Do I need an LLC to start a business?

No. You can operate as a sole proprietor with no paperwork. But the moment you have customers, take money, or face any liability, an LLC becomes a smart investment.

How much does an LLC cost?

State filing fees range from about $40 (Kentucky) to $500 (Massachusetts). Annual fees range from $0 (Arizona, Missouri) to $800 (California). Most people pay $50–$300 to form and $0–$100/year to maintain.

Can one person own an LLC?

Yes. Single-member LLCs are the most common type. The IRS treats single-member LLCs as 'disregarded entities' for tax purposes — meaning the profit just goes on your personal Schedule C.

Can an LLC have employees?

Yes. Once you have an EIN, you can hire W-2 employees or 1099 contractors. You'll need to register for state payroll taxes if you have W-2 employees.

LLC guides

Plain-English walkthroughs for forming, banking, and running your LLC — written by founders, reviewed every quarter.

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Pillar guide

How to start an LLC: the complete 2026 guide

The 7 steps, the costs, the mistakes founders make, and what to do in the first 30 days after filing.

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LLC guides

Start here

How to start an LLC: the complete 2026 guide

Start an LLC by state

How to start an LLC in Colorado

How to start an LLC in California

How to start an LLC in Texas

How to start an LLC in Florida

How to start an LLC in New York

How to start an LLC in Delaware

How to start an LLC in Wyoming