How to Start an LLC in 2025 for Under $50 – No Lawyer
$50 — Filing fee in some states — Wyoming ($100), Kentucky ($40), New Mexico ($50) are lowest
$0 — Cost to get an EIN (federal tax ID) from the IRS website — completely free
1 day — Time to form an LLC online in several states including Delaware and Wyoming
5.4M — New business applications filed in the US in 2023 — record high (US Census Bureau)
$0 — Cost of an operating agreement template — free templates are legally sufficient in most states
Starting an LLC Without a Lawyer: Yes, You Can
An LLC (Limited Liability Company) is the most popular business structure for small businesses and entrepreneurs in the US — and you don’t need an attorney to form one. The basic filing process is straightforward: choose your state, file Articles of Organization with the state agency, get a free EIN from the IRS, and optionally draft an operating agreement. That’s the entire process for a single-member LLC in most states.
Step 1: Choose Your Formation State
Most small business owners should form their LLC in the state where they actually operate their business. The ‘Delaware advantage’ is real for large corporations with venture capital, but for a solo entrepreneur or small business, forming in your home state is usually simpler and cheaper because you’ll need to register as a ‘foreign LLC’ in your home state anyway if you form elsewhere — adding extra fees and complexity.
Cheapest states to form an LLC in 2025:
Step 2: File Your Articles of Organization
Go directly to your state’s Secretary of State website (sos.[yourstate].gov) and find the LLC formation section. You’ll need: your desired LLC name (check availability first), your registered agent name and address (you can be your own registered agent), the LLC’s principal business address, and in some states, the members’ names. File online — most states process within 1–5 business days, some same-day.
LLC naming rules: must include ‘LLC,’ ‘L.L.C.,’ or ‘Limited Liability Company.’ Cannot use ‘bank,’ ‘insurance,’ ‘attorney,’ or similar regulated terms without special licensing. Search for name availability at the Secretary of State website before filing.
Step 3: Get Your Free EIN from the IRS
An EIN (Employer Identification Number) is your LLC’s federal tax ID — essentially a Social Security number for your business. Apply directly at irs.gov/ein-application — completely free, and you receive your EIN immediately upon online completion. You need an EIN to open a business bank account, hire employees, and file business taxes. There’s no reason to pay a service for this; it takes about 5 minutes on the IRS website.
Step 4: Open a Business Bank Account
Keeping business and personal finances separate is legally important for maintaining your LLC’s liability protection. Bank of America, Chase, and Wells Fargo all offer business checking accounts with no monthly fee for LLCs under certain conditions. Relay Financial and Mercury are popular online options with no fees and good accounting integrations — particularly useful for online businesses.
Cost Breakdown: What It Actually Costs
| Expense | Cost | Notes |
|---|---|---|
| State filing fee | $40–$500 | Varies widely by state. Kentucky $40, California $70 |
| EIN (federal tax ID) | $0 | Always free at irs.gov — ignore services charging $50–$100 |
| Operating agreement | $0 | Free templates are legally sufficient for most single-member LLCs |
| Registered agent (optional) | $0–$125/yr | You can serve as your own registered agent in most states |
| Annual report fee | $0–$800/yr | Some states require none; California requires $800/yr minimum franchise tax |
For structure decisions: Single-Member LLC vs Multi-Member LLC: Key Differences | For documentation: LLC Operating Agreement: Free Template and Guide
Frequently Asked Questions
What does an LLC actually protect me from?
An LLC separates your personal assets from business liabilities. If your business is sued or owes debts, creditors generally cannot come after your personal bank account, home, or car. However, this protection (called the ‘corporate veil’) can be pierced if you mix personal and business finances, commit fraud, or fail to maintain proper LLC formalities.
Should I use an LLC formation service like LegalZoom or ZenBusiness?
These services are convenient but not necessary for straightforward single-member LLCs. LegalZoom charges $79–$299+ plus state fees. ZenBusiness starts at $0 but the registered agent service renews at $199/year. For a simple LLC in your home state, DIY filing is completely manageable and saves $100–$300.
How are LLCs taxed?
Single-member LLCs are ‘disregarded entities’ by default — all business income flows directly to your personal tax return (Schedule C). Multi-member LLCs are taxed as partnerships by default. Either type can elect to be taxed as an S-Corp, which can save self-employment taxes when the business earns $40,000+ in profit. Consult a CPA when considering S-Corp election.
Can I start an LLC with bad credit?
Yes — your personal credit score has no bearing on LLC formation. Filing an LLC is a state administrative process, not a credit application. Your credit matters when you later apply for business loans or credit cards in the business’s name, but not at formation.
How long does it take to form an LLC?
Online filing in most states: 1–5 business days for standard processing. Several states including Delaware, Wyoming, and Florida offer same-day or next-day approval for an expedited fee. California can take 3–5 weeks for standard filing but offers $350 expedited same-day service.
Do I need an LLC for dropshipping or online business?
Not required to start, but strongly recommended once generating revenue. An LLC separates personal liability, makes opening a business bank account easier, can improve customer trust, and provides a clear structure for tax purposes. Most online entrepreneurs form their LLC within the first 3–6 months of operating.
File This Week
The entire LLC formation process — name check, online filing, EIN application — can be completed in one afternoon for most states. The $40–$100 filing fee is the single best business investment you can make. Stop operating under your personal name and start operating with the legal protections you deserve.
