How to Start an LLC: Step-by-Step Guide for 2026

I've formed LLCs as a US resident and as a foreigner. The process is the same seven steps either way — the difference is that non-residents hit friction at the EIN and the bank account. This guide covers both.

What are the steps to start an LLC?

Step 1: Which state should I form my LLC in?

If you live in the US, form in the state where you live and work. If you form in Wyoming but run the business from Illinois, Illinois will require you to register as a foreign LLC, so you pay both states' fees and file two annual reports.

Exceptions:

• You're raising venture capital. Investors want a Delaware C-corp, not an LLC. See Delaware vs Wyoming.
• You're not a US resident and have no US office or employees. Then you can pick any state — Wyoming ($100 + $60/yr) and New Mexico ($50, no annual report) are the usual picks.

State-by-state fees are in how much does it cost to start an LLC.

Step 2: How do I choose and check an LLC name?

Search the Secretary of State's business database for your state. The name must be distinguishable from existing entities and include "LLC," "L.L.C." or "Limited Liability Company." Words like "Bank," "Insurance" or "University" usually need regulator approval.

Also check: the .com domain, social handles, and the USPTO trademark search. A state name filing does not give you trademark rights.

Step 3: Do I need a registered agent?

Yes. Every LLC needs a registered agent with a physical street address in the state of formation, available during business hours to accept lawsuits and official notices.

You can be your own agent if you live in the state. Most people don't, because your home address becomes public. Commercial agents cost about $25–$125/yr in Wyoming and New Mexico and up to $300/yr with premium providers. Non-residents must use a commercial agent.

Step 4: How do I file the Articles of Organization?

File online on the Secretary of State website (sometimes called a Certificate of Formation or Certificate of Organization). You'll typically need:

• LLC name and principal address
• Registered agent name and address
• Organizer name (the person filing — can be a formation service)
• Management structure: member-managed (owners run it) or manager-managed
• In some states, member names (Wyoming and New Mexico don't require them publicly)

Approval is instant to 2 days in Wyoming and Delaware, and up to several weeks in some states unless you pay to expedite. Arizona, Nebraska and New York also require newspaper publication after filing.

Step 5: Do I need an operating agreement?

Only a handful of states (California, Delaware, Maine, Missouri, New York) legally require one, but every LLC should have one. It's what proves the LLC is a separate entity if someone tries to pierce the liability shield, and banks often ask for it.

For a single-member LLC, a free 5–10 page template is fine. For multiple members, define capital contributions, profit splits, voting, vesting, and what happens on death, divorce or departure — pay a lawyer for this one.

Step 6: How do I get an EIN?

US residents with an SSN or ITIN: use the IRS online EIN application. It's free and you get the number immediately.

Non-US residents without an SSN or ITIN: you can't use the online tool, but you don't need an ITIN either. Fill in Form SS-4 and on line 7b write "Foreign" (or "N/A"). Then:

• Fax it to the IRS at 304-707-9471 (the number for applicants outside the US, per the SS-4 instructions). The IRS target is about four business days; in practice it's often 1–4 weeks.
• Or phone the IRS international line (267-941-1099, not toll-free) during US Eastern business hours — the agent issues the EIN on the call.

Ignore anyone who says you need an ITIN to get an EIN for an LLC. You don't.

Step 7: Where can I open a bank account for my LLC?

Bring your Articles, EIN letter (CP 575 or 147C), operating agreement and passport.

Once you have a bank, you can activate Stripe for US payments.

What do I need to do after the LLC is formed?

• Annual report / franchise tax — dates differ by state (Delaware: June 1; Florida: May 1; Wyoming: anniversary month).
• Federal taxes — a single-member LLC files on the owner's Schedule C by default; a multi-member LLC files Form 1065 and issues K-1s. You can elect S-corp or C-corp taxation later.
• State taxes — sales tax permits if you sell taxable goods, payroll registration if you hire.
• BOI reporting — FinCEN's March 2025 interim rule exempted US-formed LLCs; only foreign entities registered to do business in the US still file.

How is it different if I'm not a US resident?

The steps are the same, but the tax side flips:

1. No US tax is due on a single-member LLC owned by a non-resident if the LLC has no US office, employees or dependent agents (no "effectively connected income"). You pay tax in your home country instead.
2. But you must file Form 5472 with a pro forma Form 1120 every year, even with zero income. The penalty for missing it is $25,000.
3. No ITIN needed for the EIN, as above.
4. Use a commercial registered agent and usually a mail forwarding address — many banks won't accept a registered agent's address as your business address.
5. Check your home country's rules. Some countries treat a US LLC as a transparent entity, others as a foreign company subject to CFC rules.

Full detail in LLC for non-US residents, and if you're comparing jurisdictions entirely, our best countries to start a business list.

Should I use a formation service?

If you're in the US: you don't need one. If you're abroad, a service that bundles registered agent, address, EIN filing and Form 5472 reminders often saves more time than it costs. Options from $0 (ZenBusiness basic) and $39 (Northwest) to $500 (Stripe Atlas, Delaware only) — compared in Stripe Atlas alternatives.

Not tax or legal advice; rules change — verify with a local adviser.