Start your business clearly
Open an LLC
Form your LLC without the legal fog.
Understand the steps, costs and filings before you submit anything.
Choose your state
Business details
File and stay compliant
- Prepare and file
- Get your documents
- Meet ongoing requirements
What it costs to open an LLC
State filing fees run from about fifty dollars to five hundred. The recurring annual report or franchise tax matters more, because you pay it every year for as long as the company exists.
Which state should you form in
For most small businesses, the state you actually operate in. Forming in Delaware or Wyoming while trading elsewhere usually means registering as a foreign entity anyway and paying both.
What an LLC does not protect you from
Personal guarantees on loans, your own negligence, and unpaid payroll taxes. Mixing personal and business money is the fastest way to lose the protection entirely.
Questions people ask before forming an LLC
- How long does it take to form an LLC?
- From same day to about four weeks depending on the state and whether you pay for expedited processing.
- Do I need an operating agreement?
- Some states require one and all of them benefit from it. For a single member LLC it is also useful evidence that the company is separate from you.
- Do I need a registered agent?
- Yes, in every state. It can be you if you have a physical address there and are available in business hours, otherwise it is a paid service.
- Can a non-resident open a US LLC?
- Yes. You will need an EIN, and getting one without a social security number takes longer and is done by fax or mail.
- LLC or sole proprietorship?
- A sole proprietorship costs nothing and protects nothing. The LLC is worth it as soon as the business has real liability or real revenue.
Pick the state before anything else
Almost every other cost and filing follows from that one decision.