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Can You Get a Free LLC With No State Fee?

free llc with no state fee

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Most American microbusinesses cost around $3,000 to start, and most home-based franchises cost between $2,000 to $5,000 to get things going. If your business idea is small enough, it can even cost as little as $100.

However, there’s no denying that such an endeavor creates a financial strain. So if there was a way to reduce your expenses, wouldn’t you try it?

Entrepreneurs may want to start with saving the very moment they create their business. But can you get a free LLC with no state fee? Find out by reading this article.

Can You Get a Free LLC With No State Fee?

Unfortunately, there’s no such thing as a no-fee LLC. So those wondering about how to start an LLC for free will definitely have to spend money to get up and running.

If you come across companies that claim they can set up your LLC for free, then be aware that they’re lying. It’s a common marketing tactic to draw in customers. Once they’ve hooked you as a customer, they’ll tack on multiple additional charges, which can drain your wallet quickly.

Your best bet is to choose an LLC formation company with clear and upfront costs, such as Business Anywhere. Our business registration service starts at $37 (plus state fees) for the base package. You can use our convenient drop-down option to see the exact fees for each location.

In addition, we list everything you’ll get with our service, alongside any extra costs if applicable. For example, we’ll take care of your bank account opening referral and give you your first year of our registered agent service for free. If you want us to take care of your operating agreement and employer identification number (EIN) application, they’ll both cost $97 each, on top of the base $37 business formation cost.

State Fees for Creating LLCs

Regardless of where you form your LLC, you’ll have to pay a state fee, meaning there’s no such thing as a free LLC. The amount will depend on the actual state, but expect to pay anywhere between $45 to $500.

The cheapest states for creating LLCs include:

  • Kentucky
  • Arizona
  • Arkansas
  • Mississippi
  • Missouri
  • New Mexico
  • Colorado
  • Hawaii
  • Iowa
  • Michigan

All of the above states charge around $50.

On the other hand, the most expensive states for creating LLCs include:

  • Massachusetts
  • Nevada
  • Tennessee
  • Texas
  • Alaska
  • Washington
  • New York
  • South Dakota
  • Illinois
  • Rhode Island
  • California

California may seem cheap at first because it charges a $70 filing fee. However, the state has an $800 annual franchise tax too. All other states on the above list charge upwards of $150.

Keep in mind that these numbers only entail filing fees. Other factors such as taxes may make certain states more favorable than others. If you’d like more in-depth details, check out our helpful guide on LLC cost by state.

Form an LLC Without Spending a Fortune

As you can see, a free LLC with no state fee doesn’t exist. Many business formation companies may claim they can register an LLC for you without charging a state fee, but don’t believe them. They’ll hide this cost in some other additional charge, and you may end up paying more going this route.

Instead, use a reputable company like Business Anywhere. We’re fully transparent about our service charges, plus we’re very affordable.

Sign up with Business Anywhere if you want assistance setting up your LLC. We can be your registered agent and perform online notary services, as well as provide you with a virtual mailbox for a comprehensive experience.

About Author

Picture of Rick Mak

Rick Mak

Rick Mak is a 30-year veteran businessman, having started, bought, and/or sold more than a dozen companies. He has bachelor's degrees in International Business, Finance, and Economics, with masters in both Entrepreneurship and International Law. He has spoken at hundreds of conferences around the world during his career on entrepreneurship, international tax law, asset protection, and company structure. Business Anywhere Editorial Guidelines

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