How Much Does an LLC Cost? Filing Fees for All 50 States
Forming a limited liability company (LLC) is one of the most popular ways to structure a small business in the United States. But the cost of starting an LLC varies significantly from state to state. Some states charge as little as $35 to file, while others require $500 or more just for the initial paperwork.
Beyond the filing fee, you need to account for ongoing costs like annual reports, franchise taxes, registered agent fees, and business licenses. These recurring expenses can add hundreds or even thousands of dollars to your annual operating costs depending on where you form your LLC.
This guide breaks down LLC costs for all 50 states so you can make an informed decision about where and how to form your business. We cover state filing fees, annual report costs, hidden expenses, and practical ways to keep your total costs low.
Whether you are launching a side hustle or scaling an established company, understanding these costs upfront helps you budget accurately and avoid surprises down the road.
How Much Does It Cost to Start an LLC?
The total cost to start an LLC depends on several factors, but most business owners can expect to spend between $50 and $1,000 in the first year. Here is a breakdown of the most common expenses.
State Filing Fee: $35 to $500
Every state charges a fee to file your Articles of Organization (or Certificate of Formation). This is the single required cost to legally create your LLC. Montana has the lowest filing fee at $35, while Massachusetts charges the highest at $500. Most states fall in the $50 to $200 range.
Registered Agent: $0 to $300/Year
Every LLC needs a registered agent to receive legal documents on its behalf. You can serve as your own registered agent for free in most states, or hire a professional service for $50 to $300 per year. A professional registered agent provides privacy and ensures you never miss important legal notices.
Operating Agreement: Free if Self-Prepared
An operating agreement outlines how your LLC will be managed. While not required in every state, it is strongly recommended. You can draft one yourself using free templates online or pay an attorney $200 to $1,000 to create a custom agreement.
EIN (Employer Identification Number): Free
An EIN is your LLC’s federal tax ID number. You can get one for free directly from the IRS website. Be wary of third-party services that charge for this free filing.
Business Licenses and Permits: Varies
Depending on your industry and location, you may need federal, state, or local licenses. These can range from $25 to several hundred dollars. Check with your city and county clerk for specific requirements.
Annual/Biennial Reports: $0 to $500/Year
Most states require LLCs to file periodic reports to keep their information current. Fees range from $0 (in states like Arizona and Missouri that have no report requirement) to $500 per year in Massachusetts. Failing to file can result in penalties or administrative dissolution of your LLC.
LLC Filing Fees by State
The table below shows the filing fee, annual report fee, and estimated first-year cost for forming an LLC in each state. The first-year cost adds the filing fee to the first annual report fee (for states with annual reports). For biennial states, the report fee is included since it is typically due within the first two years. Click on any state to read our full guide on how to start an LLC there.
| State | Filing Fee | Annual Report Fee | Report Frequency | Total First-Year Cost* | State Guide |
|---|---|---|---|---|---|
| Alabama | $236 | $50 | Annual | $286 | Alabama LLC Guide |
| Alaska | $250 | $100 | Biennial | $350 | Alaska LLC Guide |
| Arizona | $50 | $0 | None | $50 | Arizona LLC Guide |
| Arkansas | $45 | $150 | Annual | $195 | Arkansas LLC Guide |
| California | $70 | $20 | Biennial | $90 | California LLC Guide |
| Colorado | $50 | $25 | Annual | $75 | Colorado LLC Guide |
| Connecticut | $120 | $80 | Annual | $200 | Connecticut LLC Guide |
| Delaware | $90 | $300 | Annual | $390 | Delaware LLC Guide |
| Florida | $125 | $139 | Annual | $264 | Florida LLC Guide |
| Georgia | $100 | $50 | Annual | $150 | Georgia LLC Guide |
| Hawaii | $51 | $15 | Annual | $66 | Hawaii LLC Guide |
| Idaho | $100 | $0 | Annual | $100 | Idaho LLC Guide |
| Illinois | $150 | $75 | Annual | $225 | Illinois LLC Guide |
| Indiana | $95 | $32 | Biennial | $127 | Indiana LLC Guide |
| Iowa | $50 | $30 | Biennial | $80 | Iowa LLC Guide |
| Kansas | $160 | $50 | Biennial | $210 | Kansas LLC Guide |
| Kentucky | $40 | $15 | Annual | $55 | Kentucky LLC Guide |
| Louisiana | $100 | $35 | Annual | $135 | Louisiana LLC Guide |
| Maine | $175 | $85 | Annual | $260 | Maine LLC Guide |
