- Obtaining an Employer Identification Number (EIN) costs $0 (free) directly from the Internal Revenue Service using Form SS-4 or the online application portal.
- State guidelines require that you form the entity with your state business filing office before submitting an application for an EIN to the IRS.
- Under federal rules effective August 14, 2026, domestic entities created in the United States are exempt from FinCEN Beneficial Ownership Information (BOI) reporting.
- Commercial service ZenBusiness offers formation packages starting at $0 plus state filing fees for its Starter tier, with registered agent representation priced separately at $199/yr (discounted to $99 for the first year when you form with them).
Formation Requirements and Official Fees
| Requirement or Fee | Official Standard or Amount | Official Authority Source |
|---|---|---|
| Formation Sequence | State entity registration must precede IRS EIN application | Internal Revenue Service (irs.gov) |
| IRS EIN Application Fee | $0 (free directly from the official IRS online portal) | Internal Revenue Service (irs.gov) |
| Federal BOI Reporting | Exempt for domestic US-created entities effective August 14, 2026 | Financial Crimes Enforcement Network (fincen.gov) |
| State Articles of Organization | Mandatory filing fee set by individual state statute | State Filing Office / Secretary of State |
| State Compliance Filings | Recurring report deadlines and fees set by state law | State Filing Office / Secretary of State |
Understanding the LLC Formation Process
Navigating your first business formation requires completing foundational steps established by federal and state authorities. According to Small Business Administration (SBA) guidelines on choosing a business structure, an LLC provides personal asset protection by separating individual finances from business liabilities. This structure offers operational flexibility without the rigid governance requirements of corporations.
When registering your business with a state official, you file Articles of Organization (also called a Certificate of Formation in some states) with your Secretary of State or state business registry. This filing officially establishes your business entity under state law. You must also designate a registered agent who maintains a physical address in the state to receive official legal notices and state correspondence.
From a tax perspective, the Internal Revenue Service outlines official tax classification rules for LLCs based on entity ownership. The IRS does not treat an LLC as a separate tax classification. By default, a single-member LLC is classified as a disregarded entity, where income and losses pass through directly to the owner's personal tax return. A multi-member LLC is classified by default as a partnership. LLC owners can also elect C-corporation or S-corporation tax status by submitting designated tax election forms to the IRS.
Once state entity registration is complete, you can obtain an Employer Identification Number (EIN) from the Internal Revenue Service. An EIN is required to open business bank accounts, hire employees, and manage federal tax filings. You should never pay a third party for an EIN, as the IRS provides them directly for $0 (free). You must officially form the entity with the state before applying for an EIN.
DIY Formation versus Using a Commercial Service
Choosing between forming an LLC yourself or paying a commercial formation service depends on how you prefer to manage privacy, compliance tracking, and administrative effort. Below is an honest comparison of how each path handles primary operational steps, listed alphabetically, not ranked.
Formation Path Comparison (listed alphabetically, not ranked)
| Operational Step | Filing Yourself (DIY Path) | Using a Commercial Service |
|---|---|---|
| Compliance Deadlines | You monitor state annual report deadlines and submit recurring filings independently. | Services provide automated compliance reminders and can submit annual reports for a fee. |
| EIN Application | You submit Form SS-4 directly on the official IRS website for $0 (free). | Services can submit Form SS-4 for you, usually charging an additional processing fee. |
| Privacy Management | Your personal address is recorded in public state registries if you act as agent. | Using a commercial registered agent keeps your personal address off public records. |
| State Filing Process | You complete state web forms and pay mandatory filing fees directly to the state. | Services collect your business details and submit state registration paperwork for you. |
Commercial Service Options (listed alphabetically, not ranked)
As of 2026, several commercial providers assist business owners with filing paperwork and managing registered agent requirements. Baseline prices and optional features vary across platforms as of 2026.
| Provider Name | Baseline Formation Plan | Registered Agent Service Pricing |
|---|---|---|
| Bizee | Baseline plan fee plus state fee as of 2026 | Separate annual recurring charge as of 2026 |
| LegalZoom | Baseline plan fee plus state fee as of 2026 | Separate annual recurring charge as of 2026 |
| Northwest Registered Agent | Baseline plan fee plus state fee as of 2026 | Separate annual recurring charge as of 2026 |
| Rocket Lawyer | Baseline plan fee plus state fee as of 2026 | Separate annual recurring charge as of 2026 |
| Tailor Brands | Baseline plan fee plus state fee as of 2026 | Separate annual recurring charge as of 2026 |
| ZenBusiness | Starter $0 plus state fee, Pro $199/yr, Premium $299/yr | $199/yr (discounted to $99 for year 1 when forming) |
Choosing the Path That Fits Your Needs
Filing yourself is the better call if your business ownership is simple, you want to restrict spending strictly to mandatory state fees, and you do not mind listing a physical address on public state registries. State registration portals are designed for public access, and completing the paperwork directly is straightforward.
Conversely, paying for a commercial service is advantageous if you want to keep your personal home address private, prefer automated alerts for state annual reports, or want software assistance during registration. Specifically, ZenBusiness fits readers who want an accessible entry point with its $0 Starter tier (plus state fee) alongside a discounted $99 registered agent fee for the first year. Registered agent service remains a separate $199/yr service across all tiers, including Premium, after the initial promotional period.
Frequently Asked Questions
How do you register an LLC with your state?
To register an LLC with your state official, submit Articles of Organization to your Secretary of State or state business registry, assign a registered agent with a physical address in the state, and pay the state filing fee. State entity registration must be completed before you apply for an IRS Employer Identification Number.
Why choose an LLC over another business structure?
Choosing an LLC structure provides personal liability protection by separating individual assets from business obligations. Small Business Administration guidelines note that an LLC combines flexible management and pass-through taxation without the administrative rules required for corporations.
How does the IRS tax an LLC?
Official Internal Revenue Service guidelines state that the IRS does not recognize an LLC as a separate tax classification. Single-member LLCs are automatically treated as disregarded entities, while multi-member LLCs are treated as partnerships. Owners can also elect C-corporation or S-corporation tax status by submitting designated tax forms to the IRS.
Closing Guidance
Deciding whether to form an LLC yourself or hire a commercial service depends on balancing your comfort with completing state web forms against the convenience of address privacy and automated compliance tracking.
Sources
- Internal Revenue Service, “Get an employer identification number”
- Financial Crimes Enforcement Network, “Beneficial Ownership Information Reporting”
This article provides general information rather than legal advice; requirements vary by state and change over time.