If you searched for the cheapest LLC formation service, you have probably noticed that almost every comparison article pushes you toward services that cost $200 to $400. That is because affiliate commissions are higher on premium tiers, not because budget options do not exist. The honest reality is that you can form a perfectly good LLC for under $100 plus state fees if you know which services deliver real value at the cheap end and which ones cut corners that bite you later. I have been forming LLCs and helping clients set them up since 2013 through Ecommerce Paradise, and the budget end of this market has clear winners and clear traps.
This guide covers the 10 best cheap LLC formation services in 2026 with honest takes on which ones are budget-done-right and which ones are cheap-because-they-cut-corners. The distinction matters because some services advertise free formation tiers that leave out critical pieces (like registered agent), some have low year-1 hook pricing followed by year-2 renewals that exceed the premium services, and some sell your data to marketing lists which costs you in spam mail and email volume later. A truly cheap LLC service is one that costs less across the full lifetime of the entity, not just at the moment of formation.
The framing I want to set up before the rankings: there are three things you should never let a budget service skimp on. You need a registered agent (every state requires one and most “free” tiers do not include it). You need an EIN (your federal tax ID, required for banking and supplier accounts). You need an operating agreement (legally required in some states, practically required everywhere if you want your liability protection to actually hold up in court). Any cheap service that does not include all three is not actually cheap; it is just hiding the cost. With that established, here are the 10 best options.
Quick Comparison: Cheapest LLC Formation Services 2026
| Service | Starting Price | RA Year 1 | RA Year 2+ | 5-Year Total |
|---|---|---|---|---|
| Bizee | $0 + state fees | Free | $119/yr | $476 |
| Northwest Registered Agent | $39 + state fees | $125 | $125/yr | $664 |
| MyCompanyWorks Basic | $79 + state fees | $119 | $119/yr | $674 |
| Inc Authority | $0 + state fees | Free | $179/yr | $716 |
| Swyft Filings | $0 + state fees | $149 | $149/yr | $745 |
| ZenBusiness Starter | $0 + state fees | Not included | $199/yr | See notes |
| Tailor Brands Lite | $0 + state fees | $199 | $199/yr | $995 |
| LegalZoom Basic | $0 + state fees | Not included | $249/yr | See notes |
| MyCorporation Basic | $99 + state fees | $249 | $249/yr | $1,344 |
| Doola Starter | $297/yr | Included | $297/yr | $1,485 |
5-year total reflects formation cost plus registered agent renewals. State fees and annual report fees vary by state and are added on top. ZenBusiness Starter and LegalZoom Basic do not include registered agent at all, so their free tiers are not directly comparable; the actual minimum complete cost runs $199+ and $249+ respectively.
What Corners Should a Budget LLC Service Never Cut?
Before getting into the rankings, here is what to watch for. Not every “free” or “cheap” tier is actually delivering a complete LLC. The three things a budget service cannot skip without leaving you with an incomplete entity are registered agent, EIN, and operating agreement.
The registered agent is non-negotiable. Every state requires LLCs to designate a registered agent with a physical address in the state of formation, available during business hours to receive legal documents and state correspondence. Some “free formation” tiers (LegalZoom Basic, ZenBusiness Starter) do not include registered agent service, which means you have to either appoint yourself (your home address goes on public state filings, which most owners do not want) or pay extra for the registered agent as an add-on (which makes the “free” formation not actually free). A genuinely cheap service includes registered agent in the base formation. The SBA guide to business structures covers why this matters at the foundational level.
The EIN is the second non-negotiable. Your Employer Identification Number is your LLC’s federal tax ID, and you need it to open a business bank account, apply for supplier accounts, hire contractors, and file federal taxes. Some cheap services charge $50 to $100 extra for the EIN as an add-on, which makes the headline price misleading. You can technically apply for an EIN directly with the IRS for free if you have a Social Security Number, but it adds friction to the formation process. A budget service that includes EIN procurement in the base package or charges a small fee for it is fine. One that does not include it and pretends formation is complete without it is misleading. The IRS overview of LLC tax treatment covers what the EIN does at the federal level.
The operating agreement is the third non-negotiable. This is the internal document that defines how your LLC is owned, managed, and operated. Some states legally require LLCs to have one (California, New York, Delaware, Maine, Missouri). Every state treats the operating agreement as critical evidence in court when determining whether to uphold your limited liability protection. A budget service that does not include at least a basic operating agreement template is leaving you exposed. The Cornell Law overview of LLCs covers the legal mechanics of operating agreements and why they matter for liability protection.
