How to Start an LLC in 2021
Looking to start an LLC? Read on and learn how to start an LLC in 4 simple steps. You can start an LLC on your own and only pay the state fee or use one of the top LLC filing services and let the professionals to it for you for an affordable fee.
If you are interested in doing the leg work you can register your LLC on your own. Otherwise, you can use an online filing service to file all the paperwork for you and register your business in less then 10 minutes.
If you chose to register your business on your own know that it is quite time consuming, you will need to educate yourself on the process and most importantly, any mistakes you make could easily delay the process. Read on and learn how to start an LLC and register your business.
Option 1: Register an LLC on your own
Start your LLC in 4 simple steps:
- Select a State
- Name your LLC
- Choose a Registered Agent
- File the Article of Organization with the state
Step 1: Select your state
Step 2: Name your LLC
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You will need to verify that your business name is unique and complete a business entity search in the state you choose to incorporate.
Step 3: Select your LLC Registered Agent
You can be your own registered agent but for most businesses we don’t recommend it. If you are not sure, check out our Register Agent guide.
Step 4: File your LLC Articles of Organization
Article of organization is the document used to file an LLC on the state level.
Additional LLC services and requirements
LLC operating agreement
An operating agreement is not mandatory by most states, but it is highly recommended to create one. An operating agreement is a legal document which outlines the ownership of the LLC, the company structure and describes the roles of the different LLC members.
Employer Identification Number (EIN)
The purpose for the Employer Identification Number (EIN) is for tax administration for your business by the IRS
For detailed State-by-state information on EIN please select your state from the list below:
Option 2: Use an LLC Filing services to start your LLC
Online LLC filing services simplify the entire process for you and allow you to register your LLC in less then 10 minutes.
- Choose the right LLC filing service for you
- Select your entity
- Chose the incorporation package
- Fill in your business name and contact information
- Select your Registered Agent
The top LLC filing services are your one-stop shop to create and manage your LLC business in all 50 states. The cost of their services range from about $49 – $200 depending on the incorporation package that you choose. Check out our best LLC services and choose the right LLC filing service for you.
My LLC in is registered – What’s next?
Congratulations on your LLC! Don’t forget that the process and legwork don’t stop here. After successfully forming your LLC, post guidelines can make your business organized, seamless, and less complicated.
Set the line between personal and business resources
It’s recommended that you separate your personal assets from your LLC. Assets such as your house, car, and other personal properties should not mix with your LLC’s assets. This way, if your Connecticut LLC gets sued, you can have peace of mind knowing that your valuables are safe and will not be dragged into the picture.
Open your business bank account
It will be easy and tempting to ‘borrow’ or refinance your LLC using your account when your LLC needs some financial uplift, but don’t. Just like your personal resources, your savings and money meant for personal use should be kept private. If you need funds to jump-start your business, you can always consider a business loan.
Secure a business credit card
This follows the same logic of keeping your personal properties from your business valuables. A business credit card will also help build your LLC’s credit history, which can help you in the future should you want to apply for a business loan. Make sure that you are making your payments on time!
Onboard a business accountant
A business accountant can oversee and ensure that your organization is not overpaying in taxes while at the same time making sure that you don’t have any penalties and other expensive tax errors. Having one also removes the responsibility of bookkeeping and payroll off your shoulders. You can focus on the other angles of growing your business.
Consider getting business insurance
Regardless of how small your company is at the moment, growth and expansion are part of the long-term goal. Getting business insurance can help you feel secure from any possible risks. It can assist you in managing potential lawsuits or even malpractice and other business-triggered errors.
As a responsible and pro-employee organization, you’d also want to consider workers’ compensation insurance to provide coverage for your employees should there be any work-related injuries, sicknesses, or even death that may happen.
Frequently asked questions
What’s the LLC state fee cost to register a new business?
The LLC State fee cost is different in every state. To learn more about the cost in your state click on your state name above.
What’s the LLC annual report fee?
Most states refer to this fee as an Annual Report Fee but some states might have different names for this fee including:
- Annual List of Members
- Annual Certificate
- Biennial Report
- Annual Registration Fee
- Biennial Statement
- Periodic Report
- Decennial Report
- Business Privilege Tax Return
- Franchise Tax Report
To learn more about the annual report fee in your state click on your state name above.
How long is the processing time for my Certificate of Formation?
If you filed it through mail the process could take 1-3 weeks depending on the state. Whereas, usually, an online application will be much faster. The process can also be expedited if you’re willing to pay an additional fee.
I already have an EIN from my sole proprietorship business. Do I need to get a new one for my LLC?
Yes, the Internal Revenue System mandates that sole proprietorships secure a new EIN when converting their business type to an LLC.