Starting a Limited Liability Company (LLC) in the US has become a popular route for entrepreneurs, freelancers, and small business owners in 2025. Whether you’re building a digital business or launching a local service, forming an LLC offers significant advantages: legal protection, tax flexibility, and credibility.
In this comprehensive 2025 guide, you’ll learn everything from choosing a business name to maintaining your LLC post-formation. We’ll break it down step-by-step, so even if you’re new to business, you’ll know exactly what to do.
Why Choose an LLC in 2025?
Before diving into the process, let’s look at why forming an LLC might be your best decision:
- Limited Personal Liability: Your personal assets are protected from business debts and lawsuits.
- Flexible Taxation: Choose between default pass-through taxation or opt for S-Corp status.
- Professional Image: Having “LLC” in your name adds credibility with clients and investors.
- Simple Compliance: Compared to corporations, LLCs have fewer reporting requirements.
Step 1: Choose Your State
Why it Matters:
Each US state has different laws, fees, and tax requirements for LLCs. Most businesses register in the state where they operate.
Best states for LLCs in 2025:
- Wyoming: No state income tax, low fees.
- Delaware: Business-friendly laws, ideal for startups.
- Texas: No personal income tax, booming economy.
Pro Tip: If your business will operate in multiple states, you may need to register as a foreign LLC in each one.
Step 2: Name Your LLC
Key Rules in 2025:
- Must include “LLC,” “L.L.C.,” or “Limited Liability Company.”
- Cannot include restricted words like “Bank,” “Insurance,” or “University” without special approval.
- Must be distinguishable from other entities registered in your state.
Check name availability through your Secretary of State’s online portal.
Bonus: Secure a matching domain name (.com) to protect your brand.
Step 3: Appoint a Registered Agent
What is a Registered Agent?
A person or service that accepts legal documents on behalf of your LLC.
Requirements:
- Must have a physical address in the state of formation.
- Must be available during business hours.
Options:
- Be your own registered agent.
- Hire a professional service (e.g., ZenBusiness, Northwest Registered Agent, or LegalZoom).
Tip: Using a service ensures privacy and keeps your address off public records.
Step 4: File Articles of Organization
This is the legal document that officially forms your LLC.
What You’ll Need:
- LLC name and address
- Registered agent information
- Management structure (member-managed or manager-managed)
Where to file:
- Online or by mail with your state’s Secretary of State
Filing Fees in 2025:
- Vary by state ($50 to $500)
Once approved, you’ll receive a Certificate of Formation.
Step 5: Create an Operating Agreement
Why You Need One (Even if It’s Not Required):
An operating agreement outlines your LLC’s:
- Ownership
- Management roles
- Profit distribution
- Dispute resolution
Some states require it. Others don’t. But it’s highly recommended for internal clarity and protection.
Use templates or hire a legal advisor.
Step 6: Get an EIN (Employer Identification Number)
An EIN is like a Social Security Number for your business. It’s required for:
- Opening a business bank account
- Hiring employees
- Filing taxes
How to Apply (Free):
- Online via the IRS EIN Assistant
Note: You don’t need to pay a service to get an EIN—it’s 100% free via the IRS.
Step 7: Open a Business Bank Account
Why It’s Important:
- Keeps your personal and business finances separate
- Makes accounting and tax filing easier
- Boosts credibility with clients
What You’ll Need:
- EIN
- Certificate of Formation
- Operating Agreement
Top Banks for LLCs in 2025:
- Chase Business Complete Banking℠
- Bluevine Business Checking
- Novo
- Mercury (for digital-first businesses)
Step 8: Get Licenses and Permits
Depending on your industry and location, you may need:
- A business license
- Zoning permit
- Seller’s permit (for selling goods)
Check local, state, and federal requirements via:
- Your state’s Department of Revenue
Pro Tip: If you’re running an online business, fewer permits may be required—but check anyway.
Step 9: File for S-Corp Status (Optional)
When to Consider:
If you expect to earn over $60,000 in net income, you might save money on self-employment taxes by electing S-Corp taxation.
File IRS Form 2553 within 75 days of forming your LLC.
Consult a CPA to ensure it’s the right choice.
Step 10: Stay Compliant
Once your LLC is up and running, stay in good standing by:
- Filing Annual Reports (required in most states)
- Paying State Fees
- Renewing Licenses
- Maintaining a Registered Agent
Tools to Automate Compliance:
- ZenBusiness
- Incfile
- Northwest
LLC Formation Costs in 2025 (By State)
| State | Filing Fee | Annual Report Fee | Registered Agent (avg.) |
|---|---|---|---|
| Delaware | $90 | $300 | $125 |
| California | $70 | $800+ Franchise Tax | $99 |
| Texas | $300 | $0 | $125 |
| Florida | $125 | $138.75 | $100 |
| Wyoming | $100 | $60 | $99 |
Best LLC Formation Services in 2025
| Service | Starting Price | Features |
| ZenBusiness | $0 + state fee | Free Operating Agreement, Registered Agent |
| Northwest | $39 + state fee | Best for Privacy & Customer Support |
| Incfile | $0 + state fee | EIN Filing, Compliance Alerts |
| LegalZoom | $79 + state fee | Trusted Name, Strong Legal Tools |
Frequently Asked Questions (FAQs)
Q1: Can I start an LLC on my own?
Yes! You don’t need a lawyer. With the right resources, most steps can be done independently.
Q2: How long does it take to form an LLC?
2 to 15 business days, depending on the state and filing method.
Q3: Do I need an LLC for my online business?
If you want legal protection and a professional image, yes. It’s highly recommended.
Q4: Is an LLC better than a sole proprietorship?
Yes, for liability protection and tax flexibility.
Q5: Can non-US citizens form an LLC?
Yes! Foreign nationals can start LLCs in the US, though additional requirements may apply.
Final Thoughts: Should You Start an LLC in 2025?
Absolutely. Forming an LLC gives you structure, flexibility, and protection—everything a modern entrepreneur needs in today’s digital and fast-moving economy.
From freelancing to tech startups, the LLC remains the go-to business structure in the US for a reason.
Start smart. Stay compliant. And use the tools available in 2025 to streamline your journey.
Ready to Start Your LLC Today? Compare services like ZenBusiness, Incfile, or LegalZoom and launch your business in under 15 minutes.
