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Most new indies know they need an LLC, but they’ve never done it before.

Sally knows the benefits of having an LLC for her consulting business, and she wants to set one up.

But when she Googles it, her monitor becomes utter chaos.

Fifteen sponsored articles from agents who offer to do it. Multiple state agency websites.

No clear instructions on how to actually do it.

So let’s demystify it right here: How do you set up an LLC simply?

Spoiler alert: It’s not 100% straightforward, and there’s no one-size-fits-all approach to this (trust me, I’ve looked).

But we have a framework to help you overcome the block:

Let’s dive in.

If you’re serious about building an independent practice, you need to register as a legal entity.

The legal separation between you and your business – even in a low-risk consulting environment – makes it a no-brainer. No matter how complex the rules look, we’ll show you a cheap and straightforward way to get it done.

Forming a Limited Liability Company (LLC) does three important things immediately:

Ideally, you form an LLC before your first invoice. Realistically, within your first few months of revenue.

What you don’t want is meaningful income flowing through your personal name because you delayed a relatively straightforward step.

It’s important to recognize first that every state has different administrative requirements – which brings us to an important question: how do you decide which state to form an LLC?

The general rule of thumb is to set it up in your home state, especially if you do most work there. This keeps annual filings, compliance, and reports more streamlined.

While some states offer lower fees, lower taxes, or stronger privacy protections, the tradeoff is that your home state will consider you a Foreign LLC – which means extra paperwork whenever you do business in your home state.

In some states, it’s easy to set up an LLC. They could have little to no regulation, or maybe they offer a limited tax burden. But for other states like New York or California, additional requirements and higher fees make them less ideal for indie consultants setting up an LLC.

For example, I live in Texas. Setting up an LLC here is as easy as going to the Secretary of State’s website and filling out the forms. When your revenue remains below the threshold (currently $2.65 million, though it changes periodically), you generally only need to file a No Tax Due Report (Form 05-163).

With that said, there are three general paths to set up an LLC – depending on your budget or tolerance for administrative work. Here’s a quick comparison:

If you’re an independent consultant with a simple structure and no partners, you can file directly through your state’s Secretary of State website. You need to complete Articles of Organization, pay the filing fee, and follow your state’s instructions. Then, you’ll proceed to set up taxation with the IRS and your state’s comptroller. Both of these are single-form submissions.

If you’re detail-oriented and comfortable reading state instructions, this is completely viable.  I am ‘not good with detail’ and I did this myself in Texas.

An LLC registered agent is someone who receives legal correspondence on behalf of the LLC. They relay important messages and take care of filing documents, including government, tax, and legal correspondence. 

Services like Northwest Registered Agent or state-endorsed providers usually charge a modest fee on top of fares you pay the state. 

What’s great about working with a registered agent is that they prompt you to do the right annual filings – most complete them for you for a small fee. If you live in a highly regulated state (or you just always forget to do it every year), this can be a lifesaver.

Registered agents also protect your address and privacy, if that’s a huge concern for you.

Some people have real security concerns due to past relationships. Others want to block spam calls. Use a registered agent if you don’t want anyone to show up to your doorstep unannounced.

Even as an independent consultant, you may prefer having a business attorney to handle the formation process.

An attorney can prepare and file your LLC documents, draft or review your operating agreement, and make sure you’re aligned with your state’s compliance requirements from the start.

For most indie consultants, this level of involvement isn’t necessary unless you value certainty, have a more complicated set of entities already, or want a set of professional eyes on the setup.

Setting up an LLC can be as easy as going to the Secretary of State website and following the instructions from there.

The tricky part is that LLCs are governed at the state level.

This means that requirements, fees, and timelines might vary. Some find it easier to file an LLC in one state than others (we’ll look at the difference below).

But this doesn’t mean you’re free to file an LLC where it’s less complicated – you generally need to register in the state you want to operate it or where a lot of your target clients are.

The key is to check with your state’s Secretary of State website first, find the requirements, and decide how you want to set up an LLC using one of the three ways we discussed before.

While the complexity varies from state to state, they more or less require the same checklist at their core:

Conceptually, this is simple.

The variation and friction live at the state level.

The core business structure of an LLC is similar everywhere.

But the administrative burden is not.

Let’s look at four different states and how complex their LLC filing systems are:

Now, let’s spell out what the process looks like.

New York requires newly formed LLCs to publicly announce their formation.

This means after setting up the LLC, you must:

After the publication period, the newspapers then provide affidavits that the notices ran – which you need to file a Certificate of Publication with the state. And yes, it comes with an additional filing fee.

This requirement isn’t to make your business more protected or legitimate – just an old statutory rule that adds cost and administrative friction.

As for the LLC formation itself, here’s how that goes:

One ongoing requirement for LLCs in New York is the Biennial Statement – a compliance filing required every two years.

It confirms your LLC’s name, address for service of process, and registered agent.

It’s not a tax filing, but an administrative update for the state.

Setting up an LLC in the state of Illinois or Georgia is a straightforward process. There are no unusual formation requirements — just the standard ongoing compliance obligations.

Here’s how you would set up an LLC in Illinois or Georgia:

For Illinois, the ongoing burden is that you need to file an Annual Report and pay the associated fee every year to keep your LLC in good standing.

Texas is one of the states which has lower filing costs and a simpler application process than others. The state also doesn’t require a state income tax, which appeals to many business owners.

However, a Franchise Tax Report and Public Information Report are still mandatory, even if the revenue is below the taxable threshold.

Here’s how the application will go:

Keenan Reid Strategies is registered in the state of Texas – and I’m pretty proud to say that I only had to set up the LLC on my own.

If you are building a real consulting practice and not just testing the waters, form the LLC early.

Understand your state’s requirements, then choose a filing path that matches your appetite for admin work.

Treat the business like a business from day one.

This isn’t about overengineering for your launch. It’s about laying a clean foundation.

You left corporate for autonomy. Structure is what protects it.

Hidden footage of me writing an RFP.