Start an LLC — Form Your Limited Liability Company Online
Protect your personal assets, simplify your taxes, and gain business credibility. BusinessFormations.com handles your LLC formation from name search to state filing — typically in 1–2 business days.
What Is an LLC?
A Limited Liability Company (LLC) is a business structure that combines the personal asset protection of a corporation with the simplicity and tax flexibility of a sole proprietorship or partnership.
When you form an LLC, your business becomes a separate legal entity. This means your personal assets — your home, savings, and personal accounts — are generally protected from business debts and lawsuits.
LLCs are the most popular entity type for small businesses in the United States because they offer strong protection with minimal paperwork and maximum flexibility in how you’re taxed and how your business is managed.
An LLC can have one owner (single-member) or multiple owners (multi-member), and there are no restrictions on who can be an owner — individuals, other LLCs, corporations, and even foreign nationals can hold membership interests.
LLC at a Glance
- Personal assets protected from business debts
- Pass-through taxation (no double tax)
- Choose to be taxed as sole prop, partnership, S-Corp, or C-Corp
- No ownership restrictions
- Minimal annual compliance requirements
- No requirement for board of directors or officers
Benefits of Forming an LLC
Here’s why millions of business owners choose the LLC structure over sole proprietorships, partnerships, and corporations.
Limited Liability Protection
Your personal assets — home, car, savings, retirement accounts — are generally shielded from business debts, lawsuits, and judgments. Creditors can go after business assets, but not your personal ones.
Flexible Tax Treatment
By default, single-member LLCs are taxed as sole proprietorships and multi-member LLCs as partnerships — simple pass-through taxation. But you can elect S-Corp or C-Corp tax status if it saves you money.
Minimal Compliance
Unlike corporations, LLCs don’t require annual shareholder meetings, board resolutions, or detailed corporate minutes. Most states require only an annual report and a registered agent — that’s it.
Management Flexibility
LLCs can be member-managed (owners run the business) or manager-managed (designated managers handle operations). There’s no requirement for officers, directors, or formal corporate hierarchy.
No Ownership Restrictions
Unlike S-Corps, LLCs have no limits on the number of owners and no restrictions on who can be an owner. Individuals, trusts, other LLCs, corporations, and non-U.S. residents can all be members.
Business Credibility
Operating as an LLC signals professionalism to clients, partners, vendors, and financial institutions. Banks require a legal entity to open business accounts, and many clients prefer working with LLCs.
How to Form an LLC — Step by Step
We handle every step. Here’s exactly what happens when you form your LLC with BusinessFormations.com.
Choose Your State
Most businesses should form in their home state — the state where they physically operate. Forming in Delaware or Wyoming can make sense in specific situations, but for most LLCs, home state is simplest and cheapest.
Name Your LLC
Your name must be unique in your state and include a designator like “LLC” or “Limited Liability Company.” We run a name availability search and suggest alternatives if your first choice is taken.
Designate a Registered Agent
Every LLC needs a registered agent — a person or service authorized to receive legal and government correspondence. We provide nationwide registered agent service in all 50 states.
File Articles of Organization
This is the official formation document filed with the state. It includes your LLC name, registered agent, principal address, and basic structure. We prepare and file this on your behalf.
Create an Operating Agreement
This internal document defines ownership percentages, profit distribution, management structure, and member responsibilities. Not all states require it, but it’s critical for protecting your limited liability status.
Obtain Your EIN
Your Employer Identification Number is your business’s federal tax ID. You need it to open bank accounts, hire employees, and file taxes. We obtain it from the IRS on your behalf — usually same-day.
Open a Business Bank Account
Separating business and personal finances is essential for maintaining your liability protection. With your Articles, EIN, operating agreement, and our banking resolution, you’re ready to open accounts on day one.
Stay Compliant
File annual reports, maintain your registered agent, and keep your operating agreement current. Our compliance alert system sends reminders before every deadline so you never miss a filing.
LLC Formation Packages
Every package includes state filing. Choose the level of support you need.
