How to Form an LLC in the United States
Reviewed by DocDraft Legal Team · United States · Last updated September 15, 2026
A limited liability company (LLC) is a business structure that legally separates the company from the people who own it, so the owners are generally not personally responsible for the company's debts. Forming one means filing a formation document with a state agency and paying that state's fee to bring the company into legal existence. Every LLC is created under the law of a single state, not federal law, so the exact form name, filing office, fee, and ongoing taxes depend on where you form. This guide explains what an LLC is, the six steps common to every state, and the choices that change state to state, then points you to your state's page for the exact form, fee, and deadlines. The steps below are the shared spine: pick a compliant name, appoint a registered agent, file the formation document, write an operating agreement, get a federal EIN, and keep up with the annual or biennial filings your state requires.
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What are the steps to form an LLC in the US?
Six steps apply in every state. Choose a business name that meets your state's naming rules, appoint a registered agent with a physical in-state address, file your formation document with the state filing office and pay the fee, adopt an operating agreement, get a federal EIN from the IRS, and file any required annual or biennial report. The form name, fee, and deadlines vary by state.
How much does it cost to form an LLC in the US?
State filing fees to form an LLC generally range from about $35 to $500 depending on the state, paid once when you file the formation document. Some states add recurring costs such as annual report fees or a minimum franchise or business tax. California, for example, charges an $800 minimum annual franchise tax on top of its filing fee. Check your state's page for the exact figures.
Do I need a registered agent to form an LLC in the US?
Yes. Every state requires an LLC to name a registered agent, sometimes called an agent for service of process, when it files. The agent must have a physical street address in the state of formation and be available during business hours to accept legal documents and official mail. You can serve as your own agent, name a co-owner, or hire a commercial registered agent service.
How long does it take to form an LLC in the US?
Timing depends on the state and the filing method. Online filings in many states are processed within a few business days, while mailed filings can take several weeks. Most states offer expedited processing for an extra fee. Your LLC legally exists once the state accepts your formation document, not when you mail it, so keep the stamped confirmation.
US LLC formation at a glance
There is no federal LLC. Each of the 50 states and the District of Columbia has its own LLC statute, most of them modeled on the Revised Uniform Limited Liability Company Act (RULLCA), so the framework is broadly similar but the specifics differ. Four things change state to state and drive most of the cost and paperwork. First, the formation document has different names: most states call it the Articles of Organization, while Texas and Delaware use a Certificate of Formation and a few states use a Certificate of Organization. Second, the one-time filing fee ranges from roughly $35 to $500. Third, ongoing obligations vary: some states require an annual report, some biennial, some none, and a handful impose a franchise or minimum business tax (California's $800 minimum annual franchise tax is the most cited example). Fourth, a small number of states, including New York, Arizona, and Nebraska, require you to publish notice of formation in a newspaper. For tax purposes the IRS treats a single-member LLC as a sole proprietorship and a multi-member LLC as a partnership by default, unless the LLC elects corporate treatment. Use your state's page for the exact form, filing office, fee, and deadlines.
Forming a two-owner LLC, step by step
Suppose two friends want to open a small design studio together and decide an LLC is the right structure. First they search their state's business-name database and confirm the name they want is available and includes a required designator such as LLC. Next they appoint a registered agent: one of the owners lives in the state and agrees to serve, using a home street address (not a P.O. box) where legal papers can be delivered during business hours. They then file the state's formation document, in most states the Articles of Organization, through the Secretary of State's online portal and pay the one-time filing fee, which in their state is under $200. Because they have two members, they write an operating agreement setting each owner's percentage, how profits split, and how decisions get made, even though their state does not require them to file it. They apply to the IRS for a free EIN online, which the multi-member LLC needs to file a partnership return and open a business bank account. Finally they calendar their state's recurring obligation: some states would want an annual report next year, others a biennial one, and a few would add a franchise or minimum tax. Their LLC legally exists the moment the state accepts the formation document. The exact fee, form name, and ongoing deadlines depend entirely on the state, which is why each state has its own page.
Relevant Laws
State LLC statutes (no federal LLC law)
LLCs are creatures of state law. Each state has enacted its own limited liability company act, and most are based on the Revised Uniform Limited Liability Company Act (RULLCA) published by the Uniform Law Commission. The act sets who may form an LLC, the required contents of the formation document, the registered-agent requirement, and default rules for management and member rights. There is no federal statute that creates or registers an LLC.
Registered agent requirement
Every state LLC act requires the company to designate and continuously maintain a registered agent, also called an agent for service of process, with a physical street address in the state of formation. The agent receives lawsuits and official state correspondence on the company's behalf. Failure to maintain an agent can lead the state to suspend or administratively dissolve the LLC.
IRS federal tax classification (default pass-through)
The IRS does not recognize the LLC as a separate tax category. By default a single-member LLC is disregarded and taxed as a sole proprietorship, and a multi-member LLC is taxed as a partnership, with profits and losses passing through to the owners' personal returns. An LLC may instead elect to be taxed as an S corporation or C corporation by filing IRS Form 8832 or Form 2553.
Federal Employer Identification Number (EIN)
An EIN is a federal tax ID the IRS issues free of charge. Any LLC with more than one member, or any LLC that hires employees or elects corporate taxation, needs an EIN. Single-member LLCs with no employees can often use the owner's Social Security number but frequently get an EIN anyway to open a business bank account.
Corporate Transparency Act beneficial ownership reporting
The federal Corporate Transparency Act requires many LLCs to report their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). Reporting rules and deadlines have changed and remain subject to regulation and litigation, so confirm current FinCEN requirements before relying on any specific deadline.
