LLC (Limited Liability Company) - Start an LLC | LegalZoom (2024)

Whether you're ready to form an LLC on your own—or want advice every step of the way—we've got your back. Starts at $0 + state filing fees.

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“LegalZoom was an incredible partner. My business feels so sound that I can’t wait to hire more people … and have LegalZoom there with me as I grow.”

Shannon Greevy

LLC customer

Free compliance filings for your first year*

$199Value

I can do most of the work myself

Basic

$0+ state filing fees

I only need what it takes to make my business official.

Form my LLC for free

Includes:

  • Articles of organization, the document needed to officially register your LLC with the state
  • Name check service, to confirm that your preferred business name is available
  • Digital welcome packet, which includes a step-by-step checklist to follow after your LLC is officially registered
  • Customizable website, to establish your professional online presence in minutes—powered by LLC (Limited Liability Company) - Start an LLC | LegalZoom (1)

Form my LLC for free

Includes:

  • Articles of organization, the document needed to officially register your LLC with the state
  • Name check service, to confirm that your preferred business name is available
  • Digital welcome packet, which includes a step-by-step checklist to follow after your LLC is officially registered
  • Customizable website, to establish your professional online presence in minutes—powered by LLC (Limited Liability Company) - Start an LLC | LegalZoom (2)

Pro

$249+ state filing fees

I need all the essentials to help me operate in a compliant way.

Form my LLC

Includes Basic package, plus:

  • An operating agreement, which helps you set entity guidelines and settle disputes
  • An EIN, which is used to file taxes, open bank accounts, and build your staff
  • Access to over 150 customizable legal documents and unlimited eSignatures for one year
  • Initial phone consultations with specialists about business insurance and taxes

Form my LLC

Includes Basic package, plus:

  • An operating agreement, which helps you set entity guidelines and settle disputes
  • An EIN, which is used to file taxes, open bank accounts, and build your staff
  • Access to over 150 customizable legal documents and unlimited eSignatures for one year
  • Initial phone consultations with specialists about business insurance and taxes

I want advice from experienced attorneys

Premium

$299+ state filing fees

I want an experienced attorney to ensure I form my business right.

Form my LLC

Includes Pro package, plus:

  • Hands-on guidance from an experienced business attorney that you choose based on state, years of experience, and rating
  • Unlimited 30-minute attorney consultations about new legal topics related to your business (first 30 days of subscription included)
  • Any changes to your LLC formation documents within the first 30 days

Form my LLC

Includes Pro package, plus:

  • Hands-on guidance from an experienced business attorney that you choose based on state, years of experience, and rating
  • Unlimited 30-minute attorney consultations about new legal topics related to your business (first 30 days of subscription included)
  • Any changes to your LLC formation documents within the first 30 days

Why use LegalZoom to set up your LLC?

Kickstart in minutes

Start your LLC in 3 easy steps with the industry leader in online business formation.

Set it up right

Our tools offer step-by-step guidance to help you launch and protect your new business.

Get the help you need

Our network of experienced professionals can guide your launch and help you grow.

LLC (Limited Liability Company) - Start an LLC | LegalZoom (3)

What is an LLC?

A limited liability company (LLC) is a type of business entity you can register in your state. The main purpose of an LLC company is to limit the personal liability of its owners—like a C corporation or S corporation—but it also allows the business to operate with simpler, more flexible tax requirements.

Do I need an LLC?

An LLC isn't always required, but many small business owners choose to form an LLC for personal liability protection. Having an LLC can also help you open bank accounts, enter into contracts, hire employees, and get necessary business licenses and permits.

LLC (Limited Liability Company) - Start an LLC | LegalZoom (4)

What does LLC formation mean?

When you form an LLC, you submit a specific set of business forms to the state where you wish to create a new business entity. Once it's approved, you can use this separate entity to record business expenses, take on business debts, file taxes, obtain business licenses, and more—and this is what gives you liability protection.

How easy is it to form an LLC?

You may be a little intimidated by the idea of forming a legal entity like an LLC, especially if it's your first time. All you need is an understanding of what your business will do, how you plan to run it, and your state's LLC filing fees. Even if your business requires a retail location, you don't need a physical address lined up to begin your LLC formation.

3 reasons for creating an LLC business entity

Protect your personal assets

By forming an LLC and keeping your personal finances separate, you can protect your personal assets from business liabilities.

Make things easier

It's typically easier to form an LLC than a corporation, and there are simpler rules for things like record-keeping.

