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

Published by Jon Morgan | Co-Founder & Chief Editor

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 cost summary

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 to budget for. Here are the one-time costs you'll pay during formation.

State filing fee ($35-$500)

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. 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. Important caveat.

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, plus the Montana fees. Usually a net loss.

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. For example, Florida processes standard LLC filings in 1-2 business days via Sunbiz, so paying $30 extra for expedited handling rarely makes sense there.

You can file directly with your state's Secretary of State website. But many founders use an LLC formation service to handle the paperwork. See our Best LLC Services guide for a cost comparison across 11 major providers.

"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

Registered agent ($0 if self-served, $35-$299/year professional)

Every state requires LLCs to appoint a registered agent. That person receives legal documents and service of process on behalf of the company. The role is mandatory. Paying a service for it is optional.

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.

For paid services, pricing typically runs from $35 to $299/year. Northwest Registered Agent is around $125, ZenBusiness around $199 and budget providers like Bizee start near $99. See our Best Registered Agent Services comparison for current pricing and feature breakdowns.

If you're not comfortable handling legal correspondence on your own, hiring an LLC registered agent is worth the cost. Missing a legal notice because it went to the wrong address can create real problems, including default judgments entered against your LLC without you knowing.

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

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

Checking name availability takes 2 minutes and prevents a rejected application. All state SOS websites offer free name searches before you file. Use that first. Pay to reserve a name only if you need to lock it in months before forming.

Ongoing LLC costs after formation

Forming an LLC comes with required fees and costs. These expenses keep your business legally recognized and in good standing. Here are the ongoing charges.

Annual report or franchise tax ($0-$800+)

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.

California is the outlier. It charges an $800 annual franchise tax on top of any other filings. That makes it the most expensive state for ongoing LLC maintenance, even though its initial filing fee is only $70.

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. That matters if you ever need financing, want to bring on investors or just want to keep your liability protection intact.

States with no annual report fee for LLCs are:

• Arizona
• Missouri
• New Mexico
• Ohio
• South Carolina
• Texas (Public Information Report required, but no fee

State and federal taxes

LLCs are pass-through entities by default, so profits flow to members' personal tax returns. Self-employment tax (15.3%) applies to all net earnings. State income tax varies dramatically by state, from $0 (no income tax states) to 13.3% (California's top rate).

See our complete LLC tax guide for filing requirements by entity type, deadlines and a state-by-state tax breakdown.

Business licenses and permits

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 are 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, tobacco, food service and restaurants (often missed), healthcare, childcare and financial services.

Service providers like contractors, medical practitioners, engineers and plumbers almost always need one [1].

Check with your state's Secretary of State, Department of Revenue and any relevant industry licensing 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.

Optional but recommended costs

Operating agreement ($0 with templates, $200-$1,500 for a lawyer)

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

Quality LLC operating agreement templates are available for free through services like Northwest, Bizee and ZenBusiness.

For custom operating agreements, especially for multi-member LLCs with unusual profit-sharing arrangements, vesting schedules or buy-sell provisions, legal fees typically run $200 to $1,500 depending on how detailed the document gets.

For clients who have the budget and a non-trivial ownership structure, 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 [2].

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.

Apply directly at irs.gov/ein. The process takes about 5 minutes online. Don't pay any service $50-$100 to get one for you. They're submitting the same free form on your behalf.

Certificate of Good Standing and document management

Once your LLC is up and running, staying compliant with your state's ongoing requirements is what keeps everything in good standing, literally [3].

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. Most states charge $10-$50 to issue one.

Keep certified copies of your core documents on file. That includes 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.

Year 1 LLC cost at a glance

FAQs

References:

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