How to Start an LLC in Any State (2026)

Most people should just form their LLC in the state where they live and plan to do business. It keeps things simple and avoids extra fees.

You might have heard that Delaware or Wyoming are better for LLCs. That is mostly true for large companies with investors or complex ownership structures. If you are a small business owner or freelancer, forming in your home state makes the most sense. If you form in Delaware but operate in Texas, for example, you will need to register as a foreign LLC in Texas anyway and pay fees in both states.

Things to consider

• Filing cost: State fees range from $35 (Montana) to $520 (Massachusetts). Most states charge between $50 and $150.
• Income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming have no state income tax.
• Privacy: Wyoming, Delaware, and New Mexico do not require you to list member names in public filings.
• Ongoing costs: Some states charge $0 for annual reports, others charge $300 or more. Check the annual report fee before you file.

Your LLC name needs to be unique in the state where you file. Every state requires that the name include "LLC" or "Limited Liability Company" (some states also accept "L.L.C."). Beyond that, most states restrict you from using words like "bank," "insurance," or "university" without special approval.

Before you get attached to a name, search your state's business name database to make sure it is available. Most Secretary of State websites have a free search tool. If you want to operate under a different name than your legal LLC name, you can file a DBA (doing business as) in most states.

Naming tips

• Keep it short and easy to spell
• Check if the matching domain name is available
• Search the USPTO trademark database to avoid conflicts
• Some states let you reserve a name for 60-120 days while you get your paperwork together

Every LLC needs a registered agent. This is a person or company that receives legal documents and official state mail on behalf of your business. Your agent needs a physical street address in the state where your LLC is formed (P.O. boxes do not count).

You can be your own registered agent in most states, but there are a few good reasons to hire a professional service instead. First, your name and address go on the public record if you serve as your own agent. Second, you have to be available at that address during business hours to accept documents. Third, a professional service makes sure nothing gets missed if you move or travel.

What a registered agent does

• Accepts service of process (lawsuits and legal notices)
• Receives annual report reminders and tax documents from the state
• Forwards everything to you, usually by email and regular mail

Professional registered agent services typically cost between $39 and $299 per year. Some LLC formation services include the first year free.

This is the step that officially creates your LLC. You file a document called the Articles of Organization (some states call it a Certificate of Organization or Certificate of Formation) with your state's filing agency. In most states, that is the Secretary of State's office.

The form itself is usually just one or two pages. You will need to provide your LLC name, your registered agent's name and address, your principal office address, and sometimes the names of the members or managers.

Filing fees by state

The cost varies a lot by state. Here are some examples:

• Cheapest: Montana ($35), Kentucky ($40), Arkansas ($45)
• Middle range: California ($70), Delaware ($90), Georgia ($100)
• Most expensive: Texas ($300), Tennessee ($300), Nevada ($425), Massachusetts ($520)

Most states let you file online, which is faster and sometimes cheaper than paper filing. Processing time is typically 5 to 10 business days, though you can often pay extra for expedited processing (1 to 3 business days).

An operating agreement is an internal document that spells out how your LLC is run. It covers things like ownership percentages, how profits are split, what happens if a member leaves, and who has authority to make decisions.

Most states do not legally require an operating agreement, but you really should have one. Banks often ask for it when you open a business account, and without one, your state's default LLC rules apply to your business, which might not match what you actually want.

What to include

• Member names and ownership percentages
• How profits and losses are divided
• Voting rights and decision-making procedures
• What happens if a member wants to leave or sell their interest
• How the LLC can be dissolved

If you are a single-member LLC, an operating agreement is even simpler but still important. It strengthens the legal separation between you and your business.

State notes

New York is one of the few states that technically requires all LLCs to have an operating agreement (under state law, Section 417 of the NY LLC Act). California, Maine, and Missouri also have specific provisions. But again, every LLC should have one regardless of what your state requires.

An EIN (Employer Identification Number) is basically a Social Security number for your business. You need one to open a business bank account, file taxes, and hire employees. The good news is that getting one is completely free and takes about 5 minutes.

You can apply online on the IRS website (irs.gov) and get your EIN immediately. The application is available Monday through Friday, 7 a.m. to 10 p.m. Eastern Time. You can also apply by mail or fax, but there is no reason to since the online process is instant.

When you need an EIN

• If your LLC has more than one member (always required)
• If you plan to hire employees
• If you want to open a business bank account (most banks require it)
• If you elect S-Corp tax treatment

Single-member LLCs with no employees can technically use the owner's Social Security number for tax purposes, but getting an EIN is still a good idea. It keeps your SSN off business documents and makes your LLC look more professional.

Once you have your EIN and your LLC paperwork, open a separate bank account for the business. This is not optional if you care about liability protection. Mixing personal and business money (called commingling) is one of the easiest ways to lose your LLC's legal protection.

Most banks will ask for your Articles of Organization, your EIN confirmation letter, your operating agreement, and a photo ID. Some banks also want a business license, though not every business needs one.

What to look for

• Low or no monthly fees
• Free online banking and bill pay
• Integration with accounting software (QuickBooks, Xero, etc.)
• A bank that is convenient for depositing checks or cash if you need to

You do not need to bank with a big national chain. Local credit unions and online banks like Mercury or Relay often have better terms for small businesses.

Forming your LLC is not a one-time thing. Most states require you to file an annual report (sometimes called a periodic report or statement of information) and pay a fee each year to keep your LLC in good standing.

If you miss the deadline, your state can dissolve your LLC or revoke its authority to do business. Reinstating a dissolved LLC usually costs extra and takes time.

Annual report fees vary a lot

• $0: A handful of states have no annual report or no fee
• $50-150: Most states fall in this range
• $300+: California charges $800/year as a franchise tax (separate from the annual report), and Massachusetts has a $500 annual report fee

Tax obligations

LLCs are pass-through entities by default, which means the business itself does not pay federal income tax. Instead, profits and losses pass through to the members' personal tax returns. You will still need to:

• File a federal tax return (Form 1065 for multi-member LLCs, Schedule C for single-member)
• Pay self-employment tax on your share of the profits
• File state tax returns if your state has income tax
• Collect and remit sales tax if you sell taxable goods or services
• Pay estimated quarterly taxes if you expect to owe $1,000 or more

Publication requirements

Three states require you to publish a notice of your LLC formation in a local newspaper: New York, Arizona, and Nebraska. In New York, this can cost anywhere from $200 to $2,000+ depending on the county. Arizona and Nebraska are much cheaper, usually under $100.