Starting a business is an exciting journey, and forming a Limited Liability Company (LLC) is one of the best ways to protect yourself legally while keeping your business structure simple. An LLC provides limited liability protection, meaning your personal assets are shielded from business debts and lawsuits.
In this guide, we’ll walk you through the steps to start your business as an LLC, including getting an EIN number and registering with your state.
Step 1: Choose Your LLC Name
Your LLC's name is your brand identity, so it should be unique and aligned with your business vision. However, there are a few rules to follow:
✅ The name must be unique and not already in use by another business in your state.
✅ It must include “LLC” or “Limited Liability Company” at the end (e.g., "ABC Solutions LLC").
✅ It cannot include restricted words like "bank" or "insurance" without additional paperwork.
🔎 How to check availability?
Go to your state's business name search website (usually on the Secretary of State’s website) and see if your desired name is available.
💡 Tip: You may also want to check if the domain name (website URL) is available for your business before finalizing your name.
Step 2: Register Your LLC with Your State
Once you’ve chosen a name, the next step is to officially register your LLC by filing Articles of Organization (sometimes called a Certificate of Formation).
How to Register Your LLC:
1️⃣ Go to your state's Secretary of State website.
2️⃣ Find the section for business registration and look for "Form an LLC."
3️⃣ Fill out the Articles of Organization, which typically requires:
- Your LLC name
- Your business address
- The name & address of your registered agent (a person or service that receives legal documents on your behalf)
- Your business purpose (some states require a brief description of what your business does)
4️⃣ Pay the filing fee (usually between $50 - $500, depending on the state).
📌 Processing Time: Some states approve LLCs instantly online, while others take a few days to a few weeks.
Step 3: Get an EIN (Employer Identification Number) from the IRS
An EIN (Employer Identification Number) is like a Social Security number for your business. You need it to open a business bank account, hire employees, and file taxes.
✅ Good news: It’s FREE to get an EIN from the IRS website.
How to Get an EIN:
1️⃣ Go to the IRS EIN application page: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
2️⃣ Click "Apply Online Now" and follow the steps.
3️⃣ Enter your LLC name & business details.
4️⃣ Receive your EIN instantly! (Make sure to download and save your EIN confirmation letter.)
📌 Tip: You may see companies charging for EIN registration—avoid them! The IRS gives EINs for free.
Step 4: Get Your Business Licenses & Permits (If Required)
Depending on your industry and location, you may need additional licenses or permits to operate legally.
🔹 Common business licenses:
- General business license – Required in some cities/counties.
- Sales tax permit – If you’re selling products, you may need one to collect state sales tax.
- Professional licenses – Required for specific businesses like barbers, real estate agents, or contractors.
✅ Where to check? Visit your state and local government websites to see what’s required.
Step 5: Open a Business Bank Account
Now that your LLC is official, you should separate your personal and business finances by opening a business bank account.
✅ What you’ll need:
- Your EIN number
- Your LLC Articles of Organization
- Your Operating Agreement (Some banks require this document outlining ownership & rules for your LLC)
📌 Why it matters: Keeping personal and business finances separate protects your LLC's liability status and makes accounting easier.
Step 6: Set Up Your Accounting & Taxes
Even if you’re just starting, keeping track of income and expenses will save you headaches later.
✅ Consider using accounting software like QuickBooks, Wave, or FreshBooks.
✅ Understand your tax responsibilities – LLCs are typically taxed as pass-through entities, meaning profits pass through to your personal tax return.
📌 Tip: Talk to an accountant to understand the best tax setup for your business.
Step 7: Register for State Taxes (If Required)
Some states require LLCs to register for:
- State income tax (if your state has it)
- Sales tax (if you sell products)
- Employer tax (if you have employees)
Visit your state’s Department of Revenue website to see what applies to you.
Final Thoughts: You’re Now an Official Business Owner! 🎉
Congratulations! By following these steps, you’ve successfully started your LLC, obtained an EIN, and registered with your state.
✅ What’s next?
Now it’s time to grow your business! Consider creating a website, social media presence, and marketing plan to attract customers.
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📢 Check out our business package to get started today.