Can you get an LLC for free? In most cases, you can’t assume that forming an LLC will cost exactly $0. States generally charge their own filing fees, and some businesses have additional ongoing costs.
But there’s an important distinction: you can do many parts of the LLC formation process for free. You can prepare much of the paperwork yourself, avoid unnecessary formation-service fees, and get an EIN directly from the IRS at no cost.
So if you’re starting a business with very little money, the better question isn’t simply “Is an LLC free?”
It’s:
What’s the cheapest legitimate way to form and maintain an LLC for my business?
Here’s how to figure that out.
Can You Get an LLC for Free?
Usually, not completely.
The main reason is that LLCs are created under state law, so the state where you form the company determines its filing requirements and fees. The SBA says that each state charges a filing fee, which varies by state and business structure.
However, you don’t necessarily have to pay a lawyer or a formation company to create your LLC.
For example, suppose your state charges a $100 filing fee and a formation company charges another $200 for its service. If you’re comfortable handling a straightforward filing yourself, you may be able to form the LLC for the state’s $100 fee instead of spending $300.
That’s not a free LLC but it’s a much cheaper LLC.
The difference between “free LLC” and “free LLC service”
These terms are easy to confuse.
A company might advertise “$0 LLC formation.” That could mean the company isn’t charging a formation-service fee. You may still have to pay the state filing fee.
You may also see optional charges for things such as:
- Registered-agent services
- Expedited filing
- Operating agreement packages
- Compliance services
- Business licenses
- Other add-ons
Always look at the total cost, not just the “$0” advertised price.
Which LLC Components Are Free?
Several parts of starting a business can cost nothing if you handle them yourself.
| Task | Potential cost |
|---|---|
| Researching your business name | $0 |
| Preparing your formation information | $0 if done yourself |
| Filing yourself instead of paying a formation company | $0 service fee, but state fee may apply |
| Getting an EIN directly from the IRS | $0 |
| Preparing an operating agreement yourself | Potentially $0 |
| Registered agent | May be $0 if you qualify to serve yourself |
| Business licenses and permits | Varies |
| State LLC filing | Varies by state |
| Ongoing state requirements | Varies by state |
The important thing is to separate optional service costs from government-required costs.
For example, paying $200 to a company to submit your state filing is different from paying the state itself $200.
Is an EIN Free?
Yes.
The IRS provides EINs directly to businesses for free. The IRS specifically warns that you don’t have to pay a fee to obtain an EIN and provides an online application for eligible applicants.
An EIN is a federal tax identification number used to identify a business entity.
If you’re forming an LLC and need an EIN, go directly through the IRS rather than paying a third-party website simply to submit the application for you.
Example
Imagine you’re starting a one-owner online consulting business.
You form your LLC with your state, then need an EIN to open a business bank account.
A third-party website might offer to obtain the EIN for $50 or $100.
You could instead obtain it directly from the IRS for $0.
That’s one easy way to avoid an unnecessary startup expense.
What Costs Can’t You Avoid?
Even if you do almost everything yourself, some expenses may still apply.
State LLC filing fee
This is usually the first cost you need to investigate.
When you create an LLC, you generally file formation documents with the appropriate state agency. The fee depends on the state.
The SBA notes that most states require businesses such as LLCs to register with a Secretary of State, Business Bureau, or similar agency, and that filing fees vary.
Ongoing state requirements
Forming an LLC is not necessarily a one-time event.
Depending on your state, you may have ongoing requirements such as annual or biennial reports or other state-level obligations.
This is why looking only at the initial LLC filing fee can give you an incomplete picture of the cost.
Registered agent
If you’re forming an LLC, you’ll generally need a registered agent in the state where you register.
Whether you can act as your own registered agent depends on your state’s rules and whether you meet its requirements.
If you use a professional registered-agent service instead, you’ll usually have another expense to consider.
Don’t automatically pay for one if you don’t need the service—but don’t assume you can serve as your own agent without checking your state’s rules either.
Licenses and permits
Forming an LLC doesn’t automatically permit you to operate every type of business.
Depending on what you do and where you operate, you may need additional federal, state, county, or city licenses and permits. The SBA says requirements and fees depend on the business activity and location.
For example, an online freelance writer and a restaurant can both operate as LLCs, but their licensing requirements can be very different.
How to Start an LLC With Little or No Money
If you’re trying to keep your startup costs as close to $0 as possible, you can take a DIY approach.
1. Decide whether an LLC is right for you
Don’t pay an LLC filing fee before deciding whether an LLC is actually the right structure for your business.
A solo freelancer testing a side hustle may have different needs from someone opening a physical store, hiring employees, or bringing in business partners.
