How to Form an LLC for Free (and What You'll Still Pay)
You can form an LLC for free — a formation platform handles the filing at no charge. You'll still owe your state's filing fee, which ranges from $50 to $500. Here's exactly how the process works.
Bizee Editorial Staff
Editorial Team
Introduction
Yes, you can form an LLC for free — but "free" refers to the formation platform's fee, not the state's. Every state charges a filing fee to process your Articles of Organization, typically between $50 and $500. A free service handles the paperwork and filing at no charge. You cover the state fee.
What "free LLC formation" actually means
A free LLC formation platform prepares and files your Articles of Organization with the state at no charge. The platform's service fee is $0. What you pay is the state's required filing fee — that part is unavoidable, and it goes directly to the state, not the platform.
The free tier typically covers the core filing: preparing your formation documents, submitting them to the state, and notifying you when your LLC is approved. Add-ons like expedited processing, a registered agent service, or an operating agreement template are usually available for an additional fee — but none of them are required to form your LLC.
Most entrepreneurs are surprised by how straightforward the free path actually is. You provide the basic details about your business, the platform handles the filing, and you wait for state approval.
Why every state charges a filing fee
No state allows free LLC formation because the filing fee does more than generate revenue — it creates a meaningful barrier to registration. Without it, there'd be nothing stopping someone from registering dozens of LLCs and exhausting the pool of available business names. States also use the fee to fund the Secretary of State's office, which maintains the public business registry.
The federal government doesn't charge anything for LLC formation — that process happens entirely at the state level. The IRS gets involved later, when you apply for an Employer Identification Number (EIN), but that application is also free.
How much the state fee costs
State filing fees for LLC formation range from $50 to $500 depending on where you form your business. About a third of states charge under $100, about a third charge between $100 and $149, and about a third charge $150 or more. Some states also offer expedited processing for an additional fee if you need faster approval.
A low formation fee doesn't always mean a low total cost of ownership. Some states with modest filing fees make up for it with annual franchise taxes or income taxes on pass-through earnings. If you have flexibility in where you form your LLC, it's worth looking at the full picture — not just the upfront fee.
What information you need to form an LLC
Forming an LLC requires a small set of details. Most formation platforms walk you through a short questionnaire and prepare the documents from your answers. Here's what you'll need to have ready:
- Your LLC's name — it must be unique in your state and include a designator like "LLC" or "Limited Liability Company"
- Your state of formation — typically where you live or where your business operates
- The name and address of your registered agent — the person or service that receives legal documents on your LLC's behalf
- The names and addresses of the LLC's members (owners)
- Your business's principal address
- The purpose of your business (most states accept a general statement)
You don't need an attorney to gather this information or file it. The process is designed to be handled by the business owner, and a formation platform makes it even more straightforward by guiding you through each field.
How to get an EIN after your LLC is approved
An Employer Identification Number (EIN) is a 9-digit number the IRS uses to identify your business for tax purposes. You'll need one to open a business bank account, hire employees, or file certain tax returns. The IRS issues EINs for free — you apply directly through the IRS website at no cost.
The online EIN application is available Monday through Friday, 7 AM – 10 PM ET. If you apply online, your EIN is issued immediately. Fax applications take about 4 business days. Apply at irs.gov/ein once your LLC is approved by the state.
Single-member LLCs without employees can use the owner's Social Security Number for tax purposes instead of an EIN. But an EIN keeps your personal number off business documents and is worth getting regardless.
Registered agent: what it is and your options
Every LLC is required to designate a registered agent — a person or service with a physical street address in the state of formation who is available during business hours to receive legal documents and official mail on the LLC's behalf. This is a state requirement, not optional.
You have 3 options for filling this role:
Act as your own registered agent
You can serve as your own registered agent if you have a physical street address in the state and are available during normal business hours. The trade-off is that your address becomes part of the public record, and you need to be reachable at that address whenever your business is open.
Designate another individual
A trusted person — a business partner, attorney, or family member — can serve as your registered agent as long as they meet the same requirements: physical address in the state, available during business hours.
Use a registered agent service
A registered agent service handles receipt of legal documents on your behalf, keeps your personal address off the public record, and ensures nothing gets missed if you're traveling or working irregular hours. Most formation platforms include registered agent service as a paid add-on or a free first-year benefit.
How long formation takes
Processing times vary by state and depend on how busy the Secretary of State's office is at the time you file. Standard processing generally takes 1 to 4 weeks. Many states offer expedited processing — usually 1 to 5 business days — for an additional fee paid directly to the state.
Using a formation platform doesn't slow the process down. Once you submit your information, the platform prepares and files your documents with the state. From that point, the timeline is entirely in the state's hands. You'll be notified when your LLC is approved — and with most platforms, you can view your documents digitally before they arrive by mail.
FAQ
Use a free formation platform that charges $0 for its service fee. You'll still pay your state's filing fee, which ranges from $50 to $500 depending on where you form your LLC. The platform prepares and files your Articles of Organization at no charge — the state fee is the only unavoidable cost.
No. Every state charges a filing fee to process your Articles of Organization. No state waives this fee entirely. The federal government doesn't charge for LLC formation, but formation happens at the state level — and every state requires payment to register a new LLC.
Yes. Forming your LLC through a free formation platform costs $0 in service fees (plus the state filing fee). Getting an EIN from the IRS is also free — you apply directly at irs.gov/ein. The IRS online application is available Monday through Friday, 7 AM – 10 PM ET, and issues your EIN immediately upon approval.
Yes. You can file your Articles of Organization directly with your state's Secretary of State office without using a formation platform. The trade-off is time — you'll need to find the right forms, fill them out correctly, and track the filing yourself. A free formation platform does all of that at no charge, which is why most entrepreneurs use one even when the DIY path is available.
Yes. Starting with a free formation plan doesn't lock you into anything. You can add services — like a registered agent, an operating agreement, or compliance tracking — after your LLC is formed. There's no penalty for starting with the free tier and adding support as your business grows.
You can, but it comes with real constraints. You need a physical street address in the state of formation, and you need to be available there during all business hours. Your address also becomes part of the public record. If you work from home, travel, or keep irregular hours, a registered agent service keeps your address private and ensures nothing gets missed.
Use a free formation platform and pay only your state's filing fee. That's the minimum cost to form an LLC. The state fee ranges from $50 to $500 depending on your state. Beyond that, the only other cost you might encounter is a registered agent service if you don't want to serve as your own — but that's optional at the time of formation.
Almost anyone can own an LLC. U.S. citizens, permanent residents, and foreign nationals can all be LLC members. Other LLCs, corporations, and trusts can also hold ownership. There's no minimum age requirement at the federal level, though some states have their own rules. The main restriction is that certain licensed professionals — like attorneys or doctors — may need to form a professional LLC (PLLC) instead.
