How Much Does an LLC Cost? State-by-State Fee Guide 2024
The cost to form an LLC varies dramatically by state — from as low as $50 in some states to over $500 in others. Beyond the initial filing fee, ongoing annual costs can range from zero to over $1,000 per year. This guide covers the complete cost picture so you can budget accurately for your LLC.
Disclaimer: Filing fees change periodically. Always verify current fees directly with your state’s business filing office before submitting.
Initial State Filing Fees (Articles of Organization)
These are the one-time fees to officially create your LLC. Low-cost states (under $100): Kentucky ($40), Colorado ($50), Arkansas ($45), Mississippi ($50), Missouri ($50), New Mexico ($50), Oklahoma ($100). Mid-range states ($100-$200): Texas ($300), Florida ($125), Georgia ($100), Illinois ($150), Ohio ($99), Pennsylvania ($125). High-cost states: California ($70 filing but $800 annual tax), Massachusetts ($500), Nevada ($425), Tennessee ($300). Read Best States to Form an LLC for a strategic overview.
Annual Fees and Ongoing Costs
Annual report fees: Most states require annual or biennial reports with fees ranging from $0 (New Mexico has no annual report) to $300+. Franchise taxes: Some states charge annual franchise or privilege taxes regardless of profit. California’s $800 minimum franchise tax is the most significant — every California LLC pays at least $800 per year.
Registered agent: If using a registered agent service, budget $50 to $300 per year.
Other Potential LLC Costs
Operating agreement: DIY is free. Attorney-drafted costs $300 to $1,500. Business licenses: Varies widely by business type and location. EIN: Free from the IRS. Business bank account: Most banks offer free or low-cost business checking. Accounting software: $0 to $50/month. Formation service: Using a service like ZenBusiness or Northwest adds $0 to $200 above state fees for convenience.
Total First-Year Cost Estimate
Most states: $150 to $500 total for the first year (filing fee + registered agent + basic setup). California: $870+ (filing fee + $800 minimum franchise tax). Massachusetts: $600+ (formation fee + annual report). New York: $1,200 to $2,500+ (due to publication requirement).
How to Minimize LLC Costs
File directly with your state’s website rather than using an online formation service. Serve as your own registered agent to save $50 to $300/year. Draft your own operating agreement using a reputable template. Get your EIN directly from the IRS for free. Read How to Form an LLC Step by Step for the DIY formation process.
Conclusion
For most business owners outside California, Massachusetts, and New York, forming an LLC costs $150 to $400 in the first year — a modest investment for meaningful personal liability protection. Continue with What is an LLC? and How to Form an LLC Step by Step.
