Last Updated on 1 month by Komolafe Bamidele
Starting your own Limited Liability Company (LLC) as a U.S. resident is a significant step toward securing financial protection, credibility, and business flexibility. Many entrepreneurs believe forming an LLC is complicated, but it’s actually a straightforward process if you follow the right steps.
This guide will walk you through the 11 essential steps to form an LLC by yourself, ensuring compliance and ease of operation.
Plus, if you prefer to skip the hassle, you can use Bizee (formerly Incfile) to set up your LLC at just $0 plus state fees while saving over $250! Read on to learn more.
Step 1: Choose a Unique Name for Your LLC
Your business name is the first impression potential clients will have, so pick wisely. Every state has specific naming guidelines, but generally, your LLC name must:
- Be unique and distinguishable from other businesses registered in the state.
- Include “LLC” or “Limited Liability Company” in the name.
- Avoid words that imply government affiliation (e.g., FBI, Treasury, etc.).
How to Ensure Your Name Is Unique?
To ensure your chosen name is not already in use, follow these steps:
- Search your state’s business entity database via the Secretary of State website.
- Conduct a trademark search on the U.S. Patent and Trademark Office (USPTO) website to avoid legal conflicts.
- Check domain name availability to secure a matching website URL.
Factors to Consider When Naming Your LLC
- Brand Identity: Pick a name that reflects your business values and services.
- Scalability: Choose a name that allows room for business growth.
- Memorability: Keep it simple and easy to pronounce.
- Legal Compliance: Follow state-specific naming guidelines.
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Common Mistakes to Avoid
- Using generic or common names makes it hard to stand out.
- Selecting a name too similar to existing businesses, which may lead to rejection.
- Choosing a long or complicated name that customers might forget.
Pro Tip:
Before settling on a name, check for availability using your state’s Secretary of State website and verify the domain name for online branding purposes.
Step 2: Reserve Your LLC Name (If Required)
Some states require you to reserve your business name before filing for an LLC, while others make it optional.
- Check your state’s requirements on the official website.
- The name reservation fee varies between $10 and $50, depending on the state.
Step 3: Appoint a Registered Agent
A Registered Agent is a person or business responsible for receiving legal documents on behalf of your LLC. This can be you, someone you trust, or a professional service.
Many entrepreneurs prefer professional registered agent services for privacy and compliance reasons. Bizee offers a free Registered Agent service for the first year when you form your LLC with them.
👉 Save over $250 and get started with Bizee today!
Step 4: File the Articles of Organization
This document, also known as a Certificate of Formation, officially registers your LLC with the state. It typically includes:
- Your LLC’s name and address
- Registered Agent’s details
- Business purpose (optional in most states)
- Management structure (Member-managed vs. Manager-managed)
Where to File?
Go to your state’s Secretary of State website to file online or by mail. Filing fees range from $50 to $500, depending on the state.
📌 Pro Tip: Some states, like Wyoming, do not disclose LLC owners, providing an extra layer of privacy.
Step 5: Create an Operating Agreement
While not legally required in most states, an Operating Agreement is highly recommended as it outlines how your LLC will operate.
It should cover:
- Ownership percentages and member roles.
- Voting rights and decision-making processes.
- Profit and loss distribution.
- What happens if a member leaves or the business dissolves?
📌 Pro Tip: You can use affordable services like RocketLawyer or LawDepot to create an Operating Agreement for about $100 to $150 per year.
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Step 6: Obtain an Employer Identification Number (EIN)
An EIN (Employer Identification Number) is like a Social Security number for your business. It is required for:
- Opening a business bank account
- Filing taxes
- Hiring employees
How to Get an EIN?
It’s 100% free and can be obtained online through the IRS website in a few minutes.
Step 7: Open a Business Bank Account
To keep your personal and business finances separate, open a business checking account. This protects your personal assets and makes bookkeeping much easier.
Required Documents:
- Your EIN
- LLC Formation Documents
- Operating Agreement (some banks require it)
Step 8: Register for State and Local Taxes
Depending on your location and business type, you may need to register for additional taxes, including:
- Sales tax permit (if selling goods)
- Employer tax registration (if hiring employees)
- Franchise tax (in certain states like Texas and California)
Check with your state’s tax authority for details.
Step 9: Obtain Necessary Business Licenses and Permits
Different businesses require different licenses and permits at the federal, state, or local level.
Some common industries that require additional permits include:
- Food and beverage businesses (health permits)
- Construction and trade businesses (contractor licenses)
- Online businesses (home business permits in some areas)
How to Check?
Use the U.S. Small Business Administration (SBA) website or your state’s business portal.
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Step 10: Comply with Ongoing Filing and Reporting Requirements
Most states require LLCs to file an annual report and pay an annual fee to remain in good standing.
- The fees range from $20 to $500, depending on the state.
- Some states require biennial (every two years) reports instead of annual.
💡 Bizee includes an order tracking tool so you can monitor your LLC’s compliance easily.
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Step 11: Consider Professional Assistance
If all of these steps sound overwhelming, consider using a professional LLC formation service like Bizee.
Why Choose Bizee?
- $0 LLC formation (just pay state fees)
- Free Registered Agent service for a year
- Fast processing (Next Day Filing)
- Free 30-minute Business Tax Consultation
- Unlimited email and phone support
💡 Get Started With Bizee Now and Save $250+!
Final Thoughts
Forming an LLC by yourself can save money, but if you want a hassle-free experience with extra support, Bizee is your best option. With their free Registered Agent service, fast processing, and business support, you can focus on growing your business while they handle the legal side.
👉 Ready to start your LLC? Click here to form your LLC today!
Your business journey starts now! 🚀