Starter
The essentials to get formed
- ✓Name availability check
- ✓Articles of Organization
- ✓Operating agreement template
- ✓Organizational minutes
Growth
Ready to operate on day one
- ✓Everything in Starter
- ✓EIN registration
- ✓Banking resolution
- ✓Registered agent (1 year)
- ✓Compliance reminders
Growth + S-Corp
Maximize tax savings
- ✓Everything in Growth
- ✓S-Corp election (Form 2553)
- ✓Expedited filing
- ✓Dedicated specialist
- ✓Tax election guidance
Which package? If you want to start invoicing and accepting payments right away, the Growth package gives you everything you need — LLC, EIN, bank account setup, and registered agent — in one step.
Types of LLCs
Not all LLCs are the same. Here are the most common configurations.
Single-Member LLC
One owner. The most common type for freelancers, consultants, and solo entrepreneurs. Taxed as a sole proprietorship by default — simple and straightforward.
Multi-Member LLC
Two or more owners. Taxed as a partnership by default. Requires a detailed operating agreement to define ownership percentages, profit splits, and decision-making authority.
Series LLC
A parent LLC with separate “series” that each have their own assets, liabilities, and members. Available in some states. Ideal for holding multiple properties or ventures under one umbrella.
Manager-Managed LLC
Members appoint one or more managers (who may or may not be members) to handle daily operations. Useful when not all owners are active in the business.
Member-Managed LLC
All members participate in management decisions. The default structure in most states. Simpler and more common for small businesses where all owners are actively involved.
LLC with S-Corp Election
An LLC that elects to be taxed as an S-Corporation. Requires paying yourself a reasonable salary, but profits above that salary avoid self-employment tax. Can save thousands annually.
How LLCs Are Taxed
One of the biggest advantages of an LLC is tax flexibility. Here’s how each option works.
| Tax Treatment | Who It’s For | How It Works | Key Benefit |
|---|---|---|---|
| Sole Proprietorship Default for single-member |
Solo owners | Profits pass through to personal tax return (Schedule C) | Simplest filing |
| Partnership Default for multi-member |
2+ owners | Profits allocated per operating agreement; each member gets a K-1 | Flexible profit splits |
| S-Corporation Elected via Form 2553 |
Profitable businesses | Owner pays reasonable salary + takes distributions; distributions avoid SE tax | Self-employment tax savings |
| C-Corporation Elected via Form 8832 |
Rare for LLCs | LLC taxed at corporate rate; dividends taxed again to owners | Retained earnings at 21% rate |
When to consider S-Corp: If your LLC consistently earns $60,000+ in net profit after expenses, an S-Corp election can save $3,000–$10,000+ per year in self-employment taxes. We recommend consulting a CPA to confirm the math for your situation.
LLC Filing Fees by State
State fees are separate from our service fee and paid directly to the state. Here are some of the most popular states.
| State | Filing Fee | Processing Time | Annual Report | Annual Fee |
|---|---|---|---|---|
| California | $70 | 3–5 days | Biennial | $800 franchise tax |
| Delaware | $90 | 2–3 weeks | Annual | $300 |
| Florida | $125 | 1–2 days | Annual | $138.75 |
| New York | $200 | 1–2 days | Biennial | $9 + publication req. |
| Texas | $300 | 2–3 days | Annual | $0 (most LLCs) |
| Wyoming | $100 | 1–2 days | Annual | $60 |
| Nevada | $75 | 1–2 days | Annual | $350 + $200 bus. license |
| Illinois | $150 | 5–10 days | Annual | $75 |
LLC vs. Other Entity Types
See how the LLC compares to other common structures at a glance.
| Feature | LLC | Sole Prop | S-Corp | C-Corp |
|---|---|---|---|---|
| Personal liability protection | ✓ | — | ✓ | ✓ |
| Pass-through taxation | ✓ | ✓ | ✓ | — |
| Flexible ownership | ✓ | 1 owner only | ≤100 U.S. only | ✓ |
| SE tax savings option | Via S-Corp election | — | ✓ | — |
| Issue stock to investors | — | — | Limited | ✓ |
| Compliance burden | Low | Minimal | Moderate | High |
| Formation cost | $40–$500 | $0–$50 | $40–$500 | $40–$500 |
| Best for | Most small biz | Very small / testing | Profitable biz | VC-backed startups |
Who Should Form an LLC?
