Free download β’ Use as a template β’ Print or share
An LLC Setup Checklist is a structured step-by-step form that guides founders through every administrative and legal task required to form a limited liability company in the correct sequence. It covers business name research, registered agent appointment, articles of organization filing, EIN application, operating agreement execution, business bank account setup, license and permit acquisition, and ongoing compliance deadlines β all in a single printable document. Rather than piecing together formation steps from scattered sources, a checklist consolidates the entire process into a sequence you can follow and check off as you go.
Forming an LLC out of sequence β or missing a step entirely β creates problems that are expensive and time-consuming to fix. Filing articles of organization before confirming name availability means a rejected filing and a non-refundable fee. Applying for an EIN before the LLC is legally formed creates a date mismatch with the IRS. Opening a business bank account without an operating agreement can lead the bank to decline the application. And failing to register for state sales tax before the first sale means back taxes and penalties calculated from day one, not from when you discovered the requirement. This checklist eliminates every one of those failure modes by putting the right steps in the right order and giving you a written record that each one was completed.
| If your situation is⦠| Use this template |
|---|---|
| Forming a single-member LLC for a solo freelancer or consultant | Single-Member LLC Operating Agreement |
| Forming a multi-member LLC with two or more co-founders | Multi-Member LLC Operating Agreement |
| Registering an existing LLC to do business in a new state | Foreign LLC Registration Checklist |
| Converting a sole proprietorship to an LLC | Business Formation Checklist |
| Setting up a holding company LLC to own other entities | Holding Company Operating Agreement |
| Forming a professional LLC (PLLC) for a licensed profession | Professional LLC Operating Agreement |
| Tracking ongoing annual compliance after formation is complete | Annual LLC Compliance Checklist |
Why it matters: An LLC operating in California but formed in Delaware must register as a foreign LLC in California anyway β paying both states' fees and complying with both states' rules.
Fix: Form the LLC in the state where the business primarily operates for most solo founders and small businesses. Delaware and Wyoming formation only saves money for multi-state or investor-backed entities.
Why it matters: Without an operating agreement, state default rules govern profit splits, management authority, and what happens when a member exits β defaults rarely match founder intent.
Fix: Draft and sign an operating agreement before the LLC conducts any business. Use a template tailored to single-member or multi-member structures depending on your situation.
Why it matters: Depositing business revenue into a personal account or paying business expenses from a personal card gives creditors grounds to pierce the corporate veil and access personal assets.
Fix: Open a dedicated business checking account as soon as the EIN is issued and route all business income and expenses through it exclusively.
Why it matters: Most states administratively dissolve LLCs that miss the annual report deadline, retroactively removing liability protection for the period of non-compliance.
Fix: Add the annual report due date to a recurring calendar reminder with a 30-day lead. Many commercial registered agents include automatic filing reminders in their service.
Visit your state's Secretary of State website and run a name availability search for your desired LLC name. Record the date and result in the checklist.
π‘ Also run a US trademark search at USPTO.gov β state availability does not protect you from federal trademark infringement claims.
Choose an individual with a physical address in the state (can be yourself if you have a local address) or a commercial registered agent service. Record the agent's name and address in the checklist.
π‘ Using a commercial registered agent service ($50β$150/year) keeps your home address off public records and ensures someone is always available to receive service of process.
Download or complete your state's articles of organization form, pay the filing fee, and submit online or by mail. Record the confirmation number and filing date.
π‘ Most states process online filings in 1β5 business days; mail filings can take 2β6 weeks β file online whenever possible.
Go to IRS.gov and complete the online EIN application β it takes about 10 minutes and the number is issued immediately. Save the confirmation letter (CP 575) to your records.
π‘ Apply for the EIN only after the LLC is formed β the IRS application asks for the formation date, and applying before filing articles creates a date mismatch.
Complete an operating agreement that sets out each member's ownership percentage, management roles, profit distribution rules, and dissolution procedures. All members must sign.
π‘ Even single-member LLCs should have an operating agreement β it reinforces the legal separation between owner and entity, which matters in court.
Bring your articles of organization, EIN letter, operating agreement, and government-issued ID to your chosen bank. Open a checking account in the LLC's legal name.
π‘ Compare business checking fees across at least two banks β monthly maintenance fees, transaction limits, and minimum balance requirements vary significantly.
Research federal, state, county, and city licensing requirements for your industry and location. Apply for each license and record the license number and expiration date in the checklist.
π‘ The SBA's Business License and Permits tool (sba.gov) is a reliable starting point for identifying which licenses apply to your specific business type and location.
Record all recurring deadlines β annual report due date, state fees, federal and state tax return dates β in the checklist and add them to a calendar with 30-day reminders.
π‘ Many states send no reminder before annual report deadlines β the LLC is administratively dissolved automatically if the report and fee are missed.
An LLC setup checklist is a structured form listing every administrative and legal step required to form a limited liability company, in the correct sequence. It covers name research, registered agent appointment, articles of organization filing, EIN application, operating agreement, business banking, licenses, and ongoing compliance dates. Using a checklist prevents out-of-order steps that cause state rejections or missed deadlines.
