# LLC Formation Checklist (50-State Coverage) URL: https://elevatedtaxstrategies.com/operating-a-business/llc-formation-checklist/ Markdown: https://elevatedtaxstrategies.com/operating-a-business/llc-formation-checklist.md Category: Operating a Business Published: 2026-03-07 Author: Ramon Liriano Jr. > Step-by-step LLC formation: articles of organization, EIN, operating agreement template, bank account, registered agent, S-corp election timing. ## TLDR Forming an LLC is a 6-step process: (1) pick your state, (2) name the LLC + check availability, (3) file articles of organization, (4) get an EIN, (5) get an operating agreement in place (template at minimum), (6) open a business bank account. ** Most owners get steps 1-3 done via LegalZoom and stop. That's how you end up with a paperwork LLC that doesn't function operationally. ** Steps 4-6 are where the LLC actually starts working. * BOI / FinCEN reporting was a 2024 requirement that was removed for U.S.-formed entities by FinCEN's March 26, 2025 interim final rule domestic LLCs no longer file. * In this guide, you'll learn: - Understand what an LLC actually does (limited liability + pass-through default) and what it doesn't - Walk through the full 6-step formation checklist: state, name, articles, EIN, operating agreement, bank account - Recognize the three post-formation decisions that come up in the first 30-90 days (S-corp, sales tax, local licensing) - Avoid the five common pitfalls: DBA instead of LLC, mixed funds, no OA in place, wrong state, premature S-corp - Get the ETS engagement scope and what's included in standard formation work ## What forming an LLC actually does A limited liability company is a state-law entity that gives you two things: 1. **Limited liability**: the business's debts and lawsuits don't reach your personal assets (assuming you maintain the corporate veil, see below) 2. **Pass-through taxation by default**: single-member LLC is taxed as sole prop; multi-member LLC is taxed as partnership. Either can elect [S-corp or C-corp tax treatment](https://elevatedtaxstrategies.com/tax-planning/llc-vs-s-corp-vs-c-corp/) That's it. An LLC doesn't make your business legal. It doesn't get you a special tax rate. It just creates a separate legal person that owns the business assets, signs the contracts, and stands between your personal life and the business's liabilities. ## The 7-step checklist **The LLC formation lifecycle** 1. **Step 1 · State: Pick your *formation state*.** For most owners, form in the state where you actually do business. Home state is the default; Delaware and Wyoming only fit narrow cases. (default · your home state) 2. **Step 2 · Name: Name the LLC + *check availability*.** Include "LLC" in the name, run the state availability search, check the USPTO trademark database, and reserve the domain before you file. (reservation · 60-120 days in most states) 3. **Step 3 · File: File *articles of organization*.** The document that creates the LLC. Filed direct with the Secretary of State, via a service, or through an attorney. (turnaround · 1-7 business days) 4. **Step 4 · EIN: Get an *EIN* (free, immediate).** The LLC's federal tax ID. Apply at irs.gov/ein after you have the articles, the application asks for your formation date. (cost · free · 10-15 minutes online) 5. **Step 5 · OA: Draft an *operating agreement*.** The contract between members and the LLC. A template is fine for single-member; multi-member with real capital should use an attorney. (single-member · non-negotiable too) 6. **Step 6 · Bank: Open a *business bank account*.** With articles + EIN + operating agreement in hand. Required to keep limited liability, commingling funds pierces the veil. (non-negotiable · separation of funds) ### Step 1: Pick your formation state For most owners, **form in the state where you actually do business**. If you live in Texas and serve Texas customers, form a Texas LLC. The exceptions are narrow: - **Delaware**: only worth it if you're VC-track and your investors expect Delaware C-corps (in which case you're not forming an LLC anyway) - **Wyoming / Nevada**: privacy-conscious owners sometimes form here, but you'll still need to register as a foreign LLC in your home state, doubling the cost - **Texas LLC for non-Texas business**: not worth it; Texas LLC formed in another operating state still pays Texas franchise tax Default: home state. ### Step 2: Name the LLC + check availability LLC names must include "LLC" or "Limited Liability Company" (or state-specific variant). Most states have an online name-availability search. **Naming tips:** - Keep it simple, professional, descriptive (or distinctive, both work) - Search trademark database (uspto.gov) to make sure you're not infringing - Reserve the domain (yourbusiness.com) before filing, names get taken - For multi-state operations, check name availability in