How Much Does It Cost to Form an LLC?
LLC formation costs range from $35 to $500 in state filing fees, with a national average of $132. Total first-year costs including a registered agent, operating agreement, and optional services run $100 to $2,000+. Use our free calculator to estimate your total cost by state, formation method, and add-ons.
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Updated March 2026 · Based on data from 50 state Secretary of State offices, LLC University, Nolo, and 35+ sources
LLC Filing Fees by State (2026)
Every state charges a one-time filing fee to form an LLC. This fee goes to the Secretary of State (or equivalent office) to process your Articles of Organization. Fees range from $35 in Montana to $500 in Massachusetts. Here are the filing fees grouped by cost tier.
| Cost tier | States | Fee range |
|---|---|---|
| Budget ($35-$59) | MT ($35), KY ($40), AR ($45), AZ, CO, HI, IA, MI, MN, MS, MO, NM ($50), UT ($59) | $35-$59 |
| Low ($70-$110) | CA ($70), IN ($95), DC, OH ($99), AK, ID, KS, LA, MD, NE, NH, NJ, OK, OR, SC, VA, WA, WV, WY ($100-$110), DE, GA ($110) | $70-$110 |
| Moderate ($120-$160) | CT ($120), FL, NJ, PA ($125), NC ($125), WI ($130), ND ($135), IL ($150), RI, SD ($150), MN, VT ($155), KS ($160) | $120-$160 |
| High ($175-$300) | ME ($175), AL, NY, WA ($200), AK ($250), TN, TX ($300) | $175-$300 |
| Expensive ($425-$500) | NV ($425), MA ($500) | $425-$500 |
Filing fees are one-time costs paid at formation. Annual ongoing fees are separate and vary by state.
What Affects the Cost of Forming an LLC
The state filing fee is just the starting point. Several other costs add up depending on your state, formation method, and business needs. Understanding each cost component helps you budget accurately and avoid surprise charges.
State filing fee (required)
This is the non-negotiable cost to register your LLC with the state. It ranges from $35 in Montana to $500 in Massachusetts, with a national average of $132. You pay this once at formation. Some states like California charge separately for expedited processing ($350-$750). Standard processing typically takes 3 to 15 business days depending on the state.
Registered agent (required in all 50 states)
Every LLC must designate a registered agent to accept legal documents at a physical address during business hours. You can serve as your own agent for free, but you must be available every business day and your address becomes public record. Professional registered agent services cost $100 to $300 per year. Many formation services include the first year free. Northwest charges $125/year, Bizee (formerly Incfile) charges $119/year, and LegalZoom charges $249/year.
Operating agreement (recommended, sometimes required)
An operating agreement outlines ownership, management, and operating rules for your LLC. It is legally required in New York, California, Delaware, Maine, and Missouri. Even where not required, banks and partners often request one. A free template costs $0 and works for most single-member LLCs. Online legal services charge $40 to $100 for a template with some customization. An attorney charges $500 to $1,500 to draft a custom agreement, which is worth it for multi-member LLCs or businesses with complex ownership structures.
Annual report and franchise tax (ongoing)
Most states require an annual or biennial report with a fee ranging from $0 to $500. California charges an $800 annual franchise tax regardless of revenue, making it the most expensive state for ongoing LLC costs. Massachusetts charges $500 per year. Nevada charges $350 annually for the combined annual list and business license. Five states charge nothing: Arizona, Missouri, New Mexico, Ohio, and South Carolina. Failing to file your annual report can result in administrative dissolution of your LLC.
Publication requirement (3 states only)
New York, Arizona, and Nebraska require newly formed LLCs to publish a notice in local newspapers. New York is the most expensive, costing $400 to $1,545 depending on county (Manhattan is the priciest). Arizona costs $80 to $120, and Nebraska costs $50 to $250. This is a one-time cost within 60 to 120 days of formation. No other state has this requirement.
Formation service fee (optional)
If you use an online formation service instead of filing directly with the state, you pay a service fee on top of the state filing fee. ZenBusiness starts at $0 for their basic plan. LegalZoom starts at $0 for basic filing. Northwest charges a flat $39. Premium tiers ($199-$349) include additional features like compliance monitoring, operating agreement templates, and expedited filing. Attorneys charge $500 to $1,500 for full-service formation.
EIN (free, but watch for upsells)
An Employer Identification Number from the IRS is completely free. You apply online at irs.gov in about 5 minutes and receive it immediately. The FTC has warned consumers about third-party services charging $50 to $300 for this free service. Do not pay for an EIN. You need one to open a business bank account, hire employees, and file business taxes.
Itemized Cost Breakdown: First Year vs Ongoing
LLC costs break down into one-time formation costs and recurring annual expenses. Here is what you should budget for in year one and each year after that.
| Cost item | Year 1 | Annual (ongoing) |
|---|---|---|
| State filing fee | $35-$500 | $0 (one-time) |
| Registered agent (professional) | $100-$300 | $100-$300 |
| Operating agreement (attorney) | $0-$1,500 | $0 |
| Formation service fee | $0-$199 | $0 |
| Annual report / franchise tax | $0-$800 | $0-$800 |
| Publication (NY, AZ, NE only) | $50-$1,545 | $0 |
| EIN | $0 (free from IRS) | $0 |
| Business license (varies) | $50-$400 | $50-$400 |
| Typical first-year total | $100-$2,000+ | $150-$1,100+ |
The DIY approach in a low-cost state (Montana, Kentucky, Missouri) can cost as little as $35 to $50 total. The full-service approach in an expensive state (Massachusetts, California, New York) can exceed $2,500 in the first year.
