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How to Start an LLC for all 50 States

Start an LLC today with our comprehensive state-by-state guide. Simplify forming an LLC with easy-to-follow instructions.

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Collective Editorial Team
Eric Poole
Updated by Eric Poole
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AI Summary

AI-generated from this article. Not tax advice.

  • An LLC gives owners limited liability protection, so personal assets can't be targeted if the LLC goes bankrupt or faces a lawsuit.
  • The four common steps to start an LLC are: name your business, name a Registered Agent, file Articles of Organization, and draft an Operating Agreement.
  • A Registered Agent can be anyone over 18 who is available during regular business hours at an address in the state where the LLC is registered.
  • Initial formation fees typically range between $50 and $800, and a Registered Agent service can cost between $100 and $300 per year.

Starting an LLC FAQs

This comprehensive guide on how to start an LLC in all 50 states provides an overview of what an LLC is, how they work, and resources for each US state.

What is an LLC?

An LLC, or Limited Liability Company, is a type of private limited company in the United States. A private limited company is any type of business entity in private ownership, in contrast to a publicly listed company. 

A publicly listed company is one that sells the entirety of itself or portions of itself to the public in an initial public offering (IPO), which means that shareholders are entitled to a share of the company’s assets and profits.

A privately owned company is owned by its founders and management, and is therefore not beholden to shareholders. A privately owned entity also does not trade stock on a stock exchange, and is therefore not required to disclose its financial information.

When thinking about how to start an LLC, it’s good to know that an LLC is just one type of four categories of privately owned companies, which include: sole proprietorships, S corporations (S-corps) and C corporations (C-corps).

  • Sole proprietorship: A sole proprietorship is an unincorporated business with a single owner who pays personal income tax on any profits the business earns. All business liabilities extend to the owner as the business is not registered and does not have any government protection.
  • S corporations (S-corps): An S-corporation is similar to an LLC in that there is no corporate tax – taxable income, credits, deductions, and losses are passed directly to shareholders who are then responsible for paying personal income taxes; S-corps, however, must be 100 shareholders or fewer, and LLC membership is unlimited. S-corp membership is also limited to U.S. citizens and certain US residents., Form LLC-12, with the California Secretary of State.  
  • C corporations (C-corps): The structure of a C-corporation legally separates the owner’s assets and income from the business entity, but this structure involves double taxation – earnings are subject to corporate taxes before profits are distributed to shareholders, and these profits are then taxed on a personal income level.

An LLC is a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. LLC owners are protected from personal responsibility for the LLC’s debts or liabilities. An LLC is essentially a hybrid entity with characteristics of both a corporation and a partnership or sole proprietorship.

Owners of an LLC are called members and may include individuals, corporations, other LLCs, and foreign entities (banks and insurance companies cannot be LLC owners). LLCs don’t pay taxes on their profits directly – rather losses and profits are passed through to these members, who report them on their individual tax returns.

Most states permit “single-member” LLCs, which are LLCs with only one owner. While rules and regulations for how to start an LLC vary from state to state, an LLC generally requires Articles of Organization (or similar document), also known as a Certificate of Formation, to be filed with the state

Why Start an LLC?

There are several benefits to structuring your small business as an LLC. Some of the most valuable advantages include: personal liability protection, simplicity, low cost, credibility, tax benefits, and flexibility:

Personal Liability Protection

  • In a sole proprietorship or a partnership, the owner and business are one in the same. In an LLC, the LLC and the owners/stakeholders are legally separate entities. The means the LLC debts and obligations are the responsibility of the LLC, and the owner’s personal assets can’t be targeted in the event of bankruptcy or an LLC-related lawsuit.

Simplicity

  • In many states, LLCs don’t need to hold annual meetings, file annual reports, or keep highly extensive records. With no requirements for a board of directors or keeping meeting minutes, there’s significantly less paperwork than a corporation, and LLCs are easier to maintain.  

Low Cost

  • LLCs are highly cost effective. You’re not required to hire and pay for an attorney andless compliance paperwork means fewer filing fees. The personal asset protection could potentially save huge sums of money in the long run, and initial formation fees typically range between $50 to $800 depending on the state.

Tax Benefits

  • The IRS classifies LLCs as either partnerships or sole proprietorships, meaning LLCs get “pass-through” taxation and don’t pay corporate taxes. Instead the LLC’s losses and profits pass through to the owners’ personal tax returns, and the owners pay personal income tax on any profits. Sole proprietors, general partners, and most LLC members are also responsible for paying a self-employment tax, which is a separate, additional federal income tax that consists of a 12.4 percent Social Security tax and a 2.9 percent Medicare tax. Individual owners, rather than the LLC, are required to pay all of the 15.3 percent self-employment tax.

