distribution 5. membership changes 6. Dissolution

6. Get an EIN in your LLC name. An EIN is an employer identification number, it’s like a Social Security number for your LLC. You will need this number if you plan to hire employees or open a business bank account. You can get your EIN for free at

I hope this is helpful, please let me know what else you all are interested in learning about!

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