How to Start an LLC in 2025: A Step-by-Step Guide for Entrepreneurs

Thinking of starting your own business but feeling lost on where to begin? One of the very first (and smartest) moves you can make is forming an LLC (Limited Liability Company). If the term sounds intimidating, don’t worry, you don’t need a law degree or years of experience to understand it. An LLC is simply a business structure that separates your personal finances (like your home, car, or savings) from your business risks. That means if something goes wrong, your personal assets are protected.

On top of that, an LLC can make your business look more professional, give you more credibility with customers and partners, and often keep things simpler compared to forming a full corporation. For brand-new entrepreneurs, it’s a middle ground: more protection and structure than running your business as a sole proprietor, but without the heavy paperwork and costs of a corporation.

So if you’ve been putting off starting because you don’t know what paperwork to file, or you’re afraid of “messing it up,” this guide is for you. I’ll walk you through how to start an LLC step by step, explain it in plain language, and even point you toward a way to speed things up with professional help if you’d rather not tackle it all alone.

Ready to get started? You can get an instant LLC price quote here to see how much it costs in your state.

Disclosure: This article contains paid links. If you use them, I may earn a commission at no extra cost to you.

Step 1: Choose Your Location

United States

LLCs are registered at the state level, not the federal level. That means the very first decision you’ll need to make is where you want your LLC to be formed. For most small business owners, the simplest and smartest choice is to register in the state where you actually live and plan to run your business. This way, you won’t have to worry about juggling extra paperwork or paying fees in multiple states.

However, some states, like Delaware, Wyoming, and Nevada, are known for being “business friendly.” They often have lower fees, fewer reporting requirements, and stronger privacy protections for owners. That’s why larger companies, startups seeking investors, or entrepreneurs planning to do business across many states sometimes choose them.

But here’s the catch: if you register in one of those states but operate mainly in your home state, you may have to register twice, once in the state you filed in, and again as a “foreign LLC” in your home state. That means extra costs and paperwork.

Canada:

In Canada, businesses usually register at the provincial level (such as Ontario, Quebec, or British Columbia). This means your LLC-equivalent structure, often called a corporation, is governed by that province’s rules. If you want to operate across the country, you can also register federally. Each option comes with its own fees and reporting requirements, so be sure to check which one fits your growth plans best.

Europe:

In Europe, the setup depends on the country. Many countries use private limited companies that work much like an LLC. For example, you’ll find “Ltd” in the UK, “GmbH” in Germany, and “SARL” in France. Each structure gives limited liability protection, but the exact rules, tax obligations, and paperwork can vary widely. Always check your local business registry or government portal before starting.

Australia:

In Australia, you’ll register through the Australian Securities and Investments Commission (ASIC). Your company name must be unique nationwide, not just in one state or territory. If you plan to trade under a different name than your company’s official name, you’ll need to register that separately as a business name with ASIC. Keep in mind that Australia also requires an Australian Business Number (ABN), which is used for taxes and invoices.

Bottom line: No matter where you’re located, the first step is choosing the right jurisdiction, since it shapes how your business is taxed, protected, and regulated.

Step 2: Pick a Business Name

Your LLC name is more than just a label, it’s your brand identity. It needs to be clear, professional, and legally acceptable where you register. Rules vary slightly by region, but here’s what to know:

United States:

• Be unique in your state. You can’t use a name that’s already registered by another company in your state.

• Include “LLC” or “Limited Liability Company.” This signals your business is a separate legal entity.

• Avoid restricted words. Terms like “Bank,” “Insurance,” or “University” often need special approval or are not allowed.

Canada:

• Business names must be unique within your province or territory.

• Most provinces require the use of “Ltd.,” “Limited,” “Inc.,” or “Incorporated” instead of “LLC.” (Canada doesn’t use the “LLC” structure, but the naming rules work similarly for corporations.)

• Some provinces also require a NUANS search (a government-approved database search) to ensure your chosen name doesn’t conflict with another registered business.

Europe (general guidance):

• Each country has its own suffixes for limited liability companies, for example, “Ltd.” in the UK and Ireland, “GmbH” in Germany and Austria, or “SARL” in France and Luxembourg.

• Your name must clearly identify the company as limited liability, usually by including the proper suffix.

• Many countries also have strict trademark and trade register checks to confirm uniqueness, so always search the national business registry before filing.

Australia:

• Your company name must be unique across the entire country (not just your state or territory).

• Registration is handled through the Australian Securities and Investments Commission (ASIC).

• If you want to trade under a different name than your registered company name, you’ll also need to register a Business Name with ASIC.

Tips for choosing the right name (anywhere):

• Check availability online.

• Use your local/state/provincial business registry website to confirm your name is available.

• Look for trademark conflicts. Even if the name is free locally, check trademark databases (like USPTO in the U.S., CIPO in Canada, or EUIPO in Europe).

• Match your domain name. Secure a website domain that matches (or closely matches) your business name to make it easy for customers to find you.

• Think long-term. Choose a name that works as your business expands, not just for your first product or service.