Regional Variances
What changes state to state when you form an LLC
Name of the formation document
Most states use Articles of Organization. Texas and Delaware use a Certificate of Formation. A handful of states, such as Massachusetts and Pennsylvania, use a Certificate of Organization. The document does the same job everywhere: it creates the LLC and records its name, agent, and management.
Filing office
In most states the Secretary of State handles LLC filings. Some states route them through a Division of Corporations, a Department of State, or a similar business-registration agency. The office sets the filing method (online portal, mail, or in person) and processing times.
One-time filing fee
The fee to file the formation document ranges from roughly $35 at the low end to about $500 at the high end. This is a one-time charge to create the LLC, separate from any recurring report fee or tax.
Ongoing report and cadence
Some states require an annual report, some require a biennial (every two years) report, and a few require none. The fee attached to the report varies widely. Missing the report is the most common reason an otherwise healthy LLC falls out of good standing.
Franchise or minimum business tax
A subset of states charge an annual franchise tax or minimum business tax regardless of income. California's $800 minimum annual franchise tax is the most cited example. Texas imposes a franchise (margin) tax above a revenue threshold, and Delaware charges an annual LLC tax. Many states charge no such tax.
Publication requirement
A small number of states require newspaper publication of the formation. New York, Arizona, and Nebraska are the main examples. Where required, publication adds cost and a deadline that the filing itself does not, and skipping it can suspend the LLC's ability to sue in that state.
Suggested Compliance Checklist
Confirm your business name is available and compliant
Before filing days after startingSearch your state's business-entity database to confirm your desired name is not already taken, and check that it includes a required designator such as LLC or Limited Liability Company. Some states let you reserve an available name for a fee while you prepare your paperwork. Avoid restricted words (like bank or insurance) that need special approval.
Appoint a registered agent
Before filing days after startingEvery state requires a registered agent with a physical street address in the state of formation who is available during business hours to accept legal documents. Decide whether you, a co-owner, or a commercial service will serve. You will name the agent on the formation document, so settle this first.
File the formation document with your state
To create the LLC days after startingFile your state's formation document (Articles of Organization in most states, Certificate of Formation or Certificate of Organization in others) with the filing office and pay the fee. The LLC legally exists only once the state accepts the filing. Keep the stamped or emailed confirmation as proof of formation.
Adopt an operating agreement
At or soon after formation days after startingPut the ownership percentages, profit split, management structure, and exit rules in writing in an operating agreement. Most states do not require you to file it, but it governs how the LLC runs and overrides your state's default rules. Attorney review of the agreement is available as an option through DocDraft.
Get a federal EIN from the IRS
Before opening a bank account or hiring days after startingApply for an Employer Identification Number free on the IRS website. Multi-member LLCs, LLCs with employees, and LLCs electing corporate tax treatment need one. Single-member LLCs with no employees usually get one anyway to open a business bank account and keep business and personal finances separate.
Set up state and local tax and licensing
Before doing business days after startingRegister for any state tax accounts your business needs (sales tax, employer withholding) and obtain local business licenses or permits for your industry and location. Requirements vary by state, county, and city, so check with your state tax agency and local government.
Calendar your ongoing report and tax deadlines
Recurring days after startingNote whether your state requires an annual or biennial report and its due date, and whether a franchise or minimum business tax applies. Missing a report is the most common reason an LLC loses good standing. Also track federal beneficial ownership reporting to FinCEN under the Corporate Transparency Act, subject to current rules.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm your business name is available and compliant | Search your state's business-entity database to confirm your desired name is not already taken, and check that it includes a required designator such as LLC or Limited Liability Company. Some states let you reserve an available name for a fee while you prepare your paperwork. Avoid restricted words (like bank or insurance) that need special approval. | - | Before filing |
| Appoint a registered agent | Every state requires a registered agent with a physical street address in the state of formation who is available during business hours to accept legal documents. Decide whether you, a co-owner, or a commercial service will serve. You will name the agent on the formation document, so settle this first. | - | Before filing |
| File the formation document with your state | File your state's formation document (Articles of Organization in most states, Certificate of Formation or Certificate of Organization in others) with the filing office and pay the fee. The LLC legally exists only once the state accepts the filing. Keep the stamped or emailed confirmation as proof of formation. | - | To create the LLC |
| Adopt an operating agreement | Put the ownership percentages, profit split, management structure, and exit rules in writing in an operating agreement. Most states do not require you to file it, but it governs how the LLC runs and overrides your state's default rules. Attorney review of the agreement is available as an option through DocDraft. | llc-operating-agreement | At or soon after formation |
| Get a federal EIN from the IRS | Apply for an Employer Identification Number free on the IRS website. Multi-member LLCs, LLCs with employees, and LLCs electing corporate tax treatment need one. Single-member LLCs with no employees usually get one anyway to open a business bank account and keep business and personal finances separate. | - | Before opening a bank account or hiring |
| Set up state and local tax and licensing | Register for any state tax accounts your business needs (sales tax, employer withholding) and obtain local business licenses or permits for your industry and location. Requirements vary by state, county, and city, so check with your state tax agency and local government. | - | Before doing business |
| Calendar your ongoing report and tax deadlines | Note whether your state requires an annual or biennial report and its due date, and whether a franchise or minimum business tax applies. Missing a report is the most common reason an LLC loses good standing. Also track federal beneficial ownership reporting to FinCEN under the Corporate Transparency Act, subject to current rules. | - | Recurring |
Frequently Asked Questions
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