How to Form an LLC as a Freelancer (Step by Step)

Forming an LLC is mostly paperwork, and for a freelancer it's usually straightforward enough to do yourself without a lawyer, though some choose to use a formation service or attorney for extra peace of mind. Here's the process in order.

Step 1: Choose your state

Form your LLC in the state where you actually live and do business — in nearly all cases. You'll sometimes hear about forming in Delaware or Wyoming for their business-friendly laws, but for a typical solo freelancer, that just adds a registered-agent fee and a second state's compliance requirements without a meaningful benefit.

Step 2: Choose and check your business name

Search your state's business name database (usually through the Secretary of State's website) to confirm your desired name is available and meets naming requirements — most states require an LLC designator like "LLC" or "L.L.C." in the legal name.

Step 3: File Articles of Organization

This is the core formation document, filed with your state's business filing agency along with a filing fee (commonly $50-$500 depending on the state). Most states let you file online, and approval often takes anywhere from same-day to a few weeks depending on the state's processing volume.

Step 4: Draft an operating agreement

Not every state legally requires one for a single-member LLC, but it's strongly recommended anyway — it documents that the LLC operates as a distinct business, which matters if liability protection is ever tested, and it's useful reference if you ever add a business partner.

Step 5: Get an EIN

Apply for a free Employer Identification Number directly from the IRS (never pay a third party for this — it's free and takes minutes online). You'll use it in place of your Social Security number for banking, tax filing, and any contractor payments you receive. See our EIN guide for details.

Step 6: Open a business bank account

With your Articles of Organization and EIN in hand, open a dedicated business bank account — this is the step that actually makes the liability protection meaningful in practice. See our Business Banking guide for what to look for.

Frequently asked questions