How Much Does It Cost to Form an LLC? (2026 Guide)

If you’re asking how much does it cost to form an LLC, the short answer is anywhere from $35 to $500 just for the state filing fee — but the real total depends on your state, the services you choose, and the ongoing fees you’ll face each year. This guide breaks down every cost category with real numbers so you can budget accurately before you file.

State Filing Fees: The Core Cost to Form an LLC

Every state charges a fee to file your Articles of Organization (sometimes called a Certificate of Formation). This is the one non-negotiable cost of forming an LLC. Here’s how fees break down across the country:

• Cheapest states: Kentucky ($40), Colorado ($50), Arizona ($50), Iowa ($50), Michigan ($50)
• Mid-range states: Florida ($125), New Jersey ($125), Georgia ($100), North Carolina ($125), Ohio ($99)
• Most expensive states: Massachusetts ($500), Tennessee ($300 minimum), Texas ($300), Illinois ($150), California ($70 filing fee plus a mandatory $800 annual franchise tax)

The median state filing fee across all 50 states is approximately $100. However, the filing fee alone doesn’t tell the full story. Several states impose additional costs that catch first-time founders off guard.

How Much Does It Cost to Form an LLC When You Include Every Expense?

Beyond the state filing fee, here are the real costs most LLC owners encounter during formation and their first year of operation:

Registered Agent Fees

Every state requires your LLC to have a registered agent — a person or service that accepts legal documents on your behalf. You can serve as your own registered agent for free in most states, but many owners prefer to hire a professional service. Expect to pay $50 to $300 per year for a commercial registered agent. Popular services like Northwest Registered Agent charge around $125/year, while ZenBusiness and Incfile offer registered agent service starting at $0 for the first year when bundled with their formation packages.

Operating Agreement

An operating agreement isn’t filed with the state, but it’s a critical document that outlines ownership structure, profit distribution, and management rules. You can draft one yourself using a free template ($0), use an online legal service ($50–$150), or hire an attorney ($500–$2,000). For single-member LLCs with simple structures, a template is often sufficient.

EIN (Employer Identification Number)

You can get an EIN from the IRS completely free by applying online at irs.gov. This takes about five minutes. Be cautious of third-party services that charge $50–$100 for this — there’s no reason to pay anyone for an EIN.

Publication Requirements

New York, Arizona, and Nebraska require newly formed LLCs to publish a notice in local newspapers. In New York, this can cost $300 to $1,500+ depending on the county. New York City publications are the most expensive. Arizona’s requirement typically costs $150–$300. This is an often-overlooked expense that significantly raises the total formation cost in these states.

Business Licenses and Permits

Depending on your industry and location, you may need local, county, or state business licenses. Costs vary wildly — a general business license might be $50–$100, while specialized professional licenses can run $200–$500+. Check with your city clerk’s office and state licensing board for specific requirements.

Annual and Ongoing LLC Costs by State

Formation is a one-time event, but maintaining your LLC comes with recurring expenses. These ongoing costs are just as important to factor into your budget:

• Annual report fees: Most states require an annual or biennial report. Fees range from $0 (Arizona, Missouri) to $300+ (Massachusetts). Common fees are $25–$100 per year.
• Franchise taxes: California charges a flat $800/year (waived for the first year for LLCs formed after January 1, 2021, with income under $250,000). Delaware charges a flat $300/year. Several other states impose similar recurring taxes.
• State business taxes: Some states impose gross receipts taxes, capital values taxes, or privilege taxes on LLCs independent of income tax. For example, Texas charges a franchise tax on LLCs earning over $2.47 million in annual revenue.
• Registered agent renewal: $50–$300/year if you’re using a commercial service.

When you add up first-year costs, here’s what a realistic budget looks like for a few common scenarios:

• Wyoming (DIY formation): $100 filing fee + $0 registered agent (self) + $0 EIN + $60 annual report = ~$160 first year
• Florida (with registered agent service): $125 filing fee + $125 registered agent + $0 EIN + $138.75 annual report = ~$389 first year
• California (minimum costs): $70 filing fee + $125 registered agent + $0 EIN + $800 franchise tax = ~$995 first year
• New York (with publication): $200 filing fee + $125 registered agent + $800 average publication + $9 biennial report = ~$1,134 first year

Formation Services vs. DIY: Is It Worth Paying Someone?

Online LLC formation services typically charge $0–$299 on top of state filing fees. Here’s a quick comparison:

• DIY filing: You pay only the state fee and handle paperwork yourself. Best for simple, single-member LLCs in states with straightforward online filing systems.
• Budget formation services ($0–$79 + state fee): Companies like ZenBusiness ($0), Incfile ($0), and Northwest ($39) handle the filing for you and often include a free year of registered agent service. This is the sweet spot for most people.
• Premium formation services ($150–$299+ state fee): These typically bundle operating agreement templates, EIN filing, compliance alerts, and expedited processing. The added value is marginal for most small LLCs.
• Attorney-assisted formation ($500–$2,000+): Worth considering for multi-member LLCs, complex ownership structures, or businesses in heavily regulated industries.

Tips to Minimize Your LLC Formation Costs

• File directly with your state’s Secretary of State website to avoid unnecessary service fees
• Get your EIN for free directly from the IRS — never pay a third party for this
• Serve as your own registered agent if you have a physical address in your state and are comfortable receiving legal documents publicly
• Avoid expedited processing fees unless you genuinely need your LLC formed within 24–48 hours
• Compare your home state’s total costs (filing + annual fees + franchise taxes) with popular alternatives like Wyoming or New Mexico if you’re forming a holding company or online business

Calculate Your Exact LLC Formation Cost

Now that you know how much it costs to form an LLC and what factors drive the total, it’s time to get a number specific to your situation. Use our free LLC cost calculator to see a complete breakdown of filing fees, annual costs, and total first-year expenses for your state — no email required, no upsells. Just pick your state, answer a few quick questions, and get your personalized estimate in seconds.