How to Form an LLC Online: Step-by-Step Guide (No Attorney Required)

What Is an LLC and Why Should You Form One?

A Limited Liability Company (LLC) is a business structure that separates your personal assets from your business liabilities. If your business is sued or cannot pay its debts, your personal bank account, home, and car are protected — a shield that sole proprietors and general partnerships do not have.

Beyond liability protection, LLCs offer pass-through taxation (profits flow to your personal tax return, avoiding corporate double-taxation), flexible management structures, and a level of professional credibility that helps when opening business bank accounts, applying for loans, or signing contracts with larger clients. The LLC is not just a legal formality — it is the foundation every serious business should stand on.

What Are the 7 Steps to Form an LLC Online?

Step 1: Choose Your State of Formation

Most small businesses should form their LLC in the state where they primarily operate. Forming in Delaware or Wyoming for their favorable laws makes sense for venture-backed companies, but a local service business in New Hampshire will pay an extra registered agent fee every year if it forms out of state while operating in-state. New Hampshire's LLC filing fee is $100 — among the more affordable in the Northeast.

Step 2: Conduct a Business Name Search

Your LLC name must be unique within your state's business registry. Every state Secretary of State website offers a free name search tool. Your name must include "LLC," "L.L.C.," or "Limited Liability Company" and cannot contain restricted words (like "Bank," "Insurance," or "Government") without special approval. Check the name on the US Patent and Trademark Office database as well — a state approval does not protect you from a federal trademark conflict.

Step 3: Appoint a Registered Agent

Every LLC must designate a registered agent — a person or entity with a physical street address in the formation state who agrees to receive legal notices and government correspondence on behalf of the LLC. You can serve as your own registered agent (using your home address, which becomes a public record), or hire a registered agent service for $49–$300 per year.

Step 4: File the Articles of Organization

The Articles of Organization (called the Certificate of Formation in some states) is the foundational document you file with the Secretary of State to officially create the LLC. It typically requires your LLC name, principal address, registered agent information, and the names of the organizers. Filing is done online in most states and takes 1–5 business days for standard processing or same-day for expedited (extra fee).

Step 5: Draft an Operating Agreement

An operating agreement is an internal document that defines how your LLC is managed — ownership percentages, voting rights, profit distribution, and what happens when a member leaves or passes away. Only a handful of states legally require it, but every LLC should have one regardless. Without an operating agreement, state default rules govern your LLC, which may not reflect your intentions. For a single-member LLC, it also reinforces the separation between you and your business.

Step 6: Obtain an EIN (Employer Identification Number)

An EIN is your LLC's federal tax identification number — the business equivalent of a Social Security number. You need it to open a business bank account, hire employees, file federal taxes, and apply for most business licenses. The IRS issues EINs for free at irs.gov, and the online application takes approximately 10 minutes. You receive your EIN immediately upon completion.

Step 7: Open a Business Bank Account and Obtain Licenses

Maintaining a separate business bank account is critical to preserving your liability protection — commingling personal and business funds is the most common reason courts "pierce the corporate veil" and hold LLC members personally liable. Research which local, state, and federal licenses apply to your industry. A food service business needs a health permit; a contractor needs a state contractor's license; a financial advisor needs FINRA registration.

What Does It Cost to Form an LLC?

The unavoidable cost is the state filing fee — typically $50–$500 depending on the state. Every other cost is optional or service-dependent. Attorneys charge $500–$2,000 for the full formation package. Online formation services layer on service fees above the state fee. Aicente's Action LLC wizard is included in the $19.99/month platform — you pay only the state fee.

LLC Formation Method Comparison

How Does Action LLC Help You Form Your Business?

Aicente's Action LLC tool is a guided wizard that walks you through every step above — from name search guidance to operating agreement templates to a step-by-step IRS EIN walkthrough. It does not replace an attorney for complex multi-member structures or venture-backed entities, but for the 73% of new LLCs that are single-member businesses, it provides everything needed to complete formation correctly the first time.

Critically, Action LLC connects to the rest of the Aicente platform. Once your LLC is formed, you can immediately set up Action Invoicing to send professional invoices under your new business name, Action CRM to manage your first clients, and Action Accounting to track business expenses separately from personal ones. Formation is not the end of the process — it is the beginning, and Aicente is built to support every step that follows.

Learn more: Action LLC | Action Invoicing | Pricing