How to Form an LLC in 2026: Steps, Costs and Formation Services Compared

A limited liability company is the most common structure for a new small business in the US. It separates your personal assets from the business's debts, and by default it's taxed as a pass-through. You can file the paperwork yourself, or pay a formation service to handle it. This guide covers the steps, the costs you can't avoid and the ones you can, and how four well-known formation services price their packages.

How we compiled this guide: government requirements come from the IRS, FinCEN and the California Franchise Tax Board. Service prices were checked September 26, 2026 on each company's own website. We haven't hands-on tested these services, so we give no ratings. This is general information, not legal or tax advice.

The steps

1. Pick a state and a name. Most small businesses form in the state where they operate. Forming elsewhere usually means also registering as a "foreign" LLC at home and paying both states' fees. Check the name is available with your Secretary of State.
2. Appoint a registered agent. Most states require one: a person or company with a physical address in the state that accepts legal notices during business hours. You can act as your own agent or pay a service.
3. File articles of organization (some states call them a certificate of formation) with the Secretary of State and pay the state filing fee. Filing fees vary by state.
4. Write an operating agreement. Not every state requires one, but it records ownership, voting and what happens if a member leaves. It matters most for multi-member LLCs.
5. Get an EIN from the IRS. It's free. The IRS says plainly that you never have to pay for an EIN and warns about websites that charge. The online application issues the number immediately if approved, but it has to be finished in one session.
6. Open a business bank account and keep business money separate from personal money.
7. Get local licenses and permits from your city or county.
8. Stay compliant. Most states require an annual or biennial report, and some charge an annual tax.

What changed in 2026:

BOI reports

FinCEN updated its beneficial ownership information (BOI) page on August 11, 2026 to confirm it has finalized its reporting rule. U.S. companies are exempt from BOI reporting and no longer need to file BOI reports. Some formation services still sell BOI filing as an add-on, and a U.S.-formed LLC doesn't need it.

Costs to plan for

• State filing fee: set by your state and paid whether you file yourself or use a service. Services list their prices "+ state fees."
• Registered agent: free if you act as your own agent. Otherwise it's an annual cost, often bundled free for the first year.
• Annual state tax or report fees: these vary widely by state. California, for example, charges every LLC that's organized or doing business there an $800 annual tax, due even if the LLC isn't conducting business, until the LLC is cancelled. The first payment is due by the 15th day of the 4th month after filing with the Secretary of State. (California's first-year exemption only covered tax years beginning 2021 through 2023.)
• EIN: $0 from the IRS.

Formation services compared

ZenBusiness

• LLC formation: starts at $0 + state fees.
• Registered agent: $199 a year.
• Add-ons (one-time): operating agreement template $99, EIN filing $99.
• Also includes: access to its Velo AI guidance tools.

LegalZoom

• Basic: $0 + state filing fees. Files only the articles of organization.
• Pro: $249 + state filing fees. Adds an operating agreement, an EIN, and 30 days of unlimited 30-minute attorney consults on new topics (auto-renews at $49 a month; cancel anytime). Also a year of access to 150+ legal document templates and eSignatures.
• Premium: $299 + state filing fees. Adds bookkeeping tools to the Pro package.
• Registered agent: offered as a separate service.

Bizee

• Packages: Basic $0 + state fee, Standard $199 + state fee, Premium $299 + state fee. All are one-time payments.
• Registered agent: every package is eligible for one free year of Bizee's registered agent service.

Northwest Registered Agent

• LLC formation: $39 + state fees, which includes a free domain name, website, phone line, business email and business address.
• Registered agent: $125 a year, or $100 a year per state for five or more states. Northwest says it hasn't raised this price in 20 years.

What to watch

• "$0" doesn't mean free. You still pay the state fee, and cheaper packages often leave out the operating agreement, the EIN and the registered agent.
• Don't pay for an EIN. It's free from the IRS and takes minutes online if you have an SSN or ITIN.
• Watch renewals. Registered agent service, attorney plans and software bundles often renew automatically after the first year.
• Skip the BOI add-on if your LLC is a U.S. company (see above).

How to choose

1. You're comfortable with forms: file directly with your Secretary of State, get the EIN from the IRS, and act as your own registered agent if your address is fine on public record.
2. You want privacy and a low-cost agent: compare Northwest's $125 a year with the first-year-free offers at Bizee and elsewhere, then check what each charges from year two.
3. You want attorney access in your first month: look at LegalZoom Pro.
4. You want the lowest upfront price: compare the $0 tiers at ZenBusiness, LegalZoom and Bizee line by line, since they don't include the same things.
5. You'll sell or source internationally: once you have the LLC and EIN, see our cross-border payment tools guide for business accounts that hold multiple currencies.

FAQ

Can I form an LLC without a service? Yes. Every state lets you file articles of organization directly with the Secretary of State, and the EIN is free from the IRS.

Do I need a registered agent? Most states require one. You can serve as your own agent if you have a physical address in the state and are available during business hours.

Do U.S. LLCs still file BOI reports with FinCEN? No. FinCEN's finalized rule exempts U.S. companies from BOI reporting.

Sources: IRS "Get an employer identification number" (irs.gov); FinCEN Beneficial Ownership Information page, updated August 11, 2026 (fincen.gov/boi); California FTB, Limited liability company (ftb.ca.gov); ZenBusiness products and pricing (zenbusiness.com); LegalZoom LLC packages (legalzoom.com); Bizee LLC packages (bizee.com/llc); Northwest LLC and Registered Agent pages (northwestregisteredagent.com). All checked September 26, 2026.