every state you'll register in Many states allow you to reserve a name for 60-120 days before filing. Useful if you want to lock in the name while you finalize the rest. ### Step 3: File articles of organization The "articles of organization" (or "certificate of formation" in some states) is the document that creates the LLC. It's typically 1-2 pages and includes: - LLC name + address - Registered agent (person or company who receives legal documents on the LLC's behalf) - Management structure (member-managed vs. manager-managed) - Effective date - Filing fee (varies by state. TX is $300, DE is $90, CA is $70, FL is $125) **Filing methods:** - **Direct with the state Secretary of State** (cheapest, $50-$300) - **LegalZoom / ZenBusiness / Northwest** ($79-$299 + state fee, faster + some extras) - **Through an attorney** ($500-$1,500 + state fee, useful for complex operating agreements) **Registered agent decision:** - You can be your own registered agent (free, but your home address becomes public record) - Use a professional service ($75-$200/yr) if you don't want your address public OR you travel and can't reliably receive legal mail - Most attorney-firm formations include first-year registered agent service After filing, the state returns a stamped articles of organization (usually within 1-7 business days). **Keep this document:** it's your proof of formation. ### Step 4: Get an EIN The Employer Identification Number is the LLC's federal tax ID. You need it to: - Open a business bank account - File the LLC's tax return - [Hire employees](https://elevatedtaxstrategies.com/operating-a-business/hiring-your-first-employee-checklist/) - File the S-corp election Apply at irs.gov/ein. **Free, takes 10-15 minutes online.** You get the EIN immediately. Save the IRS-issued EIN confirmation letter (CP575G). Most owners try to apply for an EIN before the LLC is formed. Don't. The IRS application asks for your LLC's legal name and state-issued formation date. You need the articles of organization first. ### Step 5: Draft an operating agreement The operating agreement is the contract between the LLC's members (owners) and the LLC itself. It governs: - Ownership percentages - Profit / loss allocation - Management decisions - Voting rights - Capital contributions - Distribution policy - Buyout / exit provisions - Dissolution procedures **Most single-member LLC owners think they don't need one.** They do. Even a single-member operating agreement: - Reinforces the corporate veil (limits piercing) - Establishes how the business operates - Required by some banks for account opening - Required for S-corp election if you plan to file one For multi-member LLCs, the operating agreement is **non-negotiable.** Disputes between members get expensive fast without a written agreement. Templates exist (LegalZoom, Northwest, attorney templates online). For most single-member LLCs, a template is sufficient. For multi-member LLCs with serious capital or non-equal contributions, hire an attorney. ### Step 6: Open a business bank account Once you have: - Articles of organization - EIN - Operating agreement …you can open a business bank account. **This is non-negotiable for maintaining limited liability protection.** Commingling personal and business funds destroys the corporate veil, courts pierce the LLC and reach your personal assets. **Bank recommendations:** - **Relay** for most small businesses (multi-account architecture, free wires, Kick integration) - **Bluevine** for owners who want yield on operating balances - **Chase / BoA** if you need physical branch banking and don't mind monthly fees See our [Relay vs. Bluevine comparison](https://elevatedtaxstrategies.com/operating-a-business/relay-vs-bluevine-comparison/) for the full breakdown. ### BOI / FinCEN reporting: no longer required for U.S. LLCs > **Heads up: BOI / FinCEN reporting: no longer required for U.S. LLCs** > > This was originally Step 7. It's gone. The Corporate Transparency Act's BOI requirement, in effect through 2024, was rolled back by **FinCEN's March 26, 2025 interim final rule**, which removed the reporting requirement for all U.S.-formed entities (including domestic LLCs). Only **foreign-formed entities** registered to do business in the U.S. still file. > > The rule is interim and could change again (monitor FinCEN guidance if you're forming a brand-new LLC) but as of right now, domestic LLCs don't file BOI. If you formed an LLC in 2024 and filed a BOI report, that's fine; you just don't need to file updates anymore. ## Common post-formation decisions After steps 1-6, three more decisions usually come up in the first 30-90 days: **A. S-corp election timing.** If your net business income is or will be over ~$80K, file Form 2553 to elect S-corp tax treatment. See our [S-corp election article](https://elevatedtaxstrategies.com/tax-planning/s-corp-election-mechanics/) for the mechanics. **B. [State sales tax registration](https://elevatedtaxstrategies.com/operating-a-business/sales-tax-nexus-online-sellers/).