1. Bizee
Bizee (formerly Incfile) is the genuine cheapest path to a complete LLC. The Silver tier costs $0 plus state fees, includes one full year of registered agent service for free, and renews at $119/yr starting year 2, which is tied with MyCompanyWorks for the lowest renewal rate on the market. Over a 5-year ownership period, the total cost works out to roughly $476 (just the four years of $119 renewals), which is the cheapest sustained cost in this comparison.
The Gold plan at $199 adds EIN procurement, operating agreement, and banking resolution. For most owners who want a complete formation with the three non-negotiables included, Gold is the right tier even though Silver technically gets the LLC filed. The $199 one-time cost spread across a multi-year ownership period works out to under $40/yr extra compared to Silver, which is worth it for the included EIN and operating agreement. Bizee has processed over 1 million LLC formations, so the brand carries weight at banks during account-opening KYC review.
The corners Bizee does cut: aggressive upsells at checkout that try to push you toward higher tiers and add-ons, and the company does sell your contact information to marketing lists (which leads to a wave of spam mail and emails after formation). Both are real annoyances, but neither affects the actual LLC quality. For owners who can navigate the upsell flow without getting tricked into add-ons they do not need, and who can tolerate some spam mail in exchange for the cheapest sustained pricing on the market, Bizee is the budget winner.
Pricing: Silver $0, Gold $199, Platinum $299, plus state fees. Free registered agent year 1 with formation. Renewal $119/yr starting year 2.
Strengths: Cheapest sustained cost at $119/yr renewal, genuinely free formation tier, free RA year 1 included, 1M+ formations processed, strong brand recognition with banks.
Weaknesses: Aggressive checkout upsells, sells customer data to marketing lists, support is less personalized than Northwest, EIN and operating agreement only on Gold tier and above.
Best for: Owners who want the cheapest sustained cost and are comfortable navigating upsells.
The cheapest sustained cost on the market.
Bizee Silver gets your LLC filed for $0 plus state fees with free RA year 1, and the $119/yr renewal is the lowest in the industry. Gold at $199 adds EIN and operating agreement. Save $600+ over five years compared to LegalZoom.
2. Northwest Registered Agent
Northwest Registered Agent is the cheap-done-right option, the right choice when you want budget pricing without any of the corners that other cheap services cut. At $39 plus state fees, the entry cost is genuinely cheap. The annual renewal at $125/yr is just $6 more than Bizee, which works out to $30 extra over a 5-year ownership period. For that $30, you get a fundamentally better service: no data selling (so no spam mail wave), the Corporate Guide model where you get a real human contact, operating agreement included in the base formation, and a privacy policy that explicitly prohibits selling customer data.
The honest comparison with Bizee is that Northwest charges $39 upfront where Bizee charges $0, but Northwest does not bombard you with checkout upsells and does not sell your information. Northwest’s $50 EIN add-on is the same as paying Bizee’s Gold tier for EIN inclusion, so the practical cost difference is minimal. For owners who care about privacy and want to avoid the spam mail wave that hits Bizee customers, Northwest is the small premium worth paying. The Corporate Guide support model is genuinely better than the generic call queues at most competitors. The 5-year total works out to roughly $664.
The one place Northwest does not match Bizee on cheapness is the year-1 entry. If your absolute priority is paying the least possible in year 1, Bizee Silver wins at $0. If you care about total ownership cost and quality at the cheap end, Northwest is the better budget choice.
Pricing: $39 + state fees for formation. $50 EIN add-on. Annual registered agent renewal $125/yr starting year 2.
Strengths: Cheap with no corners cut, no data selling, Corporate Guide personal support model, operating agreement included, presence in all 50 states, $125/yr renewal is competitive.
Weaknesses: $39 upfront where Bizee is $0, EIN is a $50 add-on rather than included, dashboard is functional but not as polished as ZenBusiness.
Best for: Owners who want budget pricing without aggressive upsells or data selling.
Cheap done right with no corners cut.
Northwest at $39 includes operating agreement, never sells your data, and assigns you a real Corporate Guide. The $125/yr renewal is just $6 more than Bizee for fundamentally better service.
