How to Start an LLC in 2022
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 register your company for an affordable fee.
- 1. Select a State
- 2. Name your LLC
- 3. Choose a registered agent
- 4. File Article of Organization with the state
- District Of Columbia
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- West Virginia
It is possible to register your LLC all by yourself. Read on and learn how to start an LLC and register your business in 4 simple steps. Otherwise, you can also use a professional filing service and register your business in less than 10 minutes. Check out our Best LLC services top list.
LLC DIY – Here is what you need to know!
- If you choose 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.
Option 1 – Start an LLC on your own
Name your LLC
The first step is to verify that your business name is unique and complete a business entity search in the state you choose to incorporate. You may also want to check if the name you want is already trademarked. Do a quick search on the US search trademark database.
US search trademark database on the US gov trademark website. Make sure you verify that your business name is unique and complete a business entity search in the state you choose to incorporate.
Select your LLC registered agent
All LLCs are required to have a registered agent. In some states, this position is also known as Agent for Service of Process. You can be your own registered agent but for most businesses, we don’t recommend it.
A registered agent can keep track of legal requirements and filings for. If you chose a professional registered agent service, then they will always available during office hours to receive your mail. This way, you don’t need to worry about being available to receive and check important mail and you can focus on running and growing the business.
Professional registered agent reviews
- We’ve researched and reviewed the best registered agent services for your LLC. Check out the best professional
register agent services.
File your LLC with the state
You are required to file an LLC on the state level. This document is also known as Articles of Organization or Certificate of Organization in some states. Just keep in mind to use your registered agent address to ensure privacy and security.
Also remember that during the entire process, you may need to source, review, and approve urgent documentation – so make sure that you’re able to take care of these immediately with your registered agent service. You can file this document online or offline by visiting the Secretary of State or Department of State website for that state.
Select your state below to get direct links to the Secretary of State website and forms:
Consider the 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 that outlines the ownership of the LLC, the company structure and describes the roles of the different LLC members.
Employer Identification Number (EIN)
The purpose of the Employer Identification Number (EIN) is for tax administration for your business by the IRS. For detailed information on the EIN application procedure visit the official IRS website.
Based on the business you’re operating, you might be required to obtain a business license. Check with the county, city, or state you are registered in if you’re required to obtain a business license. A business license is important since you might not be able to begin operations without one.
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. In particular, all our top LLC filing services come with the option to include registered agent service included – making your experience as smooth and painless as possible. Checkout out list of the best LLC services.
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 Certificate
- Biennial Statement
- Annual List of Members
- Biennial Report
- Annual Registration Fee
- Business Privilege Tax Return
- Decennial Report
- Franchise Tax Report
- Periodic Report
To learn more about the annual report fee in your state click on your state name in the list 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.