The core formation steps β name search, articles filing, and EIN β can be completed in as little as one to three business days when filing online. State processing times vary from same-day (for expedited fees) to six weeks for mail filings. Factor in an additional one to two weeks to open a business bank account and obtain all required licenses.
Most single-state, single-member LLCs can be formed without a lawyer using state forms and a quality checklist and operating agreement template. Engage a business attorney when the LLC has multiple members with unequal contributions, when the business is in a regulated industry, or when complex IP or investor rights need to be addressed in the operating agreement.
Not every state legally requires one, but every LLC should have one. Without an operating agreement, state default rules govern how the business is managed, how profits are split, and what happens when a member leaves β defaults that rarely match what founders actually intended. Courts also look for an operating agreement as evidence the LLC was treated as a real legal entity, not a shell.
The registered agent is designated solely to receive official legal and government documents β lawsuits, tax notices, and state correspondence β on behalf of the LLC during normal business hours at a physical address. The LLC owner (member) owns and operates the business. The same person can serve both roles, but using a commercial registered agent service keeps the owner's home address off public records.
For most small businesses and solo founders, form the LLC in the state where you live and primarily operate. Delaware, Wyoming, and Nevada offer favorable corporate statutes but require a foreign LLC registration in your home state anyway, doubling fees and compliance work. Out-of-state formation only saves money if the business operates across multiple states or has institutional investors who expect a Delaware entity.
State filing fees for articles of organization range from $50 (Kentucky) to $500 (Massachusetts), with most states falling between $50 and $150. Add $50 to $150 per year for a commercial registered agent if you use one. Annual report fees range from $0 to $800 depending on the state. The total first-year cost for a straightforward single-state LLC typically falls between $100 and $500 excluding professional fees.
Most states assess a late fee and eventually administratively dissolve the LLC if the annual report and fee are not filed. Administrative dissolution removes the entity's good standing and, in many states, retroactively voids liability protection for the period of non-compliance. Reinstatement is possible in most states but requires back fees plus a reinstatement filing.
Yes, in most states you can use your home address as the LLC's principal business address and as the registered agent address. However, doing so places your home address on public state records permanently. Many founders use a commercial registered agent service or a virtual office address to keep their home address private while still meeting the physical address requirement.
The LLC setup checklist tracks the formation process step by step β it tells you what to do and in what order. The operating agreement is the governing internal document created during that process. You need both: the checklist to complete formation correctly, and the operating agreement to govern the entity once it exists.
A corporation formation checklist covers articles of incorporation, bylaws, stock issuance, and an initial board resolution β steps unique to C-corps and S-corps. The LLC checklist covers the simpler articles of organization and operating agreement process. LLCs have fewer ongoing formalities than corporations, making them the default choice for small businesses.
A business plan defines your market, strategy, and financial projections β it is a planning and fundraising document. The LLC setup checklist is an administrative formation tool that has nothing to do with strategy. Complete the business plan first if you need to validate the concept; use the checklist when you are ready to create the legal entity.
The LLC setup checklist covers the one-time steps required to form the entity. An annual compliance checklist covers the recurring obligations β annual report, state fees, tax filings, and license renewals β that keep the LLC in good standing after formation. Both are needed; they cover different phases of the LLC's lifecycle.
Attorneys, accountants, and consultants forming PLLCs must also verify state licensing board requirements for professional LLC structures before filing.
Sellers of physical goods need to confirm sales tax nexus requirements in every state where they ship, not just where the LLC is formed.
Contractor LLCs must coordinate formation with state contractor licensing β some states require the license to be held by the entity, others by an individual qualifier.
Single-member LLCs are the most common structure for freelancers, but a DBA filing is often needed when operating under a brand name different from the LLC's legal name.
| Path | Best for | Cost | Time |
|---|---|---|---|
| Use the template | Solo founders and small business owners forming a single-state, single-member or simple multi-member LLC | Free (plus state filing fees of $50β$500) | 1β3 hours of active work over 1β5 business days |
| Template + professional review | Multi-member LLCs with unequal capital contributions or LLCs in regulated industries | $300β$800 for a one-hour attorney review of the operating agreement | 3β7 days |
| Custom drafted | Complex multi-member LLCs with investor rights, profit interest grants, or multi-state operations | $1,500β$5,000+ for full attorney-drafted formation and operating agreement | 1β3 weeks |
This document is one of 3,000+ business & legal templates included in Business in a Box.
Access over 3,000+ business and legal templates for any business task, project or initiative.
Customize your ready-made business document template and save it in the cloud.
Share your files and folders with your team. Create a space of seamless collaboration.
"Fantastic value! I'm not sure how I'd do without it. It's worth its weight in gold and paid back for itself many times."
"I have been using Business in a Box for years. It has been the most useful source of templates I have encountered. I recommend it to anyone."
"It has been a life saver so many times I have lost count. Business in a Box has saved me so much time and as you know, time is money."
Stop downloading documents. Start operating with clarity. Business in a Box gives you the Business Operating System used by over 250,000 companies worldwide to structure, run, and grow their business.
Free Forever PlanΒ Β·Β No credit card required
