How to Form an LLC: Step-by-Step Guide, Costs and Checklist

Yes, you can form an LLC yourself. The steps are the same almost everywhere: pick your state, choose a name the state will accept, name a registered agent, file articles of organization with the state, write an operating agreement, and get a free EIN from the IRS. Fees and forms differ by state, so the state’s own business filing site has the last word on what you file and what you pay. This page is legal information, not legal advice for your situation.

What an LLC is and how it works

The IRS describes a limited liability company as “a business structure allowed by state statute.” Its owners are called members, and most states allow a single-member LLC with only one owner. Read the IRS guide to limited liability companies for the basic classifications.

How the IRS taxes an LLC depends on how many members it has. A domestic LLC with at least two members is classified as a partnership unless it elects to be treated as a corporation. A one-member LLC is treated as separate from its owner for income tax unless it elects corporate treatment. The U.S. Chamber of Commerce LLC guide explains that owners report their share of profits on their own tax returns, so profits are taxed once.

How to form an LLC, step by step

This page follows the order used by the U.S. Chamber of Commerce guide and state agency pages: state, name, registered agent, articles, operating agreement, EIN, state reports, and then the current FinCEN rule. The IRS EIN application page says to form the LLC with the state before you apply for an EIN.

Step 1: Pick your state

The Chamber says you should decide which state to register in, typically where your business is based. It warns that registering in a different state with lower fees or taxes can lead to extra costs and paperwork.

Step 2: Choose a name the state will accept

The SBA notes that most states will not let you register a name already registered by someone else, and some require the name to reflect the kind of business it represents. The Chamber says most states require the name to include “LLC” or “Limited Liability Company.” Minnesota’s Minnesota guide to forming an LLC adds that the name cannot contain “corporation” or “incorporated.” Search the state’s name database before you file.

A state name registration is not a trademark. The SBA’s SBA guide to registering your business says a trademark can protect a name at a national level, and it recommends checking names against the USPTO database. The USPTO trademark cost page lists a base application fee of $350 for each class of goods or services.

Step 3: Name a registered agent

A registered agent receives legal papers and official notices for the LLC. The Chamber says most states require a registered agent with a physical address in the same state as the LLC. Illinois Legal Aid’s Illinois Legal Aid LLC guide says the agent does not have to be you, must live in Illinois or be an entity allowed to do business there, and cannot be a P.O. Box.

Delaware publishes a Delaware registered agents list. The state says the list is a convenience, that registered agents are not regulated by Delaware, and that “It is the consumer’s responsibility to exercise due diligence in selecting a Registered Agent.”

Step 4: File articles of organization with the state

Articles of organization create the LLC at the state level. The Chamber says to find your state agency, usually the secretary of state. Minnesota’s guide says: “Everything starts by filing articles of organization with the Secretary of State and paying the filing fee. You can file online or complete and submit a paper form.”

Illinois lists what the articles need: the LLC name, the principal place of business, an effective date no more than 60 days after filing, the registered agent’s name and address, the purpose, the duration, and the names of the managers. Texas accepts articles online or by mail, according to MyCorporation’s Texas page.

Step 5: Write an operating agreement

Illinois Legal Aid says: “Every LLC should have an operating agreement, even if there is only one member.” The agreement sets out how the LLC is managed, owner rights, distributions and transfer rules. Illinois notes it is not filed publicly. MyCorporation’s Texas page says Texas requires an LLC to create a written operating agreement and keep it with company records, and that Texas does not require you to file it with the state.

Step 6: Get a free EIN from the IRS

The IRS EIN application page says: “Use this tool to get an EIN directly from the IRS in minutes for free.” It also warns: “Beware of websites that charge for an EIN. You never have to pay a fee for an EIN.”

The IRS says to form the LLC with the state before you apply. The online tool needs a principal place of business in the U.S. and the Social Security number or ITIN of the responsible party. You must finish in one session, because the form expires after 15 minutes of inactivity, and you can apply for only one EIN per responsible party per day.