** If you sell taxable goods or services, register with the state sales tax authority. Threshold and rules vary widely. **C. Local business licensing.** Some cities require a business license. Some don't. Check with your city's business-services department. ## Common pitfalls **1. Using a "DBA" instead of an LLC.** A DBA (doing business as) is just a name registration, no liability protection. If you want liability protection, you need the actual LLC. **2. Not opening a separate bank account.** Commingling funds = piercing the corporate veil = lost liability protection. **3. Skipping the operating agreement.** Especially in multi-member LLCs. Disputes get expensive without one. **4. Choosing the wrong state for the wrong reason.** Wyoming or Nevada LLCs for non-residents = paying double fees + dealing with foreign-LLC registrations in your home state. **5. Filing S-corp election too early.** S-corp election requires [payroll](https://elevatedtaxstrategies.com/operating-a-business/gusto-setup-for-s-corp/). If your net income is under ~$80K, S-corp election creates more cost than savings. Wait until the math works. ## What we do when you engage For a business formation engagement, our standard workflow: 1. **Discovery call:** confirm LLC is the right structure (vs. sole prop, partnership, or C-corp); model whether S-corp election will be needed in year 1 2. **State filing:** articles of organization filed in your state of operation 3. **EIN application:** done correctly (responsible party, business activity code, fiscal year) 4. **Standardized operating agreement template:** we're not attorneys and don't draft custom legal docs, but you'll walk away with a defensible template you can use as-is or clean up with an attorney later 5. **Business bank setup:** usually with Relay (online business banking that plays well with our bookkeeping workflow) 6. **Bookkeeping setup:** chart of accounts, bank feed connected, separation-of-funds discipline locked in from day one 7. **1-hour LLC Mastery consultation** with our managing partner: what to do, what to avoid, year-one compliance rhythm, and where the eventual S-corp election conversation fits 8. **Registered agent service:** first year free; $300/year thereafter (for Texas entities, the $300 also covers your annual PIR filing) 9. **S-corp election** (if applicable), Form 2553 filed in same engagement Pricing: **$2,250** for the full LLC formation engagement above. **$4,000** for LLC + S-corp election + payroll setup. See [business formation pricing](https://elevatedtaxstrategies.com/services/business-formation/) for the full breakdown. If you need ongoing support after the formation engagement (advisory, bookkeeping, tax prep), that's a separate engagement we can talk through. ## Common questions **Can I form an LLC online myself?** Yes. LegalZoom, ZenBusiness, Northwest, and direct-with-the-state options all work for simple cases. The mistake most DIY filers make is stopping after step 3 (articles of organization) and missing steps 4-7. **How long does formation take?** 1-7 business days for the state filing in most states. Some states (Texas, Florida, California) have expedited options for $25-$50 extra. EIN is immediate via online application. Bank account opening adds another 1-3 business days. **How much does an LLC cost?** First year: $100-$600 depending on state filing fee + registered agent + initial filings. Ongoing: $50-$400/yr for state annual report + registered agent renewal. Texas: also pay franchise tax PIR (no-tax-due threshold protects small LLCs from owing), and see [your Texas LLC's first annual report](https://elevatedtaxstrategies.com/operating-a-business/texas-llc-first-annual-report/) for when the first one is due. **Do I need an attorney to form an LLC?** For single-member LLC with template operating agreement: no. For multi-member with custom terms, equity structures, or complex buyout provisions: yes. **Can I move my LLC to another state later?** Yes. "Domestication" or "conversion": the legal process to transfer LLC from one state to another. Most states allow it; some don't and you have to dissolve + re-form. Costs $200-$500 plus filing fees. **What if I form an LLC but never have business activity?** You still owe state annual fees + franchise tax (where applicable) every year regardless of activity. Dissolve it if you're not going to use it. --- If you're considering forming an LLC (or you formed one and realized you didn't finish steps 4-6), the [Discovery call](https://elevatedtaxstrategies.com/discovery/) is the right next step. We handle the full formation as part of the [Business Formation service](https://elevatedtaxstrategies.com/services/business-formation/).