Learn how to form an LLC

LLC Basics – Learn How to Form an LLC the Smart Way

Welcome to LLC Basics, your go-to guide for starting and managing your Limited Liability Company (LLC) with clarity and confidence.

Whether you’re a first-time entrepreneur or a side hustler ready to take the next big step, I simplify every part of the LLC process — no jargon, no confusion, just straight-up answers.

✅ Why LLC Basics?

When I first got into the world of LLCs, I spent hours digging through outdated info, shady websites, and overpriced services. It shouldn’t be that hard or expensive.

So I decided to change that.

LLC Basics is my way of teaching you everything I’ve learned — step by step — with no fluff, no legal jargon, and no salesy pressure. Just real advice from someone who’s been through it.

📚 Here’s What You’ll Learn

Inside LLC Basics, I break down:

How to form an LLC, step by step
Which state is best (and why)
The real costs and taxes of owning an LLC
How to get your EIN, Operating Agreement, bank account, and more
Whether to do it yourself or hire a service (and which ones are worth it)

And if you’re not in the U.S.? No worries — I’ve got full guides just for non-US residents too

💡 What Makes LLC Basics Different?

I don’t recommend a single service I wouldn’t use myself.

There are a lot of LLC formation companies and Registered Agent services out there — and honestly, many of them overcharge or underdeliver. That’s why I take my recommendations seriously.

I personally research, test, and compare every provider I mention on this site — looking at things like:

Transparent pricing (no hidden fees)
Real customer support
Speed and reliability
Non-US resident friendliness
What you actually get for your money

I also talk to founders, read real user feedback, and keep tabs on company practices so you don’t get stuck with the wrong service.

I only recommend what I’d use for my own business — and in many cases, I have.

So if you’re looking for LLC services or a trustworthy Registered Agent, you can feel confident knowing my picks are based on experience, not affiliate hype.

And if something changes? I update my guides right away.

Here are the answers to Basic questions. Because This is LLC Basics

🤔 So… What Exactly Is an LLC?

Great question — and one I get all the time.

An LLC, or Limited Liability Company, is like putting a protective bubble around your business.

It keeps your personal stuff (like your house, car, and savings) separate from your business stuff (like debts, legal issues, or taxes). So if your business ever hits a bump in the road, your personal assets stay safe.

Think of an LLC as a smart middle ground between being a sole proprietor (where everything’s on you) and forming a big corporation (which can be way more complicated and expensive).

Here’s why people love LLCs:

✅ Liability protection – Your business is responsible for its own risks, not you personally.
✅ Simple taxes – You can choose how you want to be taxed (including pass-through taxation).
✅ Flexible structure – One owner or multiple, it’s up to you.
✅ Professional look – Having “LLC” after your business name builds trust with customers, banks, and partners.

And the best part? You don’t need to be a lawyer or accountant to set one up.
With the right guidance (hi! 👋), you can form your LLC and be ready to roll in no time.

🗺️ What’s the Best State to Form an LLC?

Here’s the deal — the best state to form your LLC is usually the state where you actually live and do business.

Why? Because if you form an LLC in another state (like Delaware, Wyoming, or Nevada), but operate in your home state, you’ll likely have to register as a foreign LLC and pay fees in both states. More paperwork, more costs — no thanks.

Now, if you’re a non-US resident with no physical presence in the U.S., then Wyoming or Delaware are solid options. They’re affordable, business-friendly, and don’t require you to live there.

Quick Breakdown:

Live in the U.S.? → Stick with your home state.
Outside the U.S.? → Consider Wyoming (low fees, privacy) or Delaware (trusted, legal-friendly).

Keep it simple. Keep it smart. 🙌

💰 How Much Does It Cost to Form an LLC in 2025?

Let’s talk numbers — because nobody likes surprise fees.

On average, in 2025, it costs $50 to $150 to file your LLC with the state. That’s your one-time formation fee, and it depends on the state you choose.

Here’s a quick peek:

Cheapest states: Montana, New Mexico, Kentucky, Arkansas, Mississippi – around $50
Most expensive states: Massachusetts ($500), California ($70 + $800 annual fee)
Registered Agent (if you need one): ~$125–$300/year
Ongoing fees (like annual reports): Vary by state, usually $25–$100/year

If you use an LLC formation service, add $0 to $300+ depending on the provider and package. Some are super basic, others upsell hard — I’ll help you pick the right one without getting ripped off.

Real Talk:

DIY? You can form your LLC for just the state filing fee.
Need help? Expect to spend around $200 to $400 total, including service + state fees + Registered Agent (if needed).

That’s it — no legal degree required, no hidden traps (at least not here ).

📬 What Is an LLC Registered Agent?

A Registered Agent is like your business’s official receptionist.

They’re the person (or company) who agrees to receive important legal and government documents on behalf of your LLC — like tax notices, lawsuits (hopefully never!), and annual report reminders.

Every state requires your LLC to have a Registered Agent. It’s part of staying compliant and in good standing.

So, who can be a Registered Agent?

You’ve got options:

✅ You (if you live in the state and are available during business hours)
✅ A friend or family member (same rules apply)
✅ A professional Registered Agent service (best for privacy and peace of mind)

Why people choose a service?

🕵️ Keeps your home address off public records
📬 Makes sure you never miss an important legal notice
🌍 Great for non-US residents or remote business owners
📅 They’re always available during business hours — even if you’re not

If you want to keep things private, avoid paperwork headaches, or don’t live in the U.S., a professional Registered Agent is 100% worth it.