LLC Cost Calculator
Estimate your total LLC formation and annual maintenance costs in minutes.
* Estimates only. Actual costs vary by state, service provider, and individual business needs. Verify current fees with your state’s Secretary of State office.
Starting an LLC is one of the smartest moves you can make to protect your personal assets and give your business a professional foundation — but before you file, it helps to know exactly what you’re getting into financially. The calculator above gives you a personalized estimate of your LLC formation costs based on your state and chosen services. Whether you’re a solo freelancer or launching a multi-member partnership, understanding every line item prevents unwelcome surprises down the road.
What Goes Into the Cost of Forming an LLC?
Your total LLC cost is made up of several distinct fees, and not all of them are obvious at first glance. Here’s a breakdown of every input in the calculator and what it represents.
State Filing Fee
Every state charges a fee to officially file your Articles of Organization — the document that legally creates your LLC. This is the one unavoidable cost you’ll face regardless of how you form your business. State fees range from as little as $35 in Montana to $500 in Massachusetts, so your home state has a significant impact on your startup costs. The calculator includes current filing fees for all 50 states so you can get an accurate starting point immediately.
Formation Service Fee
You can file your LLC paperwork yourself directly with your state’s Secretary of State office, usually at no extra cost beyond the state fee. However, many entrepreneurs prefer to use an online formation service or hire an attorney to handle the paperwork. Online services range from free (with upsells) to around $300, while attorney-drafted formations can run $800 or more. The right choice depends on the complexity of your business structure and your comfort with legal documents.
Registered Agent Fee
Every LLC must designate a registered agent — a person or business authorized to receive legal documents on behalf of your company. You can serve as your own registered agent for free, but many business owners opt for a professional registered agent service to maintain privacy, ensure they never miss important legal notices, and stay compliant when operating across state lines. Professional services typically run $100–$300 per year.
Annual Report and Renewal Fees
Most states require LLCs to file an annual or biennial report to keep their registration active. Fees vary widely — some states charge nothing while others charge several hundred dollars. Enter your state’s current annual report fee in the calculator for an accurate first-year and ongoing cost projection. Failing to pay these fees can result in administrative dissolution of your LLC.
Optional Add-Ons
Beyond the core formation costs, you may need additional services. An Employer Identification Number (EIN) is free from the IRS and required to open a business bank account or hire employees. A professionally drafted operating agreement protects your ownership interests and is strongly recommended even for single-member LLCs. Business licenses, DBA filings, and accounting services are additional line items that can add up quickly when you’re budgeting for your first year.
First-Year vs. Ongoing Annual Costs
Your first year of LLC ownership is typically your most expensive because it includes one-time setup costs like the state filing fee and formation service, combined with recurring annual costs like the registered agent and annual report fee. In subsequent years, your costs drop significantly — usually down to just the registered agent service, annual report fee, and any ongoing professional services you retain. The calculator reflects your estimated first-year total so you can plan your startup budget accurately.
How to Reduce Your LLC Formation Costs
If you’re working with a tight budget, you can dramatically cut costs by filing directly with your state (DIY), serving as your own registered agent, obtaining your EIN directly from the IRS website for free, and skipping premium formation packages that bundle services you don’t need. A lean LLC formation in a low-fee state like Montana or Kentucky can cost under $100 total. That said, investing in professional services often pays for itself in avoided mistakes, missed deadlines, and legal complications.
Frequently Asked Questions About LLC Costs
How much does it cost to form an LLC on average?
The average cost to form an LLC in the United States ranges from $50 to $500 for the state filing fee alone. When you add a registered agent service, formation service, operating agreement, and first-year annual report fee, most entrepreneurs spend between $200 and $800 in their first year. States like Montana, Kentucky, and New Mexico are among the least expensive to form an LLC, while Massachusetts, Texas, and Tennessee charge higher initial fees.
Do I have to pay the California $800 franchise tax even if my LLC makes no money?
Yes. California requires all LLCs registered to do business in the state to pay a minimum annual franchise tax of $800, regardless of income or activity. This is in addition to the state filing fee and applies every year your LLC is active. New LLCs formed in California after January 1, 2021 are exempt from this tax for their first taxable year only. This is one reason some entrepreneurs choose to form their LLC in a different state if they do not primarily operate in California.
Is it cheaper to form an LLC in Wyoming or Delaware instead of my home state?
Wyoming and Delaware are popular choices for LLC formation due to low fees, strong privacy protections, and business-friendly laws. Wyoming’s filing fee is just $100 and it has no state income tax. However, if you conduct business in your home state, you’ll likely need to register your out-of-state LLC as a foreign LLC there anyway — paying that state’s fees on top of your Wyoming or Delaware costs. For most small business owners operating in a single state, forming the LLC locally is the simpler and often more cost-effective option.
What happens if I don’t pay my LLC’s annual report fee?
Failing to file your annual report or pay the required renewal fee can result in your LLC being administratively dissolved or revoked by the state. This means your LLC loses its legal standing, which can expose your personal assets to business liabilities — defeating the entire purpose of forming an LLC. Reinstatement typically requires paying all past-due fees plus a penalty. Staying on top of your annual report deadlines is one of the most important ongoing responsibilities of LLC ownership.
Does an LLC need an operating agreement and how much does it cost?
While most states don’t legally require an LLC to have an operating agreement, it is strongly recommended for every LLC regardless of size. An operating agreement defines ownership percentages, profit distribution, member responsibilities, voting rights, and procedures for adding or removing members. Without one, your LLC is governed entirely by default state rules, which may not reflect your intentions. A basic operating agreement template is available online for free, while an attorney-drafted agreement typically costs $150–$500 depending on complexity and your location.
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