How to Start Your Own LLC: A Step-by-Step Guide for New Entrepreneurs

Starting your own business is exciting—but it can also be overwhelming. One of the first and most crucial steps is choosing the appropriate legal structure. For many small business owners, forming a Limited Liability Company (LLC) offers the perfect balance of flexibility, protection, and professionalism. At Gregory Consulting Services, we’re here to walk you through the process.

Step 1: Choose Your State

LLC laws vary by state, so your first step is deciding where to form your LLC. Most entrepreneurs choose their home state, but if you plan to operate in multiple states, you may need to register in each.

Step 2: Name Your LLC

Your business name must be unique and comply with your state’s naming rules. Most states require:

• “LLC” or “Limited Liability Company” in the name

• No use of restricted words (like “bank” or “insurance”) without approval

Tip: Check your state’s business name database and secure a matching domain name for your website.

Step 3: Appoint a Registered Agent

A registered agent is a person or business authorized to receive legal documents on behalf of your LLC. You can be your agent, but many choose a professional service for privacy and convenience.

Step 4: File Articles of Organization

This is the official document that creates your LLC. You’ll file it with your state’s business filing agency (usually the Secretary of State) and pay a filing fee.

Step 5: Create an Operating Agreement

While not always required, an operating agreement outlines how your LLC will be managed and operated. It’s especially important for multi-member LLCs and can help prevent future disputes.

Step 6: Get an EIN from the IRS

An Employer Identification Number (EIN) is like a Social Security number for your business. You’ll need it to open a business bank account, hire employees, and file taxes. You can apply for free on the IRS website.

Step 7: Comply with Local Requirements

Depending on your industry and location, you may need:

• Business licenses or permits

• Sales tax registration

• Zoning approval

Step 8: Open a Business Bank Account

Keep your personal and business finances separate. A dedicated business account helps with bookkeeping, taxes, and building business credit.

Common Mistakes to Avoid

Even with the best intentions, new business owners can make costly errors. Here are a few to watch out for:

• Skipping the Operating Agreement: Even if you're a solo owner, this document protects your business and clarifies internal rules and procedures.

• Mixing Personal and Business Finances: This can lead to tax issues and weaken your liability protection.

• Failing to Research Local Requirements: Failing to obtain the necessary licenses or permits can result in fines or shutdowns.

• Choosing the Wrong Name: Make sure your name is not only available in your state but also doesn’t infringe on trademarks.

• Forgetting Annual Filings: Many states require annual reports or fees to maintain your LLC's good standing.

Resources for Further Reading

• IRS: Starting a Business

• SBA: Choose a Business Structure

• Nolo: LLC Basics

• [Your State’s Secretary of State Website] – for filing forms, name searches, and local requirements

Starting an LLC is a big step—but you don’t have to do it alone. Gregory Consulting Services offers personalized guidance to help you launch with confidence. Whether you need help filing paperwork or creating a business plan, we’re here to support your journey.