I am still a sole proprietor. Will this guide help me decide whether an LLC is even worth it?

Yes. Before you pay any filing fee or buy any formation service, step 1 walks you through confirming that a single-member LLC fits your situation and beats staying a sole proprietor. The guide makes that decision first, so you are not spending money before you know the answer.

Do I need a lawyer or a paid formation service to do any of this?

No. The guide is written for doing it yourself: you draft and file your articles of organization, get a free EIN directly from the IRS in one sitting, and sign your own single-member operating agreement. The one optional hire is a registered agent service, which typically runs $50–$300 per year and which the guide helps you decide on.

Does this work in my state?

Yes. The spine of the process is identical in every state; only form names, fees, and wait times change. So the guide does not guess — it has you look up your state's exact filing fees and forms with the Secretary of State before you file.

Is the EIN really free?

Yes. You get your EIN straight from the IRS online at no charge, and the guide has you do it in one sitting. The IRS issues it for free, so this step costs nothing.

What is the FinCEN beneficial-ownership report? Will I have to deal with it?

The guide includes a dedicated step where you check whether the FinCEN BOI report applies to you. It makes sure that question is settled rather than left hanging before you move on to opening your bank account.

I have a business partner. Is this the right guide for us?

No. This guide is for a single-member LLC with one owner. It does not cover multi-member LLCs, and it also leaves out S-corp tax elections and non-resident owners — those are separate guides.

EN2 versions

Form a single-member LLC and set it up for taxes

A live single-member LLC: a name cleared with your Secretary of State, a registered agent chosen, articles of organization filed and approved, a free EIN issued by the IRS, a signed operating agreement, the FinCEN beneficial-ownership question settled, and a business bank account open with the resolutions the bank asks for.

Fby Finito HQEchipa Finito

Created 2 months agoUpdated 2 months ago

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Who it's for

U.S.-resident freelancers, contractors, and e-commerce sellers formalising a side business into a legal entity. It fits if you are the sole owner, have a Social Security number, and want liability separation, a cleaner client presence, or a business bank account under an entity name. It does not fit non-resident owners, multi-member teams, or anyone who needs an S-corp election this year.

About this playbook

This guide takes a U.S. resident from decision to done: you confirm an LLC beats staying a sole proprietor, look up your state’s exact fees and forms, clear a name with the Secretary of State, and file your articles of organization. Then you get your EIN free from the IRS in one sitting, sign a single-member operating agreement, and check whether the FinCEN beneficial-ownership report applies to you. You finish by assembling the packet your bank requires and opening the business account. The spine of the path is identical in every state; only form names, fees, and wait times change, so the guide has you look up your state’s specifics instead of guessing. It does not cover S-corp tax elections, multi-member LLCs, non-resident owners, annual reports, or ongoing bookkeeping and tax filing — those are separate guides.

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4 phases · 15 steps

Only a sample is open: 3 of 15 steps can be read in full. The rest unlock when you buy.

Phase 1: Decide and gather what the filing needs
5 steps
Phase 2: File your articles of organization with the state
3 steps
Phase 3: Get your EIN and sign your paperwork
4 steps
Phase 4: Open your business bank account
3 steps

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Details

Estimated duration7 hours 35 min

Steps15

Estimated budgetState fee $40–$500; optional registered agent $50–$300/yr; bank minimums vary

What you need first

You are a U.S. resident with a Social Security number, a street address where you can receive mail, a personal bank account, and money to cover the state filing fee (typically $40–$500). You should have a few candidate names for the LLC in mind. If you are unsure whether an LLC beats staying a sole proprietor, complete step 1 before paying any fee or buying any formation service.