3. MyCompanyWorks Basic
MyCompanyWorks Basic at $79 plus state fees ties Bizee for the cheapest registered agent renewal at $119/yr while delivering the highest customer service rating in the budget category at 4.9/5 on Shopper Approved. The Basic tier covers formation essentials with the option to upgrade to Standard at $199 for EIN and operating agreement, or Complete at $279 for a free registered agent year. For owners who want cheap with responsive support, MyCompanyWorks is the strongest combination on the budget end.
The 90-day satisfaction guarantee is unusual in this industry and adds real value at the budget end where buyer’s remorse is most likely. Same-day filing is available on the Complete tier with orders placed before 3pm Eastern, which is faster than most competitors at any price point. The tradeoff compared to Bizee is the $79 upfront where Bizee is $0, but the support quality difference is substantial. Where Bizee feels mass-market and impersonal, MyCompanyWorks feels like a small company that actually cares.
The 5-year total works out to roughly $674 (Basic at $79 plus four years at $119 renewal), which is $198 more than Bizee Silver’s $476 lifetime cost. For owners who would pay the difference for premium support quality and the satisfaction guarantee, MyCompanyWorks is the right cheap option. For pure cost optimization, Bizee still wins. Note that MyCompanyWorks is smaller than Bizee or LegalZoom, so brand recognition during bank account-opening KYC is slightly weaker.
Pricing: Basic $79, Standard $199, Complete $279, plus state fees. Registered agent renewal $119/yr starting year 2 (tied with Bizee for lowest).
Strengths: Highest customer service rating at 4.9/5, ties Bizee for lowest renewal at $119/yr, same-day filing on Complete tier, 90-day satisfaction guarantee, responsive personal support.
Weaknesses: No genuinely free formation tier (Basic starts at $79), lower brand recognition than market leaders, EIN and operating agreement only on Standard tier and above.
Best for: Budget-conscious owners who want premium customer service and a satisfaction guarantee.
Cheap with premium support quality.
MyCompanyWorks Basic at $79 ties Bizee for the cheapest renewal at $119/yr with the highest service rating in the industry (4.9/5) and a 90-day satisfaction guarantee.
4. Inc Authority
Inc Authority has the cheapest year-1 entry on the market, but the long-term cost picture is less favorable than Bizee. The free formation tier means you pay $0 in service fees in year 1, plus state filing fees and free registered agent for the first year. For owners whose absolute priority is paying the least possible in year 1 (often because they are stretching every dollar to launch a side business while keeping a day job), Inc Authority is the cheapest possible entry point. Inc Authority is owned by LegalZoom, so the brand carries weight despite the bargain pricing.
The honest tradeoff: the year-2 renewal jumps to $179/yr, which is $60 more per year than Bizee or MyCompanyWorks. Over a 5-year ownership period, the cumulative cost works out to roughly $716 (zero in year 1, plus four years of $179 renewals), which is $240 more than Bizee Silver. The right way to use Inc Authority is intentionally: pay $0 in year 1, then switch your registered agent to Bizee or Northwest in year 2 to get the lower ongoing renewal. Switching registered agents is a simple process that takes about an hour of paperwork, so this is a viable strategy if you understand the math.
If you do not plan to switch registered agents (most people do not, because they forget about it), Inc Authority ends up more expensive than Bizee over a multi-year period. The free year-1 hook only pays off if you actively manage your renewals. Also worth knowing: the paid tiers ($399 Starter Business, $599-799+ Fast Track) are expensive compared to competitors at the same price points, so do not get talked into a paid tier just to “complete” the formation. Use the free tier or use a different service.
Pricing: Free formation plus state fees on Starter tier. Paid tiers $399 to $799+. Registered agent renewal $179/yr starting year 2.
Strengths: Lowest year-1 entry at $0 service fees, owned by LegalZoom so brand is recognized, all 50 states covered.
Weaknesses: Year-2 renewal at $179/yr is significantly higher than Bizee at $119/yr, paid tiers are expensive compared to competitors, aggressive checkout upsells.
Best for: Owners who specifically need zero year-1 cost and will actively switch RA in year 2.
Cheapest year-1 entry on the market.
Inc Authority’s free formation tier means zero service fees in year 1, just state filing fees. Best if you specifically need lowest possible year-1 cost and will switch registered agent later.
