Best LLC Formation Services for Small Businesses

Why the Advertised Price Isn't the Whole Picture

A small business owner comparing LLC formation services usually sees one headline number per provider, often $0. That number reflects only the provider's own formation service fee. The actual cost of forming and maintaining an LLC includes two more numbers almost every provider's homepage leaves out of the headline: the state's own filing fee, and the ongoing registered agent price you pay every year after the first.

The State Filing Fee

Every state charges its own fee to file Articles of Organization, ranging from $35 in Montana to $500 in Massachusetts, according to each state's own fee schedule. This fee is identical no matter which formation service submits the paperwork, so it is not a point of comparison between providers; it is simply added to whatever the provider charges.

Registered Agent Pricing: Where Providers Actually Differ

Unlike the state fee, registered agent pricing is where providers genuinely differ, and it is a recurring cost for as long as you maintain the LLC. As published by each provider in October 2026: BetterLegal charges $90 a year, LLC Register charges $99 a year, MyCompanyWorks charges $119 a year, Northwest Registered Agent charges $125 a year, Bizee charges $149 a year (after a free first year), Harbor Compliance charges $159 a year (after a $99 first year), ZenBusiness charges $199 a year (after a free first year), Tailor Brands charges $199 a year, and LegalZoom charges $249 a year. This spread, nearly $160 a year between the lowest and highest published prices, is the single biggest variable in comparing providers for an ongoing small business.

Annual Report Filing: Included or Extra

Most states require an annual or biennial report, with fees the state sets separately from any provider charge. On top of that state fee, some providers charge their own fee to actually file the report for you: LegalZoom at $99 per filing, ZenBusiness and Northwest Registered Agent at $100, and Harbor Compliance at $199, all as published in October 2026. LLC Register and a few others include this in their registered agent price instead of billing it separately. Checking whether this is included changes the real annual cost by up to $199.

Adding It Up Over Two Years

For a small business planning to keep the same LLC for more than one year, which is most small businesses, the useful comparison is total cost over two years: state fee (one-time) plus year-one provider cost plus year-two renewal cost, including annual report filing if it is billed separately. A provider with a $0 first-year headline and a $249 renewal plus a $99 annual report fee can cost more over two years than a flat $99-a-year provider that includes both from the start.

What Formation Doesn't Include

LLC formation and registered agent service do not typically include opening a business bank account, obtaining a local business license, or getting any industry-specific permit your city or county may require; these are separate steps a small business handles on its own, regardless of which formation service it used. An EIN, which most banks require to open a business account, is always free directly from the IRS.

How LLC Register compares

LLC Register charges $99 a year, the same price at renewal, with LLC formation in year one and annual report filing included every year. Most other providers charge $99 to $199 a year extra for a separate annual report filing service once the first year ends. State fees are passed through at cost and shown before checkout.

A Simple Way to Compare Any Two Providers

For any two providers you are considering, write out: state fee (same either way) + provider's year-one price + provider's year-two renewal price + annual report fee if billed separately. Whichever total is lower over two years is the more cost-effective choice for your specific state, not whichever headline price looked lower at first glance.

A Small Business Rarely Needs Every Add-On in a Premium Package

Features like a digital welcome kit, a business website builder, or unlimited attorney consultations are priced into some premium tiers whether or not a small business actually uses them. Match the tier to what you need, not the most expensive option by default.

Your State's Fee Schedule Is Public Information

Every state publishes its own LLC filing fee and annual report fee on its Secretary of State or equivalent filing office site. Confirm your specific state's current numbers rather than relying only on a provider's checkout page.

A Business License Is a Separate, Local Requirement

Many cities and counties require a local business license or permit in addition to state LLC formation; these requirements vary significantly by location and industry and are not something an LLC formation service typically handles.

Review the Order Summary Before Paying

Some add-ons are pre-selected by default during checkout at various providers. Review every line of the order summary, not just the headline price, before completing a purchase.

Not Legal or Tax Advice

Which entity type and tax election fit your small business depends on your specific situation. Talk to a tax professional about elections like S corporation status, and check with your city or county about any local licensing requirements that apply to your business.