How Much Does it Cost to start LLC (Full Guide)

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How Much Does it Cost To Start an LLC in 2025

Explore how much does it cost to start an LLC, by state. Our guide provides the exact fees and steps to set up your limited liability company. Get the details you need.

Did you know starting an LLC in the US costs about $132 on average? LLC filing fees can range from $35 to $500. It’s important to know these costs if you’re starting a business.

Starting an LLC costs vary by state. You’ll face initial fees and ongoing costs like annual fees and business licenses. These all add up to the total cost of starting an LLC.

When thinking about starting an LLC, check the costs in your state. For example, California charges $800 a year, while Wyoming charges just $60. Knowing these costs helps you plan your business budget.

Starting an LLC comes with various costs. You’ll need to pay for filing fees and annual fees. Understanding these costs helps you make smart business decisions.

Whether you’re starting a new business or growing an existing one, knowing the costs is key. It helps ensure your business is set up for success.

Important:

While some states have lower LLC formation costs, forming an LLC in a cheaper state to avoid fees may be a costly mistake. It can lead to legal issues if you end up doing business in your home state without the proper filings, resulting in needing both a Domestic LLC and a Foreign LLC.

If you haven’t watched it yet, check out our video: “What’s the Best State to Form an LLC?” for more insights.

Understanding Basic LLC Formation Costs

To start an LLC, you must pay a state filing fee. This is a one-time payment you make when you file the necessary documents to create your LLC.

The documents that form your LLC may be called:

Articles of Organization
Certificate of Formation
Certificate of Organization

Each state has different names for these documents, but they all serve the same purpose—creating your LLC.

Starting an LLC has costs you should know. The starting llc expenses change by state. But, on average, it costs about $129 to start an LLC. This includes the llc setup fees, which can be from $35 to $500.

There are also yearly costs to keep an LLC running. These include a registered agent, business licenses, and annual reports. The yearly cost is about $104 on average.

Here are some costs for forming an LLC:

State filing fees: $35 to $500
Annual report filings: $0 to $800
Registered agent services: $100 to $300 per year

Knowing these costs is key when starting an LLC. By understanding the starting llc expenses and llc setup fees, you can plan better.

Ongoing LLC Filing Fees (Annual/Biennial Reports)

After forming your LLC, most states require you to pay an ongoing fee each year (or every two years). This fee keeps your LLC compliant and active.

These ongoing fees are usually called:

Annual Fee
Annual Report
Biennial Report
Annual Franchise Tax

While the names vary by state, they all refer to the same thing: the cost to keep your LLC in good standing.

If you don’t file your Annual Report or pay the fee on time, you could face late fees, or your LLC might even be shut down by the state.

State-by-State LLC Filing Fee Comparison

Looking at the llc registration cost across states is key. Some states charge much less than others. For example, Kentucky’s fee is just $40, while Massachusetts charges $500.

LLC filing fees vary a lot from state to state. Here are some examples:

California: $70 LLC filing fee, with an annual fee of $800
Wyoming: $100 LLC filing fee, with an annual fee of $60
Delaware: $90 LLC filing fee,with an annual fee $300
Arizona: $50 LLC filing fee, with an $0 annual fee

States like Delaware, Wyoming, and Florida are good because they have low or no corporate taxes. This makes them cheaper for starting an LLC.

When picking a state for your LLC, think about more than just fees. Look at taxes, how flexible the rules are, and how well they protect your privacy. This way, you can choose a state that’s right for your business and saves you money.

LLC Cost by State (as of 2025):

