Setting Up an LLC: A Step-by-Step Legal Checklist

An LLC can shield your personal assets and simplify taxes — but only if it is set up correctly and respected as a separate entity. Here is what to get right from day one.

Formation essentials

Choose a compliant name, file your articles of organization and appoint a registered agent. These are the formal steps that bring the entity into existence.

Get an EIN and open a dedicated business bank account. Mixing personal and business money is the fastest way to weaken your liability protection.

The operating agreement

Even a single-member LLC should have an operating agreement. It documents ownership, decision-making and what happens if a member leaves.

For multi-member LLCs, this document prevents disputes by settling profit splits, roles and exit terms while everyone is still on good terms.