The cheapest way to start an LLC in 2026 (without the hidden fees)
"Free LLC" ads are everywhere. Some are real, some are bait. Here's what forming an LLC actually has to cost, what's optional, and how to keep your total as low as honestly possible.
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Type "cheap LLC" into a search bar and you'll get a wall of "$0" and "free" offers. The confusing part: some are genuinely free for the service itself, while others lure you in and recover the cost through pricey renewals or add-ons you didn't realize you were buying. Let's cut through it. Here's what an LLC actually has to cost — and where the cheapest honest path lands.
The one cost you can never avoid: the state filing fee
Every LLC, no matter who files it, requires paying the state's filing fee. This is the government's charge, not the formation service's, and it ranges from about $50 to $500 depending on the state. No legitimate service can waive it — if an ad implies your LLC is totally free, it's glossing over this. The cheapest states to form in (like Montana, Kentucky, or New Mexico) have filing fees well under $100.
It's tempting to chase a cheap state, but if you live and operate in one state, forming elsewhere usually means registering as a "foreign LLC" back in your home state too — paying fees twice. Chasing a low filing fee in another state often costs more overall. The cheap-state strategy mainly makes sense for fully online or non-resident businesses.
What's free if you do it yourself
- The EIN (tax ID). You can get it free directly from the IRS in minutes if you have an SSN. Services charge for the convenience, but you don't have to pay.
- A basic operating agreement. Free templates cover most simple single-member LLCs.
- Filing the paperwork yourself. You can file Articles of Organization directly with your Secretary of State and skip the service fee entirely.
So the absolute rock-bottom path is: file directly with the state yourself, get your own free EIN, use a template operating agreement. Your only cost is the state fee. The catch? You still need a registered agent (a legal requirement), and being your own means putting your home address on the public record — which many founders later regret. See our guide on that trade-off.
The cheapest path that still includes a registered agent
Most people don't want their home address public and don't want to babysit legal mail — so they want a registered agent included. The two cheapest ways to get formation plus a year of registered agent service:
| Route | Day-one cost | Year 2+ |
|---|---|---|
| Bizee Silver | $0 + state fee | ~$119/yr (registered agent) |
| Northwest | $39 + state fee | ~$125/yr (registered agent) |
| DIY (be your own agent) | State fee only | $0, but your address is public |
Bizee is the lowest sticker price — $0 for the formation work, and a free first year of registered agent. Just be disciplined at checkout: decline the EIN, expedited filing, and other add-ons unless you truly want them, or that $0 creeps up fast.
For an extra $39, Northwest adds something the budget route doesn't: they put their address on your public filings instead of yours (real privacy), and their checkout doesn't pressure you with upsells — so the headline price is closer to the price you actually pay. Many founders find that the more honestly "cheap" option once you account for the add-ons they'd have declined anyway.
The hidden costs to watch for
- Registered agent renewals. The "free" year ends — budget ~$120/year after.
- Annual report / franchise fees. Most states charge yearly to keep your LLC active. Miss them and you can fall out of good standing.
- Add-on creep. EIN, operating agreement, compliance packages, "worry-free" bundles — useful sometimes, but rarely all necessary.
- Expedited filing. Optional. Standard processing is free; you're paying for speed.
Bottom line: the cheapest honest LLC
If you want the lowest possible number and you're comfortable being your own registered agent, DIY through your state and pay only the filing fee. If you want privacy and a registered agent included without paying a service premium, Bizee's $0 plan is the cheapest sticker price, and Northwest's $39 is the cheapest once you factor in the upsells you'd otherwise decline. There's no single "cheapest" for everyone — but now you know exactly where every dollar goes and which ones you can skip.