Starting a Limited Liability Company (LLC) in the United States doesn’t have to break the bank. With the right knowledge and resources, you can establish your LLC affordably. This comprehensive guide will walk you through the cheapest ways to form an LLC in the U.S., covering state-specific fees, DIY formation steps, and cost-saving tips.
🏛️ Understanding LLC Formation Costs
The cost of forming an LLC varies by state, primarily due to differing filing fees and annual requirements. Here’s a breakdown:
📄 State Filing Fees
State filing fees are mandatory and can range significantly:
- Kentucky: $40
- Arkansas: $45
- Colorado: $50
- Missouri: $50
- Arizona: $50
- Mississippi: $50
- New Mexico: $50
- Montana: $35
Source: LLC University
🔁 Annual/Biennial Fees
After formation, many states require annual or biennial fees to maintain your LLC:worldpopulationreview.com
- Missouri: No annual report fee
- New Mexico: No annual report fee
- Colorado: $10 annual report fee
- Kentucky: $15 annual report feecommenda.io+2llcuniversity.com+2worldpopulationreview.com+2stripe.comdoola.com
Source: LLC University
🛠️ DIY LLC Formation: Step-by-Step
Forming an LLC yourself can save you money. Here’s how:
- Choose Your State: Opt for a state with low filing and annual fees.
- Name Your LLC: Ensure your desired business name is available in your chosen state.
- Appoint a Registered Agent: This can be yourself or a service; some states require a physical address in the state.easyfiling.us
- File Articles of Organization: Submit this document to your state’s Secretary of State office.investopedia.com+1tailorbrands.com+1
- Create an Operating Agreement: While not always required, it’s recommended to outline ownership and operating procedures.
- Obtain an EIN: Apply for a free Employer Identification Number from the IRS here.
Source: LegalZoom
💼 Affordable LLC Formation Services
If you prefer assistance, several services offer affordable LLC formation:zenbusiness.com+1investopedia.com+1
- ZenBusiness: Offers LLC formation starting at $0 plus state fees.legalzoom.com
- LegalZoom: Provides comprehensive services with packages starting at $0 plus state fees.
- EasyFiling: Offers free LLC formation services, excluding state fees.
Sources: ZenBusiness, LegalZoom, EasyFiling
🏦 Opening a Free Business Bank Account
Separating personal and business finances is crucial. Here are some banks offering free business checking accounts:sccu.com+3nav.com+3investopedia.com+3
- Novo: No monthly fees, integrates with various business tools.
- Mercury: Designed for startups, no monthly fees.
- BlueVine: Offers 1% interest on balances, no monthly fees.wise.com
- Found: Tailored for self-employed individuals, no monthly fees.
Sources: Novo, Mercury, BlueVine, Found
🌐 Considerations for Non-U.S. Residents
Non-U.S. residents can also form an LLC in the U.S.:
- Choose a State: States like Wyoming and Delaware are popular for their business-friendly laws.
- Registered Agent: You’ll need a registered agent with a physical address in the state.
- EIN: Apply for an EIN as a foreign entity.
- Bank Account: Some online banks, like Mercury, cater to international entrepreneurs.
Source: LegalZoom
📋 Summary: Cheapest States to Form an LLC
| State | Filing Fee | Annual Fee | Notes |
|---|---|---|---|
| Kentucky | $40 | $15 | Lowest filing fee |
| Arkansas | $45 | Varies | Affordable initial cost |
| Colorado | $50 | $10 | Low annual maintenance |
| Missouri | $50 | $0 | No annual report fee |
| Arizona | $50 | Varies | No annual reporting fees |
| Mississippi | $50 | $0 | No annual report fee |
| New Mexico | $50 | $0 | No annual report fee |
| Montana | $35 | $20 | Lowest overall cost |
Sources: LLC University, LLC University
✅ Final Thoughts
Forming an LLC in the U.S. can be affordable if you:zenbusiness.com
- Choose a state with low filing and annual fees.
- Opt for DIY formation to save on service fees.
- Utilize free business banking solutions.
By following these steps, you can establish your LLC without incurring unnecessary expenses.
Note: Always consult with a legal or financial advisor to ensure compliance with all regulations and requirements specific to your situation.