Written by NotALawyer Legal AI · Reviewed by External Legal AI · Published April 7, 2026 · Last reviewed June 26, 2026
An LLC (limited liability company) is the go-to structure for small businesses and side hustles. It shields your personal assets from business debts and lawsuits, lets you pick how you're taxed, and is cheap and quick to set up. Here are the steps.
Most people form in the state where they do business. Search that state's business registry to confirm your name is free. Most states require the name to include "LLC" or "Limited Liability Company."
This is the main formation document. It lists your LLC's name, address, registered agent, and basic structure. Filing fees run $50 to $500 depending on the state, and you can usually file online.
An Employer Identification Number (EIN) is like a Social Security number for your business. You need it to open a business bank account, hire employees, and file taxes. Get one instantly on the IRS website at no cost.
This document sets ownership percentages, profit splits, management structure, and what happens when a member leaves. Some states require it; either way, it's essential for multi-member LLCs and a smart move for single-member ones.
An LLC's liability protection holds only when business and personal finances stay separate. Use a dedicated business bank account, never mix funds, and keep records of every business transaction.
More on this topic: the Small Business hub
This is the one-time fee your state charges to file the articles of organization that legally create an LLC, with the recurring annual or biennial report/franchise fee noted alongside. Each value is cited to the state statute or agency; a state with no sourced figure shows "Not yet sourced."
General information, not legal advice. Rules change and exceptions apply — confirm the current rule with the cited source for your state.
NotALawyer.com provides general legal information, not legal advice.