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How to Start an LLC
By the end of this course you'll understand exactly how to form an LLC yourself — choosing a state, filing the paperwork, getting your EIN, and staying compliant. The manual, step-by-step way, with a real state as the worked example.
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Right now your business and your bank account are the same thing. That's one lawsuit away from disaster. In six modules you'll separate them — entity, filings, EIN, bookkeeping — and sleep like someone running a real company.
What you'll learn
- Decide whether an LLC is actually right for you — or if you're overcomplicating it.
- Pick the right state to file in (it's not always your home state) and file the paperwork correctly.
- Get your EIN, understand what taxes you now owe, and set up bookkeeping from day one.
- Stay compliant: licenses, annual filings, and running the LLC so the liability protection actually holds.
Is this for me?
Who is this course for?
Freelancers, side-hustlers, and new business owners operating as sole proprietors who want real liability protection — and to look legitimate to clients and banks.
What do I need before starting?
A business name idea and your state's filing fee, usually $50–$500 depending on the state. No lawyer required.
How long does it take?
Six modules at 30–45 minutes each. The actual filing takes an afternoon; the EIN and bank account take another day or two.
Start here
Module 0: Start Here
Orientation: what you'll build, how the course works, and how to get the most out of every module. Start here before Module 1.
Module 1
Module 1: Is an LLC Right for You
Before you spend a dollar on filing fees, make sure an LLC is actually the right move for your situation. This module covers what an LLC does in plain language, how it compares to the alternatives, and the honest cases where you should wait. Everything here is general information for learning purposes — not legal or tax advice. For decisions about your specific situation, consult a licensed attorney or accountant in your state.
Module 2
Module 2: Choosing Your State
Where you file matters more than most people think — and the answer is usually boring. This module lays out the honest tradeoffs between your home state and the famous alternatives, explains the registered agent requirement every state has, and shows you how to check that your business name is actually available.
Module 3
Module 3: Filing the Paperwork
This is the hands-on module: the actual filing form, the operating agreement most people skip, and the state quirks that catch first-timers off guard. We use New Jersey as the worked example throughout, with "check your state" notes where rules differ. Reminder: this is general information for learning purposes, not legal or tax advice. If your situation has any complexity — partners, investors, regulated work — talk to a licensed attorney or accountant before filing.
Module 4
Module 4: EIN and Taxes
With the LLC formed, it's time to get your federal tax ID and understand how the tax side works. This module walks through the free EIN application on IRS.gov, explains the three ways an LLC can be taxed, and shows you how to open a business bank account that keeps your liability wall intact.
Module 5
Module 5: Licenses and Compliance
The LLC exists, the bank account is open — now make sure you're actually allowed to operate. This module covers business licenses and permits, the annual reports and fees that keep your LLC in good standing, and the record-keeping habits that protect you if questions ever come up.
Module 6
Module 6: Running It Right
Formation is the beginning, not the finish. This final module is about the daily and monthly habits that keep the LLC healthy: separating money, simple bookkeeping you can actually maintain, and knowing when a professional earns their fee. It ends with the compliance checklist you'll live by.
Choose your track
Two ways through this course — pick the one that fits where you are.
Starter track
Modules 1–3. Decide if an LLC fits (Module 1), pick your state (Module 2), and file the paperwork (Module 3). That's enough to get formed. Come back for EIN/taxes and compliance once the state approves your filing.
Advanced track
All six modules, then the teardown and exam. If you have partners, spend extra time on Module 3's operating agreement lesson — that's where multi-member LLCs succeed or fail. Business owners with existing revenue should also review Module 6's tax planning before year-end.
Your build brief
Everything you write in the build brief prompts across this course's modules collects here. Download it as a designed PDF — and we keep a copy too, so when you're ready for us to build it for you, we already know exactly what you want.
Your answers save automatically as you type — on this device and to your signup email.
Teardown: The Freelancer Who Waited Too Long
Consider a freelance graphic designer — three years in, $90k/year in client work, still operating as a sole proprietor. All income flows to her personal bank account. She signs contracts in her own name. When a client dispute over a $15,000 project turns ugly, there's no legal wall between the business disagreement and her personal savings.
What went wrong: Not the work — the structure. Every year she operated without an LLC, she carried unlimited personal liability for business disputes. The fix from Module 1's framework is straightforward: the moment freelance income becomes consistent (not someday, not at six figures), the LLC filing takes an afternoon and costs less than one billable day.
What she'd do differently: File in her home state (Module 2 — no need for Delaware at this stage), get the EIN the same week (Module 4), open a separate business bank account immediately, and run all client payments through it (Module 6). The annual report takes ten minutes a year. Total ongoing burden: a few hours annually. The protection: her personal assets walled off from every future client dispute.
The lesson: the cost of an LLC is measured in hundreds of dollars and hours. The cost of not having one is measured in whatever you own.
Course extras
Glossary — 14 key terms Final exam — 10 questions, 15 minutes
Want this done for you?
Rather do it with us? Our LLC Filing Service ($499 + state fees) handles the filing, your EIN, and bookkeeping setup from day one.
See done-for-you services