How to Save Money When Forming an LLC
- File directly with your state. Every state allows you to file Articles of Organization online or by mail without using a third-party service. You pay only the state filing fee. Most state filing portals are straightforward and take 30 to 60 minutes to complete. This saves $0 to $199 compared to using a formation service.
- Be your own registered agent. You can serve as your own registered agent at no cost if you have a physical address in the state and are available during business hours. This saves $100 to $300 per year. The tradeoff is that your personal address becomes public record and you must be available to receive legal documents during all business hours.
- Use a free operating agreement template. For a single-member LLC, a free template from a reputable source covers the basics. You save $40 to $1,500 compared to paid options. Multi-member LLCs with complex ownership should invest in an attorney-drafted agreement to avoid future disputes.
- Get your EIN from the IRS directly. Apply at irs.gov for free. It takes 5 minutes and you get your number immediately. Never pay a third-party service for an EIN. The FTC has flagged this as a common unnecessary charge.
- Form in your home state. Forming in Delaware, Wyoming, or Nevada sounds appealing because of their business-friendly laws, but if you operate in another state, you will also need to register as a foreign LLC there. This means paying two sets of fees. For most small businesses, forming in your home state is simpler and cheaper.
- Skip expedited filing unless you need it urgently. Expedited filing adds $25 to $500 depending on the state. Standard processing takes 3 to 15 business days in most states. If you can wait, the standard timeline saves you a meaningful amount. California charges $350 to $750 for expedited processing.
- Budget for ongoing costs upfront. Many new LLC owners are surprised by annual report fees and franchise taxes. California's $800 annual franchise tax starts in the first year. Budget for your state's annual fees from day one to avoid losing your LLC status through administrative dissolution.
- Compare formation service plans carefully. If you use a formation service, the basic or free tier is usually sufficient. Premium tiers ($199-$349) include features many LLCs do not need (compliance monitoring, domain names, business email). Only pay for features you will actually use.
Frequently Asked Questions
How much does it cost to form an LLC?
The cost to form an LLC ranges from $35 to $500 for the state filing fee alone, with a national average of $132. Total first-year costs including a registered agent ($100-$300/year), operating agreement ($0-$1,500), and optional services typically run $100 to $2,000. Montana has the cheapest filing fee at $35, while Massachusetts is the most expensive at $500. The biggest variable beyond the filing fee is whether you do it yourself, use an online formation service ($0-$199 plus state fee), or hire an attorney ($500-$1,500 plus state fee).
What is the cheapest state to form an LLC?
Montana has the lowest LLC filing fee at $35, followed by Kentucky at $40 and Arkansas at $45. Nine states charge just $50: Arizona, Colorado, Hawaii, Iowa, Michigan, Minnesota, Mississippi, Missouri, and New Mexico. However, the cheapest filing fee does not always mean the lowest total cost. You should factor in annual fees, registered agent costs, and whether you need to also register as a foreign LLC in your home state. Missouri, New Mexico, and Ohio stand out as the cheapest states overall because they have no annual reports or ongoing state fees.
Do I need a registered agent for my LLC?
Yes, every LLC in every state is legally required to have a registered agent. A registered agent is a person or company available at a physical address during business hours to receive legal documents and official state mail on behalf of your LLC. You can serve as your own registered agent for free, but you must be available at a consistent physical address during all business hours. Professional registered agent services cost $100 to $300 per year. Most formation services include the first year free. Using a professional agent keeps your home address off public records and ensures you never miss a legal notice.
How much does an LLC cost per year after formation?
Annual LLC costs vary by state from $0 to $800 or more. Five states (Arizona, Missouri, New Mexico, Ohio, and South Carolina) have no annual report requirement or fees. Most states charge $25 to $150 per year for an annual or biennial report. California is the most expensive at $800 per year in franchise tax regardless of revenue. Add $100 to $300 per year if you use a professional registered agent. A typical LLC owner in a moderate-cost state pays $150 to $400 per year in ongoing fees. Always budget for annual compliance to avoid losing your LLC status.
Should I form my LLC myself or use a service?
For a simple single-member LLC, filing yourself with the state saves money and takes 1 to 4 hours. You pay only the state filing fee ($35-$500). Online formation services like ZenBusiness ($0 plus state fee), LegalZoom ($0-$299 plus state fee), and Northwest ($39 plus state fee) handle the paperwork and typically include compliance alerts and a registered agent for the first year. An attorney ($500-$1,500 plus state fee) is worth it for multi-member LLCs, businesses with intellectual property, or complex partnership structures. Most sole proprietors and freelancers save money filing directly with their state.
Is the EIN free or do I have to pay for it?
An EIN (Employer Identification Number) is completely free from the IRS. You can apply online at irs.gov and receive your EIN immediately. The FTC has issued a consumer alert warning people not to pay third-party services that charge $50 to $300 for something the IRS provides at no cost. Some LLC formation services include EIN filing as an upsell, but it is unnecessary. The online application takes about 5 minutes. You need an EIN to open a business bank account, hire employees, and file business taxes. There is no legitimate reason to pay anyone for this service.
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