Should you form your LLC yourself or use a service?

What does the state charge whether you file or a service does?

The state filing fee is identical either way: a service passes it through on top of its own price. Fees vary widely: $35 in Montana, $40 in Kentucky, $500 in Massachusetts, while Tennessee's fee is $50 per member, $300 minimum, $3,000 maximum.^{4, 5, 6, 7}

Filing routes differ by state. Some only take filings online, such as Colorado (Online only (no paper form)) and Montana (Online only), while Maine lists one route: By mail (fillable PDF form with fee; credit card via payment voucher). No online formation filing is listed. The table shows the fee and filing methods for each state, and each state's own guide walks through the form.^{8, 9, 10}

51 of 51 states publish this in the official sources we checked. Each state's page has the full detail.

A few states add a step that no service removes. New York requires newspaper publication after filing (Publish the Articles or a notice in two newspapers chosen by the county clerk for six consecutive weeks, then file a Certificate of Publication ($50) within 120 days), and Arizona has its own rule: Required within 60 days of filing: 3 consecutive newspaper publications in the statutory agent's county, unless the agent's street address is in Maricopa or Pima County, where the ACC posts the notice online. California charges every LLC organized or doing business there a yearly tax of $800, whoever filed the paperwork. Read the New York LLC guide, the Arizona LLC guide and the California LLC guide before comparing a plan price with the fee alone, and use the state fees table for the recurring fee in every state.^{11, 12, 13}

What does a formation service do that you would otherwise do yourself?

A service fills in the formation document from your answers, submits it to the state and sends you the approved copy. Most plans also bundle a few follow-up jobs, each of which has a do-it-yourself version with its own cost.

The formation document

This is the core of every plan, and it is the part most owners can do alone. In Texas, for example, the document is the Certificate of Formation to Limited Liability Company (Form 205); $300 filing fee, filed Online (SOSPortal), by mail, or by delivery in person. The step-by-step formation guide covers each field in order.¹⁴

The registered agent role

An LLC names an agent to accept legal papers. Texas, for example, requires each LLC to keep a registered agent and a registered office in the state (Tex. Bus. Orgs. Code § 5.201), and Arizona requires a statutory agent (A.R.S. § 29-3115). An owner who meets the state's rules can serve without paying anyone, but in Texas the registered office must be a street address where papers can be served on the agent in person, and Colorado's agent statute (C.R.S. § 7-90-701) lets an adult serve whose primary residence or usual place of business is in Colorado.^{15, 16, 17}

Services sell this role on its own or include it for a while. Northwest includes an agent that renews at $125/yr after year 1, and Inc Authority's included agent auto-renews at $249/yr after year 1. Bizee's agent is free for the first year with any of its formation packages and then costs $149/year (ongoing annual fee), billed each year after that. Bought alone, an agent costs $199/year at ZenBusiness and $149 per quarter ($596/year) at Swyft Filings. The registered agent guide explains the role and who may serve, and services with an agent included shows how long each inclusion lasts.^{2, 18, 19, 20, 21}

An EIN from the IRS

An EIN (Employer Identification Number) is a business tax ID issued by the IRS, and the IRS position on price is plain: the number is free; the IRS never charges a fee for an EIN. If you have a Social Security number or ITIN, you can apply with the IRS online tool; if approved, the EIN is issued immediately online.³

Services still charge to apply on your behalf. Bizee charges $70, LegalZoom $79 and Inc Authority $49 (standalone service), while ZenBusiness lists $99 one-time (included in Pro and Premium). Northwest charges $50 (with SSN); $200 without SSN. Not every LLC needs its own number: per the IRS, a single-member LLC needs its own EIN if it has any employees or must file certain excise tax forms; otherwise it generally uses the owner's SSN or EIN for income tax. The EIN guide covers when the LLC needs one, and plans with an EIN included lists the packages that bundle it.^{20, 22, 23, 24, 25, 26}

An operating agreement

An operating agreement sets out who owns the LLC and how decisions are made. Writing one yourself costs nothing beyond your time, and Northwest gives one away (Free template). Elsewhere, ZenBusiness sells a template for $99 one-time, Bizee adds one for $99, Inc Authority charges $89 and LegalZoom lists its version from $99. The operating agreement guide explains what one should cover.^{20, 27, 28, 29, 30}

The yearly state report

Once the LLC exists, some states want a recurring report, such as Wyoming's Annual Report and Kentucky's Annual Report (due January 1 to June 30; $15). A plan that files it for you differs from one that only sends a reminder. Northwest's renewal service files it for $100 + state fees, charged at filing, LegalZoom charges $99 + state filing fees, bills once, and Tailor Brands' annual report filing is included in Essential and Elite, not its free plan. Filing it yourself costs only the state's report fee; the annual report guide lists due dates and penalties.^{31, 32, 33, 34, 35}

How much more does a service cost than filing yourself?

