LLCforHow to Start an LLC: Plain-English Steps for Veterans
An LLC (limited liability company) is a business structure set up under state law, so the exact rules depend on your state. The steps below work almost everywhere. For your state's fees, see our state guides.
Choose your name
Search your state's business database to make sure the name is free. Most states require "LLC" or "Limited Liability Company" in the name. Some words, like "bank," are restricted.
Pick a registered agent
Your registered agent receives legal papers for the LLC. It must have a physical address in the state. You can serve as your own agent.
File your articles of organization
Some states call it a certificate of organization or formation. You file it with the state, usually online. If your state waives fees for veterans, include that paperwork now.
Write an operating agreement
This document lays out who owns what and how decisions get made. Most states don't make you file it, but it's worth having, especially with partners.
Get your EIN from the IRS, free
Apply on IRS.gov. It's free and takes minutes. By default, the IRS treats a one-owner LLC as a "disregarded entity" and a multi-owner LLC as a partnership, unless you elect otherwise. See the IRS LLC page.
Open a business bank account
Keep business money separate from personal money. Banks usually ask for your filed articles and EIN.
Get licenses and permits
Check with your state, county, and city. Requirements depend on your business and location.
Stay current
File your state's annual or biennial report on time.
According to FinCEN, small U.S. LLCs are exempt from beneficial ownership information (BOI) reporting. Check FinCEN for the latest.
FAQ
Do I have to file a BOI report?
According to FinCEN, U.S. companies, including small LLCs, are exempt from beneficial ownership information (BOI) reporting. Check FinCEN for the latest.
Does an EIN cost money?
No. The IRS issues EINs for free. Be careful of websites that charge for it.