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How Much Does It Really Cost to Start an LLC?

LLC setup costs depend on several factors. Some of these costs are obligatory, like the state fees. Others are optional, like name reservation for your LLC, writing an operating agreement, and hiring a registered agent. Anyone starting a business should take note of all of these associated LLC costs to be best prepared.

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State LLC Costs: Overview

LLC costs vary from state to state. Some are optional, like reserving your business name and designating a registered agent. While others are unavoidable, such as LLC filing fees.

The filing fees and annual fees below are updated for 2025, make sure to check the updated fee in the state you register your LLC:

State

State Fee

Additional Fees

Total Fees

Annual Fee

Alabama

$200.00

$11 Processing Fee

$25 Name Reservation

$236.00

$100

Alaska

$250.00

$250.00

$100

Arizona

$50.00

$35 Expedited Filing Fee

$85.00

None

Arkansas

$40.00

$5 Processing Fee

$45.00

$150

California

$70.00

$5 Certefied Copy

$75.00

$800

Colorado

$50.00

$50.00

$10

Connecticut

$120.00

$120.00

$80

Delaware

$110.00

$50 Expedited Filing Fee

$160.00

$300

District of Columbia

$99.00

$99.00

$300

Florida

$130.00

$130.00

$138.75

Georgia

$100.00

$5 Processing Fee

$105.00

$50

Hawaii

$50.00

$1 Processing Fee

$51.00

$15

Idaho

$100.00

$3.5 Processing Fee

$103.50

None

Illinois

$150.00

$3.38 Processing Fee

$153.38

$75

Indiana

$95.00

$2.04 Processing Fee

$97.04

$30

Iowa

$50.00

$50.00

$60

Kansas

$160.00

$160.00

$50

Kentucky

$40.00

$40.00

$15

Louisiana

$100.00

$5 Processing Fee

$105.00

$30

Maine

$175.00

$3 Certificate of Formation

$50 Expedited Filing Fee

$26 Shipping Fee

$254.00

$85

Maryland

$100.00

$4.5 Processing Fee

$50 Expedited Filing Fee

$154.50

$300

Massachusetts

$500.00

$20 Expedited Filing Fee

$520.00

$500

Michigan

$50.00

$50.00

$25

Minnesota

$155.00

$155.00

$35

Mississippi

$50.00

$3.14 Processing Fee

$53.14

$25

Missouri

$50.00

$1.25 Processing Fee

$51.25

None

Montana

$35.00

$35.00

$20-$35

Nebraska

$100.00

$3 Processing Fee

$103.00

$10-$30

Nevada

$425.00

$10.63 Processing Fee

$435.63

$150-$400

New Hampshire

$105.00

$2 Processing Fee

$107.00

$100

New Jersey

$125.00

$3.5 Processing Fee

$128.50

$50

New Mexico

$50.00

$1.95 Processing Fee

$51.95

None

New York

$200.00

$5 Non-Certified Copy of Filing

$205.00

$25-$4,500

North Carolina

$125.00

$3 Processing Fee

$128.00

$200

North Dakota

$135.00

$135.00

$50

Ohio

$99.00

$99.00

None

Oklahoma

$100.00

$4 Processing Fee

$104.00

$25

Oregon

$100.00

$100.00

$100

Pennsylvania

$125.00

$125.00

None

Rhode Island

$150.00

$6 Processing Fee

$156.00

$50

South Carolina

$110.00

$15 Processing Fee

$125.00

None

South Dakota

$150.00

$150.00

$50

Tennessee

$300.00 (up to 6 members, $50 for each extra member)

$6.87 Processing Fee

$306.87

$300-$3,000 + $50 per Member

Texas

$300.00

$300.00

None

Utah

$59.00

$59.00

$20

Vermont

$155.00

$155.00

$35

Virginia

$100.00

$100.00

$50

Washington

$180.00

$20 Processing Fee

$200.00

$60

West Virginia

$100.00

$100.00

$25

Wisconsin

$130.00

$1 Processing Fee

$131.00

$25

Wyoming

$100.00

$3.75 Processing Fee

$103.75

$60

You can reduce your overall costs using our LLC formation service starting at 300$, leaving you enough cash to pay for those necessary extras! Some of which you can also get right here with us, including registered agents, business names, and, of course, branding services!

LLC Formation Costs

llc formation costs

There are 3 different fundamental ways to set up your basic limited liability company, all with different price tags.