Step 7: Check the current FinCEN beneficial-ownership rule

FinCEN’s FinCEN beneficial ownership information page says it “formally exempted entities previously known as ‘domestic reporting companies’ from the CTA’s reporting requirements.” It adds that reporting companies “do not need to report the BOI of any U.S. persons.” Foreign entities that meet the definition of a reporting company and do not qualify for an exemption must file under new deadlines.

The SBA’s register page still carries an older March 21, 2025 deadline, so follow the FinCEN page for the current rule. FinCEN also says there is no fee to file BOI directly with FinCEN. The SBA’s register page says BOI reporting is not an annual requirement, but that page predates FinCEN’s interim final rule, so confirm the current rule on the FinCEN page.

How much does it cost to form an LLC?

Prices as of October 28, 2026; check the checkout for today’s. The costs below are the ones each agency or seller lists. State fees differ by state.

For Texas, the Certificate of Formation fee is $300. MyCorporation’s Texas page also sums a $40 name reservation and a $150 amendment fee into a total of at least $490. Those two extras are not needed to form an LLC, so confirm the current Texas fee with the Texas Secretary of State before you pay.

Minnesota’s guide tells you to pay the filing fee when you file articles. Check that amount with the Minnesota Secretary of State before you send money.

Can you file an LLC by yourself, or do you need a service or a lawyer?

You can do the state filing and the EIN yourself, and the IRS EIN costs nothing. Per FinCEN, domestic companies are currently exempt from BOI reporting. If a BOI filing does apply to you, there is no fee to file it directly with FinCEN. Formation services handle the paperwork for a fee, and a lawyer is worth paying for when your setup is complicated.

Disclosure: the one MyCorporation link on this page goes to the company’s own Texas page, and the figures below are what that page lists.

Minnesota’s guide says that “An attorney should assist in drafting articles of organization,” and that operating agreements should be created with legal counsel. Illinois Legal Aid says operating agreements are complex and you may need professional legal help. The Chamber suggests consulting an attorney or accountant who specializes in LLC operations. For compare-and-choose help across online services, read this compare online legal services guide.

Can I get sued personally if I have an LLC?

An LLC is designed to keep personal assets separate from business debts. The Chamber says: “Members are not personally responsible for the business’s debts or lawsuits, so long as members don’t participate in fraud or criminal behavior.” Illinois Legal Aid says an LLC “helps protect your personal assets from your business liabilities.” The SBA warns that if you do not register, you could miss out on personal liability protection.

Whether a particular claim could reach you depends on your facts. That is the point where a lawyer earns the fee.

Why shouldn’t your name be on your LLC?

Your LLC name does not have to be your personal name. The SBA gives the example of a business name, and says that if you operate as yourself under your legal name, you won’t need to register anywhere. Keep in mind what becomes public. Illinois says the articles of organization are public record, including the principal place of business, and that the registered agent’s name and information are public record.

Illinois also says the registered agent does not have to be you, and the address does not have to be your home address. If privacy is your concern, compare options in this Northwest Registered Agent review.

What happens if an LLC makes no money?

State deadlines still apply. The Minnesota guide says both Minnesota and non-Minnesota LLCs must register with the Secretary of State once every year. Its text says: “Failure to file will result in administrative termination.” Reinstatement may occur within one year by filing the registration form and paying a reinstatement fee. MyCorporation’s Texas page says Texas LLCs are generally required to file annual reports.

For federal income tax, the IRS treats a one-member LLC as disregarded unless it elects otherwise. The IRS also says a one-member LLC is still a separate entity for employment tax and certain excise taxes. Whether you must file anything for a year with no income is a question for a tax preparer or IRS Publication 3402, which you can reach from the IRS guide to limited liability companies.

What are the downsides of starting an LLC?

The main costs are ongoing, not one-time:

• Annual state filings. Minnesota requires yearly registration, and Texas generally requires annual reports.
• Records. Illinois requires certain records at the principal place of business, including the member list, a copy of the articles, three years of tax returns, and written operating agreements.
• Public filings. The articles and principal address are public record in Illinois.
• Cost of a second state. The Chamber warns that registering in another state can add cost and paperwork.
• Switching later. The Chamber says it can be difficult to change your business structure after you have already registered.

