Starting an LLC doesn’t have to cost a fortune. Many entrepreneurs hesitate to register a business because they assume the fees will be too high. But the truth is, you can form an LLC affordably—if you know where to look and how to do it right.
In this guide, we’ll break down the cheapest way to register an LLC in 2025, covering low-cost filing options, ways to reduce fees, and mistakes to avoid so you don’t overspend.
Why Form an LLC?
An LLC (Limited Liability Company) is one of the most affordable and flexible ways to structure a business. It provides:
- Legal protection – Separates personal assets from business liabilities.
- Tax benefits – Avoids double taxation (unlike corporations).
- Professional credibility – Looks more legitimate than a sole proprietorship.
If you’re making money from freelancing, e-commerce, or any business, forming an LLC is a smart long-term move.
The Cheapest States to Form an LLC in 2025
Each state has different LLC filing fees. If you’re looking to save money, some states charge significantly less than others.
The Most Affordable States for LLC Formation
Some states, like Missouri and New Mexico, have zero annual fees, making them great for long-term savings. If you don’t live in a low-cost state, you can register your LLC in a business-friendly state like Wyoming or Delaware and still operate remotely.
Explore the 15 cheapest states to form an LLC in 2025, including filing fees, annual costs, and the best states for your business needs in this blog below:
15 Cheapest States to From an LLC in 2025
Step-by-Step: How to Form an LLC on a Budget
Step 1: Choose the Right State
If you operate locally, it makes sense to register in your home state. But if you’re running an online business or e-commerce store, you may consider filing in a low-cost state to save money.
Step 2: File Your Articles of Organization
This is the main document required to form an LLC. You can file it directly through your state’s Secretary of State website or use an affordable LLC service.
Step 3: Get an EIN for Free
An EIN (Employer Identification Number) is your business’s social security number. You need it to open a business bank account and file taxes.
✔ How to Get It Cheaply: Apply directly through the IRS website for free. Some services charge for this, but you can avoid unnecessary fees.
Step 4: Create an Operating Agreement (If Needed)
Some states require an Operating Agreement, a simple document outlining ownership and management rules. You can use a free online template instead of paying a lawyer.
Step 5: Open a Business Bank Account
Once your LLC is registered, open a separate bank account to keep business finances organized.
Cheapest Banks for LLCs:
- Bluevine – No monthly fees, including invoicing tools.
- Novo – Free business banking with integrations.
The Best Budget-Friendly LLC Formation Services
If you don’t want to file paperwork yourself, you can use an LLC formation service that charges low fees and ensures everything is filed correctly.
Top Affordable LLC Services for 2025
Some services offer free first-year registered agent services, saving you even more money.
- Special $39 pricing to form your company
- Well-established and trusted service
- Includes free registered agent service for 1 year ($125 value)
- Privacy is guaranteed so your info stays off public records
- Fast filing and processing times
BEST OVERALL FOR BUSINESS FORMATION
- Starting at $0 plus state fees
- Includes branding and tax assistance
- Access to a 24/7 priority support team
- Fast and efficient LLC filing services
- Expert guidance throughout your business journey
Best for Individuals and Small Business Owners
- Pricing starts at $0 + state fees (although we recommend 99% of users choose the Gold or Premium plans)
- Free registered agent service for 1 year
- Easy-to-use dashboard
- No hidden fees and no contracts
- 24/7 fast and friendly customer service
BEST FOR EFFORTLESS BUSINESS FORMATION
Hidden Fees to Watch Out For
Many business owners overpay when forming an LLC because they don’t check for hidden or unnecessary fees.
- Registered Agent Fees: Some states require a registered agent (someone to receive legal documents). You can be your own agent to save money.
- Business Licenses: Depending on your business, you may need permits or licenses, which add costs.
- Annual Report Fees: Some states charge an annual or biennial fee, so check before registering.
How to Keep LLC Costs Low After Formation
Even after forming an LLC, you can keep expenses minimal by:
- Doing your own bookkeeping instead of hiring an accountant.
- Using free tax software like QuickBooks Self-Employed.
- Writing off deductions like home office expenses, business meals, and software.
- Filing your own taxes to avoid expensive CPA fees.
Final Thoughts: The Smartest Way to Register an LLC on a Budget
Forming an LLC doesn’t have to be expensive. You can legally register your business without breaking the bank by choosing the right state, filing yourself, and avoiding unnecessary fees.
Quick Recap: The Cheapest Way to Form an LLC in 2025
- Choose a low-cost state like Kentucky, Missouri, or New Mexico.
- File your Articles of Organization yourself instead of paying an attorney.
- Get an EIN for free through the IRS.
- Use a budget-friendly LLC service like Bizee or Northwest Registered Agent if needed.
- Avoid hidden fees like unnecessary registered agent services or expensive business licenses.
Starting a business should be an investment in your future, not an unnecessary expense. Follow these steps, keep costs low, and focus on growing your business in 2025.
