How to Start an LLC: A Simple, Step-by-Step Guide

Latest Update:

June 11, 2025

For businesses

Thinking about registering, incorporating, or expanding their business in the US? One of the first steps is choosing the right business structure, and for many entrepreneurs, that’s an LLC (Limited Liability Company). LLCs are popular because they’re simple to set up, flexible to manage, and offer personal protection for your assets.

In this guide, we’ll walk you through everything you need to know to start your LLC, even if you're setting it up from outside the US. Ready to get started? Let’s break it down step by step.

Step 1: Choose Your State

The first thing you need to decide when starting your LLC is where you want to register it. In most cases, the best option is to form your LLC in the state where you plan to do business. This helps you avoid extra paperwork and fees down the road.

For example, if you live and operate your business in Texas, you should usually form your LLC in Texas. Forming your LLC in another state, like Delaware or Wyoming, might sound tempting, but you may still have to register your LLC in your home state as a “foreign LLC,” which adds more steps and costs.

However, most non-US residents or online businesses do consider states like Delaware, Wyoming, or New Mexico because of their business-friendly rules, low fees, and privacy protections.

Here’s a quick overview:

  • Delaware: Popular for startups and companies planning to raise outside investment.
  • Wyoming: Known for low fees, strong privacy protections, and no state income tax.
  • New Mexico: Offers strong privacy and affordable filing fees.

If you're unsure which state is right for you, talk to a legal or tax professional to help you make the best decision.

Step 2: Pick a Unique Business Name

Now that you’ve chosen your state, it’s time to pick a name for your LLC. This might seem like the fun part, but there are a few simple rules you need to follow.

First, your business name must be unique. No other business in your state can have the same name. The US Securities and Exchange Commission offers an online search tool so you can check if your name is available.

Second, your LLC name must include one of the following:

  • "Limited Liability Company"
  • "LLC”
  • "L.L.C."

This makes it clear to the public that your business is a legal entity with limited liability protection.

Finally, your name can’t include restricted words (like “bank,” “insurance,” or “government agency”) unless you have special approval.

Step 3: Appoint a Registered Agent

Every LLC must have a registered agent, but don’t worry, it’s not as complicated as it sounds.

A registered agent is simply the person or company who agrees to receive official documents for your business. This includes legal papers, tax notices, and any government correspondence.

Remember to keep in mind the following:

  • Your registered agent must have a physical address in the state where you’re forming your LLC (P.O. boxes aren’t allowed).
  • The agent must be available during normal business hours to accept important documents.
  • You can be your own registered agent (if you live in the US), appoint someone you trust, or hire a professional registered agent service.

If you live outside the US, you’ll likely need to use a registered agent service that operates in the state where your LLC is formed. Some providers, such as Adro, specialize in helping non-resident entrepreneurs.

Step 4: File Articles of Organization

This is the big step that officially creates your LLC. The Articles of Organization (sometimes called a Certificate of Formation) is the legal form you file with your state to register your LLC.

Luckily, most states make this process pretty simple, and you can often file it online.

Here’s what you’ll typically need to include:

  • Your LLC name
  • Your registered agent’s information
  • The business address of your LLC
  • A brief description of your business purpose (sometimes very general)
  • Names of LLC members or managers (depending on your state)

Filing fees usually range from $50 to $500, depending on the state. Once your Articles of Organization are approved, your LLC is officially active.

Step 5: Create an Operating Agreement

An Operating Agreement is like the rulebook for your LLC. It’s not always required by law (some states don’t mandate it), but it’s strongly recommended, especially if your LLC has more than one owner.

This document lays out the following:

  • Who owns what: Listing the members and their ownership percentages.
  • How profits and losses are shared.
  • How decisions are made: Voting rules, meeting guidelines, and who has authority.
  • What happens if someone leaves: Exit procedures, selling shares, or dissolving the LLC.

Even if you’re a single-member LLC, having an Operating Agreement can make your business look more professional, especially when opening a business bank account or dealing with partners.

Step 6: Get an EIN (Employer Identification Number)

An EIN (Employer Identification Number) is basically like a Social Security number for your business. The IRS uses it to identify your LLC for tax purposes.

Even if you don’t have employees, you’ll still need an EIN to:

  • Open a business bank account.
  • File federal or state taxes.
  • Apply for business licenses.
  • Hire employees (now or in the future).

If you don’t have a US Social Security number, you can still apply for an EIN, but the process may require submitting Form SS-4 by fax or mail. Some professional services can also assist with this process.

Step 7: Obtain Any Required Business Licenses or Permits

Forming your LLC is a big milestone, but depending on your business type, you may still need licenses or permits to operate legally.

The types of licenses you need depend on:

  • Your industry: For example, restaurants, salons, daycare centers, and contractors often need special permits.
  • Your location: State, county, and city governments may all have different rules.
  • Your business activities: Selling products online, handling food, or offering professional services.

Some of the common licenses include:

  • General business license
  • Seller’s permit (for collecting sales tax)
  • Health department permits
  • Professional or occupational licenses

Always remember, it’s better to double-check early than to risk fines or delays later. Some licenses can take a little time to process, so plan ahead.

Step 8: Keep Your LLC in Good Standing

Once your LLC is up and running, your job isn’t completely done. You’ll need to take a few simple steps every year to keep your business in good standing with your state.

Here’s what that usually means:

  • File annual or biennial reports

Many states require you to submit a short report every year (or every other year) with updated business information. This is how your state keeps track of active businesses.

  • Pay state fees or franchise taxes

Some states charge small annual fees to maintain your LLC’s active status.

  • Keep your registered agent updated

If your registered agent changes, you must notify your state.

  • Stay compliant with licenses and permits

Renew any required business licenses on time.

Keep this one in mind: missing these requirements can lead to penalties, late fees, or even losing your LLC status, so it’s important to set calendar reminders or use a professional service to help you stay organized.

Other Helpful Reminders

As you may know now, you don’t need to be a US citizen or live in the US to start an LLC. That’s one reason why so many international entrepreneurs use LLCs to build US businesses.

If you’re based outside the US, here’s what you need to know:

  • The process is very similar to what we’ve covered above. You’ll still choose a state, file Articles of Organization, and get an EIN.
  • A Registered Agent is required. Since you won’t have a US address, you’ll need to hire a registered agent service located in your LLC’s state.
  • Opening a US bank account can be tricky. Many international founders struggle here, but services like Adro can help non-resident entrepreneurs open a US business account 100% online.
  • Tax rules may be different. US tax laws can be more complex for non-residents, so it’s a good idea to consult a tax professional or accountant familiar with international businesses.

Starting an LLC as a non-US resident is very doable; you just need to pay close attention to paperwork and compliance. Using trusted partners (like registered agent services and business banking providers) can make the process much smoother.

Final Thoughts

Starting an LLC might feel overwhelming at first, but once you break it down into simple steps, it’s completely doable, even if you're setting up from outside the US. With the right structure in place, you’ll be protecting your personal assets and setting up your business for long-term success.

And once your LLC is formed, you’ll need a reliable way to handle your business finances. That’s where Adro’s business account comes in, helping you easily open and manage a US business account fully online, no matter where you are in the world.

Sign up with Adro today and let’s get your business open in no time at all.

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