How do I form an LLC?

Forming an LLC (Limited Liability Company) takes 1-3 weeks and protects your personal assets from business liabilities. Here's the complete process:

Step 1 — Choose a state. File in your home state (where you live and operate). Delaware/Nevada are NOT better for small businesses — they add complexity without benefits unless you're raising VC.

Step 2 — Pick a name. Search your Secretary of State's business database to confirm availability. Must include 'LLC,' 'L.L.C.,' or 'Limited Liability Company.'

Step 3 — File Articles of Organization. This is the formation document. File online with your state ($50-500 filing fee — California is highest at $800/year, Wyoming is cheapest).

Step 4 — Get an EIN (free). Apply at irs.gov/ein. Takes 5 minutes online. Required to open a business bank account and file taxes.

Step 5 — Create an Operating Agreement. Even single-member LLCs need one. It defines ownership, profit distribution, decision-making, and what happens if a member leaves. Generate one free at icontract.pro/llc-operating-agreement-generator.

After formation: open a business bank account (Mercury, Bluevine, or local bank), get business insurance, register for state/local taxes (sales tax permit if applicable), and consider whether to file an S-Corp election (Form 2553) once profits exceed $40K.

Don't pay $300-500 to LegalZoom or Rocket Lawyer just for filing — you can do it yourself for the state fee plus $0. Use iContract's free Operating Agreement generator and Business Structure Finder to handle the paperwork.

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