Find the Best LLC Service
for Your Business

Based on our testing, ZenBusiness is the best overall LLC formation service for most entrepreneurs. It offers a free plan (state fees apply), a free registered agent for the first year, fast processing, and excellent customer support. Northwest Registered Agent is our runner-up, especially if privacy is a priority for you.

The total cost depends on your state’s filing fee and any formation service you use. State filing fees range from $50 (Kentucky) to $500+ (Massachusetts). Many formation services offer free plans, meaning you only pay the state fee. Ongoing costs include an annual registered agent fee ($39–$299/yr) and your state’s annual report or franchise tax.

Yes. Every LLC in the US is legally required to have a registered agent — a person or company designated to receive official legal and government documents on behalf of your business. You can be your own registered agent, but most owners use a paid service ($39–$299/yr) to maintain privacy and ensure documents are handled reliably.

Yes. You can form an LLC in any US state regardless of where you live. Many entrepreneurs choose Delaware, Wyoming, or Nevada for their business-friendly laws and privacy protections. However, if you primarily operate in your home state, you may need to register there as a “foreign LLC” anyway — which adds cost. For most small businesses, forming in your home state is the simplest approach.

The key difference is liability protection. As a sole proprietor, you and your business are the same legal entity — meaning your personal assets (home, savings) can be seized if your business faces a lawsuit or can’t pay debts. An LLC creates a legal separation between you and your business, shielding your personal assets. LLCs also add credibility and make it easier to open a business bank account.

Processing time depends on the state and whether you pay for expedited filing. Standard state processing takes anywhere from same-day (Wyoming) to 4–6 weeks (New York). Most formation services include standard processing in their base plan, with rush options available. BetterLegal is the fastest service we reviewed, often filing within 24 hours.

ZenBusiness’s starter plan is free — you only pay your state’s filing fee. The free plan includes basic LLC formation and a free registered agent for the first year. After the first year, the registered agent renews at $199/yr. There are also optional paid add-ons (operating agreement, EIN, compliance tools), but these are clearly disclosed and not required.