How to Register an LLC: Step-by-Step Guide, Costs and Mistakes to Avoid

By · November 12, 2026
Two people signing a document at a desk

Everything you need to register an LLC in the US, from choosing a state to the filings that keep it active.

Quick answer: To register an LLC, choose the state where you will do business, pick an available name, appoint a registered agent, and file articles of organization with the state, paying a fee that ranges from about $35 to $500. Then write an operating agreement, get a free EIN from the IRS, open a business bank account, and register for any state taxes and local licenses. Keep up with annual reports to stay in good standing.

Registering an LLC is usually quick and can often be done online in a day. The paperwork is not complicated, but small choices, such as the state you file in or who acts as registered agent, can affect your costs and obligations for years.

This guide walks through each step in order, explains typical costs, and points out the mistakes new owners often make. Rules differ by state, so always confirm the details with your Secretary of State.

In this article

What are the steps to register an LLC?

1. Choose your state

Most small businesses should form their LLC in the state where they actually operate. Forming in another state, such as Delaware or Wyoming, usually means you must also register as a “foreign LLC” in your home state, paying two sets of fees.

2. Choose and check your name

Your name must be unique in your state and usually include “LLC” or “Limited Liability Company”. Search your Secretary of State’s business database, then check the USPTO trademark search to avoid conflicts.

3. Appoint a registered agent

Every LLC needs a registered agent with a physical address in the state who accepts legal papers during business hours. You can be your own agent, or pay a registered agent service.

4. File articles of organization

Submit the form to your state, often online, with the filing fee. The form usually asks for the LLC name, address, registered agent, and whether it is member-managed or manager-managed.

Example
Omar wanted to run a cleaning business in Georgia. He searched the state database, found his preferred name available, named himself as registered agent, and filed his articles of organization online. He received approval the same week.

5. Write an operating agreement

Even where it is not required by law, an operating agreement sets out ownership, profit sharing, voting and what happens if a member leaves. Banks and partners often ask to see one.

6. Get an EIN

Apply for a free Employer Identification Number on the IRS website. Our guide on how to get an EIN explains the process.

7. Open a business bank account

Use your approval documents and EIN to open an account in the LLC’s name. Keeping money separate protects your liability shield.

8. Register for taxes and licenses

Register for state sales tax or employer accounts if needed, and get any city or county business licenses.

What do you need before you register?

Gathering a few details first makes the filing quick and avoids rejected forms.

  • Your LLC name and a backup: In case your first choice is taken.
  • Business address: Some states accept a mailing address, others need a physical one.
  • Registered agent details: Name and in-state street address.
  • Members or managers: Names and addresses, if your state asks for them.
  • Management structure: Member-managed or manager-managed.
  • Payment method: For the state filing fee.

Some states also ask for a short business purpose. A general purpose such as “any lawful business” is usually accepted.

How much does it cost to register an LLC?

Cost Typical range
State filing fee About $35 to $500, depending on the state
Registered agent service Free if you act as your own, or a yearly fee if you hire one
Annual report or fee Varies, from no fee in some states to hundreds of dollars
EIN Free from the IRS
Local licenses Varies by city, county and trade

According to LLC University, Montana has the lowest filing fee at $35 and Massachusetts the highest at $500. Some states also charge yearly taxes, such as California’s $800 minimum. See our state guides for California, Texas, Florida and Ohio.

BTS Magazine Tip
File the LLC yourself on your state’s website before paying a formation service. For most single-owner LLCs, the state form is short, and you avoid paying extra for something you can do in under an hour.

What mistakes should you avoid?

  • Forming in the wrong state: Filing in Delaware or Wyoming without a real reason can double your fees and paperwork.
  • Skipping the operating agreement: Disputes between members are much harder to settle without one.
  • Using a home address you want private: The registered agent address is public, so consider a service if privacy matters.
  • Forgetting annual reports: Missing them can lead to fines or the state dissolving your LLC.
  • Mixing money: Paying personal bills from the LLC account weakens your protection.
Example
Rita formed her LLC in Delaware after reading online that it was “the best state”. Her business was entirely in Ohio, so she had to register in Ohio as well and pay for a Delaware registered agent. She later realised forming in Ohio alone would have been simpler and cheaper.

Is it different for single-member and multi-member LLCs?

The registration steps are almost the same. The main differences come afterwards:

  • Taxes: A single-member LLC is taxed like a sole proprietorship by default, while a multi-member LLC files a partnership return.
  • Operating agreement: More important for multi-member LLCs, to set out ownership shares, voting and buyouts.
  • Banking: Banks may ask for all members’ details and signatures.
Example
Two sisters registered an LLC for their online gift shop. Their operating agreement set a 60/40 ownership split and explained what would happen if one wanted to leave. When one sister later stepped back, the agreement made the buyout simple and avoided arguments.

What should you do after registering?

  1. Set calendar reminders for annual reports and state taxes.
  2. Get business insurance suited to your work.
  3. Decide on tax treatment, and ask an accountant whether an S corp election could help later. See our guide to S corp vs LLC.
  4. Register a DBA if you will trade under a different name. Read what a DBA is.
  5. Keep copies of all formation documents in one safe place.
Try this today
Go to your Secretary of State’s website and search for your preferred LLC name. Note the filing fee and any annual report requirement listed there, so you know the full cost before you start.

Frequently asked questions

How long does it take to register an LLC?

Many states approve online filings within a few days, though some take a few weeks.

Can I register an LLC myself?

Yes. Most states let you file online, and many owners do it without a service.

How much does it cost to register an LLC?

State fees range from about $35 to $500, plus any annual fees and optional registered agent costs.

Do I need a lawyer to form an LLC?

Not usually for a simple LLC, though a lawyer can help with complex ownership or operating agreements.

Can I be my own registered agent?

Yes, if you have a physical address in the state and are available during business hours.

Should I form my LLC in Delaware?

Usually only if you plan to raise venture capital. Most small businesses form in their home state.

Final Thoughts

  • Form your LLC in the state where you do business unless you have a clear reason not to.
  • File articles of organization, appoint a registered agent and write an operating agreement.
  • Get a free EIN and open a business bank account.
  • Keep up with annual reports and state taxes to stay in good standing.

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