Decide what State to Establish Your LLC in

• Each state has its own laws regarding LLCs. Some states such as Delaware or Nevada are considered corporate safe havens and are especially business-friendly. Establishing your LLC in a pro-business state like Delaware will give you access to the Delaware court system and its low annual business filing fees. Establishing your LLC in your home state isn't a bad idea, either, so that any potential legal proceedings will happen in your state.
  
  

Draft a Management Operating Agreement

• Having an LLC without a management operating agreement is a bad idea. The operating agreement will further solidify your limited liability and protect you as a business owner. Management operating agreements spell out ownership percentages, including any sweat equity in the company. They also spell out compensation procedures and job descriptions of the company's principals.
  
  

File your Organizing Documents and Pay Your Filing Fees

• Choose a business name available in the state you are organizing in. Obviously you don't want to duplicate a name used by a national company or by another company in that state. When you create your LLC, you'll need to submit a filing fee to the secretary of state in the state you choose to organize in. Every state has its own fee structure, but the average is between $75 and $200.