Starting a business in the United States can be exciting, but choosing a business structure and completing the required paperwork can feel complicated. For many entrepreneurs, freelancers, online business owners, consultants, and small business founders, a Limited Liability Company (LLC) offers a practical combination of liability protection, flexibility, and relatively simple administration.

If you’re researching how to start an LLC, one of the first decisions you’ll need to make is whether to handle the filing yourself or use one of the best LLC formation services available online.

In this guide, we’ll explain how LLC formation works, what it costs, what documents you need, how an EIN fits into the process, and whether a service such as Bizee may be worth considering.

Affiliate Disclosure: This article may contain affiliate links. If you purchase a service through one of our links, we may earn a commission at no additional cost to you.

What Is an LLC?

An LLC, or Limited Liability Company, is a business structure created under state law. It combines certain characteristics of corporations with the simpler operational structure commonly associated with partnerships or sole proprietorships.

One of the main reasons entrepreneurs choose an LLC is liability protection. Generally, an LLC separates the company’s liabilities from the owner’s personal assets, although the exact protection and exceptions depend on applicable law. The U.S. Small Business Administration notes that LLCs can provide personal liability protection while offering flexible tax treatment.

An LLC may be suitable for:

• Freelancers and independent contractors
• Consultants
• Online businesses
• E-commerce businesses
• Real estate businesses
• Marketing agencies
• Professional service companies
• Small family-owned businesses
• Startups that don’t immediately need outside investment

However, an LLC isn’t automatically the best structure for every business. Your industry, ownership, tax situation, location, and growth plans should all be considered before forming a company.

How to Start an LLC Step by Step

If you’re wondering how to start an LLC, the process generally involves several important steps.

1. Choose the State Where You Will Form Your LLC

The first decision is determining where to register the company.

For many small businesses, the appropriate state is the state where the business actually operates. Forming an LLC in another state doesn’t necessarily eliminate the requirement to register or qualify to do business in your home state.

State rules, fees, reporting requirements, and tax considerations vary considerably. The SBA recommends considering your business location, structure, registration requirements, taxes, and applicable licenses before launching.

2. Choose an LLC Business Name

Your business name generally needs to comply with the naming requirements of the state where you are forming the company.

You’ll want to check:

• Whether the name is available
• Whether another company is already using it
• Whether the name meets state naming rules
• Whether a suitable domain name is available
• Whether the corresponding trademark could create problems

A good business name should be easy to remember and sufficiently distinctive.

3. Choose a Registered Agent

Most LLCs need a registered agent in their formation state.

A registered agent receives important legal and government correspondence on behalf of the business.

You may be able to act as your own registered agent if you meet your state’s requirements. Alternatively, you can hire a professional registered agent service.

This can be particularly useful for business owners who want greater privacy or don’t want to manage official correspondence themselves.

Bizee currently includes one year of registered agent service with its business formation packages, subject to its terms. Its standalone registered agent service is currently listed at $149 per year.

4. File the Articles of Organization

The official document used to create an LLC varies by state. It is commonly called the Articles of Organization, although some states use different terminology.

The filing generally contains information such as:

• LLC name
• Business address
• Registered agent
• Management structure
• Member or organizer information

Once the state accepts the filing and approves the company, your LLC officially exists under state law.

The state filing fee is separate from any fee charged by an LLC formation company.

5. Create an Operating Agreement

An operating agreement explains how the LLC will be managed and how ownership and responsibilities are handled.

Depending on the business, it can address:

• Ownership percentages
• Member responsibilities
• Voting rights
• Profit distributions
• Management
• Adding or removing members
• What happens if a member leaves
• How the company can be dissolved

Even when an operating agreement isn’t mandatory under your state’s rules, having one can help establish clear expectations among owners.

For a single-member LLC, it can also provide useful documentation about how the business is organized.

6. Get an EIN

An Employer Identification Number (EIN) is a federal tax identification number issued by the IRS.

The IRS states that an EIN can be required when a business has employees, operates as certain types of entities, files particular federal tax returns, or needs one for banking or state tax purposes.

One important point is often overlooked:

You can get an EIN directly from the IRS for free

The IRS provides an online EIN application and states that you do not have to pay a fee to obtain an EIN directly from the IRS.

This is important when comparing best LLC formation services.

A formation company may charge for handling an EIN application as part of a package, but the federal EIN itself is not something the IRS charges a fee for.

Can You Form an LLC for Free?

One of the most common searches among new entrepreneurs is “Form an LLC for free.”

The answer requires an important distinction.

You may be able to use a formation service that charges $0 for its formation service, but you will generally still have to pay the state-required filing fee.

For example, Bizee currently advertises a Basic LLC formation package at:

$0 + state filing fee

The company also offers higher-tier packages for entrepreneurs who want additional services.

This means “free LLC formation” does not usually mean that creating an LLC costs absolutely nothing.

The state may still charge a mandatory filing fee.

Bizee itself explains that state LLC filing fees vary, and its own formation service fee can be $0 while the customer remains responsible for the state’s filing fee.

So when comparing providers, always distinguish between:

Formation service fee

and

State filing fee

Those are two different costs.

Bizee Review: Is Bizee Worth It?

If you’re comparing the best LLC formation services, Bizee is one provider worth considering.

Bizee has been operating since 2004 and currently states that it has helped more than 1 million entrepreneurs. Its website also advertises business formation services across all 50 states.

Its services extend beyond simply filing an LLC.

Depending on the package, Bizee offers services and resources such as:

• LLC formation
• Corporation formation
• Registered agent service
• EIN assistance
• Operating agreements
• Compliance alerts
• Business banking resources
• Business contracts
• Virtual address services
• Domain and business email options
• Business phone services

The exact features depend on the package selected.

