Usually, you form an LLC and then elect S-corp tax treatment — these are different things. An LLC is the legal entity; S-corp is the tax classification. For most small businesses with $50K+ in net profit, the S-corp election on an LLC reduces self-employment tax significantly. We model both and recommend based on your numbers.

Delaware is preferred for venture-backed startups planning to raise institutional capital — VCs and attorneys expect it. For operating small businesses (a consulting firm, retail shop, or local service business), forming in your home state is usually better — you avoid paying taxes and fees in two states. We advise on state of formation based on your specific plans.

An operating agreement is the foundational document of your LLC — it specifies ownership percentages, voting rights, profit distribution, and what happens if an owner leaves or dies. Even single-member LLCs should have one. Without it, your state's default LLC rules govern, which may not reflect your intentions. We draft operating agreements as part of our formation service.

Most state filings are processed in 1–2 weeks, with expedited options in 1–3 business days in most states. EIN issuance is instant online. Your full formation package — articles, EIN, operating agreement, and initial tax elections — is typically complete within 2 weeks. We expedite when you have a business opening date or investor deadline.

Key elections include: S-corp election (Form 2553, ideally within 75 days of formation), fiscal year election (most businesses use calendar year), and any state-specific elections. For startups with equity grants, 83(b) elections must be filed within 30 days of grant — we coordinate these immediately after formation.