For AI agents: read the machine-readable documentation index at /llms.txt or the single-file full reference at /llms-full.txt.
Form a Business

Guides · Business formation

The True 3-Year Cost of "$0 LLC" Services vs. Transparent Pricing

No formation service can form an LLC for free because every Secretary of State charges a mandatory statutory filing fee that must be paid to the government. Some formation websites market "$0 plus state fee" LLCs and make their money on what comes after the headline: auto-renewing registered agent subscriptions (renewal prices published by mass-market providers run from roughly $125 to $250 per year), "compliance" monitoring plans (around $199/year at some providers), operating agreement add-ons, and fees to file an EIN, a number the IRS issues for free. In the illustrative scenarios below, an add-on-heavy "$0 formation" costs about $700 more over 3 years than an upfront all-in price with an opt-in renewal.

Understanding the mechanics of negative-option billing and statutory state fees reveals why the total cost of ownership matters far more than the initial marketing headline.

Last checked 2026-11-10. General information, not legal or tax advice.

The "$0 LLC" business model explained

State law requires government filing fees to process corporate filings. In Texas, the state fee is $300; in Delaware, $110; in Florida, $125; in Wyoming, $100. When a formation company advertises a "$0 service fee," it may make up that revenue through add-ons and auto-renewing subscriptions such as:

  • 1. The Registered Agent subscription trap: Every state LLC statute requires maintaining a registered agent with a physical in-state address. Some "$0" providers include the first year of registered agent service free or offer a free trial.

- When the introductory period ends, some providers automatically bill the card on file at their renewal rate. Published renewal rates at mass-market providers run from roughly $125 to $250 per year. - Read the terms before you pay: some providers renew by default and take cancellations only by phone or written notice.

  • 2. The Operating Agreement upsell: An Operating Agreement is the fundamental governing document of an LLC, establishing ownership percentages, voting rights, and liability protection.

- Many banks ask for a signed Operating Agreement before opening a business bank account. - Some "$0" packages leave the Operating Agreement out of the base tier and charge extra for a standard template. The scenarios below assume $99.

  • 3. Charging for a free IRS EIN: An Employer Identification Number (EIN) is needed to hire employees, and most banks require one to open a business account.

- The IRS provides an official online EIN application that issues an EIN immediately and free of charge when the responsible party has a valid US SSN or ITIN. - Some formation sites charge to enter the founder's details into the government website for them. The scenarios below assume $99.

  • 4. "Annual Compliance" monitoring fees: Some services sell, or auto-enroll customers in, a compliance-alert subscription (around $199/year at some providers).

- Much of what these plans provide is a reminder when your state annual report deadline approaches, and many Secretary of State offices already send due-date notices by email for free.

Corpus transparent pricing vs. "$0 LLC" services

Corpus publishes an itemized quote for each state, with no subscription and no automatic renewal charges:

  • All-in price per state: Corpus quotes one all-in price per state that bundles the state filing fees, the first year of registered agent service, and the Corpus service fee (preparing the filing, compliance checks, and human review). Live quotes on 2026-11-10: Delaware $300, Wyoming $293, Mississippi $250, California $279. The live price for your state is on its formation page, and prices can change.
  • Year 1 Registered Agent included: The first year of registered agent service is included in the all-in price at no extra charge.
  • Opt-in Year 2+ renewals: Subsequent Registered Agent renewals are opt-in at $99/year. We never auto-bill your payment card without explicit authorization.
  • Transparent EIN support: The IRS portal is free for founders whose responsible party has an SSN or ITIN. Corpus offers an optional EIN filing add-on at $75 for those founders with a US principal office. Founders without an SSN or ITIN can apply free with IRS Form SS-4 by phone, fax or mail.

3-Year state-by-state cost breakdown

Here is how the numbers compare over 3 full years of operating an LLC across representative states. The Corpus figures are the live all-in quotes above plus a $99/year registered agent renewal (assuming you renew) and the state's recurring fees. The "$0 LLC" figures are an illustrative add-on stack, not any one provider's price list: the state filing fee, a $99 Operating Agreement, a $99 EIN filing, a free first year of registered agent service followed by $249/year renewals, and a $199/year compliance plan. Delaware's annual tax and Wyoming's annual license fee are shown in Years 2 and 3.

