No matter what anybody says, there's no such thing as a completely free limited liability company (LLC), because you'll always be responsible for covering your state's LLC filing fee, ranging anywhere from $35 to a few hundred bucks. That said, LegalZoom can walk you through the entire formation process and help you file the necessary paperwork at no extra cost.
Here's what to expect.
How to get a free LLC in 3 steps
To get a free LLC, use a no-cost formation service like LegalZoom to prepare and file your paperwork. That way you'll only pay your state's required filing fee, which ranges from $35 to $500 depending on location. Here's how to start your LLC without any additional costs.
Step 1: Create a plan for your LLC
First, you'll need to make some important decisions about your business—starting with what to name your LLC. It must be unique and not already registered in your state, so you should conduct a business name search to confirm availability. When you form your LLC with LegalZoom, we'll automatically complete this step for you.
Next, decide how your LLC will be run. There are two options.
- Member-managed LLC: All owners participate in daily operations and business decisions.
- Manager-managed LLC: You designate specific people to operate the business on behalf of members.
You'll need all this information to create an operating agreement, which is one of the most important documents for a new LLC. While not all states require one, it's strongly recommended to draft this agreement and specify the following:
- Your LLC's management structure (i.e., multi-member LLC vs. single-member LLC) and decision-making process
- Clear documentation of each member's ownership percentages, rights, and responsibilities
- Guidelines for handling profits, losses, and distributions between members
- Procedures for adding or removing members and resolving disputes
Finally, most LLCs need to appoint a registered agent—someone who accepts legal documents on behalf of your business. Most states allow you to serve as your own registered agent, which costs you nothing. Still, you might consider using a registered agent service if you won't always be available during regular business hours or want your personal address off public record.
Step 2: File your formation documents
Now, you're ready to officially register your LLC with the Secretary of State. Most states call LLC formation paperwork the articles of organization. You'll also need to pay the filing fee when you submit your articles.
If you move forward with LegalZoom, we'll help you complete your state's specific form and ensure all required information is included. For reference, your articles of organization typically include the following:
- Your LLC's official name, management structure, and business address
- Your registered agent's name and address
- The organizer's name and signature
- Any other information required by your state, such as your LLC's purpose or duration
While LegalZoom is here to help you with this step for free, you can also file directly with the Secretary of State if you prefer. Most states offer online filing portals, or you can download and submit PDF forms by mail.
Step 3: Handle final requirements
Your LLC is official once the Secretary of State approves your articles of organization, but you'll want to take a few more steps to set up your business. Here are some general needs for most companies:
- Obtain an employer identification number (EIN). Also called a federal tax ID, an EIN is required if you hire employees, file certain business taxes, or open business bank accounts.
- Open a business bank account. Look into your banking options to open a separate account strictly for business matters.
- Apply for licenses and permits. Depending on your business and location, you may need to apply for federal, state, or local licenses to legally operate.
After setting up your LLC, you should turn your attention to long-term business planning. This includes how you'll handle business taxes, bookkeeping, payroll, and similar tasks. Likewise, you should consider any requirements to keep your business compliant, such as filing annual reports and renewing business licenses.
What does a 'free LLC' really mean?
"Free LLC" means a company won't charge you for its formation service—but you're still responsible for your state's filing fee. Many companies use this as a marketing hook, so understanding what's included matters.
At LegalZoom, "free LLC formation" means we guide you through the process, help prepare your documents, and submit them to your state—all without charging you a dime for our assistance.
Unless you qualify for state-specific programs that offer fee waivers or reductions (which are rare for business formations), there's no way around paying the state filing fee—even if you file everything yourself.
Minimum LLC formation cost in each state
| State | Domestic LLC | Foreign LLC |
|---|---|---|
| Alabama | $200 | $150 |
| Alaska | $250 | $350 |
| Arizona | $50 | $150 |
| Arkansas | $45 | $270 |
| California | $70 | $70 |
| Colorado | $50 | $100 |
| Connecticut | $120 | $120 |
| Delaware | $110 | $200 |
| District of Columbia | $99 | $220 |
| Florida | $125 | $125 |
| Georgia | $110 | $235 |
| Hawaii | $50 | $50 |
| Idaho | $100 | $100 |
| Illinois | $150 | $150 |
| Indiana | $95 | $105 |
| Iowa | $50 | $100 |
| Kansas | $160 | $165 |
| Kentucky | $40 | $90 |
| Louisiana | $100 | $150 |
| Maine | $175 | $250 |
| Maryland | $100 | $100 |
| Massachusetts | $500 | $500 |
| Michigan | $50 | $50 |
| Minnesota | $155 | $205 |
| Mississippi | $50 | $250 |
| Missouri | $50 | $105 |
| Montana | $35 | $70 |
| Nebraska | $100 | $100 |
| Nevada | $425 | $425 |
| New Hampshire | $102 | $102 |
| New Jersey | $125 | $125 |
| New Mexico | $50 | $100 |
| New York | $200 | $250 |
| North Carolina | $125 | $250 |
| North Dakota | $135 | $135 |
| Ohio | $99 | $99 |
| Oklahoma | $100 | $300 |
| Oregon | $100 | $275 |
| Pennsylvania | $125 | $250 |
| Rhode Island | $150 | $150 |
| South Carolina | $110 | $110 |
| South Dakota | $150 | $150 |
| Tennessee | $300 | $300 |
| Texas | $300 | $750 |
| Utah | $59 | $59 |
| Vermont | $155 | $155 |
| Virginia | $100 | $100 |
| Washington | $180 | $180 |
| West Virginia | $100 | $150 |
| Wisconsin | $130 | $100 |
| Wyoming | $100 | $150 |
Other LLC costs to watch out for
While the filing fee is the first expense, you might encounter other costs during the early stages of your new LLC. Here are some to plan for.