| Maryland | $100 | $300 | Annual | $400 | Maryland LLC Guide |
| Massachusetts | $500 | $500 | Annual | $1,000 | Massachusetts LLC Guide |
| Michigan | $50 | $25 | Annual | $75 | Michigan LLC Guide |
| Minnesota | $155 | $0 | Annual | $155 | Minnesota LLC Guide |
| Mississippi | $50 | $0 | Annual | $50 | Mississippi LLC Guide |
| Missouri | $50 | $0 | None | $50 | Missouri LLC Guide |
| Montana | $35 | $20 | Annual | $55 | Montana LLC Guide |
| Nebraska | $100 | $13 | Biennial | $113 | Nebraska LLC Guide |
| Nevada | $75 | $350 | Annual | $425 | Nevada LLC Guide |
| New Hampshire | $100 | $100 | Annual | $200 | New Hampshire LLC Guide |
| New Jersey | $125 | $75 | Annual | $200 | New Jersey LLC Guide |
| New Mexico | $50 | $0 | None | $50 | New Mexico LLC Guide |
| New York | $200 | $9 | Biennial | $209 | New York LLC Guide |
| North Carolina | $125 | $200 | Annual | $325 | North Carolina LLC Guide |
| North Dakota | $135 | $50 | Annual | $185 | North Dakota LLC Guide |
| Ohio | $99 | $0 | None | $99 | Ohio LLC Guide |
| Oklahoma | $100 | $25 | Annual | $125 | Oklahoma LLC Guide |
| Oregon | $100 | $100 | Annual | $200 | Oregon LLC Guide |
| Pennsylvania | $125 | $7 | Annual | $132 | Pennsylvania LLC Guide |
| Rhode Island | $150 | $50 | Annual | $200 | Rhode Island LLC Guide |
| South Carolina | $110 | $0 | None | $110 | South Carolina LLC Guide |
| South Dakota | $150 | $55 | Annual | $205 | South Dakota LLC Guide |
| Tennessee | $300 | $300 | Annual | $600 | Tennessee LLC Guide |
| Texas | $300 | $0 | Annual | $300 | Texas LLC Guide |
| Utah | $59 | $18 | Annual | $77 | Utah LLC Guide |
| Vermont | $125 | $35 | Annual | $160 | Vermont LLC Guide |
| Virginia | $100 | $50 | Annual | $150 | Virginia LLC Guide |
| Washington | $200 | $70 | Annual | $270 | Washington LLC Guide |
| West Virginia | $100 | $25 | Annual | $125 | West Virginia LLC Guide |
| Wisconsin | $130 | $25 | Annual | $155 | Wisconsin LLC Guide |
| Wyoming | $100 | $60 | Annual | $160 | Wyoming LLC Guide |
*Total First-Year Cost includes the state filing fee plus the annual or biennial report fee. It does not include registered agent fees, business licenses, franchise taxes (such as California’s $800 franchise tax), or other state-specific costs like New York’s publication requirement.
Cheapest States to Form an LLC
If you want to minimize your upfront and ongoing costs, these 10 states offer the most affordable LLC formation options. We ranked them by a combination of low filing fees and low (or no) annual costs.
1. Montana – $35 Filing Fee, $20/Year Annual Report
Montana has the lowest LLC filing fee in the nation at just $35. The annual report is only $20, bringing your first-year total to $55. Montana also has no sales tax, which is a bonus for certain business types. Read our Montana LLC guide for full details.
2. Kentucky – $40 Filing Fee, $15/Year Annual Report
Kentucky’s $40 filing fee is the second lowest in the country. Combined with a $15 annual report, your first-year total is just $55. Keep in mind that Kentucky does impose a Limited Liability Entity Tax (LLET) with a $175 minimum for LLCs with gross receipts or gross profits over $3 million.
3. Arizona – $50 Filing Fee, No Annual Report
Arizona charges $50 to form an LLC and requires no annual report or franchise tax. This makes it one of the cheapest states for ongoing LLC maintenance. Your only recurring cost is whatever you pay for a registered agent.
4. Mississippi – $50 Filing Fee, $0 Annual Report Fee
Mississippi charges $50 to file and requires an annual report, but the report itself has no filing fee. Your total first-year cost is just $50, and you pay nothing to stay in compliance each year beyond filing the report on time.
5. Missouri – $50 Filing Fee, No Annual Report
Missouri is one of the most business-friendly states for LLCs. At $50 to form and no annual report requirement, your ongoing state costs are essentially zero. There is also no franchise tax for LLCs in Missouri.
6. New Mexico – $50 Filing Fee, No Annual Report
New Mexico matches Missouri with a $50 filing fee and no annual report or franchise tax. Online filing is now mandatory, and processing is fast at one to three business days. New Mexico is one of the most maintenance-free states for LLC owners.
7. Colorado – $50 Filing Fee, $25/Year Periodic Report
Colorado charges $50 to file and just $25 per year for a periodic report. Online filing is processed quickly, often the same day. Your total first-year cost is only $75.
8. Michigan – $50 Filing Fee, $25/Year Annual Statement
Michigan mirrors Colorado with a $50 filing fee and $25 annual statement. The annual statement is due February 15 each year. Your total first-year cost is $75.
