Starting a business is a dream for many, but the process of legally forming a business can seem overwhelming—especially when considering the costs. The good news? Forming a Limited Liability Company (LLC) doesn’t have to break the bank. Whether you’re launching a side hustle, a small business, or a freelance career, cheap LLC formation services and a basic understanding of the EIN (Employer Identification Number) can help you start right.
This article will explain everything you need to know about cheap llc formation - llc and ein , how to obtain an EIN, and why both are crucial for your business success.
✅ What is an LLC?
A Limited Liability Company (LLC) is a business structure that combines the simplicity of a sole proprietorship with the liability protection of a corporation. When you form an LLC, your personal assets are protected from business debts and lawsuits. This makes it a top choice for small business owners and entrepreneurs.
Benefits of an LLC:
- Personal liability protection
- Tax flexibility (choose to be taxed as a sole proprietorship, partnership, or corporation)
- Minimal compliance requirements
- Professional credibility
✅ Why Choose Cheap LLC Formation?
There are multiple ways to form an LLC: you can do it yourself, hire a lawyer, or use an online formation service. Hiring a lawyer can cost hundreds or even thousands of dollars, depending on your state and complexity.
On the other hand, cheap LLC formation services offer packages starting as low as $0 (plus state filing fees), providing:
- Fast processing
- Pre-filled forms
- Name availability search
- Registered agent services (sometimes free for the first year)
- Optional EIN application support
This cost-effective option is especially attractive for new entrepreneurs on a tight budget.
✅ Steps to Form an LLC Cheaply
Here is a step-by-step breakdown of how to form an LLC without spending a fortune:
1. Choose Your State
Most entrepreneurs form their LLC in the state where they do business. However, some prefer states like Delaware or Wyoming due to low fees and business-friendly laws. Choose your state wisely—this determines the fees and tax structure.
2. Pick a Name for Your LLC
Ensure your desired business name is unique and available in your state. Most online formation services include a name availability check.
3. Designate a Registered Agent
A registered agent receives legal documents on behalf of your LLC. You can act as your own agent, but most people prefer hiring a service—many LLC formation companies offer this for free in the first year.
4. File Articles of Organization
This is the official form that registers your LLC with the state. You can file it yourself through your state’s business filing office or let a service handle it.
5. Create an Operating Agreement (Optional but Recommended)
Though not always required, an operating agreement outlines how your LLC will be managed. It helps prevent internal conflicts and adds credibility.
6. Get an EIN (Employer Identification Number)
An EIN is like a Social Security number for your business. It’s required if you plan to:
- Hire employees
- Open a business bank account
- Apply for business credit or loans
✅ How to Get an EIN for Free
The IRS issues EINs for free through its official website. You do not need to pay a third party unless you prefer them to handle the paperwork. To apply for your EIN:
- Go to the IRS EIN Application Portal
- Complete the online application (takes about 10 minutes)
- Receive your EIN immediately via download
Many LLC formation services also offer to file for your EIN as part of a bundled package.
✅ Best Cheap LLC Formation Services (Top Picks for 2024)
Here are three budget-friendly LLC formation services that are popular and reliable:
1. ZenBusiness
- LLC formation starting at $0 + state fees
- Free registered agent for one year
- User-friendly dashboard
2. Incfile
- Free LLC formation (you pay only the state fee)
- Lifetime company alerts
- Free business tax consultation
3. Northwest Registered Agent
- $39 LLC formation + state fee
- Strong privacy protection
- Excellent customer support
✅ Common LLC Formation Costs by State
While formation services may be cheap, each state has its own filing fee ranging from $40 to $500+. Here's a quick look at a few examples:
| State | Filing Fee |
|---|---|
| Delaware | $90 |
| Florida | $125 |
| Texas | $300 |
| California | $70 + $800 franchise tax |
| New York | $200 (plus publication fee) |
Always check your state’s official website for up-to-date pricing.
✅ EIN vs. LLC: What’s the Difference?
It’s easy to confuse the two, but an LLC is your business entity, and an EIN is your business tax ID.
| Feature | LLC | EIN |
|---|---|---|
| Purpose | Legal business structure | Tax identification |
| Issued by | Your state | IRS (federal) |
| Required for | Operating legally | Hiring employees, banking |
| Cost | Varies by state | Free |
✅ Final Thoughts: Start Smart, Start Cheap
Forming an LLC and getting an EIN doesn’t have to be expensive or confusing. With the rise of affordable online LLC formation services and free IRS EIN registration, new entrepreneurs can establish a professional legal entity without draining their bank accounts.
By taking the right steps early—choosing a cost-effective provider, understanding your obligations, and staying compliant—you’ll set the foundation for a successful, scalable business.
✅ FAQs
Q: Can I start an LLC with no money?
A: While LLC formation services may start at $0, you still need to pay your state’s filing fee.
Q: Do I need an EIN for my LLC?
A: Yes, if you plan to hire employees, open a business bank account, or separate your business finances.
Q: How long does it take to form an LLC?
A: Processing time varies by state, from a few hours to several weeks. Many services offer expedited filing.
Q: Is it better to DIY my LLC or use a service?
A: DIY is cheaper, but using a formation service can save time and reduce errors—especially for beginners.