Forming Your LLC in 2026: Services, Costs, and When to Skip the Middleman
Honest commission-disclosed comparison. Most "best LLC formation service" articles push whichever service pays the highest commission. We name the bias and recommend based on what matters for a solo business owner.
Some links on this page are affiliate links. If you form an LLC through a service linked here, we may earn a commission at no additional cost to you. This disclosure is required by the FTC. Our editorial recommendations are based on pricing, privacy, and service quality, not commission rates.
The Honest Baseline
You can form an LLC yourself directly with your state's Secretary of State (SOS) website in 30-60 minutes for just the state filing fee, typically $50-$200 in most states. Everything a formation service does is paperwork and registered agent services. No service gives you a meaningful legal advantage over filing yourself.
Formation services are worth using for: (1) privacy (they put their address on the Articles, not yours), (2) convenience (they handle the state's forms), (3) registered agent service if you need a third-party address, and (4) ongoing compliance reminders. They are not worth using if you want substantive legal protection or tax advice, which they cannot provide.
Service Comparison Table (April 2026 Pricing)
| Service | Formation Fee | Reg Agent Yr 1 | Reg Agent Yr 2+ | 2553 Add-On | Best For |
|---|---|---|---|---|---|
| Northwest RA | $39 + state | Included | $125/yr | $50 | Privacy, lowest total cost, no upsells |
| ZenBusiness | $0 + state | Included (basic) | $199/yr | $99 | Bundle value, $0 starter tier |
| LegalZoom | $0-$249 + state | Included | $299/yr | $149 | Brand trust, established businesses |
| Rocket Lawyer | $99 + state | Included | $149/yr | $99 | Legal Q&A access, ongoing legal needs |
| Inc File / Bizee | $0 + state | Included | $119/yr | Varies | Cheapest first year, expect upsells |
| Nolo | $79 + state | Not included | Varies | N/A | Legal publisher credibility, DIY-focused |
| Stripe Atlas | $500 all-in | Included | $100/yr | N/A | VC-track C-Corp in Delaware (NOT LLC path) |
Per-Service Honest Review
- + Flat $39 formation fee + state
- + Registered agent includes privacy-focused address (not your home)
- + No upsell funnel
- + Transparent renewal pricing ($125/yr)
- - Simpler interface vs ZenBusiness
- - Less brand recognition for clients who care
Best default choice for a solo LLC operator who values privacy and wants to avoid renewal upsell traps. The $50 Form 2553 S-election add-on is the cheapest in the market.
- + $0 formation fee on starter (just state fee)
- + Good UX
- + Strong compliance reminders
- + S-election add-on $99
- - $199/yr registered agent renewal is steep
- - Aggressive email marketing on renewals
Good for budget-conscious first-time LLC owners. Year 1 is the cheapest option with the $0 starter. Watch the year-2 registered agent cost.
- + Most recognized brand
- + Established track record
- + Good for conservative business owners
- - $299/yr registered agent is highest in market
- - Significant upsell funnel
For solopreneurs optimising cost, LegalZoom is the expensive option. The premium is for brand trust. S-election add-on $149.
- + Attorney Q&A subscription included
- + Good for complex operating agreements
- - $99.99/mo subscription model; makes sense only if you use the legal access
- - Expensive if you just want formation
Worth it only if you need ongoing legal Q&A. For pure LLC formation, it is overpriced.
State Filing Fees (Top 10 States by Formation Volume)
| State | Formation Fee | Notes |
|---|---|---|
| Delaware | $90 | Most popular for C-Corp. For LLC operating elsewhere, also pay home state fees. |
| California | $70 + $800/yr | $800 annual LLC minimum franchise tax. Forming in CA or operating in CA triggers it. |
| New York | $200 + publication | Publication requirement: $500-$2,000 in some counties. Most expensive effective formation. |
| Texas | $300 | One-time formation only; no annual report fee for LLCs. Good value long-term. |
| Florida | $125 | $138.75 annual report. No state income tax; good formation state. |
| Wyoming | $100 | Strong privacy, no income tax, low annual report fee ($62). Popular privacy formation. |
| Nevada | $425 | High formation fee. No income tax but $500/yr business license. LLC privacy strong. |
| New Mexico | $50 | Lowest cost privacy state with good LLC statutes. Popular alternative to WY/NV. |
| Kentucky | $40 | Lowest formation fee in the country. Minimal state tax burden. |
| Arizona | $50 | No publication requirement (unlike NY). Good low-cost formation state. |
The DIY Path (Total Cost: State Fee Only)
For a solo operator comfortable with a 2-4 hour self-guided process, forming directly with the state is the cheapest option and gives you an identical LLC to any formation service.