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How to Start an LLC: Steps, Costs and What Your State Charges

Starting an LLC can cost as little as $70, and your EIN is free. Here are the 6 steps, the real costs in 5 states, and the yearly deadlines to put on your calendar.

By AssistQuote Editorial Team

Published September 26, 2026 · Updated September 30, 2026 · 3 min read

Quick answer

To start an LLC, pick a name, choose a registered agent, file your paperwork with your state, write an operating agreement, get a free EIN from the IRS, and check for local licenses. State filing fees usually run $70 to $300. Some states also charge a yearly fee.

What is an LLC?

An LLC, or limited liability company, is a simple business structure. It can help keep your personal things, like your home and savings, separate from your business's debts and lawsuits. Many small businesses use one because it has less paperwork than a corporation.

Do I need an LLC?

Not always. You can run a business as a sole proprietor with no state filing at all. An LLC is worth thinking about if:

  • Your work could get you sued, for example, working in people's homes
  • You're taking on business debt
  • You want your business finances clearly separate from your personal ones

A lawyer or tax pro can help you decide.

How to start an LLC in 6 steps

1. Pick a name. Most states require it to include "LLC" or "Limited Liability Company." Search your state's business database to make sure the name isn't taken.

2. Choose a registered agent. This person or company accepts legal papers for your LLC. It needs a street address in your state. You can often be your own, but that address becomes public. See registered agents.

3. File with your state. This is usually called "Articles of Organization." Texas calls it a "Certificate of Formation." Most states let you file online.

4. Write an operating agreement. This spells out who owns what and how decisions get made. Not every state requires one, but it's smart to have, even for a one-person LLC.

5. Get your EIN, free. Apply at IRS.gov. It's always free, and online applications are often approved right away. Don't pay a website to do it for you. See what is an EIN.

6. Check local licenses and permits. Many cities and counties require a business license. Your type of work may need a state license too.

What it costs in 5 states

StateFee to formYearly costs to know
Texas$300Check Texas franchise tax report rules
Florida$125 ($100 filing + $25 registered agent)$138.75 annual report. $538.75 if filed after May 1
California$70$800 minimum yearly LLC tax, including the first year
Ohio$99No annual report
Georgia$110 ($100 filing + $10 service charge)$60 annual registration, due by April 1

Fees from each state's official filing office or tax agency, 2026. Fees change, so check before you file.

Watch out for these costs

  • California's $800 tax. Every California LLC owes at least $800 a year, even if it earns nothing, until it's formally canceled. The first payment is due by the 15th day of the 4th month after you file.
  • Florida's late fee. Miss the May 1 annual report deadline, and a $138.75 fee becomes $538.75.
  • "Formation service" upsells. Services charge extra on top of state fees for things you can often do yourself for free. Compare business formation services if you want help.

The catch: starting an LLC is cheap. Forgetting about it isn't. Put your state's yearly deadline on your calendar the day you file. Missed filings can lead to late fees, or your state shutting your LLC down.

After you form your LLC

  • Open a business bank account. Keeping business and personal money separate helps protect the LLC's separation.
  • Get business insurance. An LLC doesn't pay for lawsuits, injuries, or damage. Insurance does. See LLC insurance.
  • BOI report: since March 2025, companies formed in the U.S. don't have to file beneficial ownership information (BOI) reports with FinCEN under current rules. Check FinCEN for updates, since the rule could change.

Related pages

Run your business: Business formation · Registered agent · Payroll services · Merchant processing · POS systems · Business phone · Business internet · What an EIN is · Business license · DBA (doing business as) · All business services

Questions people ask

State filing fees usually run $70 to $300. Getting an EIN is free. Some states also charge yearly fees or taxes.

Online filings are often approved in days. Some states take longer. Check your state's filing office.

Yes. Most states let you file online. A formation service is a convenience, not a requirement.

Not every state requires one, but it's smart to have. It helps show the LLC is separate from you.

Usually, yes. The LLC separates business debts from personal ones, but it doesn't pay claims. Insurance does.
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