5. Swyft Filings
Swyft Filings is the right pick for budget owners who want a clean checkout without aggressive upsell flows. The Basic plan is free plus state fees, the Standard at $199 adds EIN, operating agreement, and registered agent, and the Premium at $299 to $349 adds expedited filing. For owners who have tried Bizee or Inc Authority and felt stressed by the upsell maze, Swyft’s cleaner interface is a real relief.
The $149/yr renewal is mid-range, $30 more per year than Bizee or MyCompanyWorks but cheaper than ZenBusiness ($199), LegalZoom ($249), or MyCorporation ($249). Over a 5-year ownership period, the total works out to roughly $745 (formation cost varies by tier, plus the renewals). The free tier is a real entry point for owners who want to pay $0 in formation costs, though you would need to add EIN and operating agreement separately, which makes the Standard tier at $199 the more honest cheap pick for a complete LLC.
The differentiator here is the interface, not the price. Swyft is not the cheapest, but it is the cleanest budget experience. For owners who want to make their formation decision quickly without being upsold to death, that experience is worth something. Same-day filing on Premium tier orders gives Swyft a speed advantage over most competitors when you need the entity live fast.
Pricing: Basic $0, Standard $199, Premium $299 to $349, plus state fees. Registered agent renewal $149/yr starting year 2.
Strengths: Cleanest checkout in the budget category, free starter tier exists, fast formation on Premium tier, all 50 states covered.
Weaknesses: $149/yr renewal is $30 more than Bizee or MyCompanyWorks, less brand recognition than market leaders, free tier does not include EIN or operating agreement.
Best for: Budget owners who want a clean checkout without aggressive upsells.
Clean checkout without upsell overload.
Swyft Filings Standard at $199 includes formation, EIN, operating agreement, and registered agent in a straightforward interface that does not pressure you into add-ons you do not need.
6. ZenBusiness Starter
ZenBusiness is included on this list because the Starter tier is technically free, but I have to be honest about what that means in practice. The Starter plan at $0 plus state fees does not include registered agent service, which means you have to either appoint yourself (your home address goes on public state filings) or pay for the registered agent separately. Most owners do not want their home address on public state filings, so the Starter tier ends up being an incomplete formation that requires additional purchases to actually use.
The Pro plan at $199 is the right tier to actually compare against the genuinely cheap competitors. At Pro, you get formation, EIN, operating agreement, registered agent, and 1-day expedited filing. The $199/yr renewal starting year 2 is more expensive than Bizee, MyCompanyWorks, Northwest, or Swyft. The dashboard quality and weekend support are real differentiators, but ZenBusiness is not really competing on cheapness; it is competing on the guided experience and the compliance dashboard.
The honest take on ZenBusiness for the cheap shopper: if your priority is cheapest sustained cost, skip ZenBusiness. If your priority is the most beginner-friendly experience, ZenBusiness Pro at $199 is worth the premium, but it is not actually cheap. The Starter tier at $0 is a hook that does not deliver a complete LLC without adding the registered agent as a separate purchase. For owners specifically shopping on price, Bizee Silver delivers the same “free formation” promise with registered agent actually included.
Pricing: Starter $0 (no RA included), Pro $199, Premium $399, plus state fees. Registered agent renewal $199/yr starting year 2.
Strengths: Best compliance dashboard in the industry, weekend customer service, AI-guided formation through Velo, 850,000+ businesses formed.
Weaknesses: Starter tier does not include registered agent (so the “free” formation is incomplete), $199/yr renewal is higher than the genuine cheap options.
Best for: Owners who want the best guided experience and are willing to pay for the Pro tier.
Best guided experience but not the cheapest.
ZenBusiness Pro at $199 includes formation, EIN, operating agreement, registered agent, and the AI-guided experience. The Starter tier is technically free but does not include registered agent so it is not directly comparable.
7. Tailor Brands Lite
Tailor Brands Lite at $0 plus state fees offers free formation, but the value depends entirely on whether you specifically want bundled branding (logo design and basic brand identity tools). For ecommerce owners who have not built their brand yet, Tailor Brands consolidates LLC formation and branding into one vendor relationship, which can save the cost of paying a separate designer. For owners who already have a logo or do not need branding help, Tailor Brands is just a more expensive LLC formation service compared to Bizee or Northwest.