The gap is the plan price, less what you would have paid for its extras on your own. A $0 plan adds nothing at checkout.³⁶

With free plans, the difference shows up later in renewals.

Take a Texas LLC. Filing alone costs $300, with you as agent and an EIN from the IRS for free. Northwest's plan costs $39 + state fees and includes an agent and an operating agreement, but the agent renews at $125/yr after year 1. Bizee's middle plan is $199 once, adding the EIN and operating agreement; LegalZoom lists its middle plan at $249, which adds the same two items. The best LLC services in Texas page totals each provider with the Texas fee and includes a file-it-yourself row.^{2, 14, 36, 37}

Second-year costs often decide the comparison. Our rating compares one plan per provider, and across the first and second year, before state fees, that plan costs $299 at Bizee (Premium), $249 at LegalZoom (Managed Service) and $598 at ZenBusiness (Premium). The cost calculator adds any state's fees to each plan, and the full cost guide covers state fees in depth.

Is a formation service faster than filing yourself?

Not always. A service's stated time covers its own handling before or around the state's review, and the state's processing time still applies to every filing.

In Wyoming, Online filings are active immediately; mailed filings up to 15 business days. Colorado works the same way: Online filings take effect immediately after payment (unless a delayed effective date is chosen). An owner who files online in those states can have an LLC the same day, while a plan that quotes several business days adds a wait.^{38, 39}

Service times vary widely, even within one provider. Tailor Brands quotes 14 business days on its free plan and 1 business day on its paid plans. ZenBusiness Starter quotes 7-10 business days, and LegalZoom lists 5 to 14 business days (standard processing). Faster state processing is a state charge either way; New York, for instance, offers $25 within 24 hours; $75 same day; $150 within 2 hours (per document, plus filing fee). The LLC timeline guide compares state and service times, and services with the fastest stated filing are ordered by business days.^{1, 11, 35, 40}

What can go wrong on each route?

Filing yourself puts every deadline on you, and a service can add charges you did not plan for. Both risks can be managed once you know where they sit.

When you file alone, the risks are missed steps after approval. Three come up most often.

• a publication rule you didn't know about, as in New York and Arizona
• a missed yearly report (in Texas, $50 penalty per franchise tax report filed late (even if no tax is due); in Kentucky, No late fee listed; domestic LLCs that miss June 30 are administratively dissolved)^{32, 41}
• no working agent on file (Kentucky lists this as Grounds for administrative dissolution if without a registered office or agent in Kentucky for 60 days or more (KRS 14A.7-010))⁴²

With a service, the risks are mostly billing, because several plans include items that start charging once a trial period is over. Tailor Brands' bookkeeping is one: when the trial ends, you’ll be charged $39/month. LegalZoom's middle plan carries a Business Advisor Plan that auto-renews at $49/mo after 30 days, and Swyft Filings' ComplianceGuard starts with a 14-day free trial and then bills $199/year. Included agents renew automatically at some providers, as Inc Authority's does.^{37, 43, 44}

Refund terms differ too. Bizee: Orders generally refundable until payment is forwarded to a government entity (typically ~24 hours). doola: Refund possible if application cancelled before it is sent to the state. Northwest: All purchases final and non-refundable after 90 days; state fees non-refundable. The cancel or switch guide covers stopping a renewal or moving the agent role.^{45, 46, 47}

Who is filing it yourself a good fit for, and who is a service a good fit for?

Filing yourself fits an owner with an in-state street address for the agent role, an SSN or ITIN, and time for the yearly report. A service fits someone who wants an agent's address on record.

It also fits an owner who wants the yearly report filed for them.

Filing yourself tends to suit the situations below.

1. A single owner in a state with online filing and no publication rule.
2. Someone who can receive legal papers at an in-state street address.
3. A founder with a Social Security number, who can apply for the EIN online.

A service tends to suit others. Founders based abroad follow a different EIN route; per the IRS, a business whose principal place of business is outside the U.S. applies by phone (267-941-1099, Monday to Friday, 6 a.m. to 11 p.m. Eastern) or submits Form SS-4 by fax or mail. An ITIN is a 9-digit IRS number for people who need a U.S. taxpayer ID for federal tax purposes but aren't eligible for an SSN, so a founder without one may pay Northwest $200 for its foreign EIN service. Services for non-U.S. founders lists providers whose pages say they serve them, and the non-U.S. residents guide covers the rest.^{25, 48, 49}

Owners who want privacy or less admin also lean toward a service, and some plans file the yearly report. For example, Northwest's address is listed on public filings instead of the owner's. The full plan list shows each tier's contents, and how we rate explains how providers are compared.⁵⁰