Flexibility

  • Ownership, management, and profit distribution are all very flexible with an LLC. LLCs pass-through taxation has no restrictions on the number or type of owners. LLCs also don’t have the formal structure of corporations, so owners have more freedom to choose how they manage the business. And while corporations must distribute profits to shareholders based on the number and types of shares they have, LLCs have the freedom to decide how to distribute profits.

What are the Steps to Starting an LLC?

How do you start an LLC? While the steps to start an LLC vary from state to state, there are a few common steps that you’ll need to take no matter where you want to start your business:

1. Name Your Business:

  • First you’ll need to choose your business name. In addition to marketing and branding considerations, you’ll also need to take state law requirements into account while deciding on a name. You should visit the website of the state agency responsible for business filings (typically the Secretary of State) to check naming requirements and to make sure the name you’ve chosen is not already in use. Any references in an LLC name to suggest an affiliation with insurance or banking is typically prohibited. Check out our Ultimate Guide to Naming an LLC.

2. Name a Registered Agent:

  • An LLC is legally required to have a designated Registered Agent, who acts as an intermediary for receiving official legal documents and passing them on to the LLC owner. A Registered Agent can be anyone over the age of 18 as long as they’re available during regular business hours at an address located in the state where the LLC is registered. We have everything you need to know about registered agents.

3. File Articles of Organization (or similar document):

  • This document can be found on the website of the state agency responsible for business filings. To fill out this document, you’ll need to know your business’s name, address, purpose, management strategy, intended duration, and the Registered Agent’s contact information. You’ll need to pay a filing fee to submit your document to the state. If it’s accepted, you’ll receive a certificate of formal registration. See our Articles of Organization LLC Template to see exactly what you should include.

4. Draft an Operating Agreement:

  • Not every state requires an LLC to create an Operating Agreement. But they’re still highly useful as they outline and ensure that all members understand and agree to their designated rights and responsibilities. The agreement should include all relevant information relating to your LLC’s operations, including how profits will be distributed. While there are free templates available, an attorney should be consulted for more complex operations. See our LLC Operating Agreement Template to make sure you’re including all the essentials.

How long does it take to start an LLC? Again, this varies depending on the state where you’re filing and the time of year. In some states, once your application has been received, the state agency may issue a certificate of approval within just three business days. Other states may take four to six weeks or longer, so give yourself plenty of time.

What are the Benefits of Starting Up an LLC?

Why start an LLC? One of the major benefits to starting an LLC is the limited liability aspect. Because the assets and debts of an LLC are legally kept separate from the personal assets and debts of the company’s owners, the owners’ personal assets are protected from being targeted by creditors if the LLC goes bankrupt. 

Another major advantage of starting an LLC is how it’s taxed. Starting an LLC for tax benefits is advantageous due to its pass-through taxation structure. While corporations’ profits are taxed at the corporate level and then again after being distributed to the individual shareholders, an LLCs profits are passed directly to the owner and taxed only once as part of the owner’s personal income.

How to Name Your LLC

What’s in a name? A lot, if you’re starting your own business. Starting an LLC business begins with choosing a great name for your LLC. This involves far more than just coming up with something punchy and unique. The state agency that handles your application to form an LLC needs to approve your intended name first. Here is a brief rundown of some of the best practices for how to name your LLC:

  • Make sure your intended name isn’t already taken. We have a full guide on how to check if an LLC name is taken.
  • LLC names must include “LLC” in the name. This can be styled as: XYZ Limited Liability Company; XYZ Limited Liability Co.; XYZ Limited; XYZ BC L.L.C.; XYZ LLC; or XYZ Ltd.
  • Don’t mislead the public. As in, don’t name your LLC anything that falsely implies your business is a corporation, bank, insurance company, or any other type of enterprise that it’s not.
  • The name must match your business’s purpose, e.g. you cannot use terms like “medical” or “attorney” without proving that licensed professionals in those fields are part of your business.
  • Follow the common LLC naming tips. Pick a name that:
    • Clearly implies what products and services you provide
    • Is available for domain name registration
    • Is distinct, short, and easy to say
    • Avoids being associated with, or violates any other trademarks from, well established companies. For example, don’t use the prefixes “i” or “Mc” which could lead to accusations that you’re trying to mislead the public into thinking that your business is associated with Apple or McDonald’s.
  • Once you pick a name, reserve it for 60 to 120 days by filing a name reservation request form with your state’s Office of the Secretary and paying a small reservation fee. During this time you (and only you) can file Articles of Organization (or similar document) under that name.
  • After naming your LLC, you may want to protect your business’s name with a registered trademark.