LLC setup options

1. Do it yourself: Its your cheapest immediate option, but the complicated paperwork and filing procedures can be challenging to navigate.

2. Hire a lawyer: If youve got the budget, you can pay a lawyer to do it for you; fees range from $1,000 to $1,500.

3. Use an LLC formation service: LLC formation services provide an excellent middle ground, specializing in forming LLCs for as little as 300$.

Now lets look at the obligatory LLC formation costs:

LLC Filing Fees

The first LLC setup cost is registering it as a legal business entity by filing articles of organization with your secretary of state.

An article of organization is a one-time document and fee charged by your state to form your business as a legal entity. You can download the articles of organization form for free from your secretary of states office website.

Theres also filing fees, which vary state to state.

Its important to notice that if you want to set up a foreign LLC, meaning that youre operating in a state youre not physically located in, the filing fees are generally higher.

State Filing Fees

State filing fees vary from $35 in Montana to $520 ($500 state fee + $20 expedited processing fee) in Massachusetts. You can pay the fee online, by mail, or in person.

In some states, you must pay a notary to witness and sign your articles of organization before submitting it. A notary is a public officer allowed to perform specific legal tasks. Costs vary ranging from $2 to $16 per signature.

But before you file, you should ensure your chosen LLC name is available. Otherwise, your state could refuse your application and filing fees are non-refundable (thatd be a bummer, amiright?). Ill tell you how to check this later in the post, but we have something else to cover first.

Publication Requirements Fees

Publication fees apply when a state requires a new LLC to tell the public of its formation by publishing it in a local newspaper for 3 consecutive runs. A run can be one day per week for 3 weeks.

States that require you to publish a public notification are Arizona, Nebraska, and New York.

Costs can range from $600 to $1200, depending on your LLCs office location, your states notification requirements, and the advertising rates charged by your local newspaper

LLC Business Licenses and Permits

Whether youre selling hot dogs or pharmaceuticals, most businesses require permits and licenses to trade within the U.S.

License and permits requirements depend on 2 things:

1. Your location: Each state has its own licensing and permit regulatory requirements.

2. Your industry: You might need permits and licenses at a state or federal level to sell or provide certain products or services.

Licenses You Might Need and General Costs

On top of all that, youve got to know what your ongoing costs will be while waiting to turn a profit. Otherwise, you could run out of funds, and go bust (which I hope never happens to you!).

You can use a financial needs analysis to work those out.

Unavoidable Ongoing LLC Costs

Once your LLC is up and running, it’s your responsibility to check with your state and see if you should renew licenses, file reports, and pay a tax to trade.

Fortunately, most LLC ongoing costs dont break the bank.

Business License Renewal Fees

Most states dont require a business license to form an LLC, but you need one to run it.

Licenses are legal documents showing youve been approved to engage in specific business within your jurisdiction and can comply with local/state regulations.

States require you to renew your LLC local and state business license. Costs vary state to state, ranging from $16 every 2 years in Colorado to $287.50 annually in Alabama.

Annual Reports

An annual report (sometimes referred to as a Periodic Report or Statement of Information) is泭a document detailing your LLCs activities throughout the prior year.

Its purpose is to provide details about current managing members and owners, your registered agents business address, and any changes that might have occurred since the last filing period.

Filing an annual report ensures your LLC stays compliant with all state regulations, aiding to preserve your limited liability protection, and flow-through tax status.

As the name suggests, most states require you to file reports every year, whereas some require a biennial report, once every 2 years, some a decennial report, every 10 years, or not at all for others.

Some states will send a reminder form, so you don’t miss a deadline. But if yours doesnt, you can outsource to an annual report filing service.

Franchise Tax

An annual LLC franchise tax (also referred to as an annual fee) is a recurring fee you pay to your state every year youre in business.

Its a tax you must pay regardless of whether your LLC was profitable or not. If you dont pay, your state will dissolve your LLC.

Fees range between states, from $150 in Arkansas to $800 in California.

Additional LLC Optional Fees

Some additional LLC costs are like added extras at checkout. Some extras you might not need at all, others could make your LLC more effective, and sometimes they can be essential to running a secure and successful business.

Lets check out what some of those extras might be:

Registered Agent

If you were wondering what is a registered agent, it泭is someone who accepts legal documents on your LLCs behalf (serves as an agent for service of process, among others). This individual can be anyone over 18, with an address in the LLCs state of formation, and be available during regular business hours.

