Everything you need to properly form, launch, and maintain your LLC. Follow this step-by-step checklist to build a legally sound foundation for your business.
Before filing any paperwork, there are several foundational decisions that will shape every aspect of your business formation and ongoing operations. Taking time to think through these decisions carefully will save you significant time, money, and headaches later.
For most small business owners, the choice comes down to LLC vs. sole proprietorship or LLC vs. S-Corporation. The LLC offers the best combination of liability protection, operational simplicity, and tax flexibility for the majority of entrepreneurs. Unlike sole proprietorships, LLCs protect your personal assets. Unlike corporations, LLCs avoid double taxation and have minimal compliance requirements.
Search your state's Secretary of State database to confirm your desired name is available. Ensure it includes a required designator (LLC, L.L.C., or Limited Liability Company). Consider also searching USPTO's trademark database to avoid federal trademark conflicts. Reserve the name if your state allows it while you prepare your formation documents.
Form in the state where you primarily operate and reside. Delaware and Wyoming are overrated for most small businesses—you would still need to register as a foreign LLC in your home state, effectively paying double fees. Wyoming is worth considering if you specifically want strong charging order protection for an asset holding structure.
You can serve as your own registered agent if you have a physical street address in the state (not a P.O. Box) and can be consistently available during business hours. Professional registered agent services ($50–$300/year) provide convenience and privacy by keeping your personal address off public records.
Submit the required formation document to your Secretary of State office along with the applicable filing fee. Most states now accept online filings, which process faster than mail submissions. Keep the stamped/approved copy in your permanent business records.
This is the most critical step for protecting your business and personal assets. Use DraftMyLLC's free generator to create a state-specific, bank-compliant operating agreement that establishes your ownership structure, governance rules, and operating procedures.
Visit IRS.gov and apply for your Employer Identification Number for free. The process takes approximately 10 minutes and your EIN is issued immediately online. You will need this number to open a business bank account and file business tax returns.
This step is non-negotiable for maintaining your LLC's liability protection. You will need your Articles of Organization, signed operating agreement, EIN letter, and government ID. Never use your personal account for business transactions.
Research federal, state, county, and city licensing requirements for your specific industry. Common licenses include general business licenses, professional licenses (for contractors, healthcare providers, real estate agents), sales tax permits (for businesses selling taxable goods), and industry-specific permits.
Implement accounting software (QuickBooks, FreshBooks, or Wave for free) from day one. Establish a chart of accounts, connect your business bank account, and begin tracking all income and expenses categorically for tax purposes.
Set reminders for your state's annual report filing deadline, quarterly estimated tax payment due dates, sales tax filing deadlines (if applicable), and any industry-specific renewal dates for licenses and permits.