What are the Costs of Starting an LLC?

How much does it cost to start an LLC? The cost of starting an LLC depends entirely on the state where your LLC is registered. Initial application fees range from $50 to $800. There may also be additional fees associated with consulting an attorney. 

Drafting an Operating Agreement could cost anywhere between $50 and $200 if you hire a service to prepare it for you. Registered Agents can be internal, but if you choose a service provider that will act as your Registered Agent, that could cost between $100 and $300 per year. 

LLCs are also subject to taxation and may be subject to reporting fees, which vary depending on the state. Some states require a publication of a notice of intent to register your LLC. If your LLC is in one of these states you’ll need to pay for ad space, which varies greatly depending on the publication.

*Fees associated with starting an LLC are subject to change. Be sure to visit the website for the governing body responsible for your state’s business regulations and fees to check for updates.

So what do you need to start an LLC? Every state has their own unique requirements, fees, and checklist for starting an LLC. Read on to learn how to start an LLC in each US state.

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How to Start an LLC in Each US State

How to Start an LLC in Alabama

Steps to starting an LLC in Alabama:

Starting an LLC in Alaska

Steps to starting an LLC in Alaska:

LLC formation in Arizona

Steps to starting an LLC in Arizona:

How to Start an LLC in Arkansas

Steps to starting an LLC in Arkansas:

Starting an LLC in California

Steps to starting an LLC in California:

Start your LLC in California

Visit our guide to Starting and Maintaining an LLC in California

LLC Formation in Colorado

Steps to starting an LLC in Colorado:

How to Start an LLC in Connecticut

Steps to starting an LLC in Connecticut:

Starting an LLC in Delaware

Steps to starting an LLC in Delaware:

LLC formation in Florida

Steps to starting an LLC in Florida:

Visit our guide to starting an LLC in Florida

How to Start an LLC in Georgia

Steps to starting an LLC in Georgia:

Starting an LLC in Hawaii

Steps to starting an LLC in Hawaii:

LLC formation in Idaho

Steps to starting an LLC in Idaho:

How to Start an LLC in Illinois

Steps to starting an LLC in Illinois:

Starting an LLC in Indiana

Steps to starting an LLC in Indiana:

LLC formation in Iowa

Steps to starting an LLC in Iowa:

How to Start an LLC in Kansas

Steps to starting an LLC in Kansas:

Starting an LLC in Kentucky

Steps to starting an LLC in Kentucky:

LLC formation in Louisiana

Steps to starting an LLC in Louisiana:

How to Start an LLC in Maine

Steps to starting an LLC in Maine:

Starting an LLC in Maryland

Steps to starting an LLC in Maryland:

LLC formation in Massachusetts

Steps to starting an LLC in Massachusetts:

How to Start an LLC in Michigan

Steps to starting an LLC in Michigan:

  • Name Your Michigan LLC – Michigan business name reservation filing fee is $25
  • Designate a Registered Agent
  • Prepare and File Articles of Organization (or similar document) – $50 filing fee 
  • Receive a Certificate From the State
  • Create an Operating Agreement
  • Get an Employer Identification Number for free online via the IRS.
  • Comply with Employer Obligations – In Michigan, employers must:
    • Withhold federal, state, and local income taxes from employees wages and forward what is collected to the government
    • Report new employees to the government within 20 days of their hire date 
    • Purchase workers compensation insurance for work-related injuries
    • Pay taxes to the state unemployment fund
  • Get a Michigan Business License – Depending on the nature of your business, you may need to obtain a business license in Michigan. Visit Michigan’s State License Search site to find your type of business and more information on licensing. 
  • File a Statement of Information annually by February 15th (unless the LLC is formed after September 30th, in which case the LLC is not required to file a statement on the February 15th immediately succeeding its formation or authorization) – $25 filing fee

Starting an LLC in Minnesota

Steps to starting an LLC in Minnesota:

LLC formation in Mississippi

Steps to starting an LLC in Mississippi:

How to Start an LLC in Missouri

Steps to starting an LLC in Missouri:

Starting an LLC in Montana

Steps to starting an LLC in Montana:

LLC formation in Nebraska

Steps to starting an LLC in Nebraska:

