Starting a Limited Liability Company (LLC) in the U.S. is one of the most flexible, affordable, and protective ways to structure a business—whether you’re a U.S. resident or an international entrepreneur. In 2025, the process has become more streamlined, with new tools, faster filing options, and growing support for foreign-owned LLCs.
This guide walks you through everything you need to know about forming your LLC, step-by-step, and highlights insider tips for saving time and money.
What Is an LLC and Why Choose It?
An LLC is a business structure in the U.S. that combines the liability protection of a corporation with the tax flexibility of a sole proprietorship or partnership. It’s a favorite among small business owners, freelancers, e-commerce operators, and startup founders.
Key benefits:
- Limited personal liability for business debts
- Flexible taxation (default pass-through or elect S Corp/C Corp)
- Fewer formalities than corporations
- Credibility for vendors, partners, and clients
- Easy to manage for solo founders
Who Can Form an LLC in the U.S.?
Anyone—including foreign nationals and non-residents—can form an LLC in the United States. You don’t need to live in the U.S., have a Social Security Number (SSN), or be a citizen.
However, the process slightly differs for non-residents, especially when it comes to banking and taxes. Many international founders choose this route for:
- Access to the U.S. market
- Stripe, PayPal, and Amazon Seller eligibility
- U.S. legal protection
- Better global credibility
Step-by-Step: How to Start an LLC in 2025
1. Choose Your State
The best states for LLC formation vary based on your goals. Common options include:
- Wyoming: Privacy, low fees, and no state income tax
- Delaware: Strong legal framework, best for startups
- Florida: Popular for e-commerce and physical presence
- Texas: No state income tax and strong business environment
Compare all 50 states here (official SBA site)
2. Pick a Business Name
Make sure your LLC name:
- Is unique in your state
- Contains “LLC” or “Limited Liability Company”
- Doesn’t include restricted words like “Bank” or “Insurance”
Check availability using your state’s business name search or check here.
3. Appoint a Registered Agent
Every U.S. LLC needs a registered agent—a person or company that receives legal documents. Many use services like:
4. File Articles of Organization
This is the official paperwork submitted to your state. It includes:
- Your LLC name and address
- Registered agent info
- Member/manager details
5. Create an Operating Agreement
This internal document outlines how your LLC operates:
- Ownership percentages
- Voting rights
- Profit distribution
- Exit clauses
While not always required by law, it’s critical for clarity and future disputes.
6. Get an EIN (Employer Identification Number)
The EIN is like a Social Security Number for your business, required for:
- Opening a U.S. bank account
- Hiring employees
- Filing taxes
Apply for free at the IRS website
Foreigners can also apply using Form SS-4 by fax or mail.
7. Open a U.S. Business Bank Account
Essential for separating business and personal funds. For non-residents, options include:
- Mercury — Free and easy online banking
- Relay — Great for team permissions
- Wise Business — Ideal for international transactions
Costs of Starting an LLC
| Expense | Cost Range (2025 Estimate) |
|---|---|
| State filing fees | $50 – $500 (varies by state) |
| Registered agent | $100 – $300 annually |
| EIN (IRS) | Free |
| Operating agreement (DIY) | Free – $100 |
| Online LLC formation services | $0 – $300 depending on features |
Common Mistakes to Avoid
- Using your personal address: Use a virtual business address or registered agent.
- Forgetting your annual report: Most states require it—missing it can cost your LLC status.
- Not separating finances: Always keep a dedicated business account.
Final Thoughts
Starting an LLC is easier than ever in 2025. Whether you’re inside or outside the U.S., there are accessible, affordable, and fast ways to launch your business legally. With a bit of planning—and the right partners—you can be up and running in just a few days.
Need Help Choosing the Best State or Filing from Abroad?
📩 Just let me know your business type and goals—I’ll help you compare the top options and build a checklist for your unique situation.