The small business legal essentials guide compares entity types, which can help you decide whether an LLC fits.

What are common LLC mistakes to avoid?

• Registering in a state with lower fees while you run the business somewhere else, which the Chamber says can add cost.
• Using a P.O. Box as the registered agent address. Texas and Illinois both require a physical address.
• Filing a name with a small variation. MyCorporation’s Texas page says to check variations or alternate spellings, because a filing may be rejected otherwise.
• Skipping the operating agreement. Illinois says every LLC should have one, even with one member.
• Paying anyone for an EIN. The IRS says you never have to pay a fee for an EIN.
• Mixing personal and business money. The Chamber recommends a dedicated bank account for the LLC.
• Assuming a state name filing protects a brand nationally. The SBA says a trademark does that.
• Missing the annual state filing, which Minnesota says can lead to administrative termination.

Scammers often pose as government offices. FinCEN says there is no government entity called “US Business Regulations Dept.” and that it does not send payment requests. The USPTO says its employees never ask for personal or payment information by phone, email or text. Read more about these patterns in this guide to online legal document scams.

Does forming an LLC work the same in California, Texas and New York?

The federal step that applies everywhere is the EIN from the IRS. Under FinCEN’s current rule, entities formerly called domestic reporting companies are exempt from BOI reporting, so a U.S. LLC formed under state law has no BOI filing to make. Only foreign entities that meet the reporting-company definition and have no exemption must file. Check the FinCEN page for the current rule. The state steps differ, so check with your state as the SBA advises. Here are three examples:

• Texas: MyCorporation says you file a Certificate of Formation (Form 205) through the Texas Secretary of State online portal with a $300 fee. The name must include “LLC” or “Limited Liability Company,” and the registered agent needs a physical Texas address. Its page gives online filings as 3–5 business days in one place and typical processing as 4–6 weeks in another, so check current times with the Texas Secretary of State.
• Minnesota: you file articles with the Secretary of State, keep a physical registered office in Minnesota, and register every year.
• Illinois: you can reserve a name for 90 days for $25. If your LLC sells goods or services to customers in Illinois, you also register for an Illinois Business Tax number, according to the Illinois Department of Revenue’s listing on the Illinois Legal Aid guide.

For California and New York, use your state’s own business filing site for the fee, the form and the annual rule. The SBA’s SBA guide to choosing a business structure is a good place to start.

Can I create an LLC for free?

Parts of the process are free. The IRS EIN is free, there is no fee to file BOI directly with FinCEN if a filing applies to you, and Illinois Legal Aid says you may be able to get free legal help. The state filing fee is not free: each state example above charges one. Be wary of any site that charges for an EIN; the IRS says you never have to pay a fee for one.

Doing it yourself or getting help

A free route covers the government steps. You can use the state filing site, the free IRS EIN tool, and FinCEN’s free e-filing if a BOI report applies to you. You can also look for legal aid through how to find free legal aid. The USPTO notes that law school clinics and pro bono resources exist for trademark questions.

An online legal service adds prepared forms and filing help, usually for a fee. Compare them before you pick one. These reviews cover the services that fit this task: LegalZoom review, ZenBusiness review, Northwest Registered Agent review, and Rocket Lawyer review.

A licensed lawyer is worth paying for when you have investors or partners, when you want a custom operating agreement, or when a claim could reach you personally. The American Bar Association’s Consumers’ Guide to Legal Help is a place to find one, as the USPTO suggests for trademark attorneys.

Before you file

• Run the state’s name search and confirm the name includes “LLC” or “Limited Liability Company.”
• Choose a registered agent with a physical address in your state, not a P.O. Box.
• Check the fee with the state or on the checkout page before you pay.
• Get your EIN directly from the IRS, not from a third-party site.
• Read the FinCEN page for the current beneficial-ownership rule.
• Put the annual state filing on your calendar before the LLC is formed.

By LegalHelpOnline.org Legal Research & Editorial Team