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

If you’ve been Googling “how much does it cost to form an LLC,” you’ve probably noticed the answers range from “$0” to “several hundred dollars” — and almost nobody explains why. The truth is, the cost to form an LLC depends on several layers: your state’s filing fee, whether you hire a registered agent, whether you use a formation service, and what ongoing compliance costs you’ll face each year. Today, platforms like ZenBusiness advertise formation for $0 plus your state filing fee — but the total cost picture is more nuanced than that headline suggests.

This guide breaks down every cost component so you can budget accurately before you file a single document.

The Core Components of LLC Formation Costs

Before diving into state-specific numbers, it helps to understand that LLC costs generally fall into four buckets:

State filing fee — the fee you pay your state to officially register the LLC
Registered agent fee — a legal requirement in every state; someone must be available during business hours to receive legal documents on behalf of your LLC
Formation service fee — optional, but many founders use services like ZenBusiness or Northwest Registered Agent to handle paperwork and stay compliant
Ongoing compliance costs — annual reports, franchise taxes, and state-specific renewal fees

The minimum you’ll spend to form an LLC is your state’s filing fee, which ranges from $35 (Kentucky) to $500 (Massachusetts). But most founders end up spending $100–$500 in year one once you factor in registered agent service and any professional help.

State-by-State LLC Filing Fees (2026)

The single biggest variable in LLC formation cost is your state. Here’s a comprehensive look at filing fees across all 50 states:

State	Filing Fee	Annual/Biennial Fee	Notes
Alabama	$200	$50/year	+ initial privilege tax
Alaska	$250	$100/2 years
Arizona	$50	None	Publication requirement may apply
Arkansas	$45	$150/year
California	$70	$800 minimum/year	Franchise tax applies
Colorado	$50	$10/year
Connecticut	$120	$80/year
Delaware	$90	$300/year	Popular for multi-state businesses
Florida	$125	$138.75/year
Georgia	$100	$50/year
Hawaii	$50	$15/year
Idaho	$100	$0
Illinois	$150	$75/year
Indiana	$95	$31/2 years
Iowa	$50	$60/2 years
Kansas	$160	$55/year
Kentucky	$40	$15/year	Lowest filing fee in the US
Louisiana	$100	$35/year
Maine	$175	$85/year
Maryland	$100	$300/year
Massachusetts	$500	$500/year	Most expensive state
Michigan	$50	$25/year
Minnesota	$155	$0
Mississippi	$50	$0
Missouri	$50	$0	No annual report required
Montana	$35	$15/year
Nebraska	$110	$13/year
Nevada	$75	$350/year	High ongoing costs
New Hampshire	$100	$100/year
New Jersey	$125	$75/year
New Mexico	$50	$0	No annual report required
New York	$200	$9/2 years	Publication requirement adds ~$1,000–$2,000
North Carolina	$125	$200/year
North Dakota	$135	$50/year
Ohio	$99	$0
Oklahoma	$100	$25/year
Oregon	$100	$100/year
Pennsylvania	$125	$70/10 years
Rhode Island	$150	$50/year
South Carolina	$110	$0
South Dakota	$150	$50/year
Tennessee	$300	$300/year
Texas	$300	$0*	Franchise tax may apply
Utah	$54	$18/year
Vermont	$125	$35/year
Virginia	$100	$50/year
Washington	$200	$60/year
West Virginia	$100	$25/year
Wisconsin	$130	$25/year
Wyoming	$100	$52 minimum/year	No income tax

*Texas does not charge an annual report fee but does impose a franchise tax on businesses with revenue over $2.47 million (2026 threshold).

A note on Delaware and Wyoming: Many online resources recommend forming in Delaware or Wyoming even if you don’t operate there. For most small businesses and solopreneurs, this advice is overrated. You’ll still need to register as a foreign LLC in your home state (paying that state’s fees on top of Delaware’s), and you’ll need a registered agent in both states. Unless you’re raising venture capital or have a specific legal reason to use Delaware, form your LLC in the state where you actually do business.

Registered Agent Costs: What You’ll Actually Pay

Every LLC must designate a registered agent — a person or company with a physical address in the state of formation who can receive legal documents (lawsuits, subpoenas, state notices) during business hours.

You have three options:

Option 1: Be your own registered agent — Free, but you must be available at a physical address during business hours and your address becomes part of the public record. Not ideal if you work from home.

Option 2: Use a professional registered agent service — Typically $49–$300/year. This keeps your personal address off public record and ensures you never miss critical legal notices.

Option 3: Use an LLC formation service with registered agent included — Services like Northwest Registered Agent include registered agent service free for the first year, making this the most cost-effective starting point.

