Can You Start an LLC With No Money?

Every State Charges a Filing Fee, So "Free" Isn't Literal

Forming an LLC always starts with filing Articles of Organization (or a similarly named document) with a state agency, and every state charges a fee for that filing. As of late September 2026, the range runs from $35 in Montana to $500 in Massachusetts, according to each state's filing agency. There is no state, and no formation service, that can make that specific fee disappear, since the money goes to the state, not to whoever helps you file.

The Minimum You Actually Need to Spend

Stripped down to only what's legally required, forming an LLC costs: the state's one-time filing fee, and nothing else, if you file the paperwork yourself and act as your own registered agent. Montana's $35 fee is the lowest in the country; Kentucky, at $40, is the next lowest. If you live and do business in a low-fee state, that fee can be the entire cash outlay to legally form the LLC.

Free or Low-Cost Pieces of Forming an LLC

Several pieces people assume cost money are actually free or close to it:

• An EIN from the IRS is always free, whether you apply online, by fax, or by mail.
• An operating agreement doesn't have to be drafted by a lawyer; many states don't require one at all, and where one is useful, free templates exist from sources like your state bar association or the SBA.
• Name availability searches are free on every state's business entity search tool, so you can confirm your chosen name is available before you file.

Serving as Your Own Registered Agent

Every state requires an LLC to maintain a registered agent with a street address in that state, but most states let a member or manager fill that role personally, at no cost, as long as they have a qualifying street address (not a P.O. box) and are available during business hours to receive legal mail. This is the single biggest recurring cost you can eliminate: a paid registered agent service typically runs somewhere between $99 and $250 a year, while acting as your own agent costs nothing beyond the time to handle any mail that arrives.

Where to Find the Money for the One Mandatory Fee

Since the state filing fee can't be waived in most states, a few practical options exist if you're short on cash: choose a lower-fee state if you actually live and operate there, wait until you have the fee rather than borrowing for it, or check whether your state offers any current waiver program (these are rare, narrow, and change often, so confirm directly with your state's filing agency rather than assuming one applies to you).

What You Don't Need to Pay For

Skip these unless you have a specific reason to need them: expedited processing (standard processing works for most new businesses that aren't on a deadline), a name reservation (only useful if you're not ready to file immediately), a certified copy of your filed documents (most banks accept the state's standard approval notice), and any "rush" or "premium" tier a formation service sells on top of its $0 base package.

Don't Confuse "No Money to Start" With "No Ongoing Cost"

Getting the LLC formed for close to nothing doesn't mean the LLC stays free. Most states require a periodic report or franchise tax filing after formation, with fees from $0 to $500 a year depending on the state. Budget for that recurring cost separately from the one-time fee you pay to form the LLC, so you're not caught off guard the following year.

Fee Waivers Are Rare and Narrow

A handful of states have, at times, offered limited fee waivers or reductions for specific groups, such as veteran-owned businesses, but these programs come and go and often have strict eligibility rules. Don't assume one applies to you; check your state's Secretary of State or equivalent filing agency's own website for any current program before you file, since third-party sites sometimes describe programs that have already ended.

Watch for Formation Services That Advertise "Free"

A $0 formation package from a service still requires you to pay the state's filing fee, which the service collects and passes through, or has you pay directly to the state. The $0 refers to the service's own labor fee, not the total cost of forming your LLC. Read what's actually included before assuming "free" means no cost at all.

If Cash Is Tight, Prioritize the Filing Fee Over Everything Else

If money is limited, put it toward the one fee you can't avoid, the state's filing fee, and handle everything else yourself: act as your own registered agent, use a free EIN application, and write a simple operating agreement from a template. None of this is tax advice; once the LLC is formed and earning money, talk to a tax professional about how to handle early profits and expenses.