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How to Start an LLC in Any US State
An LLC (Limited Liability Company) protects your personal assets from business debts and lawsuits. It's the most popular business structure for small businesses " — and you can form one in under an hour online.
Why Form an LLC?
- Limited liability protection: Your home, car, and savings are protected
- Tax flexibility: Choose to be taxed as a sole proprietor, partnership, or S-Corp
- Professional image: "LLC" after your name looks more legitimate
- Easy to maintain: Minimal paperwork compared to corporations
- No residency requirement: You can form an LLC in any state
LLC Costs by State
| State | Filing Fee | Annual Fee | Time to Form |
|---|---|---|---|
| Wyoming | $100 | $60 | 1-2 business days |
| Delaware | $90 | $300 | 3-5 business days |
| Florida | $125 | $138.75 | 5-7 business days |
| Texas | $300 | $0 | 5-7 business days |
| California | $70 | $800 | 1-2 weeks |
| New York | $200 | $9 | 2-3 weeks |
| Nevada | $425 | $200 | 1-2 weeks |
Step-by-Step: How to Form an LLC
- Choose your state: Most people form in their home state
- Pick a name: Must include "LLC" and be unique in your state
- Appoint a registered agent: Can be you or a professional service
- File Articles of Organization: Online through your state's Secretary of State website
- Create an operating agreement: Not required but strongly recommended
- Get an EIN: Free from the IRS at irs.gov
- Open a business bank account: Keep business and personal finances separate
Nevada vs Delaware vs Wyoming: Wyoming is the cheapest and most business-friendly. Delaware is best for large companies seeking investors. Nevada has no state income tax but higher fees. For most small businesses, form in your home state to avoid registering as a foreign LLC.
LLC vs Sole Proprietorship vs Corporation
| Feature | Sole Prop | LLC | Corporation |
|---|---|---|---|
| Liability Protection | No | Yes | Yes |
| Tax Flexibility | No | Yes | Yes |
| Setup Cost | $0 | $50-$500 | $100-$500 |
| Paperwork | None | Minimal | Extensive |
| Self-Employment Tax | Yes | Yes (unless S-Corp election) | No (double taxation) |
⚠️ Common LLC Mistakes:
- Not getting an EIN " — you need one to open a bank account and hire employees
- Mixing personal and business finances " — this voids your liability protection
- Skipping the operating agreement " — even single-member LLCs should have one
- Ignoring state annual reports " — your LLC can be dissolved if you miss them
- Forming in a "tax haven" state " — you'll still owe taxes in your home state
The bottom line: Form your LLC in your home state through the Secretary of State website. It costs $50-$300 depending on your state. Get an EIN free from the IRS, open a business bank account, and create an operating agreement. Total time: 1-2 hours. Total cost: under $500 in most states.