I skipped LegalZoom’s $299 package and filed my LLC for $225. Here’s through who.

I almost paid LegalZoom $299 to file my LLC in Delaware. Instead, I paid $225 through a service I’d never heard of until a friend mentioned it. Same state filing. Same turnaround time. Same certificate in my inbox. The only difference was the logo on the Best receipt scanner app freelancers, and the fact that I didn’t have to navigate six upsell screens before I could click purchase.

If you’re freelancing without an LLC, you’re probably exposing your personal savings to any client dispute, default, or lawsuit that names you personally. It’s not about being paranoid. It’s about being a business instead of a person who happens to invoice people. The problem is that most formation services know you’re anxious about this, so they upsell you into packages that cost far more than the filing actually requires.

This guide is the result of comparing five LLC formation services side by side. I looked at what freelancers actually need: a clean filing, a registered agent, an operating agreement, and no surprise bills next quarter. I’ll tell you which service I used, which ones I’d skip, and what I’d do differently if I were starting over today.

Some links below are affiliate links. If you buy through one, I get a small commission at no cost to you. I only link services I used myself or would recommend to a friend who wasn’t clicking anything.

Why freelancers specifically need an LLC

Most freelancers start as sole proprietors by default. You invoice a client, they pay you, you report the income on your personal tax return. There’s no paperwork barrier, which is nice until something goes wrong.

The LLC creates a legal wall between your business assets or liabilities and your personal ones. If a client sues you for a missed deadline that allegedly cost them revenue, they can go after your business bank account. They generally can’t touch your personal savings, your car, or your house. That wall isn’t absolute; courts can “pierce the corporate veil” if you mix personal and business funds. But the LLC is the standard first defense, and it’s cheap to set up.

There’s also the credibility factor. Clients ask for a W-9. Having an EIN attached to an LLC name looks more permanent than giving out your Social Security number as a sole proprietor. Some larger companies won’t even contract with individuals who don’t have a business entity. The LLC is the minimum viable business structure that satisfies most procurement departments without requiring the complexity of an S-Corp or C-Corp.

What I actually needed to file

Before I compared services, I listed the non-negotiables for my situation. I recommend doing the same, because the upsells get aggressive once you’re in the checkout flow.

My list was short:

The actual LLC filing with the state. That’s the Articles of Organization. Every service does this.
A registered agent who receives legal mail on your behalf. You can be your own agent, but then your home address is in public records. I didn’t want that.
An operating agreement, even though I’m a single member. Some banks require it to open a business account.
An EIN from the IRS, which is free to request yourself but which many services bundle for a fee.
No recurring subscriptions I didn’t ask for. Several services auto-enroll you into “compliance monitoring” that hits your card quarterly.

If your state charges a filing fee, you pay that no matter which service you use. Delaware is $90. Texas is $300. California is $70 plus an $800 annual franchise tax. The service fee is what varies wildly.

The five services I compared

I looked at five popular options: LegalZoom, Incfile (now doing business as Bizee), ZenBusiness, Northwest Registered Agent, and Rocket Lawyer. I created accounts with each, went through their checkout flows, and noted the real price before I clicked purchase.

LegalZoom: the expensive default

LegalZoom is the name most people know. Their checkout flow is smooth, their site feels trustworthy, and their branding is everywhere. That’s the problem. You’re paying for the brand.

Their Economy package starts at $79 plus state fees. That sounds reasonable until you realize it does not include a registered agent. Their registered agent add-on is $299 per year. To get an operating agreement, you need the Standard package at $249 plus state fees. By the time you’ve added what you actually need, you’re often over $500 in your first year. For a single-member freelancer, that’s absurd.

I also found their upsells exhausting. During checkout, I was offered a “legal protection plan” for $39.99 per month, a business license research package, and a Best portfolio website builder freelancers I didn’t ask for. Each screen had a countdown timer suggesting the price would increase. If you’re anxious about legal stuff, this flow is designed to extract money from that anxiety.