If any of these describe you, an LLC is almost certainly the right choice.
Freelancers & Consultants
You’re a developer, designer, writer, marketer, or professional selling your expertise. An LLC separates your business liability from your personal assets and looks more professional on invoices and contracts.
E-Commerce & Online Sellers
You sell products on Shopify, Amazon, Etsy, or your own store. An LLC protects you if a customer sues over a product issue and is required by many platforms and payment processors.
Real Estate Investors
Each property in its own LLC limits cross-liability between properties. If a tenant sues over one property, your other properties and personal assets stay protected.
Small Businesses & Service Providers
Restaurants, salons, contractors, agencies, cleaning services — any service business benefits from the liability protection and credibility an LLC provides.
Business Partners & Co-Founders
Starting a business with a partner? A multi-member LLC with a proper operating agreement protects everyone by clearly defining ownership, roles, profit sharing, and exit terms.
Side Hustles Going Serious
Your side project is generating real revenue. Formalizing as an LLC protects your personal assets, separates your finances, and lets you deduct business expenses properly.
LLC Formation FAQ
Answers to the most common questions about forming an LLC.
How much does it cost to form an LLC?
Our service fee starts at $0 (Starter plan). You’ll pay the state filing fee, which ranges from $40 to $500 depending on your state. The Growth package at $149 adds EIN, registered agent, banking resolution, and compliance reminders.
How long does LLC formation take?
Most states process LLC filings in 1–2 business days. Some states (like Delaware and Illinois) can take longer without expedited processing. We submit your documents as soon as you complete the process.
Do I need an operating agreement?
Highly recommended for every LLC — even single-member. It establishes your LLC as a legitimate separate entity, which is essential for maintaining liability protection. Some states (like New York and California) require one.
What’s the difference between an LLC and a sole proprietorship?
A sole proprietorship offers no personal liability protection — your personal assets are at risk. An LLC creates a separate legal entity that shields your personal assets from business debts and lawsuits.
Can I form an LLC by myself?
Yes. A single-member LLC is the most common entity type for solo founders. You are the sole owner and can be the only manager. All decisions and profits belong to you.
Should I form my LLC in my home state or Delaware?
For most small businesses, your home state is best. Delaware is popular for large corporations and VC-backed startups, but forming there as a small business means registering in two states and paying two sets of fees.
Can I convert my LLC to a corporation later?
Yes. You can convert an LLC to a C-Corp or elect S-Corp tax status at any time. Conversions require state paperwork and potentially IRS filings — we assist with both.
Does my LLC need an EIN?
You need an EIN if you plan to open a business bank account, hire employees, or file certain tax returns. Even single-member LLCs benefit from having an EIN to keep personal and business tax IDs separate.
Form Your LLC with BusinessFormations.com
A Limited Liability Company is the most popular business structure in America for good reason — it combines the personal asset protection of a corporation with the simplicity and tax flexibility that small business owners need. At BusinessFormations.com, we make LLC formation fast, affordable, and hassle-free.
Our platform walks you through every step of the process, from choosing your state and checking name availability to filing your Articles of Organization, creating an operating agreement, obtaining your EIN, and setting up your registered agent. Whether you’re a freelancer forming a single-member LLC or a team of co-founders launching a multi-member LLC, we have the tools and expertise to get you legally formed and ready to operate in days, not weeks.
With transparent pricing starting at $0 for our Starter plan, nationwide coverage in all 50 states, and ongoing compliance support to keep your LLC in good standing, BusinessFormations.com is the trusted choice for entrepreneurs who want to start their business the right way.
Ready to Form Your LLC?
Protect your personal assets, establish business credibility, and start operating legally — in as little as 1–2 business days.
No hidden fees • All 50 states • Expert support included
