How To Create an LLC in 8 Steps: A Guide for 2026

Editor's note: This post was originally published on February 23, 2022, and has been updated for accuracy, comprehensiveness, and freshness on May 19, 2026.

Starting an LLC is one of the most important steps you’ll take as a new business owner. It protects your personal assets, establishes your business as a legal entity, and opens the door to business banking, contracts, and growth.

This guide walks you through the eight key steps to forming an LLC in 2026, along with what to expect at each stage.

Step 1: Choose your state

Most business owners form their LLC in the state where they primarily operate. If you do business in multiple states, or if you’re looking for specific legal or tax advantages, you may choose to form your LLC elsewhere—though you’ll likely need to register as a foreign entity in any state where you actively conduct business.

Step 2: Choose a business name

Your LLC’s name must be unique within your state and must typically include a designator like “LLC,” “L.L.C.,” or “Limited Liability Company.” You can check name availability through your state’s Secretary of State website. You may also want to search for existing trademarks at the federal level to avoid conflicts.

Step 3: Designate a registered agent

Every LLC must have a registered agent—a person or company with a physical address in your state who can receive official legal and government correspondence on behalf of your LLC. You can serve as your own registered agent or hire a professional service.

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Step 4: File your Articles of Organization

The Articles of Organization (sometimes called a Certificate of Formation or Certificate of Organization) is the official document you file with your state to create the LLC. It typically includes your LLC’s name, address, registered agent information, and management structure. Filing fees vary by state.

Step 5: Create an operating agreement

An operating agreement outlines how your LLC will be governed, including ownership percentages, decision-making procedures, profit and loss distributions, and what happens if a member leaves. While not required in all states, an operating agreement is strongly recommended. It can prevent disputes and protect the legal status of your LLC.

Step 6: Get an EIN

An Employer Identification Number (EIN) is assigned by the IRS and functions like a Social Security number for your business. You’ll need one to open a business bank account, hire employees, and file certain taxes. Applying for an EIN through the IRS website is free and takes just a few minutes online.

Step 7: Open a business bank account

Keeping your business and personal finances separate is essential to maintaining your LLC’s liability protection. Open a dedicated business checking account and use it for all business-related income and expenses.

Step 8: Obtain licenses and permits

Depending on your industry and location, you may need local, state, or federal licenses or permits to legally operate. Requirements vary widely—a restaurant has different requirements than a freelance consultant. Check with your city, county, and state to identify what applies to your business.

Ongoing requirements

Forming an LLC isn’t a one-time task. To stay in good standing, you’ll typically need to file annual reports, pay renewal fees, and keep your registered agent information up to date. Failing to do so can result in your LLC being dissolved by the state.

Get help forming your LLC with LegalShield

The formation process involves legal documents and state-specific rules that can be confusing for first-time business owners. A LegalShield® Small Business Plan gives you access to a provider law firm that can answer your questions, review your operating agreement, and help ensure your LLC is formed correctly from the start.

Explore LegalShield Business Plans to find the right coverage for your new business.