LLC filing fees range from $35 to $500. As of 2025,

State LLC	Filing Fee	LLC Annual/Biennial Fee
Alabama LLC	$200	$50 minimum (every year)
Alaska LLC	$250	$100 (every 2 years)
Arizona LLC	$50	$0 (no fee and no information report)
Arkansas LLC	$45	$150 (every year)
California LLC	$70	$800 (every year) + $20 (every 2 years)
Colorado LLC	$50	$10 (every year)
Connecticut LLC	$120	$80 (every year)
Delaware LLC	$90	$300 (every year)
Florida LLC	$125	$138.75 (every year)
Georgia LLC	$100	$50 (every year)
Hawaii LLC	$50	$15 (every year)
Idaho LLC	$100	$0 (however, an information report must be filed every year)
Illinois LLC	$150	$75 (every year)
Indiana LLC	$95	$31 (every 2 years)
Iowa LLC	$50	$30 (every 2 years)
Kansas LLC	$160	$50 (every year)
Kentucky LLC	$40	$15 (every year)
Louisiana LLC	$100	$35 (every year)
Maine LLC	$175	$85 (every year)
Maryland LLC	$100	$300 (every year)
Massachusetts LLC	$500	$500 (every year)
Michigan LLC	$50	$25 (every year)
Minnesota LLC	$155	$0 (however, an information report must be filed every year)
Mississippi LLC	$50	$0 (however, an information report must be filed every year)
Missouri LLC	$50	$0 (no fee and no information report)
Montana LLC	$35	$20 (every year)
Nebraska LLC	$100	$13 (every 2 years)
Nevada LLC	$425	$350 (every year)
New Hampshire LLC	$100	$100 (every year)
New Jersey LLC	$125	$75 (every year)
New Mexico LLC	$50	$0 (no fee and no information report)
New York LLC	$200	$9 (every 2 years)
North Carolina LLC	$125	$200 (every year)
North Dakota LLC	$135	$50 (every year)
Ohio LLC	$99	$0 (no fee and no information report)
Oklahoma LLC	$100	$25 (every year)
Oregon LLC	$100	$100 (every year)
Pennsylvania LLC	$125	$7 (every year)
Rhode Island LLC	$150	$50 (every year)
South Carolina LLC	$110	$0 (no fee and no information report, unless LLC is taxed as an S-Corp )
South Dakota LLC	$150	$50 (every year)
Tennessee LLC	$300	$300 (every year)
Texas LLC	$300	$0 for most LLCs (however a No Tax Due Report and Public Information Report must be filed every year)
Utah LLC	$59	$18 (every year)
Vermont LLC	$125	$35 (every year)
Virginia LLC	$100	$50 (every year)
Washington LLC	$200	$60 (every year)
Washington DC LLC	$99	$300 (every 2 years)
West Virginia LLC	$100	$25 (every year)
Wisconsin LLC	$130	$25 (every year)
Wyoming LLC	$100	$60 minimum (every year)

Required Documentation and Associated Expenses

When you start an LLC, you need to think about the costs. The price to start an LLC changes based on the state and what documents you need. One key document is the Articles of Organization, which you must file with the state.

The cost to file these articles can be between $35 and $500. You also need an operating agreement. This document shows who owns the business and how it runs. The cost for this can range from free to $1,000.

Getting an EIN from the IRS is also a must. This is free right now. Other costs include state and local taxes, business licenses, and a registered agent. Starting an LLC can cost from a few hundred to several thousand dollars, depending on your state and needs.

DOCUMENT	ESTIMATED COST
Articles of Organization	$35-$500
Operating Agreement	$0-$1,000
EIN Registration	Free
Business Licenses	Free$50-$100
Registered Agent	$75-$150

Make sure to check the costs for starting an LLC in your state. This way, you’ll know the exact price and what you need to do.

Hidden Costs of LLC Formation

When you think about the llc formation cost, don’t just look at the first fee and yearly costs. There are many hidden costs to forming an LLC. These can really add up, so it’s key to include them in your budget.

Some hidden costs include fees for professional services, costs for a registered agent, and fees for business licenses. Professional service fees can be from $50 to $200 for a detailed operating agreement. Registered agent services from a third-party can cost $100 to $300 a year.

Here are some more hidden costs to think about:

Business license fees: vary by state and location
Registered agent fees: $100 to $300 per year
Professional service fees: $50 to $200
Insurance premiums: vary depending on the type of business and associated risks

It’s important to know these hidden costs to avoid surprises and plan well for your LLC. By including these costs, you can get a better idea of your starting llc expenses. This helps you make smart choices for your business.

Remember, getting help from a business formation expert can save you money. They can help you avoid costly errors. So, make sure to include these hidden costs when figuring out your llc formation cost.

Premium LLC Services and Their Costs

Thinking about the cost of forming an LLC? It’s key to look at the value of premium services. These services can make the process easier and offer extra help. They can handle the paperwork and give advice on how to run your LLC.

Services like Inc Authority, LegalZoom, and Zen Business are popular. They help with the cost by offering packages. These packages include filing fees, help with a registered agent, and EIN registration. For instance, Inc Authority lets you file for free, with only state fees. LegalZoom’s basic package costs $378 plus state fees.

