How to Start an LLC Step by Step: TX, FL, MI, CA (2026)
You can start an LLC in seven steps: choose a compliant name, appoint a registered agent, file Articles of Organization with your state, adopt an operating agreement, get a free EIN from the IRS, obtain any required licenses, and keep up with annual compliance. The paperwork itself usually takes under an hour; state approval takes roughly 1 to 15 business days depending on where you file. This guide walks through each step with the actual fees for Texas, Florida, Michigan, and California.
What Are the 7 Steps to Start an LLC?
The process is the same in all 50 states — only the fees, forms, and timelines differ. Here is the full sequence before we go step by step:
- Search and choose a unique business name
- Appoint a registered agent
- File Articles of Organization with the state
- Adopt an operating agreement
- Get an EIN from the IRS (free)
- Check business licenses and tax registrations
- File annual reports and stay compliant
File in the state where you actually operate. Forming in Delaware or Wyoming while working from another state forces you to register twice and pay two sets of fees — more on that in the mistakes section.
One reality check on cost: there is no truly free LLC — formation services advertising "$0 LLC" only waive their own labor, while the state filing fee ($40 in Kentucky up to $500 in Massachusetts) is always yours to pay. Filing directly with your state costs exactly the state fee and nothing more.
How Do You File Your LLC With the State?
You file online through your state's Secretary of State website, and the form itself typically takes 15–30 minutes to complete. Here is what each of the first four steps involves.
Step 1 — Name search. Every state offers a free business-name search on its Secretary of State site. Your name must include "LLC" or "Limited Liability Company" and be distinguishable from existing registrations. Name reservation (roughly $10–$50) is optional and usually skippable if you're filing within days.
Step 2 — Registered agent. This is the person or company that receives legal mail at a street address in the state during business hours. You can serve as your own agent for $0, or pay a commercial agent about $100–$300 per year — worth it mainly if you work from home and don't want your address on public record.
Step 3 — Articles of Organization. This is the document that legally creates the LLC. Filing fees for the most-searched states: Texas $300, Florida $125, Michigan $50, California $70. You'll list your LLC name, registered agent, business address, and organizer — that's typically all.
Step 4 — Operating agreement. Draft one even as a single-member LLC; California requires one, and banks and courts often ask for it. Free templates from your state bar or the SBA are fine for simple single-owner setups.
File directly at your state's Secretary of State website (search "[your state] Secretary of State LLC filing"). You'll pay only the state fee and skip the $99–$300 that formation services typically charge for typing the same form.
What Do You Do After the State Approves Your LLC?
Three tasks remain after approval: get an EIN, open a business bank account, and check licensing. Skipping these is where DIY filers most often undermine the protection they just paid for.
Step 5 — EIN. Apply directly at irs.gov; the online application takes about 15 minutes and issues your number immediately. You need it to open a bank account, hire employees, and file most tax forms.
Never pay a third-party website $50–$300 to "get your EIN." These sites rank high in search results and look official, but the IRS issues EINs completely free — paying for one is one of the most common money-wasting mistakes new LLC owners make.
Step 6 — licenses, tax registrations, and a business bank account. Open a dedicated business checking account before your first transaction, because mixing personal and business funds can put your liability protection at risk in court. Then check state and local license requirements and register for sales tax if you sell taxable goods.
Step 7 — annual compliance. Most states require an annual or biennial report — the exact fees appear in the cost table below. One compliance note: as of 2026, most US-formed companies are exempt from federal BOI (beneficial ownership) reporting under FinCEN's 2025 interim rule, but this has changed before — verify at fincen.gov.
π Check it now on IRS — Employer ID Numbers (EIN)How Much Does an LLC Cost in Texas, Florida, Michigan, and California?
First-year costs range from $50 in Michigan to $890+ in California once ongoing fees are counted. The table below compares the high-search states plus Kentucky, the cheapest filing state:
| State | Filing fee | Ongoing annual cost | Typical online processing |
|---|---|---|---|
| Texas | $300 | $0 report fee (an annual franchise tax filing is still required; most small LLCs owe $0 tax) | ~10–15 business days |
| Florida | $125 | $138.75 annual report | ~1–5 business days |
| Michigan | $50 | $25 annual statement | ~10 business days |
| California | $70 | $800 franchise tax + $20 Statement of Information every 2 years | ~5–10 business days |
| Kentucky (cheapest) | $40 | $15 annual report | ~1–3 business days |
Processing times shift with state workload, so treat them as estimates and check your Secretary of State's current posted times before filing. Many states also sell expedited processing for an extra $25–$100.
Here's a worked first-year example for a California LLC. DIY: $70 Articles of Organization + $20 Statement of Information + $0 EIN + $800 franchise tax = $890 total doing it yourself, versus about $1,338 if you assume a mid-tier formation service package of $249 plus a $199-per-year registered agent — a savings of roughly $448 in year one under those assumptions. Service prices vary, so check current package rates before comparing.
What Mistakes Do First-Time Filers Make?
The most expensive mistakes happen after filing, not during it. Run through this checklist before and after you submit:
- Paying for the free EIN or for "compliance kit" upsells (corporate seals, certificate frames) you'll never use
- Forming in Delaware or Nevada while operating elsewhere — you'll still have to register as a foreign LLC in your home state and pay both states' fees and reports every year
- Missing the first annual report — Florida, for example, adds a $400 late penalty, and repeated misses lead to administrative dissolution
- Forgetting California's $800 franchise tax, which is due even in a year with zero revenue
- Commingling funds by paying personal bills from the business account, which lets creditors argue the LLC isn't a separate entity
An LLC only protects you if you maintain it — the filing creates the shield, but separate finances and on-time annual reports are what keep it intact. Put your state's report deadline on your calendar the day your approval arrives.
Fees and deadlines above are as of 2026 and subject to change; confirm current amounts on your Secretary of State's website. This article is informational and not legal or financial advice.
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Good to Know
Can I really set up an LLC for free?
Not entirely. "Free LLC" offers (formation plans starting at $0) waive only the service's labor — the state filing fee, from $40 in Kentucky to $500 in Massachusetts, is always required. Filing yourself means you pay only that state fee.
How long does it take to get an LLC approved?
It varies by state: Florida typically approves online filings in about 1–5 business days, while Texas can take 10–15. Many states offer expedited processing for an extra $25–$100. Check your Secretary of State's posted processing times.
Do I need a lawyer to start an LLC?
For a straightforward single-member LLC, no — state filing portals are designed for self-filing. Consider a lawyer if you have multiple owners, outside investors, or complex ownership splits that need a custom operating agreement.
Do I have to file a federal BOI report for my new LLC?
As of 2026, most companies formed in the US are exempt from FinCEN's beneficial ownership (BOI) reporting under the 2025 interim rule. This requirement has changed several times, so verify the current status at fincen.gov before assuming you're exempt.
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