The Essential plan at $199 includes formation, registered agent, and the branding tools. The Elite plan at $249 adds priority support and additional design features. The $199/yr renewal is mid-range, comparable to ZenBusiness and significantly higher than Bizee or MyCompanyWorks. The 5-year total works out to roughly $995 if you take the Essential tier, which is more than double Bizee Silver’s $476.
The right way to think about Tailor Brands in the cheap category is that it is only cheap if you specifically need the branding bundle and would otherwise pay for branding separately. As a pure LLC formation service competing on price, it is not competitive. The branding tools themselves are reasonable for basic logo design but not on par with hiring an actual designer for a serious brand.
Pricing: Lite $0, Essential $199, Elite $249, plus state fees. Registered agent renewal $199/yr starting year 2.
Strengths: Bundles LLC formation with logo design tools, free formation tier exists, useful for owners building their brand from scratch.
Weaknesses: No advantage if you already have branding, $199/yr renewal is higher than Bizee or Northwest, free tier does not include EIN or operating agreement.
Best for: Owners who specifically want bundled LLC formation and branding tools.
Bundle LLC formation with branding.
Tailor Brands Essential at $199 combines formation, registered agent, and logo design in one purchase. Only cheap if you specifically need the branding bundle.
8. LegalZoom Basic
LegalZoom Basic at $0 plus state fees is technically free, but like ZenBusiness Starter, the free tier does not include registered agent service. To get a complete LLC with registered agent included, you have to either upgrade to LegalZoom Pro at $249 (the highest price in this comparison) or buy registered agent separately at $249/yr (also the highest in this comparison). Either way, LegalZoom is not actually cheap.
The honest take: LegalZoom’s marketing leads with “free formation” pricing that does not include the registered agent service every state legally requires. This is the most egregious example of cheap-tier corner-cutting in this category. For owners specifically shopping on price, LegalZoom Basic is misleading. The brand recognition is genuine (over 4 million businesses formed), but you pay heavily for that recognition compared to budget alternatives that deliver the same legal LLC structure at a fraction of the long-term cost.
LegalZoom Premium at $299 with attorney consultations is the right tier if you specifically want bundled legal access, but it is a premium service, not a budget option. Including LegalZoom on this list because it does have a free formation tier, but you should understand that the headline price is misleading and the total cost over multi-year ownership is the highest in this comparison.
Pricing: Basic $0 (no RA included), Pro $249, Premium $299, plus state fees. Registered agent $249/yr separately, the highest in this comparison.
Strengths: Most familiar brand for nervous first-timers, attorney consultations on Premium tier, 4M+ businesses formed.
Weaknesses: Basic tier does not include registered agent (so the “free” formation is incomplete), highest renewal at $249/yr, most expensive total cost in this comparison.
Best for: Owners who specifically want the LegalZoom brand or attorney access and are willing to pay premium pricing.
Brand recognition but not actually cheap.
LegalZoom Pro at $249 includes formation, EIN, operating agreement, and banking resolution. The Basic tier at $0 does not include registered agent so the headline price is misleading.
9. MyCorporation Basic
MyCorporation Basic at $99 plus state fees is the budget tier, with $249/yr registered agent renewal that ties LegalZoom as the most expensive in this comparison. The 5-year total works out to roughly $1,344 (formation cost plus four years of $249 renewals), which is nearly 3x Bizee Silver’s $476.
The reason MyCorporation appears on the cheap list at all is the QuickBooks integration through Intuit ownership, which has value for owners specifically planning to use QuickBooks for their bookkeeping. For owners who would pay for QuickBooks anyway and want the integration built in from formation, the premium pricing makes sense. For owners using Wave, Xero, or other bookkeeping platforms, the integration value disappears and MyCorporation becomes just an expensive LLC formation service.
The honest take: MyCorporation is not actually cheap. The Basic tier exists at $99, but the renewal pricing eliminates any value advantage over the multi-year ownership horizon. Include here because some readers will specifically search for Intuit-backed budget options, but for pure cost optimization, MyCorporation is not the right answer.
Pricing: Basic $99, Deluxe $124, Premium $224, Premium Plus $324, plus state fees. Registered agent renewal $249/yr starting year 2.
Strengths: QuickBooks integration through Intuit ownership, familiar brand for TurboTax users, all 50 states covered.
Weaknesses: $249/yr renewal tied with LegalZoom as the most expensive, no advantage if you do not use QuickBooks, less polished interface than ZenBusiness.