In my experience, trying to save the $100–$150/year on registered agent service is a false economy. Missing a lawsuit notice because you were traveling — or having your home address listed on public databases — costs far more in the long run. I’ve seen business owners get default judgments entered against them simply because they missed service of process. It’s one of those costs that feels optional until the day it absolutely isn’t.

LLC Formation Service Fees: Worth It?

You can absolutely file your LLC paperwork yourself by going directly to your state’s Secretary of State website. The DIY route saves you the service fee but costs time and requires you to get the paperwork right.

Formation services charge anywhere from $0 (you pay only state fees) to $300+ for premium packages. Here’s how the major providers compare:

Service	Starting Price	What’s Included
Bizee	$0 + state fee	Basic filing, registered agent (1st year free)
ZenBusiness	$0 + state fee	Basic filing, worry-free compliance
Northwest Registered Agent	$39 + state fee	Filing + registered agent (1st year free)
LegalZoom	$0 + state fee	Basic filing, attorney network access
LLC Attorney	Varies	Attorney-reviewed formation

For a deeper comparison, see our best LLC formation services guide, which reviews each provider’s pricing, reliability, and customer support.

The sweet spot for most founders is a service in the $0–$100 range that includes registered agent for the first year. After year one, you can reassess whether to continue with that provider or switch to a standalone registered agent service.

The Hidden Costs of Forming an LLC

Filing fees and service charges are just the beginning. These additional expenses catch many new business owners off guard:

Operating Agreement

Technically not required in most states (Missouri and California are exceptions), but practically essential. A well-drafted LLC operating agreement governs how your business makes decisions, distributes profits, and handles member disputes.

You can find free templates online, but for multi-member LLCs or any business where there’s meaningful money at stake, a lawyer-drafted agreement is worth the $500–$2,000 cost. According to the American Bar Association, operating agreement disputes are among the most common sources of small business litigation — most of which could have been avoided with clear documentation upfront.

EIN (Employer Identification Number)

Cost: Free. Apply directly through the IRS website. Any service charging you for EIN filing is marking up a free government service.

Business Bank Account

Most banks require an LLC to have a dedicated business checking account (which also protects the liability shield). Costs vary: many online banks offer free business checking, while traditional banks may charge $10–$25/month with various fee waiver conditions.

Business Licenses and Permits

Depending on your industry and location, you may need:

State business license ($50–$500)
Local business license ($25–$500)
Professional licenses (varies widely by profession)
Zoning or home occupation permits (if operating from home)

These costs are entirely separate from LLC formation and can significantly add to your first-year budget.

BOI Report (Beneficial Ownership Information)

As of 2024, most LLCs must file a Beneficial Ownership Information report with FinCEN under the Corporate Transparency Act. The filing itself is free, but you need to do it — and keep it updated. Penalties for non-compliance can be steep. See our BOI report guide for step-by-step instructions.

Note: The BOI reporting requirements have been subject to legal challenges and regulatory updates. Always verify current requirements with FinCEN or a qualified attorney before filing.

Ongoing Annual Costs to Keep Your LLC Active

Forming the LLC is a one-time expense. Keeping it in good standing is a recurring cost. Here’s what to budget for on an ongoing basis:

Annual report fees: Most states require an annual or biennial report with a fee ranging from $0 to $500. Missing this filing can result in your LLC being administratively dissolved.

Registered agent renewal: $49–$300/year if you use a professional service.

Franchise taxes: Some states — notably California ($800 minimum) and Delaware ($300) — charge annual taxes regardless of whether your LLC earned any money. This is a critical consideration when choosing where to form.

Accounting and tax preparation: An LLC with even modest revenue should have a CPA file its taxes. Budget $300–$1,500/year for basic tax preparation, more if you have complex situations.

Total annual maintenance cost for a typical LLC: $200–$1,500/year, depending heavily on your state and how much professional help you use.

Real-World Cost Scenarios

To make this concrete, here are three typical founder situations:

Scenario A: Freelance Consultant in Texas

Texas filing fee: $300
Northwest Registered Agent (first year free with formation): $39
EIN: $0
Operating agreement template: $0
Year 1 total: ~$339
Year 2+ total: ~$149/year (registered agent renewal only; Texas has no annual report fee for most LLCs)

Scenario B: E-commerce Business in California

California filing fee: $70
Formation service: $0 (using ZenBusiness starter plan)
Registered agent year 1 (included): $0
Registered agent year 2+: $99/year
California annual franchise tax minimum: $800/year
Year 1 total: ~$870
Year 2+ total: ~$900/year

California is notoriously expensive for LLCs due to the $800 minimum franchise tax. If you’re a solo freelancer just getting started, consider whether an LLC vs. sole proprietorship makes financial sense in year one.

