How to Form an LLC in the USA — Step-by-Step Guide

Forming a US LLC involves a handful of clear steps. Whether you live in the United States or abroad, the process is largely the same. Here is how it works.

Step 1: Choose a State

Popular choices include Wyoming, Delaware, and New Mexico thanks to low fees and business-friendly rules. Your "home" state is also a reasonable option if you operate there physically. Each state has different filing fees, annual report requirements, and taxes.

Step 2: Pick a Business Name

Your LLC name must be unique in the state and usually must include "LLC" or "Limited Liability Company." Check name availability on the Secretary of State website of your chosen state.

Step 3: Appoint a Registered Agent

Every LLC must have a registered agent — a person or company with a physical address in the state who receives legal documents on your behalf. If you don't live in the state, you'll need a registered agent service.

Step 4: File Articles of Organization

This is the official formation document, filed with the Secretary of State. It includes your LLC name, registered agent, and basic business information. Filing fees vary by state.

Step 5: Create an Operating Agreement

An operating agreement defines ownership, management, and profit distribution. Not all states require one, but it is strongly recommended — banks often ask for it.

Step 6: Get an EIN

An Employer Identification Number (EIN) is issued by the IRS and works like a Social Security number for your business. You'll need it to open a US business bank account and file taxes.

Step 7: Stay Compliant

Most states require annual reports and fees. Mark your calendar — missing deadlines can lead to penalties or administrative dissolution of your LLC.

Should You Use a Formation Service?

You can file everything yourself, but many entrepreneurs use a formation service to handle paperwork, act as registered agent, and provide compliance reminders. See our formation service comparisons to evaluate your options.

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