What You Need to Form an LLC

What You Need to Form an LLC

To form an LLC, you need a unique business name, a registered agent, articles of organization, and an operating agreement. Beyond those four essentials, the exact requirements depend on your state, but the core steps are straightforward and repeatable across jurisdictions.

Choose and Reserve Your LLC Name

Your LLC name must be distinguishable from other businesses on file with the state. Most states require a designator such as "LLC" or "Limited Liability Company." Before you file, search the state business entity database to confirm availability. You can usually reserve a name for a small fee while you prepare your formation documents.

Appoint a Registered Agent

Every LLC needs a registered agent — a person or service with a physical street address in the state of formation who can accept legal notices and official mail during business hours. You can act as your own registered agent if you have a suitable address, or you can hire a commercial registered agent service for privacy and reliability.

File Articles of Organization

The articles of organization is the document that officially creates your LLC. It typically requires the LLC name, registered agent information, principal office address, and the names of organizers or members. Most states let you file online, and the filing fee ranges from about $40 to $500 depending on the state.

Prepare an Operating Agreement

While only a handful of states legally require an operating agreement, it is a critical document in practice. It outlines ownership percentages, management structure, voting rights, profit distribution, and procedures for adding or removing members. Without one, your LLC defaults to state rules that may not fit your business.

Handle Post-Formation Requirements

After formation, you may need to obtain an EIN from the IRS, open a business bank account, file initial reports, and apply for state or local licenses. An EIN is free and can be obtained online. Some states also require an annual report or franchise tax fee to keep the LLC in good standing.

LLC Formation Checklist

• Unique, compliant LLC name
• Registered agent with a physical state address
• Articles of organization filed with the state
• Operating agreement tailored to your business
• Employer Identification Number from the IRS
• Business bank account and license applications