🧠 How to Start an LLC Step-by-Step (For Beginners)

Thinking about making your business official but not sure how to start your LLC?

You’re not alone.

Many new entrepreneurs feel overwhelmed by the process — all the paperwork, government sites, legal terms, and hidden fees can make it feel like you need a lawyer or a third-party service to figure it all out. But the truth is… you can absolutely do this yourself — and I’ll show you how.

In this post, I’ll walk you through the essential steps to start your LLC, explained in everyday language so you can take action today.

✅ Step 1: Choose Your Business Name

Before anything else, you need to lock in a business name that:

• Isn’t already taken in your state

• Isn’t trademarked federally (check USPTO.gov)

• Has a matching website domain available (optional, but smart)

• Feels aligned with your brand and the services or products you plan to offer

💡 Bonus Tip:
Check your preferred name on social media platforms too. Consistent branding matters when you're ready to grow.

✅ Step 2: Choose the Right State to File In

Most people should file their LLC in the state where they live or do business — even if another state looks “cheaper.”

Unless you’re dealing with property or business activity in multiple states, your home state is usually the best option.

You’ll also need to decide if you’ll serve as your own Registered Agent (which is allowed in many states), or if you’ll hire someone. Acting as your own agent is fine, but it can expose your name and address to public record — so weigh the pros and cons.

✅ Step 3: File Your LLC With the State

This is the part that intimidates most people — but it doesn’t have to.

You’ll file your LLC online through your Secretary of State’s website. You’ll be asked to provide:

• Your business name

• Your legal name and address

• Your Registered Agent’s info

• Your purpose for doing business (this can usually be general)

• Your LLC structure (single-member, multi-member, etc.)

💸 Filing fees vary by state — anywhere from $50 to $300+. Some states charge an annual fee too, so make note of that for future compliance.

⚠️ Warning:
You don’t need LegalZoom or a fancy filing service.
They charge hundreds of dollars and still leave you confused about what to do after.
👉 If you want help with this step, I walk you through the filing process with screen-share inside The Confident CEO Kit.

✅ Step 4: Get Your EIN From the IRS

Once your LLC is approved, you’ll need to apply for an Employer Identification Number (EIN) — even if you don’t have employees.

This is a unique number assigned to your business by the IRS. You’ll use it to:

• Open a business bank account

• File your taxes

• Hire employees or contractors

• Build business credit

✅ Apply directly at IRS.gov — it’s free and takes less than 15 minutes.

🚫 Never pay a third-party site to get your EIN (unless you are totally confused with the process). It’s a common mistake that costs people $75+ for no reason.

✅ Step 5: Open a Business Bank Account

With your EIN and LLC documents in hand, you’re now ready to open a business bank account.

This is one of the most important parts of separating your personal finances from your business finances — and it’s required if you want to:

• Build business credit

• Accept payments under your business name

• Keep clean records for tax time

• Qualify for loans or funding down the line

💡 Most banks require:

• Your LLC approval documents

• Your EIN confirmation letter

• Possibly your Operating Agreement (for multi-member LLCs)

✅ Step 6: Stay Compliant

Here’s where most people go wrong — they think once the LLC is filed, they’re done.
Not true.

You’ll need to:

• File Annual or Biennial Reports with your state (check deadlines)

• Keep business licenses and permits current

• Pay state franchise taxes if required

• Notify the state and IRS of any address changes or updates

📌 Inside The Confident CEO Kit, I include compliance tips and what to keep track of so your business stays in good standing.

✅ Step 7: Start Tracking Your Business Finances

Don’t wait until tax season to figure out your money.
Start tracking your income and expenses as soon as your business is active.

✅ Keep digital or physical receipts
✅ Categorize business purchases
✅ Track mileage, subscriptions, and software you use for business
✅ Separate business and personal transactions

This not only helps you during tax time, but also allows you to make informed decisions as you grow.

⚠️ Common Mistakes to Avoid

Here are a few pitfalls I’ve seen over the years:

• Using your personal bank account for business income

• Forgetting to file compliance paperwork or pay state fees

• Overpaying for filing services when you could DIY

• Not tracking your business expenses from the beginning

• Assuming an EIN = an LLC (they’re separate steps!)

Don’t let these mistakes cost you time, money, or your business standing.

🎯 Final Thoughts: Start Like a CEO, Not a Side Hustler

Starting your business doesn’t have to be stressful.
But it does need to be done right.

If you're serious about building something real, protecting yourself legally, and setting yourself up for long-term growth — taking the time to properly set up your LLC is one of the smartest moves you can make.

About the Author:

I’m Coach Ktasha (Tasha), a tax and business consultant dedicated to helping individuals and entrepreneurs navigate taxes, maximize deductions, and build strong financial foundations. My goal is to make tax season stress-free and provide you with the knowledge to make smart money moves all year long.

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