How Much Does an LLC Cost? (2026 Complete Breakdown by State)

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Last updated: June 10, 2026

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LLC startup costs catch a lot of first-time founders off guard. The state filing fee is just the beginning. Once you add registered agent fees, annual reports and optional documents, your first-year total can range from $35 (Montana, DIY, no annual report) to $1,300+ (Massachusetts, $500 filing + $500 annual report + registered agent).

I've worked through LLC formation across multiple states and reviewed dozens of cost structures firsthand. That means comparing what's listed on government websites against what founders actually end up paying.

Here's the full breakdown, state by state.

Quick Summary

• State filing fees range from $35 (Montana) to $500 (Massachusetts). The average across all 50 states is approximately $132.
• Beyond the filing fee, you'll also pay for registered agent ($0 if self-served, $35-$299/year paid), annual report ($0-$800/year) and optional documents like an operating agreement ($0 with free templates, $200-$1,500 with a lawyer).
• Six states charge no LLC annual report fee. Those are Arizona, Missouri, New Mexico, Ohio, South Carolina and Texas (Texas requires a Public Information Report only).
• Total first-year LLC cost ranges from $35 (Montana, DIY) to $1,300+ (Massachusetts, full-service). California is the most expensive ongoing state due to its $800 annual franchise tax.

State-by-state LLC filing fees (2026)

State filing data changes frequently. Confirm current fees with your state's Secretary of State before filing.

Cheapest vs. most expensive at a glance. Montana costs $35 in year 1. Massachusetts costs $1,000 in year 1 ($500 + $500). California is technically cheaper to start ($90), but its $800 annual franchise tax makes ongoing costs the highest in the country.

What You'll Pay to Start an LLC

Before a business can legally operate, there are mandatory fees and optional expenses that should be covered. Here are the one-time costs you'll pay during formation.

1. Formation Filing Fee ($35 - $500 - Mandatory)

LLC filing fees are paid to file LLC Articles of Organization with the Secretary of State. The cost varies by state but typically ranges between $35 and $500, depending on the location.

• On the low end. Montana ($35), Kentucky ($40), Arkansas ($45) and a group of states at $50 including Arizona, Colorado, Hawaii, Iowa, Michigan, Mississippi, Missouri and New Mexico.
• On the high end. Massachusetts ($500), Nevada ($425 total), Tennessee ($300), Texas ($300) and Alaska ($250).

Based on the LLCs I've personally helped form, Colorado, Montana, and Kentucky tend to collect the least in fees overall — worth factoring in if you have flexibility on where to register. Although forming in a cheaper state only saves money if you live and operate there — forming in Montana as a California resident means you'll still owe California fees as a foreign LLC.

Before I advise my clients to opt for expedited processing, I tell them to take note of the difference against standard approval time. For example, Florida processes standard LLC filings in 1-2 business days via Sunbiz — expedited processing ($30 extra) is rarely necessary there.

2. Registered Agent ($0 if Self-Serve / $35-$299 Professional)

All the states require LLCs to appoint a registered agent to receive service of process on the company's behalf.

Registered Agent fees depend on the location and the services you need, so it's best to contact them directly before signing up to find out how their pricing works.

You can expect to pay anywhere between $35 to $300 for the registered agent service.

Keep in mind that you or LLC members can also act as registered agents so you can avoid this cost altogether.

However, if you have no experience in these legal matters, a professional, LLC registered agent is always the best option to provide legal or tax advice.

3. Name Reservation ($10 - $25 - Optional)

The service is offered in all states and the fee ranges between $10 to $25. The state agency will reserve the name for your company from 60 to 120 days, depending on the state.

Before filing, I make it a point to verify if the name is available through the Business Search Portal in order to avoid delays and complications. Checking name availability takes 2 minutes and prevents a rejected application. All state SOS websites offer free name searches before you file.