Best for: QuickBooks users who specifically value the Intuit integration.
For QuickBooks users specifically.
MyCorporation Basic at $99 integrates with the Intuit ecosystem. The $249/yr renewal is high, so this is only the right pick if you specifically value the QuickBooks connection.
10. Doola Starter
Doola Starter at $297/yr is on this list specifically for non-US residents who want to form a US LLC. For US residents, $297/yr is not cheap; Bizee or Northwest delivers a comparable LLC at a fraction of the cost. For non-US residents, Doola is genuinely the cheapest service that actually handles the workflow non-residents need (EIN procurement without an SSN, ongoing compliance from abroad, registered agent service, tax filing for foreign-owned US LLCs).
The reason Doola earns inclusion is that non-residents typically pay $500 to $1,500+ at competitor services that pretend to support non-residents but mostly do not. Doola at $297/yr is the cheapest service that actually delivers on the non-resident formation promise. The 5-year total works out to roughly $1,485 (five years at $297/yr), which is high in absolute terms but cheap in the non-resident-formation category.
If you are a US resident reading this article, skip Doola and use Bizee or Northwest. If you are a non-US resident, Doola is the cheap answer in your specific category. My dedicated article on best LLC services for non-US residents covers this audience in more depth.
Pricing: Starter $297/yr, Plus $1,999/yr, Pro $2,999/yr. Registered agent and ongoing compliance included on all tiers.
Strengths: Cheapest service for non-US residents, handles EIN procurement without an SSN, ongoing compliance and registered agent included.
Weaknesses: Not cheap for US residents (Bizee or Northwest is much cheaper), higher tiers are significant annual investment.
Best for: Non-US residents who want the cheapest path to a US LLC.
Cheapest US LLC for non-US residents.
Doola Starter at $297/yr handles formation, EIN for non-residents, registered agent, and ongoing compliance from abroad. The cheapest service that actually delivers on the non-resident formation promise.
The Cheap-Tier Traps to Avoid
Now that the rankings are out of the way, here are the specific traps to watch for in the budget LLC formation category. These cost real money and real time when you fall for them.
The “free formation that does not include registered agent” trap is the most common. LegalZoom Basic and ZenBusiness Starter both market free formation tiers that do not include registered agent service, which means the formation is incomplete and requires additional purchases. The “free” pricing is essentially marketing to get you in the door, where you then upgrade or buy add-ons to complete the LLC. For owners specifically shopping on price, look for services that include registered agent in the free or cheapest tier (Bizee Silver, Inc Authority Starter, Swyft Filings Basic).
The “low year-1 hook with expensive year-2 renewal” trap is the second. Inc Authority is the clearest example: free formation in year 1, but year-2 renewal jumps to $179/yr, which is $60 more per year than Bizee. If you do not actively manage the renewal by switching to a cheaper RA in year 2, the total cost over multi-year ownership ends up higher than just starting with Bizee. Always check the year-2 renewal price before committing to a year-1 hook.
The “EIN as an expensive add-on” trap is the third. Some services charge $50 to $100 extra for EIN procurement, which can make a cheap-looking formation more expensive than a service that includes EIN in the base price. You can technically apply for an EIN directly with the IRS for free if you have an SSN, but the friction is real. Either get a service that includes EIN (Bizee Gold, ZenBusiness Pro, Swyft Filings Standard) or DIY the EIN application through the IRS website.
The “data selling” trap is the fourth. Bizee and Inc Authority sell your contact information to marketing lists, which leads to a wave of spam mail and emails from insurance companies, payroll services, credit card processors, and other vendors. The spam is annoying but not financially damaging in itself; the cost is the time you spend filtering through it. Northwest and MyCompanyWorks have privacy policies that explicitly prohibit data selling, which is worth a small premium for owners who care about minimizing spam.
The “aggressive checkout upsell” trap is the fifth. Several budget services bury you in upsell prompts at checkout, pushing higher tiers, banking partner add-ons, document services, and various other extras that drive your final price well above the headline. Inc Authority and Bizee are the worst offenders. Swyft Filings has the cleanest checkout flow. The trap is paying $300+ for what advertised as a $0 service because the upsells stacked up.
What to Never Skimp On
To recap the three non-negotiables that any LLC service must deliver, regardless of price: registered agent, EIN, and operating agreement. A “cheap” service that does not include all three is just hiding the cost or leaving you with an incomplete entity.
