How to Establish an LLC Step by Step

The DIY Method of Creating an LLC.

Timothy A Rowland
4 min readFeb 19


Photo by krakenimages on Unsplash

How to Establish an LLC Step by Step

Starting your own business is a big undertaking, but it can be immensely rewarding. One important step in the process is establishing your business as an LLC. This will help protect your personal assets and give your business its own legal identity. Here’s a step-by-step guide to help you get started.

Choose a Business Name and Register It with Your State

Starting a business is exciting, but it’s important to make sure the process is done correctly. The first step is choosing the perfect business name and registering it with your state — which can sound like a daunting task. It’s essential to conduct some research and brainstorming, and creating a few different options for names can be helpful. Doing this period of due diligence will result in finding a great business name that both speaks to your target market and meets any legal requirements for registering the name with your state. Taking the time to register your name in advance will help ensure that you have peace of mind going into the launch of your venture.

File the Articles of Organization with Your State

When forming a new LLC, filing the Articles of Organization with your state is one of the necessary steps. The filing process varies slightly depending on which state you are located in. Before submitting your application and payment, be sure to include all required information, such as the name and address of those forming the LLC, as well as the business activities planned. Once the Articles of Organization have been accepted by your state, you can officially start doing business under that legal structure. Take the time to make sure everything is filed correctly and keep a copy on hand for your records.

Photo by Humphrey Muleba on Unsplash

Create an Operating Agreement

Creating an operating agreement is a necessary step for starting up any business. This document outlines the roles and responsibilities of each member, as well as how day to day operations will be managed, such as decisions that must be made by the majority and how this decision making process takes place. It also covers topics such as voting rights of members and contributions to the capital of a business. Without an operating agreement in place, potential disputes among members can occur down the line, so it’s important to create one focused on protecting the interests of everyone involved. Taking the time to craft this document at outset can save a lot of headaches in future and ensure business operations are properly organized.

Get an Employer Identification Number (EIN) from the IRS

Obtaining an Employer Identification Number (EIN) is a relatively simple process. The EIN, also known as a Tax ID number, is used by businesses to register with the IRS for tax-related purposes such as filing taxes and paying wages. In most cases, applications for the federally-issued number can be completed online in minutes. Documents may be mailed or faxed when necessary. Additionally, EINs are available through approved third-party partners or via telephone assistance from the IRS. Once issued, employers need to make sure that their employee records are up to date and accurate so as to avoid penalties from the IRS. Having an EIN is an important step in establishing and maintaining a successful business relationship with the IRS.

Open a Business Bank Account

Opening a business bank account is a vital step when starting any new venture. Not only does it help you to manage your business finances effectively, but it also provides peace of mind that your assets are secure. Additionally, having an official business bank account offers easy access to the capital needed for growth and can establish your legitimacy as a business. To open a business bank account, be sure to have the necessary documents and contact information ready so that you can provide the relevant financial institution with the necessary information quickly and efficiently. Once you have this information, take time to research banking fees and policies in order to get the most beneficial offer for your business’s needs.

Comply with State and Local Regulations

Staying compliant with state and local regulations is essential for any business looking to be successful and show respect for the communities in which they operate. Understanding these regulations allows a business to remain accountable throughout their operations. For those unsure of how to stay compliant, due diligence is key to ensure that all regulations are being followed in an ethical manner. Having knowledgeable stakeholders on hand can assist in this endeavor, as well as staying abreast of changing laws that may affect a business’s operations. Overall, compliance with state and local regulations provides businesses peace of mind when it comes to running their enterprises efficiently and ethically.


You’ve made a major step towards turning your business ideas into reality. After you have chosen a name, registered it with the state, filed articles of organization and created an operating agreement, you are now ready to apply for your EIN from the IRS and open a business bank account. With those tasks complete, all that remains is to comply with any applicable state and local regulations. Establishing your business will require dedication and hard work on your part, but the rewards that come with success will be worth it in the end. By taking advantage of resources such as SBA and other small business organizations you can be sure you’re making informed decisions along the way. Your entrepreneurial journey has just begun — best of luck!



Timothy A Rowland

I’m an every day human Xennial living in the SE United States. I have many interest. For specific topics, check out each of my publications pinned on top post.