9. Hawaii – $51 Filing Fee, $15/Year Annual Report
Hawaii’s filing fee is $51 ($50 plus a $1 state archives fee), and the annual report is just $15. The first-year total of $66 makes Hawaii one of the most affordable states overall for LLC formation and maintenance.
10. Utah – $59 Filing Fee, $18/Year Renewal
Utah charges $59 to form an LLC and just $18 per year for renewal. The total first-year cost of $77 makes it a very affordable option, especially among western states.
States with no annual report requirement: Arizona, Missouri, New Mexico, and Ohio do not require LLCs to file annual reports, which eliminates a major recurring cost. South Carolina also has no annual report requirement for LLCs taxed as partnerships or disregarded entities.
Most Expensive States to Form an LLC
Some states have high filing fees, steep annual costs, or hidden expenses that make LLC formation and maintenance significantly more expensive. Here are the 10 most expensive states when you factor in total first-year and ongoing costs.
1. Massachusetts – $500 Filing Fee, $500/Year Annual Report
Massachusetts is the most expensive state across the board. The $500 filing fee is the highest in the nation, and the $500 annual report doubles your cost every year. Your first-year total is $1,000 in state fees alone, making Massachusetts one of the least affordable states for small LLC owners.
2. California – $70 Filing Fee + $800 Annual Franchise Tax
While California’s $70 filing fee looks low on paper, the state imposes an $800 annual franchise tax on all LLCs regardless of income. This means your true first-year cost is at least $870. LLCs with gross income over $250,000 pay additional fees ranging from $900 to $11,790 based on income brackets. The first-year franchise tax exemption (AB 85) expired after 2023.
3. Tennessee – $300 Filing Fee, $300/Year Annual Report
Tennessee charges $300 to form an LLC and $300 per year for the annual report (simplified to a flat fee as of July 2025). The state also imposes a franchise tax and a 6.5% excise tax on net earnings, pushing total costs even higher for profitable businesses.
4. New York – $200 Filing Fee + Publication Requirement ($300-$1,500)
New York’s $200 filing fee is just the beginning. The state requires new LLCs to publish a notice in two local newspapers for six consecutive weeks, which costs $300 to $1,500 or more depending on the county. Add the $50 Certificate of Publication fee, and first-year costs can easily exceed $700. NYC-based LLCs may also face the Unincorporated Business Tax.
5. Nevada – $75 Filing Fee, $350/Year Annual Costs
Nevada markets itself as business-friendly due to its lack of state income tax, but the annual costs tell a different story. You pay $150 per year for the Annual List of Managers/Members plus $200 for the State Business License, totaling $350 in annual fees. The initial formation also requires these payments, bringing first-year costs to $425.
6. Maryland – $100 Filing Fee, $300/Year Annual Report
Maryland’s annual Personal Property Tax Return costs $300 per year, making it one of the more expensive states for ongoing LLC maintenance. Your first-year total is $400 in state fees. The report is filed with the Department of Assessments and Taxation, not the Secretary of State.
7. Delaware – $90 Filing Fee, $300/Year Franchise Tax
Delaware is popular for large corporations but offers fewer advantages for small LLCs. The $300 annual franchise tax (due June 1 each year) adds up over time. A $200 penalty plus 1.5% monthly interest applies for late payments. Unless you have a specific legal reason to incorporate in Delaware, most small business owners are better off forming in their home state.
8. North Carolina – $125 Filing Fee, $200/Year Annual Report
North Carolina’s $200 annual report fee is one of the highest in the country. Combined with the $125 filing fee, your first-year cost is $325. The annual report is due by April 15 each year.
9. Texas – $300 Filing Fee, No Separate Annual Report Fee
Texas has no state income tax and no separate annual report fee, but the $300 filing fee is among the highest in the nation. The state does require an annual Franchise Tax Report, though most small businesses owe $0 if revenue is under $2.47 million (2025 threshold).
10. Rhode Island – $150 Filing Fee + $400 Annual Tax Charge
Rhode Island charges a $150 filing fee and a $50 annual report fee, but the real cost is the mandatory $400 annual charge from the Division of Taxation. This makes the true ongoing cost $450 per year regardless of your LLC’s income, putting Rhode Island among the priciest states for small businesses.
Ongoing LLC Costs to Consider
Your LLC costs do not end after filing your Articles of Organization. Here are the recurring expenses you should budget for each year.
Annual Reports and Franchise Taxes
Most states require an annual or biennial report to keep your LLC in good standing. Fees range from $0 to $500, and missing deadlines often results in penalties or even administrative dissolution. Some states like California, Tennessee, and Rhode Island also impose annual franchise or entity taxes separate from the report fee. Always mark your report due dates on a calendar to avoid costly late penalties.