Get tax flexibility

You get to decide how you're taxed—as an LLC or a corporation—to maximize your ability to save money and minimize tax liability.

Ready to get your LLC?

Select and start my LLC

LLC vs. corporation: What's the difference?

There are several important differences between an LLC and a corporation:

LLC

Flexible management structure

LLC owners have more freedom to decide how the business is run and managed.

More taxation options

An LLC can choose to be taxed as an S corp or a C corp to maximize tax savings.

Minimal record-keeping

An LLC does not need to record minutes or hold an annual shareholder meeting.

Corporation

Easier to transfer ownership

A corporation requires a board of directors, but it's easier to transfer shares of stock than to alter an LLC operating agreement.

Unique tax deductions

A corporation can deduct certain expenses on tax forms like marketing costs and specific employee fringe benefits.

More appealing to investors

Unlike an S corp, a C corp can go public and issue stock to new investors, which makes it easier to raise revenue.

How to start an LLC

To form an LLC, you'll need to file articles of organization with the state. Each state has its own rules, but our experience across all states helps us keep things moving when we file on your behalf.

Here are a few things you'll need to keep in mind to get your LLC up and running.

LLC (Limited Liability Company) - Start an LLC | LegalZoom (5)

Choose and reserve a name

It's wise to check your LLC name against similar businesses in your area. We include a business name check with our formation services and can reserve a preferred business name for you.

LLC (Limited Liability Company) - Start an LLC | LegalZoom (6)

Pick a registered agent (RA)

Also called a statutory agent or resident agent, an RA receives your LLC's legal notices and legal documents during normal business hours. Most states require this, and we can do it for you.

LLC (Limited Liability Company) - Start an LLC | LegalZoom (7)

File articles of organization

Also called a certificate of formation, this business form contains basic details about your LLC. When we file this for you, it's typically sent to the Secretary of State.

LLC (Limited Liability Company) - Start an LLC | LegalZoom (8)

Determine licenses needed

You'll also need to apply for any specific permits or business licenses that may be required for compliance, although it's wise to wait until your LLC's formation documents are approved.

LLC (Limited Liability Company) - Start an LLC | LegalZoom (9)

Prepare an operating agreement

This outlines your LLC's rules for everything from business structure to profit distribution. Our templates make it easy for LLC owners to define their rights and limit disagreements.

LLC (Limited Liability Company) - Start an LLC | LegalZoom (10)

Get an Employer ID Number (EIN)

Most businesses need an EIN (also called a Federal Tax ID Number) to set up a business bank account, file taxes, and start hiring. When it's time to get yours, we can help.

Ready to get your LLC?

Select and start my LLC

Find the right state to form an LLC

Every state has different rules, costs, and considerations for LLC formation.

Alabama LLC

Alaska LLC

Arizona LLC

Arkansas LLC

California LLC

Colorado LLC

Connecticut LLC

Delaware LLC

Florida LLC

Georgia LLC

Hawaii LLC

Idaho LLC

Illinois LLC

Indiana LLC

Iowa LLC

Kansas LLC

Kentucky LLC

Louisiana LLC

Maine LLC

Maryland LLC

Massachusetts LLC

Michigan LLC

Minnesota LLC

Mississippi LLC

Missouri LLC

Montana LLC

Nebraska LLC

Nevada LLC

New Hampshire LLC

New Jersey LLC

New Mexico LLC

New York LLC

North Carolina LLC

North Dakota LLC

Ohio LLC

Oklahoma LLC

Oregon LLC

Pennsylvania LLC

Rhode Island LLC

South Carolina LLC

South Dakota LLC

Tennessee LLC

Texas LLC

Utah LLC

Vermont LLC

Virginia LLC

Washington LLC

West Virginia LLC

Wisconsin LLC

Wyoming LLC

Alabama LLCHawaii LLCMassachusetts LLCNew Mexico LLCSouth Dakota LLC
Alaska LLCIdaho LLCMichigan LLCNew York LLCTennessee LLC
Arizona LLCIllinois LLCMinnesota LLCNorth Carolina LLCTexas LLC
Arkansas LLCIndiana LLCMississippi LLCNorth Dakota LLCUtah LLC
California LLCIowa LLCMissouri LLCOhio LLCVermont LLC
Colorado LLCKansas LLCMontana LLCOklahoma LLCVirginia LLC
Connecticut LLCKentucky LLCNebraska LLCOregon LLCWashington LLC
Delaware LLCLouisiana LLCNevada LLCPennsylvania LLCWest Virginia LLC
Florida LLCMaine LLCNew Hampshire LLCRhode Island LLCWisconsin LLC
Georgia LLCMaryland LLCNew Jersey LLCSouth Carolina LLCWyoming LLC

Frequently asked questions

Ready to get your LLC?