  • Name Your Nebraska LLC – Nebraska’s business name reservation filing fee is $30
  • Designate a Registered Agent
  • Prepare and File Articles of Organization (or similar document) – $100 filing fee 
  • File an Affidavit of Publication – Once you have formed your LLC, you must publish a notice of information in a newspaper near the LLC’s office address. The notice must be published within 45 days of the LLC’s formation and run for three consecutive weeks. After three weeks, the newspaper will send an Affidavit of Publication to the LLC, which must then be filed with the Secretary of State.
  • Receive a Certificate From the State
  • Create an Operating Agreement
  • Get an Employer Identification Number for free online via the IRS.
  • File a Statement of Information biennially with the Nebraska Secretary of State by April 1st in odd-numbered years – $10 filing fee

How to Start an LLC in Nevada

Steps to starting an LLC in Nevada:

Starting an LLC in New Hampshire

Steps to starting an LLC in New Hampshire:

LLC formation in New Jersey

Steps to starting an LLC in New Jersey:

Visit our guide to starting an LLC in New Jersey

How to Start an LLC in New Mexico

Steps to starting an LLC in New Mexico:

Starting an LLC in New York

Steps to starting an LLC in New York:

  • Name Your New York LLC – New York’s business name reservation filing fee is $20
  • Submit to the New York Department of State an address to which legal documents can be forwarded by the Secretary of State.
  • Designate a Registered Agent – In New York, you are required to name the Secretary of State as your LLC’s registered agent. You are permitted to name an additional New York resident or registered agent business as your LLC’s agent.
  • Prepare and File Articles of Organization (or similar document) – $200 filing fee
  • Publish your Articles of Organization (or similar document) in Two Newspapers – The newspapers must be designated by the county clerk of the county where the LLC’s office resides. Notices are required to run once a week for six weeks.
  • Once the notices have run, the newspapers will provide you with affidavits of publication. You must file these, together with a Certificate of Publication, with the New York Department of State. There is a $50 filing fee. You must file the certificate within 120 days of the LLC’s formation.
  • Create an Operating Agreement
  • Receive a Certificate From the State
  • Get an Employer Identification Number for free online via the IRS.
  • File a Statement of Information biennially by the end of the anniversary month that your business was formed – $9 filing fee

Visit our guide to starting an LLC in New York

LLC formation in North Carolina

Steps to starting an LLC in North Carolina:

How to Start an LLC in North Dakota

Steps to starting an LLC in North Dakota:

Starting an LLC in Ohio

Steps to starting an LLC in Ohio:

LLC formation in Oklahoma

Steps to starting an LLC in Oklahoma:

How to Start an LLC in Oregon

Steps to starting an LLC in Oregon:

Visit our guide to starting an LLC in Oregon

Starting an LLC in Pennsylvania

Steps to starting an LLC in Pennsylvania:

  • Name Your Pennsylvania LLC – Pennsylvania’s business name reservation filing fee is $70
  • Designate a Registered Agent 
  • Prepare and File Articles of Organization (or similar document) – $125 filing fee 
  • Get an Employer Identification Number for free online via the IRS.
  • Receive a Certificate From the State
  • Create an Operating Agreement
  • Comply with Employer Obligations – Report new employees to the government within 20 days of their hire date; withhold federal, state and local income taxes from their employees’ wages and forward what is collected to the government; pay taxes to the state unemployment fund; purchase workers compensation insurance for work-related injuries.
  • File a Statement of Information – Pennsylvania requires LLCs to file a Decennial Report every ten years on years ending in “1” i.e. 2011, 2021, 2031, etc. – $70 filing fee

LLC formation in Rhode Island

Steps to starting an LLC in Rhode Island:

How to Start an LLC in South Carolina

Steps to starting an LLC in South Carolina: 

Starting an LLC in South Dakota

Steps to starting an LLC in South Dakota: 

LLC formation in Tennessee

Steps to starting an LLC in Tennessee:

How to Start an LLC in Texas

Steps to starting an LLC in Texas:

Visit our guide to starting an LLC in Texas

Starting an LLC in Utah

Steps to starting an LLC in Utah:

LLC formation in Vermont

Steps to starting an LLC in Vermont:

How to Start an LLC in Virginia

Steps to starting an LLC in Virginia:

  • Name Your Virginia LLC – Virginia’s business name reservation fee is $10
  • Designate a Registered Agent
  • Prepare and File Articles of Organization (or similar document) – $100 filing fee 
  • Receive a Certificate From the State
  • Create an Operating Agreement
  • Get an Employer Identification Number for free online via the IRS.
  • Comply with Employer Obligations
    • Report new employees to the government within 20 days of their hire date
    • Withhold federal, state and local income taxes from their employees’ wages and forward what is collected to the government
    • Pay taxes to the state unemployment fund
    • Buy workers compensation insurance for work-related injuries
  • Virginia LLCs are not required to file a yearly report, but they are required to pay an annual $50 registration fee starting a year after formation, by the end of the anniversary month.

