The LLC guide
Everything between "I have an idea" and "I have a legal U.S. business" — states, names, registered agents, Articles of Organization, EINs, and staying compliant. In plain English.
8-minute read · Updated August 2026
A limited liability company (LLC) is a legal entity that's separate from you. It has its own name, its own bank account, and — this is the point — its own liability. If the business owes money or gets sued, the business is on the hook, not your house or your savings.
It's become the default structure for small businesses in the U.S. because it delivers that protection without the heavy machinery of a corporation. Here's what you get:
Personal asset protection. A legal wall between business debts and your personal property.
Pass-through taxes by default. Profits land on your personal return — no separate corporate tax layer. You can elect S-corp or C-corp treatment later if it ever makes sense.
Credibility. Banks, payment processors, and bigger clients treat an LLC as a real business — many require one.
Light to run. No board of directors, no mandatory annual meetings, no share classes. One owner or many, member-run or manager-run — it flexes.
For most people, the answer is simple: the state where you live and do business. Forming elsewhere usually means registering twice and paying two sets of fees.
The famous exceptions — Wyoming, Delaware, Florida, Texas — make sense in specific situations: online businesses with no fixed location, privacy priorities, or plans to raise investment. If that might be you, compare the tradeoffs before deciding, and talk to a tax professional for your specific situation.
Three rules apply almost everywhere: the name must be available in your state (nobody else registered it), it must include a designator like "LLC" or "Limited Liability Company," and it can't mislead about what the business does or imply a regulated activity you're not licensed for.
Beyond the legal rules, check that the matching website domain is available and run a quick search of the USPTO trademark database — discovering a conflict after you've printed business cards is an expensive lesson.
Every state requires your LLC to have a registered agent: a person or company with a physical street address in the state, available during business hours to receive legal documents on the company's behalf.
You can be your own agent if you live in the state and don't mind your address on the public record and being tied to it during business hours. Most founders — and nearly all non-resident founders — use a registered agent service instead.
This is the document that legally creates your LLC. It's filed with your state's business filing office (usually the Secretary of State) and covers the basics: company name, address, registered agent, and management structure.
Every state charges a filing fee — roughly $40 on the low end to $500 at the top, with most around $100. Approval takes anywhere from a day or two (states with instant online filing) to a few weeks.
An EIN (Employer Identification Number) is your LLC's federal tax ID — like a Social Security number for the business. You'll need it to open a bank account, hire anyone, and file taxes.
The IRS issues EINs for free, and if you have an SSN or ITIN you can apply online in minutes. Non-resident founders can't use the online route — the application goes by fax or mail and takes several weeks, which is the part we handle most often for founders abroad.
The operating agreement is your LLC's internal rulebook: who owns what, how decisions get made, what happens if a member leaves. Most states don't require you to file one — but banks often ask for it, and it's the document that settles disputes before they become lawsuits.
Even single-member LLCs benefit: it's evidence that your LLC is a genuinely separate entity, which supports the liability protection you formed it for.
Open a dedicated business bank account and run everything through it. Mixing personal and business money is the fastest way to weaken the legal separation your LLC exists to create. You'll need your approved Articles, EIN letter, and operating agreement — the exact stack a bank asks for.
Finally, check what licenses apply to you: many cities and counties require a general business license, selling goods usually requires a sales tax permit, and regulated professions need a professional license. Requirements are local, so check with your city, county, and state.
Formation is a one-time event; compliance is a calendar. Most states require an annual or biennial report with a fee to keep your LLC in good standing, and a few require a one-time initial report shortly after formation. Deadlines and fees vary widely by state.
Missing these filings starts with late fees and ends with administrative dissolution — the state shutting your LLC down, taking the liability protection with it. The fix is boring but effective: know your state's dates and file on time. Every US Company Desk formation includes compliance alerts, so the deadline finds you before the penalty does.
Honest answer: you can do all seven steps yourself. The state forms are public, and the EIN is free from the IRS. If you're comfortable with government paperwork and have the time, DIY costs only the state fee.
What a service buys you is time and certainty: documents prepared correctly the first time, the EIN handled (including the slow fax-and-mail route for non-residents), an operating agreement drafted, and someone tracking your compliance dates afterward. Filings rejected over small errors cost weeks; our accuracy guarantee means that risk is ours, not yours.
Whichever route you take, the steps above are the whole map. If you'd like the paperwork off your plate, that's what we're here for.
Answer a ten-minute questionnaire and we'll handle every step in this guide — most filings go out within one business day.