From idea to incorporated, in plain English
Everything a first-time founder needs to actually get started: pick an entity type, pick a state, file the paperwork, get the EIN, open a bank account, stay compliant. No jargon. Tested against 220,000+ formed customers.
The five things you need to decide before forming
What entity type?
For most US founders: LLC. It is the cheapest, simplest, and most flexible structure for businesses with 1-50 employees and no plans to raise venture capital. If you ARE raising VC, you will eventually need a Delaware C-Corporation; you can form as an LLC now and convert later, or form directly as a C-Corp from day one.
Read more: LLC vs Corporation, LLC vs S-Corp election (with math), Entity type quiz.
Which state?
For most founders: your home state (the one where you physically operate). Delaware and Wyoming get hyped because they have no state income tax and decent privacy, but if you do business in your home state, you will end up paying both Delaware's annual fees AND your home state's foreign-qualification fees. Form where you operate. Form in Delaware or Wyoming only if there is a specific reason: VC requires it, you have no physical operations anywhere, or you have a privacy-specific need.
Read more: How to actually choose a state, The Delaware franchise tax trap.
Business name?
Check availability in your formation state's business name registry before falling in love with a name. Add the required entity suffix ("LLC", "Inc.", "Corp.", "PC", etc.) to match your entity type. Avoid restricted words (Bank, Insurance, University without special licensing). If your operating brand is different from your legal name, file a DBA (also called Fictitious Business Name).
Registered agent?
Every business needs a registered agent · a person or service with a physical address in the state of formation who receives legal documents on the business's behalf. You can be your own registered agent if you have an address in the state and are available during business hours. Most founders use a registered agent service ($149/year) to keep their home address off the public record and ensure documents are received even when traveling.
Read more: Registered Agent Service.
Single or multi-member?
If you have co-founders, you are multi-member from day one. If you are solo, you are single-member but can add co-founders later via amendment. Multi-member LLCs file Form 1065 (partnership tax return) plus K-1s to each member; single-member LLCs file on Schedule C of the owner's personal return. For multi-member entities, sign an Operating Agreement before you start operating · verbal agreements between co-founders break under stress.
Read more: Operating Agreement, Operating Agreement essentials.
The actual formation timeline
Articles of Organization submitted same day in DE, WY, NV, FL, TX. 5-15 business days in other states.
Instant for US founders with SSN. 4 business days for foreign founders via IRS fax channel.
Mercury, Relay, Chase, Brex pre-integrated. International founders accepted at Mercury and Relay.
Multi-member LLCs: critical. Single-member: still useful for veil protection.
Annual reports filed 14 days before due. Penalty-free guarantee on Compliance Annual Filings.
What you actually pay
For most US-based solo founders, the realistic year-one all-in cost is $100-$500. International founders add ~$50 for banking partner setup. Most ongoing cost is the state's recurring fees, not ours.
First-year mistakes that cost money
- Forming in Delaware "just in case" when you have no plans to raise VC and operate in another state. You pay both states.
- Skipping the Operating Agreement as a multi-member LLC. Two years in, when a partner wants to leave, you have no exit terms.
- Mixing personal and business expenses. The IRS pierces the corporate veil when there is no real separation. Get a business bank account and use it exclusively.
- Missing the S-Corp election deadline if profit will exceed $50k. The election must be filed by March 15 of the year you want it to take effect. Late relief is possible under Rev. Proc. 2013-30 but cleaner to file on time.
- Ignoring the franchise tax in Delaware C-Corps. The default authorized-shares method bills the standard $85,165. Switch to assumed par value method to drop to $400 minimum.
- For foreign-owned single-member LLCs: skipping Form 5472 + pro forma 1120. $25,000 penalty for non-filing. Many foreign founders never hear about it until the notice arrives.
- Not setting calendar reminders for annual reports. The state will eventually administratively dissolve your LLC. Compliance Annual Filings ($129/yr) makes this not a problem.
Read further
Start. Manage. Stay Compliant. Grow. Exit.
Every stage of a US business has services, deadlines, and decisions. File.Business is the operating system that runs through all of them · not just the formation moment.
Form
Days 1-15- Name + state selection
- Articles of Organization
- EIN from IRS
- Operating Agreement
- Business banking
Manage
Days 16+ ongoing- Registered Agent
- Document vault
- Officer + address updates
- Member changes
- Multi-entity dashboard
Stay Compliant
Annual + recurring- Annual reports auto-filed
- BOI for foreign-formed
- S-Corp election timing
- Franchise tax
- Compliance Monitoring
Grow
Year 1-5- Foreign qualification
- Entity conversion
- Mergers + restructure
- Trademark + IP
- Multi-state expansion
Exit / Dissolve
When ready- Foreign entity withdrawal
- Business dissolution
- Final tax filings
- Record retention
- Clean state records
Five US business structures, ranked across the decisions that matter
Liability protection, tax treatment, ownership rules, fundraising readiness, ongoing compliance. The matrix we walk every customer through before they form.
LLC vs C-Corp vs S-Corp vs Nonprofit vs Professional Corporation
One platform. Every state. Real filing data.
Click any state to see real filing fees, processing time, annual report requirements, and the 2025 BOI status. Same data we use when we file for you.
Filing speed by state
Click any state on the map to compare. State fees passed through at cost; our service fee is the same in every state.
The numbers behind a business operating system you can trust
Audited, accredited, encrypted, insured. The complete picture of what makes File.Business safe to run your business on.
Independent annual audit. Report available under NDA for enterprise customers.
Better Business Bureau accredited business with public dispute resolution policy.
Across all 50 states + DC. Single-member LLCs to multi-entity holding structures.
Customer rating from verified-formation customers, audited annually.
Professional liability coverage. Penalty-free guarantee covers state late fees from our error.
All 50 states plus DC. Filing direct with each Secretary of State; no middleman.
Countries. Foreign founders without SSN supported via IRS fax-EIN channel.
On the $129/yr Compliance Annual Filings plan, we cover state late fees.
When you autofile your annual report through the $129/yr plan and we miss the deadline, we pay the state's late fee. The guarantee applies to that specific plan and the filings it includes. Other File.Business services are billed at the prices on this page.