Starting an LLC in Washington

Steps to starting an LLC in Washington:

Visit our guide to starting an LLC in Washington State

LLC formation in West Virginia

Steps to starting an LLC in West Virginia: 

How to Start an LLC in Wisconsin

Steps to starting an LLC in Wisconsin:

Starting an LLC in Wyoming

Steps to starting an LLC in Wyoming:

Our website contains general information only and this information is not to be taken as legal, tax, or financial advice. You should consult with your attorney and/or tax advisor to get answers to your specific questions.

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Common questions

How Much Does It Cost to Form an LLC in California?

Since you only need to form your LLC once, you’ll only pay the fees associated with forming the LCC one time. Here’s a list of fees you’ll pay to start your LLC in California:

Filing fees

You’ll pay two filing fees to form an LLC in California:

A $70 fee to file articles of organization with the California Secretary of State’s office
A $20 fee to file a Statement of Information, Form LLC-12, with the California Secretary of State.

LLC name costs

Although this is optional, you might choose to pay a $10 fee in order to reserve your preferred LLC name with the Secretary of State.

This prevents another business from registering the same name or a similar name before you have the chance to register your business. It’s also recommended that you conduct a trademark search to make sure that your LLC name doesn’t violate someone else’s trademark rights.

Costs of creating an operating agreement

Even though an operating agreement isn’t legally required, it’s highly recommended that you have one written for your LLC.

The best part is that there might not even be an additional cost involved with getting this done, especially if you join Collective. We provide you with a free LLC operating agreement that’s been written by a professional attorney.

If you decide to write your own customized operating agreement with the help of a lawyer, it could cost anywhere from $500 to $1,000.

Paperwork costs

The simple act of completing and filing all of the required paperwork for your LLC also comes with some costs.

Hiring an attorney to help you fill out and file your paperwork can cost a lot, with averages ranging from $500-$1,000.

Business license fees

Depending upon the nature of your business and where it’s located, you might also need to get a local business license from your city or county.

The cost varies widely, but for a small business, it’s usually $50 to $100.

How Much Does It Cost to Maintain an LLC in California?

Your work isn’t done—and you aren’t done paying fees—once your LLC is formed. Now you need to deal with ongoing maintenance expenses. It’s all just part of doing business.

Cost of registered agents

Having a registered agent, who will accept court papers and other important documents on your LLC’s behalf, is a great idea. The annual cost of having a registered agent is typically $75 to $150.

Statement of Information costs

Even after your business is up and running, you’ll be required to file a new Statement of Information with the California Secretary of State every two years. With that comes a $20 filing fee, so be sure to mark your calendar and set aside some money in your budget to take care of this.

Business license fees

Yep, we’re talking about business license fees again, because it doesn’t always end after you get your business license and paying the upfront fee. Oftentimes, you also have to periodically renew your business license. And that means paying a renewal fee.

Whether you have to renew your business license every year or more or less often, setting aside the money to pay the fee is a smart move.

Fictitious Name Statement fees

If you filed a fictitious name statement then you’ll need to renew that statement every five years. So, in addition to paying the fee for your first fictitious name statement, be prepared to pay the fee again when you need to renew it.

What About Taxes?

Taxes are another thing to consider when it comes to calculating the costs of running an LLC in California. And you can’t avoid them, even if you form your LLC in another state.

Even if you form your LLC in another state, if your LLC is located in California, you’ll have to register your out-of-state LLC in order to to do business in California. On top of that, you’ll be required to pay the same taxes and fees as any other California LLC.

Here’s the gist: California imposes special taxes and fees on LLCs that are organized in the state. LLCs are subject to two different taxes, both of which are paid to the California Franchise Tax Board.

Which LLC Costs Are Tax Deductible?

The good news is that all of these LLC costs are tax-deductible.

You can deduct up to $5,000 of the costs of forming your LLC in a single year. This includes:

The cost of completing articles of organization

LLC filing fees

The costs of drafting an LLC operating agreement

Attorney fees

Other fees you incur for setting up your business

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Collective Editorial Team

Collective Editorial Team

The Collective Editorial Team is made up of writers, editors, and subject matter experts covering everything solopreneurs deal with — from tax, bookkeeping, and business formation to marketing, growing revenue, and the everyday realities of running a business solo. The team works closely with self-employed business owners to understand what they're actually navigating, and for technical content, leverages authoritative tax and regulatory sources to keep it accurate and current.

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