Select and start my LLC

What our customers are saying

LegalZoom made everything 10 times easier for my business. Fast, easy, and very professional.

Luis C., LLC customer

This is my second LLC created with LegalZoom. I highly trust their process and professional specialists.

Reginald C., LLC customer

Such an easy process! Would absolutely recommend to anyone looking to file for an LLC.

Amelia P., LLC customer

Questions?

Ask an attorney

Get the right guidance with an attorney by your side.

Get legal help

Call an agent at (855) 787-1221

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Sat.–Sun. 7 a.m.–4 p.m. PT

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LLC (Limited Liability Company) - Start an LLC | LegalZoom (2024)

FAQs

How much does an LLC cost in NJ? ›

The basic cost for establishing an LLC in New Jersey costs $125, and the annual report is $75.

What is the downside of starting LLC? ›

Disadvantages of creating an LLC

Cost: An LLC usually costs more to form and maintain than a sole proprietorship or general partnership. States charge an initial formation fee. Many states also impose ongoing fees, such as annual report and/or franchise tax fees. Check with your Secretary of State's office.

How much does it cost to file an LLC in NY State? ›

The fee for filing the Articles of Organization is $200. The fee may be paid by cash, check, money order, MasterCard, Visa or American Express. Checks and money orders should be made payable to the “Department of State.” Do not send cash through the mail.

What is the difference between Ltd and LLC? ›

In an LLC, there are no shares for the owners to buy, but in an LTD, every shareholder can purchase shares to own the business. The company determines the price of shares in an LTD, whereas in the LLC, they're determined by market forces. Opening LLCs is simple and flexible since they don't need much paperwork.

What are the disadvantages of having an LLC in New Jersey? ›

Main drawbacks:
  • More expensive to create than a partnership or sole proprietorship.
  • State laws for creating LLCs may not reflect the latest federal tax changes.
  • Inability to obtain VC funding.
  • Inability to provide employees with stock options.

What do you need to start an LLC in New Jersey? ›

  1. Choose an Original Name for Your New Jersey LLC. Choose a name for your LLC. ...
  2. Select a Registered Agent for Your New Jersey LLC. Select a Registered Agent. ...
  3. Obtain an Employer Identification Number (EIN) ...
  4. Submit Your Public Records Filing. ...
  5. Prepare Your LLC Operating Agreement. ...
  6. Get Your Business License, If Applicable.
Jun 13, 2024

Are LLCs bad for taxes? ›

LLCs are considered “pass-through entities,” which means the LLC itself does not pay federal income taxes on business income. Instead, income “passes through” to individual members of the LLC, who pay federal income tax earned from the LLC via their own individual tax returns.

Why LLC is best for small business? ›

LLCs protect you from personal liability in most instances, your personal assets — like your vehicle, house, and savings accounts — won't be at risk in case your LLC faces bankruptcy or lawsuits. Profits and losses can get passed through to your personal income without facing corporate taxes.

What is the risk of LLC? ›

A major disadvantage of an LLC is that owners may pay more taxes. When setting up as a pass-through to owners, they are subject to self-employment tax. Self-employment tax ends up higher compared to being taxed as an employee.

How long does it take to get an LLC in NJ? ›

File New Jersey Certificate of Formation

File the articles of organization to create your limited liability company. Turnaround: ~4 weeks. ~8.5 hours for $25 expedited fee.

How much taxes does an LLC pay in NJ? ›

New Jersey State Income Tax

LLCs with S-corp status must pay a state Corporate Business Tax based on gross receipts: starting at 7.5% for a minimum of $375 for less than $100,000 in receipts, up to $1,500 at for receipts of $1,000,000 or more.

What are the benefits of an LLC in NJ? ›

Advantages
  • Limited liability for business debts.
  • Shareholders report their share of corporate profit or loss on their personal tax returns.
  • Shareholders can use a corporate loss to offset income from other sources.

How much does it cost to register a business name in NJ? ›

New Jersey LLC Formation Filing Fee: $125

Filing your Public Records Filing for New Business Entity (the New Jersey equivalent of Articles of Organization) carries a fee of $125.

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