How Much Does an LLC Cost?

For most people, the total cost to form an LLC ranges from $50 to $500, depending on your state and whether you use a formation service. Here is a quick breakdown:

Every state charges a fee to file your Articles of Organization (the document that officially creates your LLC). This is the one cost you absolutely cannot avoid — it goes directly to the state government.

State filing fees range from as low as $35 (in states like Arizona) to as high as $500 (Massachusetts). The national average is around $100 to $150.

Some states also charge additional fees beyond the basic filing. For example, New York requires you to publish a notice in two newspapers after forming your LLC, which can cost an additional $200 to $1,500 depending on the county.

If you need your LLC formed faster, most states offer expedited processing for an additional fee, typically $50 to $100 on top of the standard filing fee.

While you can file your LLC directly with the state, many people use an LLC formation service to handle the paperwork. These services prepare and file your documents, often with added benefits like compliance alerts and operating agreement templates.

Here is what the most popular formation services charge (service fees only — state filing fees are extra):

Every LLC is required by law to have a registered agent — a person or company designated to receive legal documents, tax notices, and official correspondence on behalf of the LLC.

You have three options:

• Be your own registered agent (free). You can serve as your own registered agent, but you must have a physical address (not a P.O. box) in the state of formation and be available during business hours. Your address also becomes part of the public record.
• Use a formation service that includes it. Several services include a free registered agent for the first year. Northwest Registered Agent and Bizee both offer this.
• Hire a standalone registered agent service. Expect to pay $100 to $300 per year. After the first free year from a formation service, annual renewals are typically $100 to $199.

Forming your LLC is just the beginning. Most states have recurring costs to keep your LLC in good standing:

California is notably expensive — the state imposes a minimum $800 annual franchise tax on all LLCs, even if the business earns no income. This is one of the highest in the country.

On the other end, states like Ohio, Missouri, and Arizona have no annual report requirement and no franchise tax, making them among the cheapest to maintain an LLC.

Beyond the essentials, there are several optional expenses you may encounter:

• EIN filing assistance ($25 – $100): The IRS provides EINs for free, but some services charge to file on your behalf. Only pay for this if you value the convenience.
• Operating agreement template ($0 – $200): Many formation services include a basic template. For complex multi-member LLCs, an attorney-drafted agreement is recommended.
• DBA (Doing Business As) registration ($10 – $100): If you want to operate under a different name than your LLC's legal name.
• Business insurance ($300 – $3,000+/year): General liability insurance is not legally required in most cases but is highly recommended.
• Website and domain ($10 – $50/year): For establishing an online presence.
• Bookkeeping software ($0 – $30/month): Essential for tracking income, expenses, and maintaining proper records.

Here are some of the most commonly searched states and their LLC filing fees:

Beyond the obvious expenses, there are several hidden or unexpected costs that catch new LLC owners off guard. Being aware of these upfront will help you budget more accurately.

• New York publication requirement ($200 to $1,500+). New York requires LLCs to publish a notice of formation in two newspapers (one daily, one weekly) for six consecutive weeks. The cost varies dramatically by county — Manhattan can cost over $1,000, while some upstate counties charge as little as $200. This is one of the highest hidden costs in any state.
• California minimum franchise tax ($800/year). California charges an $800 annual franchise tax on all LLCs, regardless of whether the LLC earns any income. This fee kicks in during the second year of operation (first-year exemption applies to new LLCs). For a business just starting out, this is a significant recurring cost. Note that California also charges a separate LLC annual fee for LLCs with gross income over $250,000.
• Foreign LLC registration ($50 to $500 per state). If you form your LLC in one state but do business in another, you must register as a "foreign LLC" in each additional state. This means paying a separate registration fee and potentially annual report fees in each state. This is why forming in Delaware or Wyoming often backfires for small businesses that primarily operate in their home state.
• Late filing penalties ($25 to $200+). Missing an annual report deadline or franchise tax payment typically results in a late fee. In some states, repeated non-compliance can lead to administrative dissolution of your LLC, which means you lose your liability protection until you reinstate.
• Name reservation fee ($10 to $50). If you want to reserve your LLC name before you are ready to file, most states charge a small fee. The reservation typically lasts 60 to 120 days.
• Certified copies of formation documents ($5 to $50). Banks, lenders, or partners may request certified copies of your Articles of Organization. States charge a fee for each certified copy.
• Amendments to Articles of Organization ($25 to $100). If you need to change your LLC's name, registered agent, or other information in your Articles of Organization, most states charge an amendment filing fee.

Understanding the difference between first-year costs and ongoing annual costs is essential for budgeting. Many business owners are surprised when second-year costs are higher than expected because free first-year promotions (like registered agent services) expire.

The LLC formation industry is full of upsells, add-ons, and premium packages that many business owners do not need. Here is how to avoid paying more than necessary:

1. Do not pay for EIN filing. Some services charge $50 to $100 to obtain an EIN on your behalf. The IRS provides EINs for free through their website, and the process takes less than 10 minutes. This is one of the most overpriced add-ons in the industry.
2. Beware of auto-renewing subscriptions. Some formation services sign you up for ongoing compliance monitoring, document storage, or other subscription services that auto-renew annually. Read the fine print and cancel anything you do not need. A simple calendar reminder to file your annual report is free.
3. Skip the "business kit." Some providers sell physical business kits (binders, membership certificates, company seals) for $50 to $100. While these look professional, they are entirely optional and serve no legal purpose. Digital records are perfectly adequate.
4. Compare registered agent renewal prices. Many services offer a free or discounted first year for registered agent service, then charge $150 to $300 for renewal. Before signing up, check the renewal rate — not just the first-year price. Northwest Registered Agent includes registered agent service as part of their formation package with transparent renewal pricing.
5. Use your operating agreement wisely. Some services charge $100 to $200 for a basic operating agreement template. Many formation providers include one for free. For single-member LLCs, a template is usually sufficient. For multi-member LLCs, invest in an attorney-drafted agreement rather than an expensive template. See our operating agreement guide for recommendations.
6. Do not pay for expedited processing unless you truly need it. Many states process LLC filings within 3 to 7 business days. Expedited processing (1 to 2 days) costs an additional $50 to $100. Unless you have a deadline-driven reason (signing a contract, opening a bank account), standard processing is usually fine.

1. Use a free or low-cost formation service. Services like ZenBusiness ($0), Bizee ($0), and Northwest Registered Agent ($39) handle the filing for little to nothing.
2. Take advantage of free registered agent offers. Northwest and Bizee include a free registered agent for the first year, saving you $100 to $300.
3. File your EIN yourself. The IRS website lets you get an EIN in minutes at no cost. Do not pay a service to do this unless you strongly prefer the convenience.
4. Skip unnecessary add-ons. Formation services often upsell packages like business kits, compliance monitoring, and operating agreement upgrades. Evaluate each one carefully before adding it to your order.
5. Form in your home state. Unless you have a specific reason to form elsewhere, your home state is almost always cheapest since you avoid foreign registration fees.