Starting a Limited Liability Company (LLC) in the U.S. is one of the most flexible and accessible ways to launch a business—even if you’re starting with very little capital. But can you really start an LLC for free?
Let’s explore what’s possible, what costs are unavoidable, and how to minimize expenses while still building a legitimate and compliant company.
Is It Legally Possible to Start an LLC for Free?
Technically, no state allows you to form an LLC entirely for free. Every U.S. state charges a filing fee to register your business, which is required by law. However, you can start your LLC with minimal costs by choosing the right state and using DIY methods.
Minimum Costs You’ll Need to Pay
Here are the basic costs you can’t avoid:
- State Filing Fee: This ranges from $40 (like in Kentucky) to $500 (Massachusetts). See this government chart for current fees.
- Registered Agent: Some states require a U.S.-based registered agent. You can act as your own (if you have a U.S. address), or use a low-cost service.
- Operating Agreement (optional but recommended): You can draft your own for free using free templates online.
That’s it. You don’t need to pay for legal services, LLC formation companies, or business plans if you’re comfortable doing it yourself.
Best Low-Cost States to Start an LLC
Some states are better suited for low-budget entrepreneurs:
- Kentucky: $40 filing fee.
- Mississippi: $50 online filing.
- Colorado: $50 and easy online setup.
- Arizona: Low fees and no annual franchise tax.
👉 Check state fees and filing details here.
Ways to Reduce Costs Further
- Do It Yourself (DIY): Skip expensive LLC formation services.
- Use Free Registered Agent for First Year: Many services offer free trials.
- Use Free EIN Application: Apply directly through the IRS website.
- Open a Free Online Business Bank Account: Banks like Mercury or Relay offer zero-fee business banking for startups.
Can You Start an LLC With No Capital?
Yes. There’s no legal requirement to deposit capital to form an LLC. You can open your LLC and fund it later when you land your first clients or secure financing.
Start From Abroad: No U.S. Address? No Problem
Foreigners can form LLCs even without living in the U.S. You’ll just need:
- A U.S. registered agent
- A U.S. mailing address (can be virtual)
- An EIN (Employer Identification Number)
- A U.S. bank account (online banks make this easier)
Learn how in our guide: 👉 How to Start an LLC in the U.S. as a Non-Resident
Final Thoughts
While you can’t technically start an LLC in the U.S. for $0, it’s entirely possible to launch one on a shoestring budget—especially if you’re resourceful and willing to do it yourself.
If you’d like help choosing the cheapest state, finding a free online bank, or need a custom checklist, just let me know—I’d be happy to walk you through it.