Step-by-Step Guide to Starting an LLC in 2026 – Fast, Compliant, Founder-Friendly
Starting a Limited Liability Company (LLC) in 2026 protects personal assets while keeping operations lean. This founder-first checklist walks you through state selection, name clearance and trademarks, registered agent service, Articles of Organization, Operating Agreement, EIN, licenses/permits, banking, and ongoing compliance. You’ll also see Florida-specific nuances (no personal state income tax; RA street-address rule; annual report deadline) and soft links to done-for-you help when it genuinely saves time and risk.
Looking for a Step-by-Step Guide to Starting an LLC in 2026? Use this proven path to file fast, stay compliant, and launch with transparent pricing.
Step 1: Choose your formation state (home vs. strategy)
Most small businesses form in the home state where they operate. If you choose a different state, you’ll typically foreign-qualify back home, paying fees in two places (formation + foreign registration) and maintaining a Registered Agent in each state. For context, Delaware is popular for its predictable corporate law and clear franchise-tax framework (e.g., LLCs owe $300 due June 1). California has unique rules and fees for LLCs (e.g., the annual $800 tax, with certain first-year relief).
Florida call-out: Florida’s lack of personal state income tax makes it attractive for pass-through owners (LLCs by default, and LLCs taxed as S-corps). If you operate primarily in Florida, forming there simplifies compliance.
Step 2: Pick a name (clear it legally, brand it smartly)
Choosing a great name is an important early step. Your LLC’s name should be unique and meet your state’s naming requirements. Generally, the name must include a legal designator like “Limited Liability Company” or an abbreviation such as “LLC” or “L.L.C.” Most states prohibit names that are too similar to existing business names on record, or names that include restricted words (like “Bank” or “Insurance”) unless you have proper approval.
Your LLC name must be distinguishable and include a designator (“LLC”, “L.L.C.”). Do three quick checks:
- State availability
- Trademark risk via the USPTO search before you fall in love with a name.
- Domain/social handles for brand cohesion.
Tip: If the trademark search reveals conflicts, adjust early – rebrands are expensive.
Step 3: Appoint a Registered Agent
Every LLC must designate a Registered Agent (RA) to accept service of process and official mail. In Florida, the RA must have a physical street address (no P.O. box) and keep business-hours availability. This is a strong reason to use a professional Registered Agent rather than your home address.
Use a professional registered agent service: This is a popular choice for many businesses. Professional registered agent services will list their address for your LLC and forward any official documents to you. This option can help keep your personal address private and ensure you never miss an important document. It’s especially useful if you operate in multiple states or don’t maintain a constant office location. Many LLC formation companies offer a year of registered agent service as part of their packages.
Step 4: File Articles of Organization (form the LLC)
With your name chosen and registered agent ready, the next step is to officially create your LLC by filing formation documents with the state. This document is most commonly called the Articles of Organization, though some states use different names (e.g., Certificate of Organization or Certificate of Formation).
Where our team helps: Florida LLC Formation Solutions and All in One LLC Solution prepare/submit the filing and calendar your compliance dates.
When submitting your Articles of Organization, you’ll also pay a filing fee to the state. Filing fees vary widely: from around $100 in some states to a few hundred dollars in others. As of 2026, the average state filing fee to start an LLC in the U.S. is about $132, but be sure to check your state’s exact fee. Some states accept online filings and credit card payments, which can significantly speed up approval times.
After filing, the state will review your paperwork. If everything is in order, you’ll receive back a stamped and approved Articles of Organization (or a Certificate of Formation) confirming that your LLC is officially formed. This is often sent via email for online filings or by mail for paper filings. Processing times can range from a day or two (in states with instant online filing) to a few weeks if backlogs or mail filing.
Step 5: Draft an Operating Agreement (even if you’re solo)
Your Operating Agreement sets ownership, voting, capital, profit/loss allocations, manager powers, and buy-sell mechanics. Banks and investors often ask for it; courts look for it when honoring the liability shield. Keep a signed copy with your records and update it after any ownership change.
Key reasons to have an Operating Agreement:
- Protecting LLC Status: An operating agreement helps demonstrate that your LLC is a separate legal entity and not just an extension of your personal affairs. This is crucial for maintaining limited liability. Without this formality, your LLC could resemble a sole proprietorship or partnership, potentially jeopardizing your personal liability protection.
- Preventing Member Disputes: If you have multiple owners (members), the operating agreement sets clear rules and expectations. It can prevent misunderstandings by detailing each member’s rights and responsibilities. Even in a single-member LLC, writing down how you’ll handle business decisions can be useful if you later bring on partners or need to show a bank/partner your operating structure.
- Overriding Default State Rules: In absence of an operating agreement, your LLC will be governed by default rules in state law, which might not align with your preferences. By crafting your own agreement, you tailor the management and economic arrangement to suit your business.
Your operating agreement does not need to be filed with any government office; just keep it with your LLC’s records. All members should sign it to indicate their agreement. You can write one yourself using our diverse and professional templates.
Step 6: Get your EIN (Employer Identification Number)
An Employer Identification Number (EIN) is a federal tax ID issued by the IRS to identify your business for tax purposes. Think of it as a social security number for your LLC. If your LLC will have employees or multiple members, you are required to get an EIN. Even for a single-member LLC with no employees, obtaining an EIN is highly recommended because:
- It allows you to open a business bank account without using your personal SSN.
- It helps in separating personal and business finances.
- You’ll need it to file certain taxes at the federal and state level, and to handle employee payroll taxes if you hire staff.
Obtaining an EIN:
- The way is to apply directly through the IRS , EIN application (if you, the applicant, have a valid SSN or ITIN and the business is in the U.S.). You get your EIN immediately upon completion.