The service itself works. They file correctly. Their customer service is adequate. But for freelancers who are cost-sensitive, there is no scenario where LegalZoom is the best value.

Incfile (Bizee): the free formation hook

Incfile advertises a “$0 + state fee” LLC formation. That is technically true. Their Silver package files your Articles of Organization for free. You pay only what the state charges.

The catch is that almost everything else costs extra. Their registered agent is free for the first year, then $119 per year after that. The operating agreement is $40. The EIN obtainment is $70. They also push a “business banking account” and a “business tax consultation” during checkout. If you add the pieces you actually need, your first-year cost is roughly comparable to Northwest’s flat rate.

I also found their user dashboard cluttered. There are banners for new services, offers for website hosting, and prompts to upgrade your package. The quality of the filing itself is fine, but the experience feels like a marketplace rather than a service.

For a freelancer on an extreme budget who literally only needs the Articles filed and will be their own registered agent, Incfile’s Silver package is the cheapest entry point. But most people need more than that, and the add-ons add up fast.

ZenBusiness: the all-in-one subscription

ZenBusiness takes a different approach. Their Starter plan is $0 plus state fees for the first year, but it forces you into a recurring subscription. After year one, the Starter plan renews at $199 per year. The Pro plan, which includes a registered agent, an operating agreement, and expedited filing, is $199 in year one and $199 every year after.

If you hate surprise bills, ZenBusiness is actually one of the more transparent options. They tell you the subscription price upfront. Their dashboard is clean. Their registered agent service is reliable. Many freelancers who want a “set it and forget it” solution end up here because the recurring fee covers annual report reminders and basic compliance alerts.

The downside is that you’re locked into a subscription for a filing you only do once. Your LLC doesn’t need ongoing software. It needs a filing, a few documents, and maybe an annual report reminder. Paying $199 per year indefinitely for a filing you made once feels like paying rent on a house you already bought.

Northwest Registered Agent: the one I chose

Northwest Registered Agent charges a flat $225 total for full-service LLC formation, which includes the state filing fee prep, a full year of registered agent service, an operating agreement, and the EIN. That means my out-of-pocket cost was $225 plus Delaware’s $90 state fee. For the first year, that’s $315 total for everything I actually needed.

The real appeal is what’s not there. No upsells during checkout. No countdown timers. No monthly subscriptions. Their website looks like it was designed in 2008, which I found weirdly comforting. There’s no marketing team trying to optimize my emotional state into clicking “add to cart.”

Their registered agent service is one of the few that genuinely prioritizes privacy. They don’t sell your data. They don’t put their name in public records more than necessary. When I called their support line with a question about my operating agreement, a human answered in under two minutes. I didn’t navigate a phone tree.

The only honest negative I can give them is that they don’t have the slickest dashboard. It’s functional, not beautiful. You can download your documents and see your filing status, but you won’t get animated progress bars or congratulatory confetti. I consider that a feature, but some people might find it underwhelming.

Rocket Lawyer: the legal document library

Rocket Lawyer’s main product is a legal document subscription. Their LLC formation is $99.99 plus state fees, but it comes with a 7-day free trial of their broader legal service that auto-converts to $39.99 per month if you don’t cancel. The registered agent is an additional $149.99 per year.

If you genuinely need ongoing legal documents, contracts, and attorney consultations, the subscription might make sense. Most freelancers don’t. I found their LLC formation adequate but not exceptional. The aggressive trial-to-subscription model is the biggest reason I wouldn’t recommend them for a simple formation. Too easy to forget to cancel.

Side-by-side cost comparison for your first year

Service	Formation Fee	Registered Agent (1st yr)	Operating Agreement	EIN	True First-Year Total (plus state fee)
Northwest Registered Agent	included in package	included	included	included	$225
Incfile Silver	$0	free 1st yr, then $119/yr	$40 extra	$70 extra	$110 if you add basics
ZenBusiness Starter	$0 1st yr, then $199/yr	$199/yr subscription	included in Pro	included in Pro	$199-$249 depending on plan
LegalZoom Economy	$79	$299/yr	$249+ package required	$79 extra	$500+ with basics
Rocket Lawyer	$99.99	$149.99/yr	included in higher tier	included	$250+ with subscription risk

Prices change frequently, so verify before you buy. But the pattern is consistent: Northwest’s flat package is the simplest, while LegalZoom and Rocket Lawyer extract the most money for comparable filings.

