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How to Start an LLC in 2026
By Sophie Brown, Senior Finance Editor · Updated Apr 2026
Starting an LLC is not hard, but it is easy to overpay or miss the boring follow-up tasks. The practical sequence is: pick the right state, check the name, appoint a registered agent, file Articles of Organization, create an operating agreement, handle EIN/tax/banking basics, and calendar annual compliance.
Key takeaways
- Most small businesses should form in the state where they actually operate, not chase Delaware or Wyoming by default.
- A $0 LLC service still does not mean a $0 LLC: state filing fees are separate and vary by state.
- The IRS EIN application is available directly from the IRS; paying a service is usually convenience, not necessity.
- Registered agent and annual report/compliance obligations are the post-formation details founders forget most often.
1. Choose the state where the business actually operates
For most local, solo, consulting, ecommerce, agency, or service businesses, the simplest state is the state where you live and operate. Delaware, Wyoming, and Nevada can make sense in specific legal/tax/privacy scenarios, but they can also create extra foreign-registration and annual-report work if you operate somewhere else.
2. Check the LLC name before buying anything
Search the state business database, check obvious trademark conflicts, and make sure the domain/social handles are acceptable. An LLC name approval does not automatically give you trademark rights.
3. Appoint a registered agent
A registered agent receives legal and state notices. You can often use yourself if you have a physical in-state address, but a registered agent service can help with privacy, reliability, and keeping notices organized. Northwest is strongest when this is the priority.
4. File Articles of Organization
This is the filing that creates the LLC. Services like ZenBusiness, LegalZoom, Bizee, Tailor Brands, and Northwest can file it for you, but the state fee is still separate. Compare the final checkout, not just the headline service fee.
5. Create an operating agreement
Even single-member LLCs should have a basic operating agreement. It documents ownership, management, capital contributions, distributions, and what happens if something changes. Multi-member LLCs should be more careful here and may need attorney help.
6. Get an EIN if needed
Many LLCs need an EIN to hire employees, open business banking, or separate business tax/admin records. The IRS offers EIN applications directly. Paying a formation service for EIN help can be convenient, but it is not automatically required.
7. Handle banking, licenses, taxes, and annual reports
After approval, open a business bank account, check city/state licenses, register for sales tax/payroll tax if needed, and calendar annual reports or franchise taxes. This is where compliance tools can be worth paying for if you are likely to miss deadlines.
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