Your LLC name must be unique within your state, must include a designator like "LLC," "L.L.C.," or "Limited Liability Company," and cannot use restricted words like "Bank," "Insurance," or "Federal" without special approval. Most states also prohibit names that could confuse your LLC with a government agency.

Before you fall in love with a name, check availability. Every state's Secretary of State website has a free business name search tool. Search broadly — variations on your desired name, common misspellings — because some states reserve similar names that might block yours. If the name is available, many states allow you to reserve it for 30–120 days for a small fee ($10– $50) while you prepare your paperwork.

One thing people frequently overlook: state name availability doesn't mean the name is safe to use nationally. If another company is operating under that name in your industry with trademark rights, you could face infringement issues even if your state approved the name. A quick search of the USPTO's TESS database and a Google search for active businesses using the name is worth the few minutes it takes.

Every LLC in every state must designate a registered agent — a person or company with a physical street address in your state (not a P.O. box) who is available during normal business hours to accept legal documents, service of process, and official state correspondence on your behalf.

You have three options: be your own registered agent (if you have a physical address in the state), appoint a trusted individual (a family member, attorney, or business partner with an in- state address), or hire a commercial registered agent service. Professional services typically cost $50–$300 per year and have the advantage of keeping your home address off public state records — an underappreciated privacy benefit for home-based business owners.

The Articles of Organization (sometimes called a Certificate of Formation or Certificate of Organization) is the founding document that creates your LLC in the eyes of the state. You file it with your state's Secretary of State office, usually online, along with a filing fee.

The document itself is typically straightforward: LLC name, principal office address, registered agent name and address, whether the LLC is member-managed or manager-managed, and the name of the organizer (the person filing the paperwork). Some states require additional information — California wants the names of all managers or members, for example.

State filing fees and rules vary significantly. Here are key callouts:

Wyoming: $100 filing fee, strong privacy protections, no state income tax. Popular for out- of-state formations. Delaware: $90 filing fee, renowned business-friendly courts and laws. Best if you plan to raise institutional investment; otherwise, adds complexity (you'll still need to register in your home state). Nevada: $75 filing fee, no state corporate income tax, strong liability protections. Popular, though its reputation is somewhat overstated for solopreneurs. California: $0 initial filing fee (waived through 2023; standard fee is $70), but requires an $800 annual minimum franchise tax regardless of income. LLCs that don't do business in California can avoid this, but if you live and work there, you're on the hook. Texas: $300 filing fee, no state income tax, reasonable ongoing compliance requirements. Florida: $125 filing fee, no state income tax on individuals. Annual report fee is $138.75. New York: $200 filing fee, plus a costly publication requirement — you must publish a notice of LLC formation in two newspapers for six consecutive weeks (typically $300–$2,000 depending on the county). A word on "foreign" formation: Forming your LLC in Delaware or Wyoming sounds appealing, but if you actually live and operate your business in, say, Ohio, you'll need to register as a "foreign LLC" in Ohio too — paying Ohio's fees and meeting Ohio's ongoing requirements. For most solopreneurs, forming in your home state is simpler and cheaper.

Most states don't legally require an operating agreement, but you should have one regardless. This document governs how your LLC operates: how decisions are made, how profits and losses are allocated, what happens if a member wants to leave, and how the business is handled if it dissolves.

For a single-member LLC, this might seem unnecessary — but it's not. Banks and some vendors will ask for it. Courts have looked more favorably on LLCs with formalized operating agreements when testing whether the liability shield should be respected. And if you ever bring in a partner, you'll want these terms already on paper rather than negotiating mid- conflict.

You can draft a basic operating agreement yourself using a reputable template, or have an attorney prepare one for a few hundred dollars. The IRS also requires single-member LLCs to have operating agreements to substantiate that the LLC is a distinct entity from its owner.

An Employer Identification Number (EIN) is essentially a Social Security number for your business. You need one to open a business bank account, hire employees, file certain tax returns, and in many cases, to work with contractors or larger clients who require it for their records.

Applying is free and takes about 15 minutes on the IRS website (irs.gov). The application is available Monday through Friday, 7 a.m. to 10 p.m. Eastern, and you receive the EIN immediately upon approval. You'll need your Social Security number and basic business information.

Even if you're a single-member LLC with no employees, get the EIN. Using your personal SSN for business purposes invites identity theft risk and makes it harder to maintain the clear separation between personal and business finances that the LLC liability shield depends on.

The "corporate veil" — the legal separation between your LLC and yourself — depends in part on actually treating your business as a distinct entity. Co-mingling personal and business funds is the fastest way to give a plaintiff's attorney ammunition to "pierce the veil" and come after your personal assets. Open a dedicated business checking account immediately after receiving your EIN.

You'll typically need: your Articles of Organization, your EIN confirmation letter, your operating agreement, a government-issued ID, and an initial deposit (often $25–$100 minimum). Some online banks (Mercury, Relay, Bluevine) are particularly small-business- friendly and have no monthly fees.

Depending on your business type and location, you may need to register with your state's department of revenue for sales tax collection, withholding taxes if you have employees, or other state-specific business taxes. This step is often overlooked until tax time — by then, you may have unfiled obligations and penalties accumulating.

Check your state's revenue or taxation website, or ask an accountant during the formation phase. It takes 30 minutes and avoids a much larger headache later.

Your LLC is a legal entity, but that doesn't mean you're automatically licensed to operate. Depending on your industry and location, you may need:

A general business license from your city or county A professional license (contractors, real estate agents, therapists, accountants, healthcare providers) A seller's permit if selling taxable goods

Zoning permits if operating from home An occupational license in certain municipalities The SBA's Business License and Permit tool (sba.gov) is a useful starting point, though your state and local government websites will have the authoritative requirements.

Formation is not a one-time event. LLCs must file annual (or biennial) reports with their state, pay any associated fees, and maintain their registered agent. Failing to file annual reports results in your LLC falling out of "good standing" — and in many states, the state will administratively dissolve your LLC, at which point you've lost the liability protection you formed it to get.

Set calendar reminders for your annual report due date, registered agent renewal, and any franchise or LLC taxes. The compliance cost is modest; the consequences of ignoring it are not.

Have an existing LLC? You may want to read our guide on S-Corp elections to see if a tax reclassification could save you money.

With your LLC filed, get an EIN, open a dedicated business bank account, and decide whether an S-corp election makes sense for your profit level.