You can start an LLC for the price of your state’s filing fee, and in a few situations for nothing at all. That fee runs anywhere from about $35 to over $500 depending on the state, with most states landing between $100 and $150. Every other step involved in how to start an LLC with no money — getting a federal tax ID, naming yourself as registered agent, writing your operating agreement, filing the paperwork yourself — is genuinely free. A handful of states also waive the filing fee for veterans or for applicants who show financial hardship, which is the only path to a true $0 formation.
The One Fee You Probably Can’t Skip
Filing your Articles of Organization (called a Certificate of Formation in some states) is what legally creates the LLC, and the Secretary of State’s office charges for processing it. Across all 50 states and Washington, D.C., that fee ranges from roughly $35 at the low end to over $500 at the high end. Most states charge somewhere around $100 to $150.
That fee goes directly to the state. It is not a service charge, and no formation company can get you out of paying it. If you see a service advertising “free LLC formation,” they are covering their own service fee, not the state’s.
How to Get the Filing Fee Waived
Veteran and Military Programs
Several states offer filing fee discounts or waivers for businesses owned by veterans or active-duty military members. The specifics vary. Some states waive the initial filing fee outright, while others waive annual report fees for the first few years after formation. These programs typically require that a veteran or active-duty service member own at least 51 percent of the business. Before you file, check your Secretary of State’s website for a veteran or military business program.
Hardship and Indigency Waivers
Some states let low-income applicants request a fee waiver by submitting an affidavit of indigency or a similar financial hardship form with their formation documents. These programs are not universally available, and the ones that exist were designed primarily for court filing fees rather than business formation. It still costs nothing to ask. Contact your Secretary of State’s office directly, explain your situation, and see what’s possible. The worst answer is no.
Everything Else You Need Is Free
File Directly With the State
Third-party formation services charge $100 to $300 on top of the state fee for work you can do yourself in under an hour. Every Secretary of State’s office publishes its formation form online, and most states now accept online filings with instant confirmation. Filing directly is the single biggest cost-saving move for a cash-strapped entrepreneur.
The form itself is short, usually one or two pages. You’ll need:
- Your LLC name, confirmed as available through the state’s business name database.
- The name and physical street address of your registered agent.
- Whether the LLC is member-managed or manager-managed.
- A business purpose (most states accept something general like “any lawful business activity”).
- The name and address of the organizer filing the document.
Online filings in many states process within a few business days. Paper filings sent by mail can take several weeks. If you’re submitting a fee waiver request or hardship affidavit, include it with your formation documents; online portals in some states let you upload supporting documentation directly.
Be Your Own Registered Agent
Every LLC must designate a registered agent, meaning a person or company available at a physical street address during normal business hours to accept legal documents on behalf of the business. Professional services charge roughly $100 to $300 per year for this.
In every state, you can name yourself as the registered agent as long as you have a physical address (not a P.O. box, not a virtual mailbox) and are available there during business hours. If you work from home or have a consistent office location, this cuts a recurring cost to zero. A trusted friend or family member in the state who meets the requirements can also serve.
Get Your EIN Directly From the IRS
After the state approves your LLC, you’ll need an Employer Identification Number from the IRS to open a business bank account, file taxes, and hire employees. The IRS does not charge for an EIN, no matter how you apply.1Internal Revenue Service. Employer Identification Number
The fastest route is the IRS online application, available Monday through Friday from 6:00 a.m. to 1:00 a.m. Eastern, Saturdays from 6:00 a.m. to 9:00 p.m., and Sundays from 6:00 p.m. to midnight.2Internal Revenue Service. Get an Employer Identification Number You answer a short series of questions and receive the EIN immediately on approval. The whole thing takes about ten minutes. You can also fax or mail Form SS-4, but those methods take longer.1Internal Revenue Service. Employer Identification Number
The IRS will ask for the Social Security number or Individual Taxpayer Identification Number of one “responsible party.” Finish your state filing before applying, because the IRS may delay your application if the LLC isn’t yet on file with the state.2Internal Revenue Service. Get an Employer Identification Number
Write Your Own Operating Agreement
An operating agreement is an internal document that spells out who owns what percentage of the LLC, how profits and losses are divided, what happens if someone leaves, and how major decisions get made. Only a handful of states technically require one, but every LLC should have one.
Here’s why that matters when you’re trying to spend nothing. An LLC is supposed to be a separate legal entity from you personally. Courts are more likely to respect that separation, and protect your personal assets in a lawsuit, when you have written documentation treating the business as its own thing. Without an operating agreement, your LLC runs under your state’s default rules, which may not match what you actually want. Most state defaults, for example, split profits equally among owners regardless of who put in more.
For a single-member LLC, this document doesn’t need to be complicated. A one-to-two-page agreement covering your ownership interest, how you’ll manage the business, and basic dissolution terms is enough. Free templates are widely available; just make sure the one you use is written for your state. Writing it costs nothing and can be the difference between keeping and losing your personal assets.
Costs That Show Up After Formation
Starting an LLC with no money is possible. Keeping it alive is not entirely free, and a few recurring obligations deserve attention from day one.
Annual Reports and Franchise Taxes
Most states require LLCs to file periodic reports, usually annual, sometimes biennial, that update basic information like your business address and registered agent. The fees range from $0 in some states to several hundred dollars in others. A few states also charge a separate franchise tax, essentially a fee for the privilege of being organized there. Some franchise taxes are based on revenue; others are flat.
Missing your annual report deadline can get your LLC administratively dissolved, which strips away your liability protection. Mark the due date the day you receive your formation approval.
Publication Requirements
A small number of states require newly formed LLCs to publish a formation notice in a local newspaper. The cost varies widely by state and county, from as low as $40 in rural areas to over $1,000 in major metropolitan counties. Skipping it where it’s required can trigger penalties or cost you the ability to enforce contracts. Confirm whether your state has this rule before you file.
Local Licenses and Permits
Forming an LLC with the state does not automatically give you permission to operate. Depending on what you do and where, you may need licenses or permits from your city, county, or a federal agency. Food service, construction, and retail are commonly regulated at the local level. Fees and requirements depend on your industry and location.3U.S. Small Business Administration. Apply for Licenses and Permits
Where to Get Free Help
Starting with no money doesn’t mean starting with no guidance. SCORE, a nationwide network of volunteer business mentors partnered with the U.S. Small Business Administration, offers one-on-one mentoring at no cost through email, phone, and video. You can find a mentor by entering your ZIP code on the SBA or SCORE website.4U.S. Small Business Administration. SCORE Business Mentoring The SBA also publishes free guides on choosing a business structure, applying for licenses, and launching a business, and it runs Small Business Development Centers in every state that offer free consulting and low-cost training.5U.S. Small Business Administration. Choose a Business Structure When you’re bootstrapping, this is the closest thing to free professional guidance you’ll find.