Registered agent: every state requires LLCs to designate a registered agent with a physical address in the state of formation. The cheapest path to a real registered agent is through Bizee Silver (free year 1, then $119/yr) or Inc Authority Starter (free year 1, then $179/yr). DIY is technically possible if you appoint yourself, but your home address goes on public state filings, which most owners do not want.
EIN: your federal tax ID, required for opening a business bank account, applying for supplier accounts, hiring contractors, and filing federal taxes. Either get a service that includes EIN procurement (Bizee Gold at $199, ZenBusiness Pro at $199) or apply directly to the IRS for free if you have an SSN.
Operating agreement: the internal document that defines how your LLC is owned, managed, and operated. Required by law in some states (California, New York, Delaware, Maine, Missouri) and critical in every state as evidence in court when defending your limited liability. Bizee Gold, Northwest (included in $39 formation), and ZenBusiness Pro all include operating agreements. Free DIY templates exist but are not as legally tight as service-provided versions.
Decision Matrix: Which Cheap LLC Service Should You Choose?
For the absolute cheapest sustained cost, Bizee Silver at $0 plus state fees with the $119/yr renewal is the right answer. Accept the upsell friction and the spam mail wave in exchange for the lowest lifetime cost in the industry.
For cheap without compromises, Northwest at $39 plus state fees with the $125/yr renewal is the right answer. Pay $30 more over five years for no data selling, personal Corporate Guide support, and operating agreement included.
For cheap with the best support, MyCompanyWorks Basic at $79 plus state fees with the $119/yr renewal is the right answer. Pay the $79 upfront for the 4.9/5 service rating and the 90-day satisfaction guarantee.
For lowest year-1 cost, Inc Authority‘s free Starter tier is the right answer, with the caveat that you need to switch RA in year 2 to get to a lower long-term cost.
For cheap with a clean checkout, Swyft Filings Basic or Standard is the right answer. The $149/yr renewal is mid-range, but the absence of upsell pressure is worth something.
For non-US residents, Doola Starter at $297/yr is the cheapest service that actually handles the non-resident formation workflow.
For everyone else, the four services above (Bizee, Northwest, MyCompanyWorks, Inc Authority) cover essentially every cheap LLC use case. The other services on this list are either not actually cheap (LegalZoom, MyCorporation, ZenBusiness) or have specific use cases (Tailor Brands for branding bundle).
Frequently Asked Questions
What is the absolute cheapest way to form an LLC?
The absolute cheapest path is to file the formation paperwork directly with your state Secretary of State and act as your own registered agent at your home address. This costs just the state filing fee ($50 to $300 depending on state) with no service fees. The tradeoffs are: your home address goes on public state filings, you handle all compliance reminders yourself, and you DIY the operating agreement and EIN application. For owners willing to accept those tradeoffs, this is the cheapest possible path. For most owners, Bizee Silver at $0 plus state fees with the free first year of registered agent is the cheapest path that still gets you a complete LLC.
Is a cheap LLC service as good as an expensive one?
For the actual LLC formation, yes. The state-issued Certificate of Formation is identical regardless of which service files the paperwork on your behalf. The differences between cheap and expensive services come down to support quality, dashboard features, included documents (EIN, operating agreement), and ongoing compliance reminders. A $39 Northwest LLC and a $299 LegalZoom LLC are legally the same entity at the state level. The differences are in the experience and the bundled services.
Should I use the free formation tier or pay for a higher tier?
Use the free formation tier (Bizee Silver, Inc Authority Starter, or Swyft Filings Basic) only if you are comfortable applying for your EIN directly with the IRS and using a free operating agreement template. If you want EIN and operating agreement included, the right cheap option is Bizee Gold at $199, which includes both plus formation and registered agent in one purchase. For most owners, Bizee Gold is the sweet spot between cheap and complete.
Will a cheap LLC service hurt my supplier or banking approvals?
No. Suppliers and banks care about whether you have a legitimate LLC with a real EIN and business bank account, not which formation service filed the paperwork. They will see your LLC name, EIN, and operating history. Some banks recognize the larger formation service brands (LegalZoom, Bizee) during KYC review, which can smooth approval at the margin, but the difference is small and the legal LLC is the same regardless of who filed it.
How much should I expect to spend on an LLC over five years?
