When forming an LLC, most entrepreneurs compare prices among different service providers — but what many don’t realize is that hidden fees can significantly increase the real cost. These fees often appear after checkout or in small print, leaving you paying more than expected. In this guide, we’ll reveal the most common hidden costs in LLC formation services and how to avoid them in 2025.
Common Hidden Fees You Should Know
Even if an LLC package looks cheap upfront, it may include several hidden add-ons. Here are the most frequent ones:
1. Registered Agent Fees
Many LLC services include a free registered agent for the first year — but after renewal, they can charge $100–$300 annually. Always check the renewal terms before signing up.
2. EIN (Employer Identification Number) Filing
Some companies charge up to $70–$99 to obtain an EIN from the IRS, even though you can apply for it yourself for free at IRS.gov.
3. Operating Agreement Templates
A basic LLC package may exclude this essential document, requiring you to pay extra for an Operating Agreement template. This fee can range between $30–$60.
4. State Filing Fees Not Included
The advertised prices on formation websites often exclude state filing fees, which vary between $40 and $500 depending on the state. Always confirm total costs before proceeding.
5. Annual Report and Compliance Services
Some companies auto-enroll you in annual report filing or compliance monitoring services, adding $75–$150 to your yearly expenses.
How to Avoid Hidden Fees
Avoiding these surprise costs requires a bit of research and attention:
- ✅ Read the full pricing breakdown before checkout.
- ✅ Avoid optional add-ons that are not required by your state.
- ✅ Compare transparent providers like ZenBusiness or Incfile.
- ✅ Check state websites directly for exact filing fees.
Recommended: Understand Real LLC Formation Costs
Before choosing a provider, it’s important to know the true cost of forming an LLC.
Read our detailed breakdown here 👉 LLC Formation Costs Explained
This article covers filing fees, registered agent costs, and other essential details — all in one place.
Transparent LLC Formation Companies (2025)
Here are a few LLC service providers known for being upfront about their prices:
| Company | Starting Price | Registered Agent | Hidden Fees |
|---|---|---|---|
| ZenBusiness | From $0 + state fees | 1 year free | No |
| Incfile | From $0 + state fees | 1 year free | Low |
| Northwest Registered Agent | $39 + state fees | Free | No |
| LegalZoom | From $149 + state fees | Paid | Yes |
FAQs
Q: What are the most common hidden fees when forming an LLC?
A: Registered agent renewals, EIN applications, and compliance services are the most frequent hidden charges.
Q: How can I find a company with transparent pricing?
A: Look for providers that list total costs upfront and include the registered agent in their price.
Q: Can I form an LLC myself without paying extra?
A: Yes. You can file directly through your state’s website, pay only the state filing fee, and save on unnecessary extras.
Final Thoughts
Hidden fees are everywhere — but with the right information, you can avoid them entirely. Always read the fine print, compare transparent providers, and make sure you’re paying only for what your LLC actually needs. Smart preparation today can save you hundreds of dollars in the future.