Cheapest LLC formation service: the free plan is only the first number

If you only care about the entry price, the cheapest LLC formation services are Bizee, ZenBusiness, and LegalZoom because they all advertise a $0 base plan plus state fees. But the cheapest real-world option is often Bizee or Northwest, depending on whether you need a registered agent and how much you hate upsells. Free formation is not fake. It is just incomplete.

Checked against SBA, IRS, and provider pricing pages on September 2, 2026.

The short answer

The SBA says registering a business means filing the state documents and paying the state fees your jurisdiction requires. The IRS separately says that if you are creating an LLC, you should form it with the state before applying for an EIN, and the EIN itself is free directly from the IRS. That means any private formation service is mainly selling convenience, preparation, and follow-through. The filing service fee is only one layer of the total cost.

So yes, some companies really do offer $0 formation. But you still pay the state. And if you need a registered agent, EIN filing help, or compliance support, the actual checkout total can move fast.

Service	Advertised starting price	What to watch
Bizee	$0 plus state fees	Includes one year of registered agent service, but extra services can raise the total
ZenBusiness	$0 plus state fees	Registered agent is not included in the starter plan and renewals can stack up
LegalZoom	$0 plus state fees	Attorney-positioned brand, but the more useful plans cost much more
Northwest Registered Agent	$39 plus state fees	Not free, but includes first-year registered agent service and usually feels cleaner
MyCompanyWorks	$79 plus state fees	Low list price and good document package, but registered agent is separate

Why Bizee usually wins the pure price contest

Bizee's public business-formation pages say you can form an LLC for $0 plus the state fee. Its LLC content also says one year of registered agent service is included with formation packages. That is why Bizee often ends up as the true cheapest first-year option for a basic filer who needs both formation and an agent.

That does not mean it is automatically the best value. But if the question is simply who gets you closest to the bottom on year-one cash outlay, Bizee has the strongest public pitch.

Why ZenBusiness and LegalZoom are also free, but not equally cheap

ZenBusiness also advertises LLC formation starting at $0 plus state fees. Its pricing pages make clear, though, that registered agent service is a separate line item unless you move up to a higher plan. The standalone registered agent product is listed at $199 per year, and its EIN add-on is $99. That can turn a free filing into a noticeably less-cheap setup once you pick the items many founders actually need.

LegalZoom also advertises a $0 basic plan plus state filing fees. But its own page frames the higher-value plans at $249 and $299, with attorney-related positioning and other paid extras. That can make sense if you want the LegalZoom ecosystem. It does not usually make it the cheapest sensible choice.

Why Northwest is often the smarter "cheap enough" answer

Northwest is not free. Its LLC page says formation starts at $39 plus state fees. But it also says the first year of registered agent service is included, and its standard registered agent service is $125 per year. That matters because a lot of "free LLC" comparisons quietly ignore the fact that many buyers need an agent anyway.

If you were already going to buy registered agent service, Northwest's total can look cleaner than a $0 plan with more upsell friction. You are paying a little more at the start to reduce the chances of nickel-and-dime fatigue later.

The cheapest sticker price is not always the cheapest useful setup.

Where MyCompanyWorks fits

MyCompanyWorks lists LLC formation starting at $79 plus state fees. The appeal is not absolute lowest price. The appeal is that the base package includes a personalized operating agreement, organizational minutes, a state-specific startup checklist, and lifetime company alerts. For some founders, that is a better low-cost middle ground than a free plan that pushes more follow-up decisions back onto them.

Still, if all you want is the lowest entry price, it does not beat Bizee, ZenBusiness, or LegalZoom on the homepage number.

The IRS piece people overpay for

The IRS says you can get an EIN directly from the IRS for free, and it warns people away from sites that charge a fee just to obtain one. That matters because formation services often sell EIN filing as an add-on. ZenBusiness lists it at $99. Other providers do similar things. Paying for EIN help is not always irrational, but it is optional in many simple cases.

If you are trying to stay cheap, one of the easiest ways to do that is to let the service file the LLC if you want, then get the EIN yourself directly from the IRS after the state approves the company.

My practical ranking

Bizee if you want the cheapest first-year filing path with a registered agent included.
Northwest if you want a low-cost setup that feels cleaner and less bargain-bin.
ZenBusiness if you like the platform, but watch the add-ons.
MyCompanyWorks if you want a modestly priced package with better included documents.
LegalZoom if brand comfort matters more than keeping the bill as low as possible.

Bottom line

The cheapest LLC formation service by advertised starting price is a tie between Bizee, ZenBusiness, and LegalZoom at $0 plus state fees. The cheapest practical option for many founders is Bizee because it also includes a first year of registered agent service. Northwest is the better answer if you want to spend a little more to get a cleaner, less upsell-heavy experience. If you only compare the headline number, you are probably not comparing the real cost of getting a usable LLC setup in place.