Bottom line: A strong name not only avoids legal issues, but also builds trust and brand recognition, no matter if you’re registering in the U.S., Canada, or Europe.

Step 3: Appoint a Registered Agent

A Registered Agent is a person or company officially designated to receive important legal documents for your business, things like tax notices, compliance reminders, and potential lawsuits. Their job is to make sure you never miss critical paperwork that could affect your company’s good standing.

United States:

Every state requires LLCs to have a Registered Agent with a physical address in that state.

This person or company must be available during normal business hours to receive documents.

While you can technically serve as your own Registered Agent, most business owners hire a professional service to ensure reliability and privacy.

Hire a Registered Agent through MyCompanyWorks and stay compliant year after year.

Canada:

Canada doesn’t use the exact “Registered Agent” term, but you must provide a Registered Office Address when incorporating. This is where government mail and legal notices are sent.

If you incorporate federally, the address must be within Canada. If you incorporate provincially, it must be within that province.

Some provinces (like Ontario and British Columbia) also require you to name an official contact person or representative who is responsible for receiving government correspondence.

Europe:

In most European countries, companies must provide a Registered Office (sometimes called a “legal seat”) within the country of registration.

For example, in the UK, this is known as the Registered Office Address, and it’s where Companies House and HMRC send official documents.

In Germany, Austria, and France, the business must also list a managing director or authorized representative to handle legal notices.

Australia:

Australian companies must have a Registered Office Address within the country.

If you run a home-based business, you can use your home address, but it must be a physical location (not just a PO Box, unless you also have a physical address for service).

Many Australian businesses use a professional company secretary or corporate service provider to handle compliance and keep their personal address private.

Bottom line: Whether you call it a Registered Agent, Registered Office, or Company Secretary, the idea is the same, your business must have an official, reliable point of contact for legal and government documents. Using a professional service keeps you compliant, organized, and stress-free.

Step 4: File Your LLC Articles of Organization

This is the official paperwork that legally creates your company. It’s the step where your business becomes more than an idea, it becomes a recognized legal entity. The details and requirements depend on your region, but in general you’ll need to provide:

• Your business name & address

• Your Registered Agent’s information

• Member/owner details

• Payment of a government filing fee

Here’s how it works by region:

United States:

In the U.S., LLCs are formed at the state level. Filing fees range widely, anywhere from about $50 to $500 depending on the state. Some states let you file entirely online through the Secretary of State’s website, while others may require mailing forms. Your Articles of Organization usually include your LLC’s name, business purpose, registered office address, and member/manager information. Processing times also vary; some states approve in just a few days, while others can take several weeks.

Save time: file your LLC online here and let the professionals handle the paperwork.

Canada:

In Canada, the process depends on whether you choose provincial or federal incorporation. Provincial incorporation (such as in Ontario, Alberta, or British Columbia) registers your business within that province only. Federal incorporation, through Corporations Canada, allows you to operate under the same name across all provinces and territories. Fees typically range from CAD $200 to $400. You’ll need to provide your business name, registered office address, and director information.

Europe:

In Europe, requirements differ by country. For example:

United Kingdom – You’d register a “private limited company” (Ltd) with Companies House, usually for a small fee (£12 online).

Germany – You’d register a “Gesellschaft mit beschränkter Haftung” (GmbH), which requires a notary and minimum share capital of €25,000.

France – You’d create a “Société à responsabilité limitée” (SARL), with paperwork filed through the Commercial Court.

While names and fees vary, the general process includes submitting company details, director/shareholder information, and paying a registration fee.

Australia:

In Australia, companies are registered through the Australian Securities and Investments Commission (ASIC). You’ll need to submit a company name, a registered office address (in Australia), and details of all directors and shareholders. Filing fees usually start around AUD $538. Once approved, ASIC issues you an Australian Company Number (ACN). Many businesses also register for an Australian Business Number (ABN) at the same time, which is used for tax and invoicing.

Bottom line: Filing your Articles of Organization is the official moment your business goes from an idea to a legally recognized company. No matter where you’re located, completing this step ensures your business has legal standing, credibility, and the foundation to grow with confidence.

Step 5: Create an Operating Agreement

Not always legally required, but highly recommended, an operating agreement (or its equivalent depending on where you live) sets the “rules of the road” for your business. It answers questions before problems arise and gives your company a professional foundation. Typically, it outlines:

• Who owns the business

• How profits and losses are divided

• Rules for adding or removing members

• How major decisions are made

Here’s how this step looks depending on your region:

United States

An operating agreement is most common with LLCs. While only some states (like California, New York, and Missouri) legally require one, all states recommend it.

Without it, state default laws decide how your LLC runs, which may not reflect what you or your partners want.

Even single-member LLCs benefit, since it shows separation between you and the business (important for liability protection).

Canada

Canada doesn’t use “LLCs” but corporations and partnerships. The equivalent is a shareholders’ agreement (for corporations) or a partnership agreement.

These outline ownership percentages, how dividends or profits are paid, and what happens if a partner leaves or new ones join.