Here are some key features and costs of these services:

Inc Authority: $0 plus state fees, with free registered agent and EIN registration
Northwest: $39 plus state fees, with free registered agent and $50 EIN registration
LegalZoom: $378 plus state fees, with $299 registered agent and $79 EIN registration
Zen Business: $298 plus state fees, with $199 registered agent and $99 EIN registration

Choosing a premium LLC service can save you time. It ensures your LLC is set up right. This is very important when thinking about the cost of forming an LLC.

Cost-Saving Strategies for LLC Formation

Thinking about starting an LLC? It’s smart to look for ways to save money. You can do the LLC formation yourself. This way, you can save on costs.

Preparing and filing documents yourself is a big step. You’ll need to get the articles of organization ready. You also need to get any licenses and permits needed.

Another good idea is to compare different service providers. They can help with the LLC formation. Their prices can vary a lot. By looking around, you can find the best deal for you.

It’s also important to think about the ongoing costs. This includes fees and expenses that keep coming up. Knowing this can help you make a better choice.

Some key ways to save money include:

Preparing and filing documents yourself to reduce service provider fees
Comparing service providers to find the most affordable option
Considering the total cost of ownership, including ongoing fees and expenses

Using these strategies can help you save money. It also makes the LLC formation process smoother. Always check the latest fees and rules for registering an LLC. They can change.

Comparing LLC Costs with Other Business Structures

When picking a business structure, cost is a big factor. You might ask, how much does it cost to start an LLC compared to others? The cost to form an LLC varies by state. But, LLCs offer both liability protection and tax benefits.

LLCs are cheaper to start than corporations. This makes them a good choice for many entrepreneurs and small business owners.

LLCs cost more than sole proprietorships to start and keep up. But, they avoid double taxation with “pass-through” taxation. Here are some cost differences between LLCs and other structures:

Corporations cost more to start than LLCs. C Corporations are not good for small, low-risk businesses because of high start-up costs.
Sole proprietorships are cheaper to start than LLCs. But, they don’t offer the same liability protection and tax benefits as LLCs.
LLCs are great for small businesses with few owners. They offer flexibility and protection.

The right business structure depends on your needs and goals. By looking at costs and benefits, you can choose the best for your business.

Future Cost Considerations for Your LLC

When you think about starting an LLC, remember the costs that come later. The first llc startup expenses are just the start. As your business gets bigger, you’ll face new costs like hiring more people or growing your operations.

Expanding to other states can also increase your expenses. You’ll need to pay for filing fees, annual fees, and more. For instance, some states charge a franchise tax, which can be between $300 to $800 each year.

Research the cost of registering your LLC in new states
Factor in growth-related expenses, such as hiring additional employees
Consider the cost of annual fees, franchise taxes, and other expenses

Knowing these future costs helps you plan better for your business’s long-term success. This includes the overallcost of forming an llc.

LLC Cost - FAQs

What are the basic costs of forming an LLC?

Forming an LLC costs a few things. You’ll pay a one-time state filing fee. You’ll also pay annual fees. Don’t forget the cost of getting an Employer Identification Number (EIN) and making an operating agreement.

How do LLC filing fees vary by state?

LLC filing fees change a lot by state. Arizona and Mississippi have low fees. But, Massachusetts and Nevada charge more. Knowing this helps you choose the best state for your LLC.

What other costs are involved in forming an LLC?

There’s more to forming an LLC than just fees. You’ll also pay for legal and accounting help. You’ll need a registered agent and business licenses too.

Which states offer the most affordable options for forming an LLC?

Some states are cheaper for LLCs. They have lower fees and costs. But, think about all costs, like doing business there, before you decide.

What are the ongoing expenses associated with maintaining an LLC?

After starting an LLC, you’ll have ongoing costs. You’ll need to file annual reports and renew business licenses.

What are some cost-saving strategies for forming an LLC?

To save money, you can do it yourself or compare service providers. Think about all costs, including future fees, to make a smart choice.

How do the costs of forming an LLC compare to other business structures?

LLCs are often cheaper than corporations and sole proprietorships. They’re a good choice for many entrepreneurs and small business owners.

When is it worth investing in professional LLC services?

Professional services are worth it for complex formations. They save time and make the process easier. They’re also good if you’re short on time.

What future cost considerations should be kept in mind when forming an LLC?

As your LLC grows, think about future costs. This includes hiring more employees or expanding to new states. These costs can add up.

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