How Much Does an LLC Cost? (Filing Fees Explained)

Published by Jon Morgan | Co-Founder & Chief Editor

Last updated: April 21, 2026

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LLC startup costs catch a lot of first-time founders off guard. What you'll pay depends on your state and the type of business structure you're setting up — and the range is wider than most people expect.

With a background in Mergers and Acquisitions and a tax law degree, I've worked through LLC formation across multiple states and reviewed dozens of cost structures firsthand. I've also spoken directly with legal professionals in various states to make sure this breakdown reflects what you'll actually encounter — not just what's listed on a government website.

Here's everything you need to know about what it costs to start an LLC.

Also, check out our LLC formation cost calculator.

Quick Summary

Cost to Start an LLC

Before a business can legally operate, there are mandatory fees and optional expenses that should be covered. These include the following:

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

The formation filing fee is paid directly to file LLC Articles of Organization with the Secretary of State. Every state charges one — the question is how much.

On the low end, states like New Mexico, Arkansas, Iowa, Michigan, Indiana, Arizona, Colorado, and Hawaii charge around $50. On the high end, Tennessee, Alaska, New York, Massachusetts, Washington, and Florida can run anywhere from $250 to $500.

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.

One thing I always flag for clients: if you're considering expedited processing, compare that cost against the standard approval timeline first. In many states, the difference isn't worth it.

"Filing fees constitute the primary portion of LLC startup costs for most entrepreneurs, and while legal assistance isn't mandatory for submitting articles of organization, employing an LLC filing service can be beneficial due to their cost-effective solutions."

- Jon Morgan, CEO, Co-Founder & Editor-in-Chief of Venture Smarter

2. Registered Agent Service ($80 - $300 - Optional)

Every state requires LLCs to appoint a registered agent — someone designated to receive legal documents and service of process on behalf of the company.

Pricing varies by state and by what's included, so contact providers directly before committing. In my experience, you'll typically pay between $80 and $300 per year for a professional service.

That said, you or another LLC member can serve as the registered agent yourself, which brings this cost to zero. If you go that route, just know your name and address become part of the public record.

If you're not comfortable handling legal correspondence on your own, a professional LLC registered agent is worth the cost. Around 50% of LLCs use professional registered agent services, according to Business Formation Statistics data — and for good reason. Missing a legal notice because it went to the wrong address can create real problems.

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.

According to the National Association of Secretaries of State, about 85% of entrepreneurs utilize this verification step to streamline their registration process and avoid complications.

Expenses Following the Approval of Your LLC

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)

Not every LLC needs a special license, but many do — and the costs vary considerably by state and industry.

The two factors that matter most: what your business does and where it's located. From the LLCs I've helped form across different states, the industries most likely to require permits include alcohol, lodging, transportation, and tobacco. Professional service providers — contractors, medical practitioners, engineers, plumbers — almost always need one [1].

Check with your State Board before you open your doors. Missing a required license can result in fines or forced closure, and it's not a mistake you want to make early on.

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

Most states require LLCs to file an annual or biennial report, with fees typically ranging from $15 to $500 depending on where you're registered.

These reports are filed with state agencies like the Secretary of State or Department of Commerce. Filing on time keeps your LLC in Good Standing — which matters if you ever need financing, want to bring on investors, or just want to keep your liability protection intact.

The states that do not require an annual fee include:

• Idaho
• Minnesota 
• Missouri
• New Mexico
• South Carolina
• Texas

3. Taxes (Depending on Income Bracket- Mandatory)

One of the biggest reasons people choose an LLC is pass-through taxation. The business itself doesn't pay federal income tax — profits and losses flow through to the members, who report them on their personal returns.

What you owe scales with your income, so there's no flat number here. What I will say: filing late or paying late triggers penalties, and they add up faster than most people expect.

4. Operating Agreement (Optional, but Recommended)

An operating agreement lays out how your LLC actually runs — member responsibilities, how profits get distributed, how decisions get made, and what happens if someone wants out.

If drafting one yourself feels out of reach, you can find solid templates online for $100 to $200. For clients who have the budget, I recommend hiring a lawyer to draft it. A well-written operating agreement has saved more than a few of my clients from costly disputes down the line.

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

The IRS issues EINs for free — no filing fee, no service required.

I treat getting an EIN as a standard step in every LLC formation I work on. You'll need it to open a business bank account, apply for loans, and hire employees. Don't skip it just because it's optional.

6. Other Documents (Cost Depends on the Needs and Preferences - Optional)

Once your LLC is up and running, staying compliant with your state's ongoing requirements is what keeps everything in good standing — literally.

A Certificate of Good Standing is one document worth having. Investors, lenders, and potential clients regularly ask for it before doing business. It signals that your LLC is current on filings and fees.

Keep certified copies of your core documents on file: articles of organization, annual reports, your operating agreement, certificates of good standing, and tax records. I've seen founders scramble for these during due diligence, and it's a headache that's easy to avoid.

How Much Does It Cost To Start An LLC - Choose Your State:

FAQs

References:

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