Quick answer
You can form an LLC yourself online in most states in under an hour. The core steps:
- Pick your state (usually the one where you live and work).
- Choose an available name.
- Name a registered agent.
- File articles of organization and pay the state fee ($35 to $500, most between $50 and $200).
- Sign an operating agreement, get a free EIN from the IRS and open a business bank account.
Then keep the LLC in good standing with annual reports and fees. US-owned LLCs no longer file a BOI report with FinCEN.
Step 1: Decide if an LLC is right for you
An LLC separates your business liabilities from your personal assets, as long as you keep finances separate and sign contracts in the LLC’s name. It does not change your federal taxes by default. A single-member LLC is a disregarded entity, taxed exactly like a sole proprietorship on Schedule C.
If you’re unsure, read Sole Proprietorship vs LLC for Freelancers first.
Step 2: Choose your state
For most freelancers, the right state is your home state. If you form in Delaware or Wyoming but work from Ohio, Ohio usually treats you as doing business there. You would then register as a foreign LLC in Ohio and pay two sets of fees.
Our article Cheapest States to Form an LLC (and Why It May Not Matter) explains this in detail.
Step 3: Pick and check your name
Most states require the name to include “LLC,” “L.L.C.” or “Limited Liability Company.” It must be distinguishable from other businesses on the state’s registry.
- Search your Secretary of State’s business database.
- Check domain names and social handles.
- Run a quick trademark search on the USPTO website.
- Optional: reserve the name for a small fee if you’re not ready to file.
If you want to operate under a different brand, you can add a DBA later. See How to Choose a DBA Name and Register It.
Step 4: Appoint a registered agent
Every LLC needs a registered agent with a physical address in the state. This person or company receives lawsuits and official state mail during business hours. You can be your own agent if you have an in-state street address. Many freelancers pay a service $100 to $300 a year to keep their home address off public records.
Step 5: File articles of organization
This is the document that creates the LLC. Names vary: “certificate of formation” in Texas, “articles of organization” in most states. You typically provide:
- LLC name and principal address
- Registered agent name and address
- Member-managed or manager-managed (most freelancers choose member-managed)
- Organizer name and signature
File online through the Secretary of State’s portal. Approval takes anywhere from minutes to a few weeks.
| State example | Filing fee | Ongoing fee |
|---|---|---|
| Arizona | $50 | No annual report fee |
| Texas | $300 | Public Information Report, $0 franchise tax for most |
| Florida | $125 | $138.75 annual report |
| California | $70 | $800 annual tax plus $20 Statement of Information |
| Massachusetts | $500 | $500 annual report |
Fees change, so confirm on your state’s website. A few states, like New York and Arizona, also have newspaper publication or notice rules.
Step 6: Write an operating agreement
An operating agreement sets out who owns the LLC, how decisions are made and what happens if you close it. Only a few states require one. Still, a single-member agreement helps show a bank and a court that the LLC is a separate business. Free templates are widely available.
Step 7: Get an EIN
Apply for an Employer Identification Number for free on IRS.gov. It takes about 10 minutes and you get the number immediately. A single-member LLC without employees can technically use your SSN for income tax. Most banks still ask for an EIN, and it keeps your SSN off W-9 forms. See Do I Need an EIN as a Sole Proprietor?.
Step 8: Open a business bank account and set up the basics
Bring your approved articles, EIN letter and operating agreement to the bank. Then:
- Route all client payments into the LLC account.
- Pay business expenses from it only.
- Update your invoices, contracts and W-9 with the LLC name.
- Check local licenses: see Do Freelancers Need a Business License?.
Mixing personal and business money is the fastest way to weaken liability protection. Our guide on separating business and personal finances walks through it.
Step 9: Stay compliant
- Annual or biennial reports to your state, with any fee.
- Taxes: Schedule C and quarterly estimated taxes, unless you elect S-corp status.
- BOI reports: FinCEN’s March 2025 interim final rule exempted US-formed companies. An August 2026 final rule made that permanent. Only certain foreign companies registered in the US still report.
Worked example: first-year cost in Florida
Jalen, a freelance video editor in Tampa, forms a single-member LLC in 2026.
| Item | Cost |
|---|---|
| Florida articles of organization | $125 |
| Registered agent service (optional) | $125 |
| EIN | $0 |
| Operating agreement template | $0 |
| Year one total | $250 |
| Annual report from year two | $138.75 |
If Jalen is his own registered agent, year one costs just $125. None of this changes his federal taxes: he still files Schedule C.
Frequently asked questions
How long does it take to form an LLC?
Online filings are often approved within one to ten business days. Some states approve instantly. Mailed filings can take weeks.
Do I need a lawyer to form an LLC?
No. Most freelancers file themselves or use a formation service. A lawyer helps with multi-member agreements or unusual situations.
Should my LLC elect S-corp tax status right away?
Usually not. It tends to pay off only once net profit is steady around $60,000 to $80,000 or more. See our article LLC vs S-Corp for Freelancers.
Do I still need to file a BOI report?
No, not for an LLC formed in the US by US owners. FinCEN removed that requirement for domestic companies.
This article is general information, not legal or tax advice. Consult an attorney, CPA or Enrolled Agent for your situation.
Related guides
- How Much Does It Cost to Form an LLC? Fees by State
- Best LLC Formation Services Compared
- S-Corp Election: How to File Form 2553
- Reasonable Salary for S-Corp Owners: How to Set It
About this guide
Written by the Freelancer Tax HQ editorial team, based on our professional experience, official US government sources (IRS, SSA and other agencies) and reputable informational articles listed in the sources below. Last reviewed on . Tax rules change often, and we update this guide when they do. Read our editorial policy or report an error.
Sources
IRS: Single Member Limited Liability Companies; IRS: Get an Employer Identification Number; FinCEN: Beneficial Ownership Information Reporting; FinCEN: Permanent end of BOI reporting for US companies (August 2026); LLC University: LLC Annual Fees by State. Example figures are FreelancerTaxHQ illustrations.
Official resources linked in this guide: IRS: Tax preparer credentials; IRS: S Corporations.