For a complete LLC with registered agent, EIN, and operating agreement, expect $476 to $1,344 over five years depending on which service you use. Bizee Silver is the cheapest at $476 (including $0 formation, free RA year 1, and four years of $119 renewals). LegalZoom Pro is the most expensive at over $1,200 (including $249 formation and four years of $249 renewals). State annual report fees ($0 to $300+ depending on state) are added on top regardless of service. If you are building a high-ticket ecommerce business, the LLC cost is a small fraction of your overall startup investment. My complete business formation checklist covers the broader financial picture, the free high-ticket niches list covers product categories that justify the structural investment, and the Ecommerce Paradise High-Ticket Dropshipping Masterclass walks through the full operating setup.
The Bottom Line
For the absolute cheapest complete LLC over a multi-year ownership period, Bizee Silver at $0 plus state fees with the $119/yr renewal is the right answer. Accept the upsell friction and the spam mail in exchange for the lowest sustained cost in the industry. Move up to Bizee Gold at $199 if you want EIN and operating agreement included from day one.
For cheap without the corners cut, Northwest Registered Agent at $39 plus state fees with the $125/yr renewal is the right answer. The $30 premium over Bizee across five years buys you no data selling, the Corporate Guide support model, and operating agreement included in the base price. For owners who value privacy and quality at the cheap end, Northwest is the better choice.
For cheap with premium support, MyCompanyWorks Basic at $79 plus state fees with the $119/yr renewal is the right answer. The 4.9/5 service rating and 90-day satisfaction guarantee provide genuine peace of mind at a price point competitive with the cheapest options.
For lowest year-1 cost specifically, Inc Authority‘s free Starter tier is the right answer, with the caveat that you should switch your registered agent to Bizee or Northwest in year 2 to avoid the $179/yr renewal premium.
Skip the cheap-tier traps. Do not let “free formation” pricing without registered agent talk you into LegalZoom Basic or ZenBusiness Starter. Do not pay $249/yr for renewals at LegalZoom or MyCorporation when Bizee delivers the same legal LLC at $119/yr. Do not let aggressive checkout upsells stack add-ons onto a budget service until it costs more than the premium services. The cheap LLC is a solved problem if you stick with the four services I covered above.
Want to skip the entire setup and launch a real ecommerce business?
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Free Resources to Get Started
Before you finalize your cheap LLC setup, make sure the broader business plan is locked in. If you are building an ecommerce business behind your budget LLC, grab my free high-ticket niches list for the product categories that actually drive revenue, and start with the free beginner guide if you are new to the model. For personalized help mapping out the structure, my coaching walks through setup step by step, and the Ecommerce Paradise Patreon community is where active operators share what is working right now.
Related Articles
For more on LLC formation and the broader business setup, these companion guides cover specific situations:
Best LLC Services in 2026: Complete Guide covers all 21 formation services across every category. Best LLC Service for Small Business covers the broader small-business comparison. Best LLC for Ecommerce Beginners covers the first-time owner case. Best Registered Agent Services dives deeper into the RA specialists you might switch to in year 2.
And the four pillar guides cover the broader ecommerce business foundation: my complete high-ticket dropshipping guide, the free niches list, the supplier sourcing guide, and the complete business formation checklist.
Cheap is a solved problem if you stick with the genuine value services and skip the cheap-tier traps. Pick Bizee for absolute lowest cost, Northwest for cheap with quality, or MyCompanyWorks for cheap with premium support. Get the entity filed and move on to the work that actually builds the business.
Trevor Fenner is an ecommerce entrepreneur and the founder of Ecommerce Paradise, a platform focused on helping entrepreneurs build and scale profitable high-ticket ecommerce and dropshipping businesses. With over a decade of hands-on experience, Trevor specializes in high-ticket dropshipping strategy, niche and product selection, supplier recruiting and onboarding, Google & Bing Shopping ads, ecommerce SEO, and systems-driven automation and scaling. Through Ecommerce Paradise, he provides free education via in-depth guides like How to Start High-Ticket Dropshipping, advanced training through the High-Ticket Dropshipping Masterclass, and fully done-for-you turnkey ecommerce services for entrepreneurs who want a faster, more hands-off path to growth. Trevor is known for emphasizing sustainable, real-world ecommerce models over hype-driven tactics, helping store owners build scalable, sellable, and location-independent brands.
