An LLC is one of the most common ways to start a business in the USA. This guide walks through the main steps in simple language.
You can form an LLC in the state where you do business, or in another state. Fees, yearly reports and taxes differ from state to state, so compare them before you decide. Many owners who live outside the USA choose a state with simple rules and low yearly costs.
Your name must be different from other companies in that state and usually has to include "LLC". Search the state business database to check that it is free, and check that a matching domain name is available.
Every LLC needs a registered agent with a physical address in the state. This person or company receives legal and government mail for you. If you live outside the state, you will usually pay a registered agent service.
This is the official document that creates your LLC. You file it with the state, usually online, and pay the state filing fee. After approval you receive your confirmation.
An operating agreement describes who owns the company and how it is run. Some states do not require it, but it is a good habit and banks often ask for it.
An EIN is your business tax number from the IRS. Owners outside the USA usually apply by fax, mail or phone using IRS Form SS-4. Check the IRS website for the current method, because it can change.
Keep business money separate from personal money. Banks and online payment providers have their own identity requirements, so read them carefully and always give true information.
Remember the yearly report or fee your state requires, and check federal and state tax rules for your situation. Missing deadlines can lead to penalties.
Ready to compare formation services? See our USA LLC Registration page.
