Form a Company | Lovie — US Company Formation

Forming a company is a critical step for any entrepreneur looking to legitimize their business, separate personal and business assets, and prepare for growth. This process involves choosing a business structure, filing the necessary paperwork with the state, and complying with federal and state regulations. Whether you're a solo entrepreneur or planning a larger venture, understanding how to form a company correctly from the outset can save you significant time, money, and potential legal headaches down the line. Lovie simplifies the process of forming a company, guiding you through each step to ensure compliance and efficiency. We support the formation of various business entities, including Limited Liability Companies (LLCs), C-Corporations, S-Corporations, Nonprofits, and Doing Business As (DBA) names, across all 50 U.S. states. This guide will walk you through the essential considerations and steps involved in forming your company.

Choose Your Business Structure

The first major decision when you form a company is selecting the right legal structure. Each type offers distinct advantages and disadvantages regarding liability, taxation, and administrative requirements. Common structures include sole proprietorships, partnerships, LLCs, C-Corporations, and S-Corporations. A Sole Proprietorship or Partnership is the simplest to form, often requiring no formal state filing beyond local business licenses. However, there's no legal distinction between the owne

Select an LLC, C-Corp, S-Corp, Nonprofit, or DBA based on liability, tax, and administrative needs.
LLCs offer liability protection with pass-through taxation and operational flexibility.
C-Corps provide strong liability protection but face potential double taxation.
S-Corps avoid double taxation but have strict eligibility requirements.
Consider your long-term business goals and funding strategy when choosing a structure.

Register Your Business Name

Once you've chosen a structure, you need to select and register a business name. If you plan to operate your business under a name different from your own legal name (for sole proprietors/partnerships) or the legally registered name of your LLC or corporation, you'll need to file a 'Doing Business As' (DBA) name, also known as a fictitious name or trade name. This filing is typically done at the state or county level, depending on your location. For LLCs and Corporations, the registered name it

File a DBA if operating under a name different from your legal or registered entity name.
Check name availability with the state's Secretary of State before filing formation documents.
Register a domain name and social media handles for branding purposes.
Consider federal trademark registration for enhanced brand protection.

File Formation Documents with the State

The core of forming a company involves filing official documents with the designated state agency, usually the Secretary of State's office. The specific document depends on your chosen business structure. For an LLC, you'll file 'Articles of Organization' (sometimes called a Certificate of Organization). For a corporation (C-Corp or S-Corp), you'll file 'Articles of Incorporation' (or Certificate of Incorporation). These documents typically require basic information such as the business name, t

File Articles of Organization for LLCs or Articles of Incorporation for Corporations.
Designate a registered agent to receive official legal and tax notices.
State filing fees vary widely; research costs for your chosen state.
Ensure all required information is accurately provided on formation documents.

Obtain an Employer Identification Number (EIN)

An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States. It's essentially a Social Security number for your business. You are generally required to obtain an EIN if your business is a corporation or a partnership, or if you plan to hire employees. Even if not strictly required, many businesses, especially LLCs, choose to get an EIN t

An EIN is a federal tax ID required for corporations, partnerships, and businesses with employees.
Obtain an EIN from the IRS for free via Form SS-4.
An EIN is necessary for opening business bank accounts and filing business taxes.
It helps maintain separation between personal and business finances.

Understand State and Federal Compliance

Forming a company is just the beginning; ongoing compliance with state and federal regulations is essential to maintain your business's legal standing. This includes various requirements that differ based on your business structure, industry, and location. At the state level, most businesses must file an annual report or statement of information with the Secretary of State. For example, California requires LLCs and corporations to file a Statement of Information within 90 days of formation and

File annual reports or statements of information with the state to maintain good standing.
Comply with federal tax laws, including income and employment taxes.
Obtain necessary state and local business licenses and permits.
Failure to comply can lead to penalties, fines, and dissolution of the entity.

Ongoing Legal and Financial Considerations

Beyond initial formation and compliance, successful companies require ongoing attention to legal and financial matters. This ensures sustained growth, risk mitigation, and adherence to evolving regulations. Legally, maintaining your company's structure is paramount. For corporations, this often involves holding regular board and shareholder meetings, keeping minutes, and adopting corporate bylaws. LLCs typically need to adhere to their operating agreement. These internal governance documents ar

Maintain internal governance documents like bylaws and operating agreements.
Keep accurate financial records and use a separate business bank account.
Secure appropriate business insurance policies for risk mitigation.
Regularly review and update legal and financial strategies as the business grows.

Frequently Asked Questions

How long does it take to form a company?: The time to form a company varies by state and entity type. Basic LLC or corporation filings can take anywhere from a few days to several weeks. Expedited processing is often available for an additional fee in many states, allowing formation in 1-3 business days.
What is the difference between an LLC and a Corporation?: An LLC offers liability protection with pass-through taxation and less administrative formality. A Corporation (C-Corp or S-Corp) also offers strong liability protection but has more complex tax structures and reporting requirements, though it can be more appealing for raising capital.
Do I need a registered agent if I form a company online?: Yes, every state requires LLCs and corporations to designate a registered agent with a physical address in the state of formation to receive official legal and tax documents. Lovie provides registered agent services nationwide.
What are the ongoing costs of forming a company?: Ongoing costs include state annual report fees (e.g., $800 in California for corporations), franchise taxes (e.g., Delaware), registered agent fees, and potential business license renewals. These vary significantly by state and entity type.
Can I form a company from home?: Yes, you can form a company from home. Many states allow online filings, and services like Lovie handle the paperwork remotely. You will still need a registered agent with a physical address in the state.

Start your formation with Lovie — $20/month, everything included.