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How to Start an LLC in 7 Easy Steps (2024 Guide)
2024 is one of the best years ever to start an LLC, and you can create yours in only a few steps.
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Key takeaways
- Form an LLC in only seven steps: Select a unique name, appoint your registered agent, determine your LLC’s structure, create an operating agreement, and file articles of organization.
- Set your new LLC up for success: Stay compliant with federal and state law, think about taxes early, and build a strong financial structure.
- Compare the benefits of different LLC types: LLCs are popular for several reasons, but which of the eight types is best for you?
Limited liability companies, or LLCs, provide business owners with liability protection, lower startup costs, and greater flexibility for management and taxes compared to other business structures, making them an attractive choice for many small business owners.
Chief among these benefits, however, is just how quickly and easily one person can start an LLC. In general, filing for an LLC online can be done in an afternoon, and getting approval can take as little as a couple of business days (depending on the state).
Simple as the process may be, however, learning the seven legally required steps of how to start an LLC helps ensure that your new business starts without a hitch.
1. Choose your business name
More often than not, your business' name will be the first thing a prospective customer interacts with—and the first chance you have to hook their interest. A unique, memorable, and evocative name can set you apart from competitors, build a strong foundation for future branding efforts, and set your business up for success overall.
But it's not just about branding—your LLC's name also needs to meet specific legal requirements, many of which vary by state and the nature of your new company. Though we strongly suggest researching the specific requirements of the state in which you'll be doing business, most states require that your business' name must:
Keep in mind that most states allow you to reserve a name temporarily, even if you aren't yet ready to create your LLC. Simply submit your state's name reservation form and the required filing fee to reserve a name.
+ filing fees.by Connor Beaulieu
Connor is a content strategist, journalist, and legal writer living and working in Chicago. Over the past decade, he'.
Contents
Updated on: June 17, 2024 · 22 min read
- Key takeaways
- The 7 steps of creating an LLC
- What to do after you create your LLC
- The pros and cons of starting an LLC
- Creating an LLC with LegalZoom
- FAQs
In 2023 alone, American entrepreneurs started a record-breaking 5.5 million small businesses—the lion's share of which were LLCs. This year, experts believe that the upward trajectory will continue, in large part because of how painless it has become to create and register an LLC.
Instead of the overly complex, painfully slow process from decades past, starting an LLC in 2024 comes down to seven simple steps (and a few extra notes to keep in mind).
Creating an LLC with LegalZoom
As simple as seven steps may seem, working with the experts can streamline LLC formation even further. If you choose to create your limited liability company with LegalZoom, for example, the process takes only three steps:
- Complete our LLC questionnaire - Fill out your simple questionnaire in only a few minutes. We give you the option to form a new LLC, convert an existing partnership or sole proprietorship into an LLC, and choose what provisions you want to include regarding personal liability protection.
- We apply for your LLC - After you’ve given us all of the important information about your new business, our LegalZip® software compiles it into LLC documents that we then file with the Secretary of State in your business’ state of formation. After that, we create and file your articles of organization and an LLC operating agreement tailored to your specifications.
- Receive confirmation - Once they’ve been processed and confirmed by your state, we’ll send you your finished articles of organization, any other relevant documents, and step-by-step instructions about what you should do next to ensure your LLC’s success.
Why 2024 is the year to start an LLC
Between the increasing availability of new technologies and tools and the growing advantages of small, agile business ideas, 2024 is shaping up to be one of the best years in recent history for small business owners.
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