  • Delaware LLC (3-Year Comparison):

- Delaware statutory fees: $110 Certificate of Formation filing fee (Delaware Division of Corporations fee schedule, revised August 1, 2026; the LLC Act is 6 Del. C. ch. 18 and every LLC needs a registered agent under 6 Del. C. § 18-104), plus a $400/year annual LLC tax under 6 Del. C. § 18-1107, raised from $300 effective January 1, 2026 and due June 1 following each calendar year. - Corpus 3-Year Total: $300 (Year 1) + $400 annual tax + $99 RA (Year 2) + $400 annual tax + $99 RA (Year 3) = $1,298. - "$0 LLC" Provider Total: $110 (State fee) + $99 (Operating Agreement) + $99 (EIN) + $400 (Y2 Tax) + $249 (Y2 RA) + $199 (Compliance) + $400 (Y3 Tax) + $249 (Y3 RA) + $199 (Compliance) = $2,004 ($706 higher).

  • Wyoming LLC (3-Year Comparison):

- Wyoming statutory fees: $100 Articles of Organization fee (Wyo. Stat. tit. 17, ch. 29), plus an annual license fee of $60 or two-tenths of a mill on Wyoming assets, whichever is greater, paid with the annual report under Wyo. Stat. § 17-29-209. - Corpus 3-Year Total: $293 (Year 1) + $60 state fee + $99 RA (Year 2) + $60 state fee + $99 RA (Year 3) = $611. - "$0 LLC" Provider Total: $100 (State fee) + $99 (OA) + $99 (EIN) + $60 (Y2 State) + $249 (Y2 RA) + $199 (Compliance) + $60 (Y3 State) + $249 (Y3 RA) + $199 (Compliance) = $1,314 ($703 higher).

  • Mississippi LLC (3-Year Comparison):

- Mississippi statutory fees: $50 Certificate of Formation filing fee (Mississippi Secretary of State fee schedule; the certificate is required by Miss. Code Ann. § 79-29-201), and no fee for the annual report that Miss. Code Ann. § 79-29-215 requires (due April 15 each year). - Corpus 3-Year Total: $250 (Year 1) + $0 state fee + $99 RA (Year 2) + $0 state fee + $99 RA (Year 3) = $448. - "$0 LLC" Provider Total: $50 (State fee) + $99 (OA) + $99 (EIN) + $0 (Y2 State) + $249 (Y2 RA) + $199 (Compliance) + $0 (Y3 State) + $249 (Y3 RA) + $199 (Compliance) = $1,144 ($696 higher).

  • California LLC (3-Year Comparison):

- California statutory fees: $70 Articles of Organization fee and a $20 Statement of Information filed after formation, plus an $800 annual LLC tax under Cal. Rev. & Tax Code § 17941 that applies to each taxable year, including the first (see also Cal. Corp. Code, Title 2.6 for the formation law). Both totals below leave out the $20 Statement of Information that California requires every two years. - Corpus 3-Year Total: $279 (Year 1) + $800 tax (Year 1) + $99 RA (Year 2) + $800 tax (Year 2) + $99 RA (Year 3) + $800 tax (Year 3) = $2,877. - "$0 LLC" Provider Total: $90 (State fees) + $99 (OA) + $99 (EIN) + $800 (Y1 Tax) + $249 (Y2 RA) + $199 (Compliance) + $800 (Y2 Tax) + $249 (Y3 RA) + $199 (Compliance) + $800 (Y3 Tax) = $3,584 ($707 higher).

  • Florida, Texas, and Nevada:

- Florida: $125 state formation ($100 Articles of Organization plus $25 for the registered agent designation) under Fla. Stat. ch. 605, with a $138.75 annual report fee due between January 1 and May 1 each year. - Texas: $300 state formation fee for the certificate of formation (the LLC statute is Tex. Bus. Orgs. Code ch. 101). Texas LLCs still file an annual franchise tax report and Public Information Report, but the state lists no filing fee and no tax is due when revenue is under the no-tax-due threshold. - Nevada: $75 state formation fee, plus a $150 initial list under Nev. Rev. Stat. § 86.263 and a $200 state business license (NRS chapter 76), for $425 at formation. The $150 annual list and $200 license repeat each year.

These gaps come from the assumed add-ons, not from state fees, which both columns pay in full. Your actual difference depends on which add-ons you decline and on the renewal rates at the provider you compare.

How to avoid formation traps

When evaluating any formation service:

  1. Check the renewal terms: Look at the fine print for Registered Agent pricing in Year 2 and Year 3.
  2. You don't have to pay for an EIN if you have an SSN or ITIN: Apply directly via IRS.gov for $0; the online application issues the number immediately once it is approved.
  3. Verify the Operating Agreement: Ensure your package includes a customized, state-specific Operating Agreement without extra fees.
  4. Demand transparent renewal control: Choose providers that require opt-in consent for ongoing subscriptions rather than charging credit cards automatically.

Next steps

Form your LLC with CorpusOr let your AI assistant do the intake

Related formation cost resources:

Sources

Last checked 2026-11-10. Corpus is not a law firm and does not provide legal or tax advice.