2. Check your state’s official requirements
Find your state’s official business-registration website.
Check:
- LLC filing fee
- Required formation documents
- Business-name rules
- Registered-agent requirements
- Annual or biennial filing requirements
- State taxes
- Other business requirements
This is more reliable than relying on an old article that lists fees from several years ago.
3. Prepare the formation information yourself
For a straightforward LLC, you may be able to complete the formation process yourself rather than paying a company to do it.
The SBA says the information and documents required vary by state and business structure.
4. File directly with your state
If you choose the DIY route, file through the appropriate state agency.
You’re eliminating the service fee, not necessarily the government’s filing fee.
5. Get your EIN directly from the IRS
Once your LLC is formed and you have the required tax information, you’ll also want to separate your business finances by choosing a business bank account that fits your needs.
If your business needs an EIN, obtain it directly from IRS.gov for free.
6. Avoid unnecessary add-ons
Don’t automatically purchase:
- Registered-agent services
- Compliance subscriptions
- Operating-agreement packages
- EIN services
- Expedited processing
Some of these services can be useful. The point is to determine whether you actually need them before paying.
7. Check your ongoing obligations
After your LLC is formed, find out what you need to do to keep it in good standing.
The cheapest way to start an LLC can become expensive if you miss a required filing or payment later.
Are Free LLC Formation Services Actually Free?
Sometimes—but you need to understand what “free” means.
A formation company can charge $0 for its own formation service while the state still charges its filing fee.
Here’s a simple example.
Example: DIY vs. formation service
Suppose your state charges a $100 LLC filing fee.
DIY approach:
- State filing: $100
- Formation-service fee: $0
- EIN: $0
- Optional services: $0 if you don’t purchase them
Formation-service approach:
- State filing: $100
- Formation service: potentially additional
- Registered agent: potentially additional
- Other optional products: potentially additional
Neither option is automatically better.
If you understand the paperwork and want to minimize costs, DIY may make sense.
If you’d rather have someone handle administrative tasks, paying for a service may be worth it.
The important part is knowing exactly what you’re paying for.
Can You Form an LLC Without a Lawyer?
Yes, many people can handle a straightforward LLC formation themselves.
You don’t automatically need a lawyer just because you’re creating an LLC.
However, DIY formation and DIY legal advice are two different things.
Consider professional help if you’re dealing with:
- Multiple owners
- Complicated ownership percentages
- Investors
- Significant assets
- Multiple states
- Complex contracts
- Unusual liability concerns
- Tax-election questions
The SBA notes that ownership, liability, taxes, and filing requirements can vary depending on the business structure and state.
For a simple one-owner business, paying a lawyer solely to submit basic formation paperwork may not be necessary. For a complicated business, professional advice can be worth the cost.
Can You Get an LLC for Free in Every State?
No. There isn’t a single nationwide LLC fee or rule.
Each state has its own formation requirements and costs.
That’s why a statement such as “the cheapest state for an LLC is X” can be misleading without additional context.
Before forming your business, check your state’s current official requirements.
You should compare:
- Initial filing fee
- Recurring filing requirements
- State taxes
- Registered-agent requirements
- Business licenses
- Local requirements
- Where you’re actually conducting business
The SBA explains that businesses may need to register in states where they conduct business activities, not simply wherever they choose to form the company.
Should You Form Your LLC in the Cheapest State?
Not necessarily.
This is an important point for anyone searching for the cheapest way to start an LLC.
Imagine you live in State A, run your business from your home there, and find an article saying State B has a cheaper LLC filing fee.
You might think:
“I’ll just form my LLC in State B and save money.”
That doesn’t automatically solve the problem.
If your business is actually operating in State A, you may still have registration, tax, or other obligations there. The SBA notes that foreign-qualified businesses can have filing, tax, and annual-report obligations in additional states.
So don’t choose a state based only on the cheapest initial filing fee.
The cheapest filing fee isn’t necessarily the cheapest overall business setup.
What If You Have $0 to Start?
If you literally have no money available, forming an LLC may be difficult if your state requires a filing fee.
But before giving up, check whether there are programs that could help reduce your startup costs.
Depending on your circumstances and location, you may want to investigate:
- State or local small-business programs
- Entrepreneurship programs
- Business incubators
- Nonprofit business assistance
- Eligible grants
- Potential fee-waiver programs
The important word is eligible.
Don’t assume that every state offers an LLC fee waiver, and don’t assume that a business grant will pay your LLC filing fee.
Check the official requirements for your state and local area.
You can also look for free business counseling before spending money. The SBA provides access to business counseling resources for entrepreneurs.
