Key Takeaways

  • Forming an LLC involves several key steps: selecting a compliant name, filing Articles of Organization, appointing a registered agent, and creating an operating agreement.
  • Most states require a specific form to file for LLC status, commonly called the Articles of Organization or Certificate of Formation.
  • Additional steps such as obtaining an EIN, drafting an operating agreement, and meeting state-specific publication or annual reporting requirements are often necessary.
  • Costs and paperwork vary by state, so always check your Secretary of State’s website for details before you form LLC.
  • Many states allow online filing, but some still accept or require paper submissions for certain forms or amendments.

Knowing what form to file for LLC is important if you're planning to start a new limited liability company.

How to Form an LLC: Overview

Many people think forming an LLC, or limited liability company, is much more difficult than it really is. In reality, creating a new LLC is a matter of completing a few simple steps:

  • Select a name for your company that is available for use and meets your state's specific naming requirements for an LLC.
  • File the required paperwork in your state.
  • Pay any required filing fees.
  • Draft an operating agreement for your LLC that outlines the rights and responsibilities of the company's members.
  • In certain states, publish a notice of intent to form a new limited liability company.
  • Obtain any licenses or permits required for your company, where applicable.

Understand State Requirements Before Filing

Before you form LLC, it’s crucial to understand that each U.S. state has its own formation requirements, terminology, and documentation standards. While the general process is similar, states may differ in:

  • Naming guidelines: Some states require pre-approval or name reservation before filing.
  • Filing forms: The main document is usually the Articles of Organization (also called a Certificate of Formation or Certificate of Organization), but certain states require additional documents like an initial report or publication affidavit.
  • Fees and processing times: Filing fees range from about $40 to $500, and processing can take from 1 day to several weeks depending on the filing method.
  • Annual or biennial reports: Many states require ongoing compliance filings after formation to maintain good standing.

Reviewing your state’s specific LLC requirements before starting ensures that your form submission will be accepted on the first attempt and reduces delays in launching your business.

How to Form an LLC: Choose a Name for Your LLC

Your company's name needs to meet certain rules required by your specific state. In most cases, these requirements are determined by your local secretary of state. Specific requirements may vary from one state to another but, generally speaking, your company's name will need to adhere to the following:

  • Your company's name must be unique and easily distinguishable from the name of any other company currently operating in the state.
  • Your company name should end with a designator, such as "Limited Liability Company," "LLC," or "L.L.C."
  • Your company name should not include certain prohibited works such as "Bank," "Insurance," or "Corporation."

The applicable office, usually the secretary of state, will be able to provide you with information about how to determine whether your intended company name is available for use. In most cases, you'll be able to reserve your company's name for a short time until you are able to file your articles of organization. Keep in mind, however, that there is usually a small fee associated with this service.

Beyond making sure your company's name meets local state requirements, you'll want to make sure it doesn't violate any trademarks of an existing company. It's not typically necessary to register your company's name with the state once you've identified a suitable one for your business. This is typically handled automatically when you file your company's articles of organization.

Appoint a Registered Agent

One mandatory step in the form LLC process is appointing a registered agent. This is an individual or professional service authorized to receive legal documents and official government notices on behalf of your business.

A registered agent must:

  • Have a physical address (not a P.O. box) in the state where the LLC is formed.
  • Be available during regular business hours.
  • Consent to serve in this role.

While you can act as your own registered agent, many business owners choose a professional service for privacy and compliance reasons — especially if they don’t have a physical presence in the formation state.

How to Form an LLC: File Articles of Organization

Once you've decided on a name for your limited liability company, you'll need to file your articles of organization with the appropriate office in your state. Articles of organization are also sometimes referred to as the company's "Certificate of Formation" or "Certificate of Organization." Regardless of the name your state uses to describe this document, it is a requirement when creating a limited liability company in every state.

Some people may consider the fact that you have to pay filing fees when you submit your company's articles of organization to be a disadvantage compared to partnership and sole proprietorship business structures. In most states, however, these fees are relatively low. Filing fees rarely cost more than $100 although some states have additional fees. For example, in the state of California, LLC members are charged an additional $800 for annual taxes in addition to the original filing fee.

The articles of organization for a limited liability company are usually quite simple and don't need to be long. It's usually possible to prepare them by yourself with just a few minutes of effort. You'll simply need to fill in a few blank spaces and check off a few boxes on a template that most states make available for you to use.

Most articles of organization will include the following simple items:

  • The name of your company
  • Your company's address
  • The names of the company's owners or members

In most cases, all the LLC's members will be involved in preparing and signing the company's articles of organization. Alternatively, however, the LLC members may appoint a single person to handle this on their behalf.

You'll also most likely need to include the name and address of your company's designated registered agent. A registered agent is a specific individual who has agreed to participate in legal correspondence on behalf of your LLC and its members, specifically in the event that legal action is taken against the company.

Complete Post-Filing Requirements

Filing your Articles of Organization is the official act that legally creates your LLC, but additional steps are often needed to fully establish and operate your business. These include:

  1. Draft an Operating Agreement:
    Although not always legally required, an operating agreement defines the structure, roles, profit distribution, and management rules for your LLC. Having this document in place can prevent future disputes and strengthen your company’s legal standing.
  2. Obtain an Employer Identification Number (EIN):
    The IRS requires most LLCs to have an EIN, especially if you plan to hire employees, open a business bank account, or file federal taxes. You can apply online for free on the IRS website.
  3. Meet Publication Requirements (if applicable):
    States like New York and Arizona require newly formed LLCs to publish a notice of formation in a local newspaper and submit proof to the state within a set timeframe.
  4. Secure Necessary Licenses and Permits:
    Depending on your industry and location, you may need state or local business licenses before you can legally operate.
  5. File Initial and Annual Reports:
    Many states require an initial report soon after formation and ongoing annual or biennial reports to maintain your LLC’s active status.

By completing these steps promptly after filing your Articles of Organization, you’ll ensure your LLC is compliant and ready to operate.

Frequently Asked Questions

  1. What is the primary form needed to form LLC?
    The main form is typically called the Articles of Organization or Certificate of Formation. This document officially registers your business with the state.
  2. Do I need an operating agreement for my LLC?
    While not required in every state, having an operating agreement is highly recommended to define how your LLC will be managed and reduce potential conflicts.
  3. Can I file LLC formation documents online?
    Yes, most states allow online filing through the Secretary of State’s website, though some still accept or require paper submissions for certain filings.
  4. How long does it take to form an LLC?
    Processing times vary by state and filing method. Online applications may be approved within a few days, while mailed forms can take several weeks.
  5. What ongoing filings are required after forming an LLC?
    Most states require annual or biennial reports, business license renewals, and tax filings to maintain your LLC’s good standing.

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