Step 1. Choose Your LLC Name

An LLC is a legal business structure, so there are rules around naming it.

Your name must be unique so it doesn’t conflict with an existing registered business. It also needs to include “LLC” or “Limited Liability Company.” Certain restricted words (like bank, trust, or insurance) usually aren’t allowed without special approval. Naming rules vary by state, so you’ll want to check your state’s guidelines before settling on a name.

LLC Name vs. Business Name: What’s the Difference?

Your LLC name and your public-facing business name can be the same or different. This is mostly a branding and marketing decision.

Your LLC name is your company’s official legal name and is used on formal documents, contracts, and legal filings. Some businesses choose to include “LLC” in their public name because it signals legitimacy and professionalism.

Other businesses prefer a cleaner, more memorable brand name for marketing, and keep the LLC name more formal behind the scenes. Both approaches are fine—it depends on what fits your brand best.

How to Get a Business Name

If you want to operate under a name that’s different from your LLC’s legal name, you can register a “doing business as” (DBA) name at the same time you register your LLC. You’ll also need to run a business name search to make sure the exact name isn’t already taken.

Reserving Your LLC Name

If you’ve found the perfect name but aren’t ready to form your LLC yet, many states allow you to reserve the name for a short period of time. The length of the reservation and the process vary by state, typically ranging from about 30 to 120 days.

Step 2. Choose Your State

You can form your LLC in any U.S. state, no matter where you live.

For most business owners, forming the LLC in their home state is the simplest and most practical option. Local professionals are familiar with the rules, and it’s easier to handle paperwork when everything is close by.

Some business owners choose to form their LLC in a different state because of lower setup or ongoing costs, or more business-friendly regulations. If you do this, you’ll usually need a physical address in that state to receive official mail. Many people solve this by hiring a registered agent service.

Every state provides guidance on how to start and maintain an LLC, so make sure you understand the specific requirements where you plan to register.

Popular Registration States

Certain states, like Delaware, are well-known for being business-friendly and are popular choices for companies forming outside their home state. These states often have streamlined processes and lower ongoing costs, which can be attractive for startups and growing businesses.

Think Beyond Just One State

Registering your business name in one state doesn’t automatically protect it in others. Another company in a different state could still use the same or a similar name.

If you plan to expand in the future, you may want to think ahead about protecting your name and brand more broadly.

Step 3. File Your Articles of Organization

To officially create your LLC, you’ll need to file a formation document with your state. This is often called “Articles of Organization,” though some states use different names like “Certificate of Formation” or “Certificate of Organization.”

You can usually download this form from your state’s website. After you submit it and it’s approved, you’ll receive confirmation that your LLC now exists as a legal business entity. Once that happens, you’re officially in business.

States also require ongoing filings to keep your LLC in good standing, typically on a yearly basis. These filings are required even if your business isn’t very active.

Step 4. Choose a Registered Agent

A common question is, “Can I set up an LLC myself?” The answer is yes—but every LLC must have a registered agent and a registered office.

A registered agent is a person or company responsible for receiving official and legal documents on behalf of your business. This includes things like legal notices and official correspondence.

In most states, someone must be available at a physical address during regular business hours to receive these documents. Depending on your state, you may be able to act as your own registered agent or appoint your business to do so.

If you’d rather not handle this yourself, you can hire a registered agent service to take care of it for you. If you want a simple, streamlined setup, you can also register your LLC through Buttered Business and have this handled as part of the process.

Step 5. Create an LLC Operating Agreement

An operating agreement is a document that outlines how your LLC is structured and how it will be run day to day.

Many states don’t require this document, but it’s still a smart move—especially if your LLC has more than one owner or if you plan to bring in partners or investors later.

This agreement typically covers things like:

• Each member’s roles and responsibilities

• How decisions are made

• How profits and losses are handled

• What happens if a member wants to leave or sell their share

Having this in writing can prevent misunderstandings and protect everyone involved.

Step 6. Get an EIN

An Employer Identification Number (EIN) is a unique number used to identify your business. It’s often needed to open business bank accounts, work with certain partners, and handle various official business processes.

You can apply for an EIN in a few different ways, including online, by mail, or by fax. The online option is usually the fastest and gives you the number right away, while the other methods take longer to process.

Step 7. Handle Licenses and Permits

Before you start operating, you may need to obtain certain licenses or permits depending on your business type and location. These requirements are set at the state and local level, and they vary widely based on what kind of business you’re running.

Make sure you check your state and local requirements so your business stays compliant and avoids unnecessary problems down the road.