Registered Agent Renewals
If you use a professional registered agent service, expect to pay $50 to $300 per year for renewal. Many LLC formation services offer the first year free and then charge for renewals. Compare prices before signing up, since these costs compound over the life of your business.
Business Licenses and Permits
Your city, county, and state may each require separate business licenses. General business licenses typically cost $25 to $100, but specialized industries like food service, construction, and healthcare can require permits costing hundreds or thousands of dollars. Check our business license guide for more details on what you may need.
Accounting and Bookkeeping
Even if your LLC is a simple pass-through entity, you still need to track income and expenses for tax purposes. Basic bookkeeping software costs $15 to $50 per month, while hiring a CPA for annual tax preparation typically runs $500 to $2,000 depending on complexity.
Business Insurance
While not legally required in most cases, general liability insurance protects your LLC from lawsuits and claims. Expect to pay $300 to $1,000 per year for a basic policy. Professional liability (errors and omissions) and workers’ compensation insurance are additional costs to consider based on your industry.
Compliance and Legal Services
You may need to update your operating agreement, file amendments with the state, or handle other legal matters over time. Budgeting $200 to $500 per year for miscellaneous legal and compliance costs is a reasonable estimate for most small LLCs.
Ways to Save on LLC Formation Costs
Starting an LLC does not have to break the bank. Here are practical strategies to keep your costs as low as possible.
File online directly with the state. Skip third-party formation services and file your Articles of Organization directly on your state’s Secretary of State website. This eliminates service fees of $50 to $300 that formation companies charge on top of the state filing fee.
Be your own registered agent. If you have a physical address in the state where your LLC is formed and are available during business hours, you can serve as your own registered agent for free. This saves $100 to $300 per year.
Draft your own operating agreement. Free operating agreement templates are widely available online. For a single-member LLC, a basic template is usually sufficient. Save the attorney fees for more complex multi-member structures.
Get your EIN for free from the IRS. Apply directly at IRS.gov. Never pay a third-party service for something the IRS provides at no cost.
Compare LLC formation services if you do use one. If you prefer help with the paperwork, compare services like ZenBusiness, Northwest Registered Agent, and LegalZoom. Prices range from $0 (plus state fees) to several hundred dollars. Read our guide on the best LLC services for a detailed comparison.
Choose your formation state wisely. Unless you have a specific legal reason to form in another state, form your LLC in the state where you do business. Forming in a “cheap” state like Wyoming but operating in California means you pay fees in both states, which negates any savings.
LLC Cost FAQs
Is forming an LLC free in any state?
No state allows you to form an LLC for free. Every state charges a filing fee to process your Articles of Organization. The lowest filing fee is $35 in Montana. However, several states have no ongoing annual fees after formation, including Arizona, Missouri, New Mexico, and Ohio. Mississippi and several other states require an annual report but charge $0 to file it.
What is the cheapest state overall to maintain an LLC?
The cheapest states to maintain an LLC over time are those with no annual report requirements: Arizona ($50 one-time filing fee), Missouri ($50 one-time), and New Mexico ($50 one-time). Ohio ($99 one-time) also has no recurring fees. However, you should generally form your LLC in the state where you conduct business. Forming in a cheaper state while operating in another usually means paying fees and registering as a foreign LLC in both states, which negates the savings.
Are there hidden costs when forming an LLC?
Yes. Several states have costs that are not immediately obvious from the filing fee alone. California imposes an $800 annual franchise tax on all LLCs regardless of income. New York requires a publication notice in two newspapers that costs $300 to $1,500 depending on the county. Nevada charges $350 per year in combined annual list and business license fees despite marketing itself as tax-friendly. Rhode Island has a mandatory $400 annual charge from the Division of Taxation. Always research your state’s full cost picture before forming your LLC.
Can I deduct LLC formation costs on my taxes?
Yes. The IRS allows you to deduct up to $5,000 in startup costs in the first year of business, which includes LLC filing fees, legal fees, and other formation expenses. Any costs exceeding $5,000 must be amortized over 15 years. Ongoing costs like annual report fees, registered agent fees, and business licenses are fully deductible as ordinary business expenses in the year they are paid.
How much does a registered agent cost?
A professional registered agent service typically costs $50 to $300 per year. Many LLC formation services include the first year of registered agent service for free as part of their formation package. You can also serve as your own registered agent at no cost, provided you have a physical address (not a P.O. box) in the state of formation and are available during regular business hours to receive legal documents.
Do I need to form my LLC in the state where I live?
You are not required to form your LLC in your home state, but it is usually the best choice. If you form in a different state, you will likely need to register as a foreign LLC in the state where you actually do business, which means paying filing fees and annual report costs in both states. Forming out of state only makes sense if you have a specific legal or tax reason, such as Delaware’s business-friendly court system for large companies with complex corporate structures.