What happens after you file

Getting the LLC approved is step one. Within a week or two, you should:

Open a business bank account. I use Novo. It’s free, integrates with Stripe and PayPal, and doesn’t require a minimum balance. A business account is what actually creates the legal separation between you and your LLC.
Get business insurance. General liability coverage for freelancers runs roughly $300-$600 per year through providers like Hiscox or Next Insurance. If you’re offering advice or creative services, consider errors and omissions coverage too.
Set up accounting. If you read this site, you probably already have bookkeeping software. If not, I covered my favorites in the guide to best bookkeeping software for freelancers.
File any local permits. Some cities require a business license even for home-based freelancers. Your formation service might upsell a “business license research” package, but you can usually find this information free on your city clerk’s website.
Calendar your annual report. Most states require an annual or biennial report. Missing it can dissolve your LLC. Northwest sends reminders. ZenBusiness sends reminders as part of the subscription. If you used a bare-bones service, set your own calendar alert.

Who should skip an LLC entirely

Not every freelancer needs one. If you’re doing small side projects under $5,000 per year and have no significant personal assets to protect, the cost and paperwork might not be worth it yet. A sole proprietorship is fine for testing the waters.

If you’re in California, the $800 minimum annual franchise tax means an LLC is expensive even if you make nothing. California freelancers often wait until they hit consistent revenue before forming an LLC, or they form in a different state and register as a foreign entity. Talk to an accountant about that second option; it’s not as simple as TikTok makes it sound.

If you’re already operating as an S-Corp for tax optimization, you have an entity. This guide isn’t for you. If your accountant says an S-Corp makes more sense given your income level, listen to your accountant, not me.

FAQ

Do I need a lawyer to form an LLC?

For a single-member freelancer, no. The Articles of Organization are a standardized state form. Operating agreements for single-member LLCs are templated. If you have partners, complex intellectual property, or significant personal assets, a 30-minute consultation with a business attorney is worth the $200.

Can I be my own registered agent?

Yes, but your address becomes part of the public record. You’ll also receive legal mail during business hours at that address. If you work from home and don’t want your address searchable online, use a registered agent service.

How long does LLC formation take?

State processing times vary. Delaware often approves within 3-5 business days. Wyoming is similar. California can take 2-4 weeks. Most services offer expedited filing for an extra $50-$100 if you’re in a hurry.

Should I form my LLC in Delaware or Wyoming?

Delaware and Wyoming are popular because of business-friendly courts and privacy protections. If you don’t live or work in either state, you can still form there, but you’ll need to register as a “foreign LLC” in your home state if you’re doing business there. For most freelancers, forming in their home state is simpler and avoids the dual registration fees.

What’s an operating agreement, and do I really need one?

An operating agreement is a document that outlines how your LLC is run. For single-member LLCs, it’s mostly for your own records and for banks. Many banks ask for it when you open a business account. It’s worth having even if no one else will ever read it.

Final recommendation

If you just want the filing done correctly without paying for branding or fear-based upsells, Northwest Registered Agent is the best choice for freelancers. Their flat $225 package includes everything you actually need for year one without subscriptions or auto-renewals.

If you’re on an absolute zero-budget and can be your own registered agent, Incfile’s Silver package is the cheapest way to get filed. Just budget for the add-ons you will need.

Avoid LegalZoom unless you specifically want to pay more for the comfort of a familiar logo. The paperwork is identical no matter whose logo is on the checkout page. Your LLC exists to protect you, not to impress anyone. Pick the service that files it cleanly and gets out of your way.

Start there. Open your business account next. Then get back to doing the work that pays for all of it.

I skipped LegalZoom's $299 package and filed my LLC for $225. Here's through who.