Why Start an LLC as a U.S. Resident?
Forming a Limited Liability Company (LLC) is one of the most popular ways to start a business in the United States. As a U.S. resident—whether you’re a citizen, green card holder, or legal visa holder—you can form an LLC in your state or any other U.S. state. LLCs are flexible, low-cost, and provide personal liability protection. Whether you’re launching a freelance business, e-commerce store, agency, or tech startup, this guide will walk you through the exact steps to register an LLC in 2025.
Benefits of Forming an LLC
- Limits personal liability for business debts and lawsuits
- Allows pass-through taxation (no double tax)
- Requires fewer formalities than corporations
- Easy to set up with one member or more
- Great for small business owners, real estate investors, and consultants
According to the U.S. Small Business Administration (SBA), an LLC is one of the simplest business structures for new entrepreneurs
🔗 SBA – Business Structures Overview
Step-by-Step Guide to Forming an LLC as a U.S. Resident
Step 1: Choose a State
Most residents form their LLC in their home state. But in some cases (e.g., online businesses or privacy concerns), they choose states like Wyoming or Delaware.
- Forming in your home state means you avoid foreign entity registration
- Forming in another state (like Wyoming) means you must register as a foreign LLC in your own state, unless you have no physical presence there
Use your address and residency to decide the best location for your company
Step 2: Choose a Business Name
Your LLC name must be unique and comply with state rules. It should:
- End in “LLC” or “Limited Liability Company”
- Be different from other businesses in the state
- Avoid restricted words like “bank” or “insurance” unless licensed
Use your Secretary of State’s website to check name availability
🔗 State Business Name Search Directory
Step 3: Designate a Registered Agent
Every LLC must have a registered agent with a physical address in the state of formation. This can be:
- Yourself (if you live in that state and are available during business hours)
- A commercial registered agent service
- Your lawyer or accountant
Legal Flow provides registered agent services in all 50 states if you need help
Step 4: File Articles of Organization
This is the official form to register your LLC with the state. It includes:
- LLC name
- Registered agent name and address
- Names of members or managers (optional in some states)
- Mailing address and business purpose
Fees range from $50 to $300 depending on the state
🔗 State LLC Filing Fees – IRS Reference
Once approved, you’ll receive a certificate or stamped Articles confirming your LLC is active
Step 5: Create an Operating Agreement
Although not required in most states, this internal document defines:
- Who owns the LLC and in what percentages
- How profits are distributed
- How decisions are made
- What happens if a member leaves
Highly recommended even for single-member LLCs
Step 6: Apply for an EIN
Even if you’re a U.S. citizen or resident, your LLC needs an EIN (Employer Identification Number) from the IRS. It’s used to:
- Open a business bank account
- File taxes
- Hire employees (if applicable)
- Register with your state’s tax department
You can apply online here:
🔗 IRS – Apply for an EIN Online
It’s free and takes a few minutes
Step 7: Open a Business Bank Account
Use your EIN and LLC formation documents to open a dedicated business account. This helps separate your personal and business finances, which is essential for liability protection and clean accounting.
You’ll need:
- Articles of Organization
- EIN letter
- Operating Agreement (some banks require this)
- Valid U.S. ID (driver’s license, passport, or green card)
Step 8: Register for State Taxes (If Needed)
Depending on your state and business type, you may need to:
- Register for sales tax or seller’s permit
- File for state income tax
- Register for employer payroll tax if you have workers
Check with your state revenue department
🔗 State Tax Departments – IRS Directory
Step 9: File Annual Reports & Maintain Compliance
Most states require an annual (or biennial) report and a small fee to keep your LLC active. Failing to file can result in penalties or dissolution.
Legal Flow offers annual compliance reminders and filings for busy founders
Start Your U.S. LLC Today with Legal Flow
At Legal Flow, we help U.S. residents launch their companies quickly and affordably. Whether you’re a student, full-time employee, or side hustler, you can start your business the right way—with full compliance and confidence.
👉 Form your LLC today at Legal Flow – your trusted partner for U.S. company formation