Forming a Limited Liability Company (LLC) in the United States doesn’t have to be expensive. In fact, if you know the right steps, tools, and states, you can start a fully legal U.S. business for less than $200—even if you’re not living in the U.S. The key is knowing where to form your LLC, how to file smartly, and which services offer the best value for non-residents
In this guide, you’ll learn how to form your LLC as cheaply as possible, which states have the lowest costs, how to get your EIN (Employer Identification Number), and how to open a U.S. business bank account from anywhere in the world. We’ll also cover the biggest mistakes people make when trying to form an LLC on a budget
Which States Are the Cheapest for LLC Formation?
LLC formation fees vary widely from one U.S. state to another. Here are three of the most affordable and business-friendly options:
1. Kentucky – LLC formation fee: $40. One of the absolute lowest filing fees in the U.S. No additional startup costs and relatively fast processing
2. Arkansas – LLC formation fee: $45 online. Affordable and simple filing system. However, not always ideal for non-residents due to limited online services
3. Mississippi – LLC formation fee: $50. Also has a low annual report fee of just $25, which helps reduce long-term maintenance costs
While Delaware and Wyoming are popular choices, their initial filing fees are slightly higher—Delaware at $90 and Wyoming at $100—but they offer great advantages like strong privacy laws and business flexibility
What’s the Total Cost to Start an LLC?
Here’s what you’ll typically need to pay for when forming your LLC:
- State filing fee: $40–$100 depending on the state
- Registered agent service: $39–$125/year (you need this if you don’t live in the state)
- EIN application: Free from the IRS, but filing services charge around $50–$100 to do it for you
- Operating agreement: Optional but recommended (some states require it); free if you write your own or around $30–$75 if you use a service
Total estimate: You can start your LLC for about $150–$250 if you choose an
How to Maintain a Low-Cost LLC After Formation
Forming your LLC is just the beginning. To keep your business in good standing and avoid unnecessary expenses down the road, you need to maintain it properly. Here’s how to keep your LLC running on a tight budget without compromising legality or operations
1. File Your Annual Reports on Time
Most states require LLCs to file an annual or biennial report and pay a small fee. Failing to do this can result in late fees or even dissolution of your company. Set calendar reminders or use an automated compliance service. For example, in Wyoming, the annual report fee is just $60, while in Delaware it’s $300, even for LLCs that earn no income
2. Use Free or Low-Cost Business Tools
You don’t need expensive software to manage your LLC. Tools like Google Workspace (free tier), Trello, Wave Accounting, and PayPal Business can handle everything from invoicing to collaboration. If you’re managing an online store, consider platforms like Shopify Starter or WooCommerce
3. Minimize Legal and CPA Costs
While it’s wise to consult a CPA or attorney for complex matters, many everyday tasks—like filing your EIN, writing an operating agreement, or doing your bookkeeping—can be done using free templates and online tutorials. If you do need expert help, hire professionals on a freelance basis via sites like Upwork or Fiverr to keep costs down
4. Separate Personal and Business Finances
Even for a low-cost LLC, it’s essential to open a separate business bank account. This helps protect your liability shield and simplifies taxes. Mercury, Relay, and Bluevine all offer free business checking accounts with no monthly fees. Keeping your business money separate is not just smart—it’s critical
5. Claim All Possible Tax Deductions
The IRS allows LLCs to deduct legitimate business expenses. These can include your website hosting, domain, marketing, software subscriptions, and even a portion of your home office if you’re working from home. Keeping proper records allows you to maximize your deductions and reduce your overall tax bill
6. Consider S Corp Election (Later)
If your LLC starts earning more than $50,000 per year, consider electing to be taxed as an S Corporation. This can reduce your self-employment taxes by allowing you to pay yourself a salary and take the rest as distributions. However, this comes with additional compliance costs, so it’s not ideal for brand-new LLCs
Can I Start a U.S. LLC with Zero Upfront Capital?
While you can’t eliminate all government fees, it’s possible to start and operate an LLC without upfront capital by using the right tools:
- Use Incfile to form your LLC with $0 service fee (pay only state fee)
- Choose a state like Kentucky or New Mexico with low filing and annual fees
- Apply for your EIN yourself via the IRS (free)
- Use Mercury or Relay to open a free business bank account
- Design your logo and website using Canva and WordPress.com
- Invoice clients using Wave Accounting
In other words, your entire business infrastructure can be set up with fewer than $200 in costs—even if you’re starting from outside the U.S.
What to Do Next?
Here’s a quick checklist for launching your low-cost U.S. LLC:
- ✅ Choose your business name and check its availability in your chosen state
- ✅ Select a state with low filing and annual fees (e.g., New Mexico, Wyoming, Kentucky)
- ✅ Hire a registered agent (free for the first year from most providers)
- ✅ File your LLC using Incfile or ZenBusiness
- ✅ Apply for your EIN (free from IRS)
- ✅ Write your operating agreement (use free templates)
- ✅ Open a U.S. business bank account with Mercury
- ✅ Start accepting payments via Stripe, Payoneer, or Wise
Final Word
You don’t need to be rich or based in the U.S. to launch a business with a U.S. LLC. Whether you’re a freelancer, eCommerce seller, or starting a SaaS or digital service, a Limited Liability Company gives you legal protection and tax flexibility at a surprisingly low cost. Just be smart with your choices—state, services, and tools—and you can build a legitimate U.S. company even if you’re on a tight budget
📩 Need help choosing the best state, fastest banking option, or creating a custom step-by-step plan for your LLC from abroad? Just let me know—I’d be happy to guide you personally