Do You Actually Need an LLC?
This may be the most useful question to ask before worrying about how to get an LLC for free.
An LLC is not the only way to operate a business.
For example, a person starting a small freelance business may operate as a sole proprietor rather than forming an LLC.
The trade-off is important: a sole proprietorship can be simpler to start, but it does not provide the same liability structure as an LLC. The SBA notes that sole proprietorships generally involve unlimited personal liability, while an LLC provides a separate liability structure for its owners.
A simple example
Suppose you’re testing whether you can make money selling digital designs online.
You have no employees, minimal business expenses, and you’re still deciding whether the idea will work.
Your situation may be very different from someone opening a construction company with employees, equipment, contracts, and significant liability exposure.
That doesn’t mean one person should definitely choose a sole proprietorship and the other should definitely choose an LLC. It means your circumstances matter.
If you’re unsure, compare the structures or speak with a qualified professional before making the decision.
What Is the Cheapest Legitimate Way to Form an LLC?
If your goal is to spend as little as possible without cutting corners, this is the basic approach:
- Decide whether an LLC is appropriate for your business.
- Check your state’s official filing requirements.
- Prepare the required information yourself if you’re comfortable doing so.
- File directly with the state instead of automatically paying a formation company.
- Get your EIN directly from the IRS for free if you need one.
- Skip optional services you don’t actually need.
- Check ongoing state requirements after formation.
- Make sure your business has any required licenses and permits.
This won’t guarantee a $0 LLC, but it can help you avoid unnecessary expenses.
How Much Should You Budget for an LLC?
Instead of searching for one nationwide number, think about the cost in categories.
Initial costs
These can include:
- State formation fee
- Optional formation-service fee
- Registered-agent service, if you choose one
- Business licenses or permits
Ongoing costs
These can include:
- Annual or biennial state filings
- State taxes or other business taxes
- Registered-agent service
- Business licenses and renewals
- Accounting or professional services
The SBA emphasizes that business expenses and government fees can vary significantly by location.
That’s why the most accurate answer to “How much does an LLC cost?” is:
It depends on your state, your business, and which services you choose.
Frequently Asked Questions
Can you get an LLC for free?
Usually, not if you mean paying absolutely $0 for everything. State filing fees may apply. However, several parts of the process can be free, including getting an EIN directly from the IRS and handling eligible formation tasks yourself.
Can I start an LLC with no money?
It depends on your state and circumstances. If your state requires a filing fee and you don’t qualify for assistance, you’ll need money to form the LLC. You can still reduce the total cost by avoiding unnecessary service fees.
Is an EIN really free?
Yes. The IRS provides EINs directly at no charge. Be cautious of websites that charge you simply to obtain one.
Can I form an LLC myself?
Yes, a straightforward LLC can often be formed without hiring a formation company or attorney. Your state’s requirements determine what paperwork and information you’ll need.
Do I need a lawyer to start an LLC?
Not necessarily. Many simple LLCs can be formed by their owners. Professional advice can become more valuable when ownership, taxes, liability, contracts, or multiple states make the situation more complicated.
Are u0022free LLCu0022 websites really free?
Not always in the way you might expect. A u0022$0 formationu0022 offer may refer only to the company’s service fee. State filing fees and optional services may still cost money.
What is the cheapest way to start an LLC?
For a straightforward business, one of the lowest-cost approaches can be filing directly with your state, handling appropriate tasks yourself, obtaining your EIN directly from the IRS, and avoiding optional services you don’t need.
Does an LLC have annual fees?
Some states require annual or biennial reports or other recurring payments. Requirements vary by state, so check your state’s official business agency.
Can I start a business without an LLC?
Yes. Depending on your situation, you may be able to operate as a sole proprietor or choose another business structure. Compare the liability, tax, ownership, and administrative implications before deciding.
Is an LLC worth it for a small business?
It can be, but there is no universal answer. Consider your business activities, liability exposure, ownership, costs, and long-term plans rather than choosing an LLC simply because it’s a common business structure.
The Bottom Line
So, can you get an LLC for free?
Usually, you shouldn’t expect the entire process to cost $0.
But you also don’t need to spend hundreds of dollars on services you don’t need.
The state filing fee is the first cost to check. After that, look at ongoing requirements, licenses, registered-agent costs, and other expenses that apply to your particular business.
At the same time, several parts of the process can cost $0. You can often handle appropriate tasks yourself, and the IRS provides EINs directly for free.
The smartest approach isn’t to chase the biggest “FREE LLC” advertisement.
It’s to understand your state’s rules, separate required costs from optional services, and choose the cheapest legitimate way to start and maintain your business.