- Expedited filing. If your state offers rush processing and you want your LLC formed faster, you'll pay an additional processing fee on top of the base filing fee.
- Registered agent fees. If you decide to hire a professional registered agent, you might pay $100 to $500 in financial compensation annually. For reference, LegalZoom’s Registered Agent Service costs $249/year.
- Operating agreements. Professional drafting services or attorneys typically charge $100 to $750 or more. A reliable operating agreement template offers a budget-friendly starting point, though multi-member LLCs may benefit from attorney review.
- State-specific LLC taxes and fees. Factor in required taxes, such as sales/use and income taxes, as well as any industry-specific permits or licenses you need to acquire (and eventually renew).
- EIN. You can obtain a federal tax ID from the IRS for free, but if you want LegalZoom to handle it, you’ll need to upgrade to a paid LLC plan or pay for the EIN add-on separately.
- Business bank account fees. When you open an account or apply for credit, consider any recurring maintenance fees, minimum balance requirements, and potential interest rates.
- Annual report filing fees. Many areas require annual or biennial reports with associated state fees, so plan accordingly to avoid falling out of good standing with the Secretary of State.
Although these expenses can add up, they're far less expensive than the penalties that could arise from missing payments or deadlines. Above all, track your requirements and stay organized to keep your LLC compliant.
Example first-year totals
Here's what a realistic upfront budget might look like, depending on the approach you take.
- Minimal cost (DIY): State filing fee ($35–$500) + $0 for registered agent (you serve as your own) + $0 for EIN (file yourself) + $0 for operating agreement (draft yourself) = $35–$500 total
- Moderate cost (some paid services): State filing fee ($35–$500) + registered agent service ($249) + $0 for EIN (file yourself) + operating agreement template ($99) = $383–$848 total
- Full-service: State filing fee ($35–$500) + LegalZoom Pro plan upgrade ($249) + registered agent service ($249) = $533–$998 total
Why use LegalZoom to create a free LLC?
LegalZoom’s Basic LLC package starts at $0 + filing fees, which includes:
- Articles of organization preparation and filing
- A name check to confirm your preferred business name is available
- A tax consultation from 1-800Accountant
Besides starting your LLC with LegalZoom, you might work with us for the following reasons.
Registered agent services
LegalZoom has registered agents in all 50 states. With our Registered Agent Service, you'll get a physical address for receiving legal documents, reliable service during business hours, and notifications when important mail arrives. Plus, you'll keep your personal information off public records.
Operating agreements
Given the importance of an operating agreement—it's more or less a contract and rulebook for your business—it makes sense to get professional help with drafting one. With LegalZoom, you'll just answer a few questions about your business, and we'll prepare your operating agreement for a flat fee.
Once it's ready, we'll send it to you for all members to sign.
EIN registration
While you can obtain your EIN for free through the Internal Revenue Service (IRS), LegalZoom is happy to handle this step for you. In short, we'll file the paperwork directly with the IRS and ensure your federal tax ID registration is completed correctly.
Business license and permit assistance
Licenses tend to be one of the most stressful and confusing requirements for new business owners—and it's easy to see why. Requirements vary across federal, state, and local levels, and while some businesses need multiple permits, others need none at all.
LegalZoom's Business License Report and Management handles the research for you, identifying requirements that apply to your business. Down the road, we'll also send you reminders when it's time to renew your licenses and if the requirements ever change.
Hassle-free LLC formation process
With over 4.9 million LLC formations (and counting), LegalZoom knows a thing or two about how to make things easy for small business owners. Even if you have no experience working with state agencies, government documents, or business formations, we'll walk you through everything you need to start a legitimate LLC in your state.
Credibility
LegalZoom practically invented online LLC formation. You can find other options out there (or just do everything yourself), but none match our track record of helping new business owners bring their dreams to life. But just don't take our word for it—see what thousands of LegalZoom customers have to say.
Free LLC FAQs
How do I know if an LLC is right for me?
There's no one-size-fits-all answer, but if you're seeking liability protection and business opportunities that a sole proprietorship can't provide, an LLC might be your next step. This legal business entity offers personal asset protection, similar to a corporation, but isn't as complicated to set up.
How long does it take to form an LLC?
Completing the articles of organization and initial formation steps typically takes just a few hours, although each state has its own processing times to actually make your LLC official. Other tasks like drafting an operating agreement, obtaining licenses, or applying for business credit can take longer (sometimes weeks to months, especially in the case of licenses).
How much does an LLC usually cost to operate?
LLCs are generally cost-effective to operate and maintain. Ongoing expenses often include annual state renewal fees (where applicable), business taxes, and basic operational costs. Nonetheless, the exact LLC costs depend on the state and what kind of business you operate.
Can I form an LLC in a different state?
If you already have an LLC and want to operate in a different state, you can register your business as a foreign LLC. This allows you to conduct business with the same LLC, but you'll need to provide documentation from your home state to show that your business is in good standing.
What are the most popular states for starting an LLC?
Delaware, Wyoming, Nevada, Texas, California, Florida, and New York are some of the most popular states to start an LLC. Whether you're located in one of these states or elsewhere, LegalZoom can help you launch your LLC in just a few simple steps.
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