- If you’re an international founder without an SSN, you can still get an EIN by mailing or faxing Form SS-4 to the IRS. It takes a bit longer (faxes can take couple of weeks for a response; mail can take several weeks).
- You can also apply for our service to obtain the EIN on your behalf. Our Some LLC formation Solutions include EIN acquisition as an add-on service If you do not have precise knowledge and experience in this matter & you prefer not to handle it yourself.
Step 7: Obtain licenses and permits (federal, state, local)
Entity formation doesn’t equal business licensure. Depending on industry and location, you may need federal, state, county, or city permissions (e.g., health permits, professional licenses, sales tax, zoning/home-occupation). Start with the SBA guide to identify federal-level triggers (aviation, alcohol, firearms, investment advising, etc.) and then confirm state/local requirements.
Founder tip: Build a renewal tracker (who/what/when/fee). Lapses cause fines or forced closures – needlessly expensive.
- General Business License: Many cities or counties require a basic business license to operate within their jurisdiction, even for LLCs. Check with your city hall or county clerk.
- Professional Licenses: If your business activities require special training or certification (e.g., if you’re starting an LLC for an accounting firm, legal practice, medical services, contracting, etc.), make sure you or your employees have the necessary state professional licenses. Sometimes the business itself must be licensed as a professional entity.
- Industry-Specific Permits: Certain industries are regulated and need permits. For example, running a restaurant may require health department permits; a construction company might need building permits or contractor licenses; selling goods may require a sales tax permit (seller’s permit) from the state revenue department.
- Zoning: If you’re running the business from home or a specific location, ensure you comply with local zoning or home-business regulations (permits may be needed).
Step 8: Open a business bank account
Open dedicated business banking as soon as your Articles and EIN arrive. The IRS highlights recordkeeping and separate accounts for new businesses; commingling is a common reason plaintiffs try to pierce the veil. Bring your formation approval, Operating Agreement, and EIN letter. Keep all income/expenses inside the business account and pay owners via payroll or distributions – not by using the business card for personal spending
Steps to establish business banking:
- Choose a Bank: Look for a bank that offers small business accounts with low or no fees. Consider convenience (branch locations or online banking features) and any perks like introductory offers or integrations with your accounting software.
- Documents to Bring: Typically, you’ll need your Articles of Organization (or formation certificate), your EIN confirmation letter, and a government-issued photo ID. If your LLC has multiple members, check if the bank requires all members to be present or if you can designate one person to open the account (you may need an operating agreement showing who is authorized).
- Initial Deposit: Some banks have minimum opening deposit requirements (often small, like $50 or $100). Plan to fund the account with an initial amount to start paying business expenses.
- Additional Accounts: Consider also getting a business debit card and, if needed, a credit card for the LLC. Building business credit can be helpful down the road.
Once your account is open, make it a strict habit to run all business income and expenses through that account. Pay yourself (and any co-owners) distributions or salary from the business account, rather than using the business account for personal bills. This clear separation will simplify bookkeeping and tax filing, and it reinforces the liability shield that protects your personal assets.
Step 9: Maintain ongoing compliance
Forming your LLC is just the beginning. To keep your LLC in good standing and retain the benefits of limited liability, you must stay on top of ongoing compliance tasks. These requirements can vary by state, but common ones include:
- Annual/Biennial Report: Many states require a periodic update + fee. In Florida, the annual report is due by May 1; filing after May 1 triggers a $400 late fee and risks administrative dissolution if you don’t fix it. Add recurring reminders.
- Registered Agent continuity: Update the state if your RA or principal office changes. Florida requires a street address for the RA on file.
- Taxes: Pass-through owners handle income tax personally; if you elect S-corp taxation later, you’ll run payroll for reasonable compensation and file 1120-S/K-1s.
- Payroll & sales tax (if applicable): Register and file on schedule in your state(s).
- Insurance: General liability and professional liability are common; add workers’ comp as required.
- Records: Keep minutes/resolutions for major actions, updated ownership tables, signed contracts, and license renewals.
Hands-off option: Our annual report reminders and Registered Agent keep your entity active and reachable year-round.
Staying compliant might seem tedious, but it is far easier than dealing with the consequences of non-compliance. Many formation companies and registered agent services offer compliance reminders or even handle annual report filings for a fee, which can be worthwhile for peace of mind.
Florida-specific quick facts (for founders considering FL)
- No personal state income tax on pass-through income to individuals.
- Annual report due by May 1 (late fee $400).
- Registered Agent must list a Florida street address (no P.O. box).
FAQs
Is there a “best” state to form my LLC?
Usually your home state if that’s where you operate; otherwise you’ll pay to foreign-qualify and maintain two sets of fees and agents. Florida/Delaware can be strategic depending on goals and tax posture.
Do I really need a Registered Agent if I work from home?
Yes. Every U.S. state requires an RA to receive service of process and official mail; in Florida the RA must have a physical street address and be available during business hours.
I’m a non-U.S. founder – can I get an EIN?
Even without a U.S. Social Security Number, we can help you obtain an EIN – and with our Easy Pro and eCom Hero solutions, this process is fully included, giving you complete support from start to finish.
What’s the most-missed Florida deadline?
The annual report by May 1. Miss it and you’ll see a $400 late fee; fail to cure and you risk administrative dissolution.
How do I avoid veil-piercing risks?
Use separate banking, document major decisions, and keep your RA and addresses current. IRS guidance stresses clean records from day one.
Do I need a trademark before filing my LLC?
Not required, but smart to search the USPTO first to reduce infringement risk and avoid rebrands.
What if my profits grow – should I elect S-corp?
Once profits justify salary + distributions planning, many founders elect S-corp taxation for potential self-employment tax savings. Confirm with your CPA.
