📌 Step-by-Step: How to Form an LLC or Corporation

🧭 General Formation Steps (LLC or Corporation)

✅ Step 1: Choose a Business Structure

• LLC (Limited Liability Company): Flexible, fewer formalities
• Corporation (S-Corp or C-Corp): Ideal for startups, investors, or more structure
  📌 Use your business model and tax goals to choose wisely.

✅ Step 2: Choose a State

• Your home state is typical
• Some choose Delaware, Nevada, or Wyoming for asset protection or tax reasons
  🔎 Consider filing in your operating state to avoid foreign entity registration fees.

✅ Step 3: Check Name Availability

• Go to the Secretary of State site
• Make sure the name is not already in use
• Most states allow free online checks

✅ Step 4: Reserve the Business Name (Optional)

• Some states allow/require name reservation before filing
• Fee ranges from $10 to $75

✅ Step 5: Designate a Registered Agent

• Must be located in the formation state
• Can be you, another person, or a professional service
• Typical service cost: $99–$125/year

✅ Step 6: File Formation Documents

• LLC: Articles of Organization
• Corporation: Articles of Incorporation
• Submit online or by mail
• Fees range from $40 to $500+ depending on state

✅ Step 7: Get EIN (Employer Identification Number)

• Free via IRS: https://irs.gov/ein
• Required for bank accounts, payroll, credit

✅ Step 8: File Initial Reports or Franchise Tax

• Some states require a Statement of Information or Initial Report within 30–90 days
• Others charge a minimum franchise tax (e.g., California $800/year)

✅ Step 9: Open Business Bank Account

• Use your Articles + EIN + Operating Agreement
• Separate finances are required for legal liability protection

✅ Step 10: Comply With Licensing & Permits

• State and local licensing may apply
• Use https://www.sba.gov/business-guide/launch-your-business/apply-for-licenses-permits

🗂️ By-State Formation Guides

💡 Pro Tips:

• Use a professional Registered Agent to avoid missing legal mail
• Use an Operating Agreement (LLC) or Bylaws (Corporation) — even if not required
• Don’t skip EIN — it’s your business’s social security number