Ongoing LLC costs after formation

Forming an LLC entails essential fees and costs. These expenses are vital for establishing a legally recognized business structure. These charges include:

1. Permits and Licenses (Depending on Line of Business - Mandatory)

Certain industries like alcohol, lodging, transportation, food service, healthcare, childcare, financial services, and tobacco, require additional business licenses and permits, and their costs vary from state to state. Although some states don't require a special business license, you must check with your state's Secretary of State, Department of Revenue, and any relevant industry licensing board.

The main factors that determine if a company needs a license or permit to operate include the type of business as well as the location of the entity. Having helped form LLCs across the states, the main line of businesses that require permits include alcohol, lodging, transportation, and tobacco to name a few.

Licenses are required for LLCs that provide professional services such as contractors, medical practitioners, engineers, plumbing and the like.

Occupational licensing is overseen at the state level, but it may also vary by profession or location. For years now, accountants have been subject to both state and local requirements before offering their service.

Similarly, liquor regulators will need occupational licenses before selling alcoholic beverages.

Permits and licenses are the big-ticket items in LLC formation that need to be budgeted for, but more cost is involved than these permits alone.

2. Annual or Biennial Report ($15 - $500 - Mandatory)

Annual report fees typically range from $15 to $500 that varies p, but California charges an $800 annual franchise tax on top of any annual filing — making it the most expensive state for ongoing LLC maintenance.

These fees are typically paid to state agencies such as the Secretary of State or the Department of Commerce. Filing it as timely as possible will help keep your LLC in Good Standing and maintain its liability protection.

A few states charge an annual franchise or corporate income tax, a yearly payment on the right to conduct business there [2].

You might not have considered the annual franchise tax when you form an LLC, but many states charge a yearly tax for the privilege of having an LLC.

In addition to requiring this fee every year, if the annual franchise tax is not paid on time, a penalty may lead to LLC dissolution.

Some states allow you to pay taxes less than $30, while others can be as much as $800, with most in the $100 range.

The states that require no annual fee include:

• Arizona
• Idaho
• Mississippi 
• Missouri
• New Mexico
• Ohio
• South Carolina

3. Taxes (Depending on Income Bracket- Mandatory)

LLCs are pass-through entities by default — profits flow to members' personal tax returns. Self-employment tax (15.3%) applies to all net earnings. State income tax varies dramatically by state. See our complete LLC tax guide for filing requirements by type.

4. Operating Agreement (Optional but Recommended)

An LLC operating agreement should contain all the rules that govern the day-to-day operations, member responsibilities (such as managing finances), how profits are distributed, and the process for making decisions.

If you are not confident drafting an operating agreement, you can download templates online for $40 to $200 or hire a lawyer to draft one for you.

Quality LLC operating agreement templates are available for free through services like Northwest and ZenBusiness. For clients who have budget to spare, especially for multi-member LLCs with unusual profit-sharing arrangements, legal fees typically run $200-$1,500.

5. Employer Identification Number ($0 - Optional but Recommended)

The EIN is issued by the Internal Revenue Service (IRS) for free, primarily for tax purposes.

When forming an LLC, I make it a priority to obtain an EIN since it is necessary to open a business bank account, obtain loans, and hire employees in the future. The process takes just about 5 minutes online, so don't pay any service $50-$100 to get one for you.

6. Certificate of Good Standing and document management

Once the LLC is operational, I oversee that each company is compliant with the requirements of the state.

This qualifies the limited liability company to request for a certificate of good standing. Investors, potential clients, and credit companies generally prefer to conduct business if the LLC has this document.

It is advisable to keep a certified copy of all business documents for record and legal purposes. This would include articles of organization, annual report, operating agreement, certificate of good standing, and tax records, to name a few.

FAQs

LLC Formation Cost

The cost of forming an LLC varies by state and depends on many other factors, such as the filing fee for legal documents.

How much you spend on forming your LLC will depend on company structure, tax jurisdiction, and incorporation complexity.

The total cost typically ranges from a few hundred to a few thousand dollars. It is essential to consult with a qualified online legal services or business advisor to understand the specific requirements and costs associated with forming an LLC in your jurisdiction.

References:

1. https://obamawhitehouse.archives.gov/sites/default/files/docs/licensing_report_final_nonembargo.pdf