Opening a US LLC: the steps, in order
From choosing the state to the first annual report, this is the sequence we follow when a client opens a company, including clients who live abroad.
An LLC (limited liability company) is the most common way to start a small business in the US. It keeps your personal assets separate from the company’s debts and is simple to run. These are the steps in the order we follow with clients.
1. Choose the state
Most owners form the LLC in the state where they live and work. If the business operates in Florida, forming it in Florida is usually simplest. Forming in another state and then operating in Florida often means registering and paying fees in both.
2. Pick the name and a registered agent
The name must be available in the state’s records. Every LLC also needs a registered agent with a physical address in that state to receive official notices.
3. File the articles of organization
This document creates the company. In Florida it is filed with the Division of Corporations on Sunbiz.
4. Get an EIN
The Employer Identification Number is the company’s federal tax ID. You need it to open a bank account, hire, and file returns. Owners without a Social Security number or ITIN apply with Form SS-4 by fax or mail, because the online application is not available to them.
5. Sign an operating agreement
It records who owns the company and how decisions are made. Banks often ask to see it.
6. Open a business bank account
Keep company money separate from the first day. It protects your liability shield and makes bookkeeping much easier.
7. Put the yearly filings on the calendar
- Florida annual report, between January 1 and May 1
- The federal income tax return that matches how the LLC is taxed
- Form 5472, if the LLC has a single foreign owner
Forming your company from abroad? Most of these steps can be done remotely. The bank account needs the most planning, so we start on it early.