Introduction: How to Do an LLC the Right Way
If you’re ready to start your business but not sure where to begin, you might be asking, “How do I do an LLC?”
Setting up an LLC (Limited Liability Company) is easier than you might think. It’s one of the most popular and flexible ways to structure a business in the United States—especially for small business owners, freelancers, and startups.
This guide will walk you through how to do an LLC step by step.
What Is an LLC?
An LLC is a business structure that offers limited liability protection to its owners (called members) while allowing for flexible taxation and simple management.
When you form an LLC, your personal assets (like your home or car) are generally protected from business debts or legal claims.
How to Do an LLC: 6 Simple Steps
1. Choose Your LLC Name
Pick a unique name that complies with your state’s naming rules. It should include “LLC” or “Limited Liability Company” at the end.
2. Select a Registered Agent
A registered agent receives legal documents on behalf of your LLC. This can be you, a business partner, or a registered agent service.
3. File Articles of Organization
This official form—sometimes called a Certificate of Formation—is submitted to your state’s business filing office.
4. Create an Operating Agreement
This internal document outlines how your LLC will be managed. Some states don’t require it, but it’s highly recommended—especially for multi-member LLCs.
5. Get an EIN (Employer Identification Number)
Apply for an EIN from the IRS—this is like a Social Security number for your business. It’s required for hiring employees, paying taxes, and opening a business bank account.
6. Open a Business Bank Account
Keep your finances separate by opening a dedicated business account under your LLC’s name.
Bonus Tip: Stay Compliant
After you form your LLC, remember to:
- File annual reports (if required by your state)
- Pay state LLC fees or franchise taxes
- Maintain proper records and licenses
Why Start an LLC?
- Personal liability protection
- Pass-through taxation
- Professional credibility
- Flexible ownership and management
- Simple compliance and maintenance
Final Thoughts: How to Do an LLC
Knowing how to do an LLC gives you the confidence to start your business with legal protection and tax advantages. Whether you’re launching a new venture or converting an existing sole proprietorship, forming an LLC is a smart move.
