How to Form an LLC or S-Corp the Right Way, Yourself
Last updated August 2026
Who this is for
Anyone starting a business who wants to understand their structure, not just click through a template service.
What you'll actually do
- Compare LLC, S-corp, and sole proprietorship for your actual situation
- Prepare formation documents for your state
- Understand your ongoing compliance and tax obligations
- Get your EIN, operating agreement, and required registrations in order
- Know when your situation (co-founders, investors) needs a real business attorney
Why not just hire someone
Business formation attorneys commonly charge $500-$2,000 for work that's often template-driven once you understand your options.
Frequently asked questions
Should I form an LLC or an S-corp?
An LLC is typically simpler to set up and maintain, while an S-corp election can reduce self-employment tax once profits reach a meaningful level - the right choice depends on your expected income and how you plan to pay yourself.
Do I need a lawyer to start an LLC?
No - LLC formation is largely a state filing process that most people can complete themselves once they understand the required documents. Bringing in a lawyer tends to matter more once co-founders, investors, or complex agreements are involved.
What's the difference between an EIN and a business license?
An EIN is a federal tax ID number for your business, free to obtain directly from the IRS. A business license is a separate local or state authorization to operate, and requirements vary by location and industry.
When does a business need a formal operating agreement?
Even single-owner LLCs benefit from one, but it becomes essential once there's more than one owner - it's what governs ownership splits, decision-making, and what happens if a co-founder leaves.
3Stone Counsel walks through this exact process with you - screened for your specific situation, not generic advice.
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