Do These Steps in OrderPhase 1: Planning (Before You File)

• Decide on your business structure: LLC vs. Corporation (or S-Corp election)
  → LLC is usually best for asset protection + tax flexibility for solo or small teams.
• Choose a strong, available business name
  → Must include “LLC” or similar, be unique in your state, and not infringe on trademarks. Search your state’s business database + USPTO.
• Research the best state to form in
  → Usually your home state (avoids extra “foreign qualification” fees). Beware of hype around Delaware/Wyoming for most small businesses.

Phase 2: Formation Essentials

• Appoint a Registered Agent
  → Someone reliable in the state who can accept legal papers. (Tip: Don’t use your home address if you value privacy.)
• File your Articles of Organization (or Certificate of Formation)
  → This is the official document that creates your LLC. Include accurate name, address, and agent info.
• Create an Operating Agreement (highly recommended — even for single-member LLCs)
  → This internal document outlines ownership, decision-making, and profit sharing. It helps protect your limited liability status.

Phase 3: Right After Filing

• Obtain your Employer Identification Number (EIN) from the IRS
  → Free and required for banking, taxes, and hiring.
• Open a dedicated business bank account
  → Never mix personal and business funds — this is one of the fastest ways to lose liability protection.
• Get any required business licenses or permits
  → Local, state, or industry-specific (zoning, sales tax, professional licenses, etc.).

Phase 4: Ongoing Protection (Don’t Skip These!)

• Set up proper record-keeping systems
  → Keep minutes of decisions, contracts, and financials separate.
• Understand and schedule annual requirements
  → Annual report / franchise tax in most states. Missing this can dissolve your LLC.
• Review your tax setup
  → Default LLC is pass-through (reported on personal return). Consider S-Corp election for potential self-employment tax savings if profitable.

Bonus Tip: Many people save time and reduce risk by using a professional formation service instead of DIY — especially if you want fast filing, compliant documents, and ongoing support like registered agent service.