Scenario C: Multi-Member LLC in Delaware (VC-Backed Startup)

Delaware filing fee: $90
Delaware registered agent: $50/year
Foreign registration in home state (e.g., New York): $200
New York registered agent: $100/year
Operating agreement (attorney-drafted): $1,500
Year 1 total: ~$1,940
Year 2+ total: ~$450/year

For startups planning to raise institutional capital, Delaware remains the standard — but the cost premium is real. If your business doesn’t fit that profile, save the money and form locally.

Should You Use a Formation Service or File Yourself?

This is one of the most common questions I get, and the honest answer is: it depends on your time, your state, and your comfort with government paperwork.

File yourself if:

Your state has a simple, straightforward online filing portal
You have time to research the requirements
You’re comfortable troubleshooting if something goes wrong
You want to minimize startup costs

Use a formation service if:

You want the process handled correctly on the first try
You want registered agent service bundled in
You value ongoing compliance reminders and document storage
You’re forming in a state with complex requirements (e.g., New York’s publication requirement)

For most founders, a formation service in the $0–$100 range — like ZenBusiness or Bizee — provides good value simply because it removes the administrative burden and reduces the chance of a rejected filing.

For a detailed head-to-head comparison of the top providers, see our ZenBusiness vs. LegalZoom comparison and our full best LLC formation services roundup.

LLC vs. Other Business Structures: Is the Cost Worth It?

The cost to form an LLC only makes sense in context of what you’re getting. Compared to a sole proprietorship, an LLC:

Provides limited liability protection (your personal assets are generally shielded from business debts and lawsuits)
Creates a separation between personal and business finances
Can offer tax flexibility (taxed as a disregarded entity, partnership, S-corp, or C-corp)

The IRS recognizes several LLC tax classifications, and choosing the right one can meaningfully affect your tax bill. Many profitable LLCs elect S-corp taxation to reduce self-employment taxes — but this only makes economic sense once you’re clearing meaningful net profit (typically $50,000+/year).

If you’re comparing structures more broadly, our LLC vs. S-Corp guide walks through when each structure makes financial and tax sense.

I’ve seen too many business owners skip the LLC to save a few hundred dollars, then face personal liability exposure that costs them orders of magnitude more. The filing fee is not the number to optimize. The question is whether the liability protection is worth it given your business risk profile — and for most businesses doing anything of substance, it is.

Frequently Asked Questions

Can I form an LLC for free? You can’t avoid the state filing fee, but some formation services (like ZenBusiness and Bizee) charge $0 for their service tier — you pay only the state fee. So the minimum cost is your state’s filing fee, which starts at $40 in Kentucky.

What’s the cheapest state to form an LLC? Kentucky ($40), Montana ($35), and New Mexico ($50 with no annual report) have the lowest combined costs. But forming in a cheap state only makes sense if you operate there — otherwise you’ll pay additional foreign registration fees in your home state.

How long does LLC formation take? Most states process filings in 1–3 weeks for standard processing. Expedited options are available in most states for an additional fee ($25–$100), typically turning around filings in 1–5 business days.

Do I need a lawyer to form an LLC? No — but for multi-member LLCs, or if there’s meaningful money or intellectual property involved, an attorney-reviewed operating agreement is worth the investment. Services like LLC Attorney provide attorney-backed formation at a reasonable cost.

Summary: What to Budget for LLC Formation

Here’s a quick-reference budget range depending on your situation:

Situation	Estimated Year 1 Cost
DIY filing, low-cost state	$40–$150
Formation service, low-cost state	$100–$300
Formation service, high-cost state (CA, MA, TX)	$300–$1,000
Multi-member LLC with attorney-drafted agreement	$800–$3,000
Delaware/Wyoming formation (out-of-state)	$500–$2,500+

The cost to form an LLC is genuinely reasonable when you consider the legal protection it provides. The key is knowing your state’s specific requirements, budgeting for ongoing costs (not just the formation fee), and choosing the right help for your situation.

For state-specific guides with step-by-step instructions, see:

And if you’re still deciding whether an LLC is right for your situation, our LLC vs. Sole Proprietorship guide walks through the tradeoffs in detail.

The author name used in this article may be a pen name or pseudonym and is used for illustrative and editorial purposes only. This article is for informational purposes only and does not constitute investment, tax, or legal advice. State filing fees, tax rates, and regulatory requirements change frequently — verify all figures with your state’s Secretary of State office and relevant tax authorities before making decisions. Consult qualified professionals before making financial or legal decisions.