You don’t have to employ a registered agent service, but there are certain benefits to doing so. It might be beneficial if youre doing business from home and dont want your private address to be made public, or if you dont keep regular business hours.

Youre only required to hire a registered agent when your LLC doesnt have a physical address in your state.

You can do it yourself for free, or if you designate someone to be your registered agent, it can cost between $100 and $300 per year.

Operating Agreements

Operating agreements are an optional extra and you could write it yourself for free. But depending on your businesss structure, an operating agreement can be complicated and it might make sense to leave it to a professional.

Well written operating agreements outline how your company will run, including your company structure, management responsibilities, allocation of funds, and the purpose of your business.泭

You might need an LLC operating agreement for the following reasons:

Lets review the 4 pricing options available:

1. Write it yourself: Its free to write and file an operating agreement.

2. Purchase a template: You can buy an operating agreement template online from $50 to $200.

3. Hire a lawyer: If your LLC has several members or a complicated structure, you may need to hire a business lawyer. The average price for a single-member LLC is $300, rising to $3,000 plus for a multi-member.

4. An incorporation website: You can pay an online company to write and submit your operating agreement for as little as $99.

Applying for an EIN

You need an Employer Identification Number (EIN) to open a business泭bank account, apply for a business credit card, get financing, and pay taxes.

Businesses often offer and charge for this service. But you don’t need to pay if you apply for an EIN yourself using the泭 or by contacting your secretary of states office.

Reserving your LLC name

You dont have to reserve your LLC name before filing your articles of organization.

But if youve found the perfect business name and arent yet ready to form your business, you can apply to reserve it with your secretary of states office for up to 120 days.

Doing so can cost as little as $10 to $50, so its well worth the investment.

Filing a Fictitious Business Name Application (DBA)

You don’t have to trade using the business name you listed when filing your articles of organization.

You can use an alternative, fictitious business name, also known as a DBA (doing business as). You might do this if your LLCs registered name isnt good for branding and marketing strategies, or you dont want to include the word LLC.

Its purely optional, and many LLCs see using the abbreviation as an advantage as it shows the company is a legal entity.

How to register a DBA varies from state to state. In some, you must apply with the secretary of state. While in others, you must file at the county level and in every county where your business has premises.

You may also be required to publish notification of intent of use in a local paper. All states charge a filing fee, ranging from $10 to $200.

Overall LLC Costs - Summary

Looking for a quick summary of your LLC set-up costs? It’s important to notice that fees vary between states and you should check out the relevant information for your state. Below are the most common fees you can expect to pay:

Annual report

0 – $500

Business licenses & permits

Vary by municipality, but fees for a business license range from $10 to $1,000

Filing a DBA (optional)

$10 – $200 per assumed name

Annual franchise tax

Depending if the state has that tax. Can be up to $1,000 or more

LLC filing fee

$40 – $500

Operating agreement (optional)

0 – $1,000 if you hire an attorney or a service

Registered agent service (optional)

$199 to $400

Reserve business name (optional)

$10 – $50

Conclusion

As weve seen, establishing an LLC requires lots of fees (sigh). It might sound overwhelming and expensive, but remember that fees depend on which state youre operating and what licenses you may require for your business.

But many small business owners feel that these costs are worth it for all the benefits an LLC provides. And now that you have all the information you need, youre closer to achieving your business goals of forming an LLC.

FAQ

Most states require a mandatory annual (or biennial) report to be filed every year, which is necessary to maintain good standing with the state. Theres a filing fee for the annual report. Other annual payments can be different franchise taxes, but not all states have those taxes.

Yes, you can pay yourself a salary from your LLC. There are different methods depending on your selected type of LLC (Single-member LLC, Multi-member LLC) – Paying with an owners draw, paying as a partnership, using guaranteed payments or opting to be taxed as a C/S Corp and paying as an employee.

Generally speaking, it could. With an LLC you have the flexibility to elect the way youll be taxed – as a sole-proprietorship, as a partnership or as a corporation. Each has its own tax benefits and its advisable to consult a CPA to construct the best tax method for your specific business.

Generally speaking, yes. Most states charge a higher filing fee for foreign LLCs (LLCs with a physical location in a state but want to conduct business in a different state). Usually the differences arent massive, but are still a bit higher. Check out your selected state for the filing fees.

This portion of our website is for informational purposes only. 91勛圖 is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, 91勛圖 is not responsible for the information and/or its accuracy or completeness.