Cheapest LLC Service in 2026: Real Total Costs Compared

3-Year Total Cost Ranking: All Major Services

*Service fees only. Add your state's mandatory filing fee (most states: $50-$150; CA: $70; TX: $300; NY: $200+). DIY assumes you serve as your own registered agent at no cost. If hiring RA separately with DIY: add $125-$249/year. *Bizee Basic excludes operating agreement ($99 extra) and EIN ($70 extra); the $199 Standard plan is the comparable package to Northwest's $39.

Why the Registered Agent Rate Matters More Than Formation Fee

Formation services earn most of their recurring revenue from registered agent renewals, not from formation fees. This is why "$0 formation" is a viable business model, it draws you in with a low headline cost, then renews you annually at a higher rate than you would have paid with a service that charged upfront.

The math on $39 vs. $0 formation fee over 5 years:

*Year 1 RA included free with Bizee and Northwest. ZenBusiness RA is a separate $99/yr1 add-on (not included in any plan). LegalZoom RA is a separate $249/yr add-on (not included in any plan).

Over 5 years, Northwest ($539) costs $57 less than even Bizee Basic ($596), which also excludes the operating agreement. Against Bizee Standard ($795), Northwest is $256 cheaper over 5 years with better features, faster processing, and full privacy protection.

Northwest: Cheapest Privacy-First Service at $289 Over 3 Years

Northwest Registered Agent charges $39 for formation and $125/year for registered agent renewal, $289 total over three years. This is $9 less than Bizee Basic and significantly less than ZenBusiness ($497, RA not included in $0 plan) or LegalZoom ($747+).

When comparing apples to apples (Northwest $39 vs Bizee Standard $199), Northwest is actually $208 cheaper over 3 years ($289 vs $497) and includes: full filing address coverage (all address fields, not just the RA field), an explicit policy of never selling or sharing your data, free domain name, business website, and business email included from January 2026, 1-5 business day document preparation, and in-house specialist support from Corporate Guides.

Northwest is also $9 cheaper over three years. For owners who formed an LLC partly for privacy, the full-filing address coverage that Northwest provides is the bigger difference.

ZenBusiness: $497 Over 3 Years (RA Not Included in $0 Plan)

ZenBusiness Starter offers $0 formation, but registered agent is not included, it's $99 year 1, then $199/year as a separate add-on. That's $199/year renewal vs. Bizee's $149/year. Over 3 years, ZenBusiness totals $497 for formation + RA, $208 more than Northwest ($289) and $199 more than Bizee Basic ($298). ZenBusiness also shares data with marketing partners.

What ZenBusiness offers beyond the base cost: a more developed compliance dashboard (Velo AI, deadline tracking), Worry-Free Compliance service (files annual reports on your behalf, though it auto-renews at $199/year), and over 28,000 positive customer reviews. For owners who want compliance automation features beyond reminders, ZenBusiness may be worth the premium, but verify what you're actually getting for $0.

Bizee: $0 Basic (Filing Only) or $199 Standard (Comparable to Northwest)

Bizee (formerly Incfile) advertises $0 formation, but this Basic plan only covers filing your Articles of Organization and one year of registered agent service. It excludes the operating agreement ($99 extra), EIN ($70 extra), compliance alerts, and prepares filings in about 1 business day (total state approval time then varies by state). To match what Northwest includes for $39, operating agreement, free business address, mail scanning, phone line, business email, domain name, website builder, and brand protection, you'd need Bizee's $199 Standard plan plus several add-ons, and you'd still miss the free business tools Northwest bundles in.

Even on the $199 Standard plan, Bizee prepares filings in about 1 business day; total state approval time then depends on the state, the same queue every service's filings go through. Bizee shares customer data with business partners for marketing purposes, and privacy protection is limited to one month of virtual address (vs Northwest's full-year address on all public filings).

The fair cost comparison: Northwest at $39 includes operating agreement template, full-year privacy, and 1-5 day processing. Bizee Standard at $199 includes operating agreement, but with limited privacy and data sharing with marketing partners. Over 3 years: Northwest $289 vs Bizee Standard $497.

Check Inc Authority free plan → Note: clients report regular upsell attempts.

LegalZoom: Most Expensive Major Service at $747+ Over 3 Years

LegalZoom offers $0 formation (Basic plan) but registered agent is not included in any plan, it's $249/year as a separate add-on with no free introductory period. This makes LegalZoom's Basic plan effectively $249 in year one before you've received anything beyond the filing. The $0 Basic plan also takes up to 30 business days to process. Paid plans auto-enroll you in free trials that charge if not canceled.

Over 3 years, LegalZoom Basic with RA costs $747. This is the highest of any major service: $458 more than Northwest and $509 more than Bizee Basic. LegalZoom's only genuine competitive advantage is its legal services ecosystem: the Business Attorney Plan ($39/month) provides attorney access that no other formation service offers. If you will use attorney consultations regularly, LegalZoom's total cost may be justified. If you are just forming an LLC and need reliable annual RA service, LegalZoom is not the right choice on cost.

Hidden Costs That Inflate the Real Price

State Filing Fees: The Mandatory Cost None of the Services Control

Which Is Cheapest for Your Situation

Frequently Asked Questions

Can I form an LLC for free?

You cannot avoid your state's filing fee, it is mandatory regardless of how you file, ranging from $35 (Kentucky) to $500 (Massachusetts). You can avoid the formation service fee by filing DIY through your state's online portal. You can get $0 formation service from Bizee, ZenBusiness, or LegalZoom. But you will still need a registered agent ($125–$249/year unless you serve as your own) and you still pay the state filing fee. True $0 formation is possible only if you DIY file and serve as your own registered agent with your own address.

Is a $0 LLC formation service as good as a paid service?

For the core task of filing Articles of Organization with the state: yes, generally. Bizee and ZenBusiness both file accurately and on time at their price points. The differences appear in: privacy coverage (which address fields receive address protection), data practices (whether your contact info is sold to partners), what is included without extra charge (operating agreement, EIN, domain), and support quality. Formation quality alone does not justify paying more, but the surrounding services often do.

Does the cheapest registered agent service meet legal requirements?

Yes, if they provide a real physical address in your state and are available during business hours. A $35/year local registered agent service that maintains a real office address meets the legal requirement just as well as a $249/year national service. The differences are in document management quality, compliance reminders, support when something goes wrong, and multi-state coverage if you ever foreign-qualify.