Even though not mandatory, banks and investors often want to see a written agreement before working with you.

Europe

Rules vary by country, but in many places (e.g., UK Ltd companies, Germany GmbH, France SARL), you’ll create something similar called articles of association or a shareholders’ agreement.

These documents detail how directors are appointed, how voting rights work, and how disputes are handled.It’s strongly recommended to have one drafted with legal guidance so it’s enforceable in your jurisdiction.

Australia

For Pty Ltd companies, the closest equivalent is a shareholders’ agreement or a constitution.

The Corporations Act 2001 provides “replaceable rules,” but if you don’t set your own agreement, those default rules apply.

Creating your own constitution ensures flexibility and clarity, especially if you have multiple owners or plan to seek outside investors.

Bottom line: Whether it’s called an operating agreement, shareholders’ agreement, or articles of association, this step is about protecting relationships, clarifying expectations, and showing lenders and investors that your business is well-structured.

Step 6: Get an EIN (Employer Identification Number)

Think of an EIN as a Social Security Number for your business. It’s a unique identifier issued by the IRS that ties your business to its tax responsibilities and is required for many day-to-day operations. You’ll need it to:

• Open a business bank account

• Hire employees legally

• File federal and state taxes

• Build business credit

Apply for your EIN in minutes through MyCompanyWorks.

United States

An EIN is essential for most LLCs, even if you don’t plan to hire employees right away.

You’ll use your EIN instead of your personal Social Security Number when opening business accounts or filing taxes, which adds a layer of privacy.

Applying is free through the IRS, but services like MyCompanyWorks can save you time by handling the paperwork correctly on your behalf.

Canada

Canada doesn’t use EINs, but businesses need a Business Number (BN) issued by the Canada Revenue Agency (CRA).

Your BN is used for federal taxes, payroll deductions, and programs like GST/HST.

If you’re incorporating provincially, you’ll often receive your BN automatically once you register.

Europe

In Europe, the requirement depends on the country. Businesses usually need a VAT (Value Added Tax) number or a company registration number rather than an EIN.

For example:

UK: Companies House issues a company number; VAT numbers come separately if you register for VAT.

Germany: A Handelsregisternummer (commercial register number) and a VAT ID are typically required.These identifiers serve the same purpose, proving your business exists and linking it to taxes and compliance.

Australia

Australia doesn’t use EINs, but every business must have an Australian Business Number (ABN).

If you register as a company, you’ll also be issued an Australian Company Number (ACN).

These numbers are required for tax, banking, and invoicing.

Bottom line: Every country has its own version of an EIN, whether it’s an EIN in the U.S., a BN in Canada, a VAT or company number in Europe, or an ABN/ACN in Australia. Make sure you register for the correct one in your country so you can bank, hire, and pay taxes without issues.

Step 7: Keep Your LLC Compliant

Once your LLC is formed, don’t forget ongoing requirements:

• File annual/biennial reports

• Pay state fees

• Maintain a Registered Agent

United States: Each state has its own deadlines and fees, and missing them can lead to penalties or even dissolution of your LLC.

Canada: Compliance may include filing annual returns with your provincial registry and keeping your corporate records up to date.

Europe: Companies often must file annual accounts and, in some countries, publish them in a public registry.

Australia: Businesses need to submit annual reviews, pay ASIC fees, and keep details like addresses and directors current.

Stay compliant with MyCompanyWorks, they’ll send you reminders and handle filings so you never miss a deadline.

Bottom line: No matter where you’re located, staying compliant protects your business, avoids costly fines, and keeps your company in good standing year after year. If you’re in the United States, working with a service like MyCompanyWorks can make the process much easier by handling the filings, reminders, and paperwork for you—taking the stress and guesswork off your plate so you can stay focused on growing your business.

Final Thoughts: Secure Your Business Future

Forming an LLC is one of the smartest moves you can make for your business future. It protects your personal assets, adds credibility with customers and partners, and keeps your setup simple and professional.

You can absolutely do it yourself, but for many entrepreneurs, it’s faster, easier, and stress-free to use a professional service that takes care of the paperwork and filings for you. This lets you focus on what matters most, growing your business with confidence.

An LLC is more than just a legal structure; it’s a foundation for stability and growth. By taking this step now, you’re not only safeguarding your hard work but also showing lenders, investors, and clients that you’re serious about your success.

Protect your dream business today and step confidently into 2026 knowing you’ve built a strong, secure foundation.

Keep Growing With Us

If you found this article helpful, we’d love for you to explore more of our Insights. Every post is designed to give practical, down-to-earth guidance that small business owners can actually use, not vague theory, but clear advice you can put into action right away.

We believe the world needs more entrepreneurs and small businesses, because they bring innovation, heart, and resilience to every community.

Our goal is to make your journey a little easier by sharing tools, strategies, and encouragement that help you avoid common pitfalls and grow with confidence.

Take a few minutes to browse through our other Insights, you might find the exact tip, strategy, or mindset shift that unlocks your next big breakthrough.