LLC Formation Checklist: Everything to Do in Order
Forming an LLC is not just one task — it is seven distinct steps, each building on the last. Most business formation mistakes happen because people do them out of order or skip one entirely. Here is the complete checklist in the right sequence.
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Use the free LaunchAdvisor checklist to track every step in this guide.
The Quick Answer
The seven steps to form an LLC in order: choose your entity type and state, check business name availability, file Articles of Organization, get your EIN, open a business bank account, draft your operating agreement, and get any required licenses and permits. Each step unlocks the next. Do not skip ahead.
Step 1: Choose Your Entity Type and State
Decision: LLC vs S-Corp vs sole proprietorship. For most small businesses, an LLC in your home state is the right choice. Reference the comparison guide if you are weighing Delaware or Wyoming. Time: 30-60 minutes of research. Cost: $0 to decide.
Step 2: Check Business Name Availability
Run three searches before committing to a name: your state's business name database (Secretary of State website), the USPTO federal trademark database at tess.uspto.gov, and domain registrar search at Namecheap or Google Domains. All three must come back clear. Time: 30 minutes. Cost: $0.
Step 3: File Your Articles of Organization
File with your state through the Secretary of State's online portal or through a formation service. You will need: business name, registered agent name and address, member names and addresses, and business purpose (most states accept 'any lawful purpose'). Time: 15-60 minutes to file, 1-3 weeks for state processing. Cost: $50-$500 in state fees + optional formation service fee.
Step 4: Get Your EIN
Apply at irs.gov for free. Takes five minutes and provides an instant EIN. You need this before you can open a bank account. Do not pay anyone to get this for you. Time: 5 minutes. Cost: $0. Available Monday-Friday 7am-10pm Eastern.
Step 5: Open a Business Bank Account
Bring your Articles of Organization, EIN letter, and government ID. Online banks (Mercury, Relay, Novo) are faster and free. Traditional banks are better for cash-heavy businesses or SBA loan relationships. Open this account before you accept any business payments or make any business purchases. Time: 20-30 minutes to apply, 1-3 days to open. Cost: $0 for most online banks.
Step 6: Draft Your Operating Agreement
Single-member LLC: use a quality template from your formation service or NOLO. Multi-member LLC: hire an attorney. Sign and date the agreement, store it with your formation documents, and update it any time ownership or governance changes. Time: 30 minutes for a template, 1-2 weeks with an attorney. Cost: $0 (template) to $1,500+ (attorney).
Step 7: Get Required Licenses and Permits
Use the SBA license and permit tool to identify what your business needs by state and industry. At minimum: most cities require a general business license ($25-$150/year). Many industries require state professional licenses. Check local zoning if you are home-based. Apply for everything before you open. Time: 2-4 hours of research, days to weeks for processing. Cost: $25-$500 depending on state and industry.
RECOMMENDED TOOLS
ZenBusiness
Handles steps 3, 4, and 6 in one transaction
Northwest Registered Agent
Privacy-first formation with registered agent and operating agreement support
Mercury
Best business bank account for step 5
SBA License and Permit Tool
Free tool for identifying license requirements in step 7
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FREQUENTLY ASKED QUESTIONS
How long does it take to form an LLC from start to finish?
The filing itself takes a few hours spread across the steps. State processing for Articles of Organization takes 1-3 weeks in most states (some offer 24-hour expedited processing for an extra fee). Bank account opening adds 1-3 business days. Plan for 2-4 weeks from starting to having a fully operational business entity.
What order do I do these steps in — can I skip ahead?
No. You must have your LLC formed before applying for an EIN. You need the EIN before opening a bank account. The operating agreement should reflect the entity as formed. Licenses and permits can sometimes be applied for in parallel with later steps, but most require your EIN.
What if my state has different requirements?
The steps are consistent, but specifics vary. California requires an initial Statement of Information within 90 days. New York has a newspaper publication requirement. Some states require an initial report separate from the annual report. Your formation service or Secretary of State website will flag state-specific requirements.
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