Bizee LLC Pricing

At the time of writing, Bizee lists three primary LLC formation packages:

The Basic package is designed for entrepreneurs who mainly want the core formation filing, while the higher packages add services such as EIN assistance, an operating agreement, expedited filing, compliance features, and other business resources.

Because pricing and promotions can change, always verify the current price for your state before placing an order.

Bizee vs. Filing an LLC Yourself

Do you actually need an LLC formation service?

Not necessarily.

The SBA explains that businesses can register themselves with the appropriate state and handle the necessary startup requirements directly.

For a straightforward LLC, a business owner may decide to:

1. Search for a business name
2. Prepare the formation documents
3. File with the state
4. Obtain an EIN
5. Create an operating agreement
6. Apply for licenses if necessary
7. Open a business bank account

The advantage of doing everything yourself is cost control.

The advantage of using a formation service is convenience.

A formation company can help organize paperwork, provide optional templates, offer registered-agent services, and provide a centralized dashboard for managing business-related tasks.

For first-time entrepreneurs, that convenience can be valuable.

What Should You Look for in the Best LLC Formation Services?

Not all LLC formation providers offer exactly the same services.

Before choosing a provider, compare the following factors.

1. Transparent Pricing

Look beyond the headline price.

Check whether the advertised price includes:

• State filing fees
• Registered agent service
• EIN assistance
• Operating agreement
• Expedited filing
• Annual registered agent renewal
• Compliance services

2. Registered Agent Costs

A discounted first year can be attractive, but check the renewal price.

For example, Bizee currently states that its first-year registered agent service is included with formation, while its standalone registered agent service is listed at $149 per year.

3. EIN Assistance

Remember that the IRS provides EIN applications directly for free.

Therefore, the value of a paid EIN service is primarily the convenience of having another company handle the application process rather than paying for the EIN itself.

4. Compliance Support

Forming an LLC is only the beginning.

Depending on your state and business activities, you may have ongoing requirements such as annual reports, state tax filings, licenses, permits, and registered-agent requirements.

The SBA specifically recommends researching federal, state, and local licenses and permits applicable to your business.

What Happens After You Form an LLC?

Many new business owners assume that receiving their LLC approval means everything is finished.

It isn’t.

After formation, you may need to:

Open a Business Bank Account

Separating business and personal finances is an important part of maintaining organized business records.

Banks may request documents such as your formation documents and EIN.

Obtain Business Licenses

Your LLC registration does not automatically give you every license or permit needed to operate.

Requirements depend on:

• Business activity
• Location
• Industry
• State
• County
• City

Maintain Your LLC

You may have to file annual or biennial reports and pay state fees.

The exact requirements vary by state.

Keep Business Records

Maintain organized records of:

• Income
• Expenses
• Contracts
• Tax documents
• Ownership information
• State filings
• Banking activity

Good recordkeeping becomes increasingly important as the business grows.

Is an LLC Right for Every Business?

An LLC is popular, but it isn’t automatically the best option.

The SBA notes that business structure affects taxes, paperwork, liability, and the ability to raise capital.

A sole proprietorship may be sufficient for someone testing a very small, low-risk business.

A corporation may be more appropriate for a company planning to raise substantial outside investment.

An LLC can be attractive for entrepreneurs who want liability protection and a flexible structure without adopting all of the formalities associated with a corporation.

Your circumstances matter.

If you’re unsure about the tax or legal consequences of a particular structure, consider speaking with a qualified attorney, accountant, or business advisor.

Final Verdict: Should You Use Bizee to Form an LLC?

For entrepreneurs searching for an affordable and convenient way to start an LLC, Bizee is worth putting on your comparison list.

Its biggest advantages include the currently advertised $0 + state fee Basic formation option, one year of included registered-agent service with formation, optional EIN assistance, operating-agreement support, and additional business services.

However, the cheapest package isn’t necessarily the best package for everyone.

If you only need the basic state filing and are comfortable handling everything else yourself, the Basic option may be sufficient.

If you want an operating agreement, EIN assistance, expedited processing, and additional business-management features, a higher package may make more sense.

Most importantly, compare the total cost, including your state’s filing fee and any services that renew after the first year.

Ready to Start Your Business?

If you’re researching how to start an LLC, comparing best LLC formation services, or looking for a way to form an LLC for free while only paying the required state fee, Bizee is an option worth exploring.

Explore Bizee LLC Formation Options

Disclosure: We may receive compensation if you purchase a qualifying service through our affiliate link. This does not affect the price you pay.

Frequently Asked Questions

Can I form an LLC for free?

You may be able to use a formation service that charges $0 for its service, but you generally still have to pay the state’s required filing fee. Bizee currently advertises $0 + state fee for its Basic LLC formation package.

How much does it cost to start an LLC?

The total cost depends heavily on the state. You may have to pay a state formation fee as well as optional costs for registered-agent services, licenses, permits, and other business services.

Do I need an EIN for my LLC?

An EIN may be required depending on your business structure and activities. The IRS provides EIN applications directly at no charge.

Is Bizee a legitimate LLC formation service?

Bizee has operated since 2004 and says it has helped more than 1 million entrepreneurs. It provides LLC, corporation, registered-agent, EIN, and other business services.

Should I use an LLC formation service or file myself?

If you want to minimize costs and are comfortable handling paperwork yourself, filing directly with your state may be appropriate. If you value convenience, document assistance, registered-agent services, and a centralized dashboard, an LLC formation service may be worthwhile.