How to Start an LLC in 2026: Step-by-Step Guide
A comprehensive, step-by-step walkthrough covering company name reservation, registered agent selection, Articles of Organization filing, Operating Agreements, and EIN acquisition.
Introduction: Why Form a Limited Liability Company?
A Limited Liability Company (LLC) is the most popular corporate vehicle for entrepreneurs and small business owners in the United States. It combines the personal liability protection of a corporation with the pass-through taxation and managerial flexibility of a partnership.
Step 1: Choose Your State of Formation
If you operate a physical business (such as a storefront or consulting office), you should generally register your LLC in your home state. If you run an online business or tech company, Delaware and Wyoming are favored for their corporate case law, low franchise fees, and privacy provisions.
Step 2: Designate a Registered Agent
Every state legally requires your LLC to maintain a registered agent with a physical street address in that state. Using a professional registered agent like Northwest Registered Agent keeps your home address off public state records.
Step 3: File the Articles of Organization
The Articles of Organization (called a Certificate of Formation in some states) is the legal document submitted to the Secretary of State. State filing fees range from $40 (Kentucky) to $500 (Massachusetts).
Step 4: Draft an Operating Agreement
An Operating Agreement outlines member ownership percentages, voting rights, profit allocations, and dispute resolution mechanisms. Even single-member LLCs should have one for banking credibility.
Step 5: Obtain an Employer Identification Number (EIN)
An EIN is issued by the IRS for federal tax administration and is necessary to open a dedicated US business bank account.
FormRated Editorial Board
Our editorial team consists of international business attorneys, certified corporate compliance specialists, and remote entrepreneurs dedicated to publishing unbiased company formation insights.