How Much Does an LLC Cost?

For most people, the total cost to form an LLC ranges from $50 to $500, depending on your state and whether you use a formation service. Here is a quick breakdown:

Every state charges a fee to file your Articles of Organization (the document that officially creates your LLC). This is the one cost you absolutely cannot avoid — it goes directly to the state government.

State filing fees range from as low as $35 (in states like Arizona) to as high as $500 (Massachusetts). The national average is around $100 to $150.

Some states also charge additional fees beyond the basic filing. For example, New York requires you to publish a notice in two newspapers after forming your LLC, which can cost an additional $200 to $1,500 depending on the county.

If you need your LLC formed faster, most states offer expedited processing for an additional fee, typically $50 to $100 on top of the standard filing fee.

While you can file your LLC directly with the state, many people use an LLC formation service to handle the paperwork. These services prepare and file your documents, often with added benefits like compliance alerts and operating agreement templates.

Here is what the most popular formation services charge (service fees only — state filing fees are extra):

Every LLC is required by law to have a registered agent — a person or company designated to receive legal documents, tax notices, and official correspondence on behalf of the LLC.

You have three options:

• Be your own registered agent (free). You can serve as your own registered agent, but you must have a physical address (not a P.O. box) in the state of formation and be available during business hours. Your address also becomes part of the public record.
• Use a formation service that includes it. Several services include a free registered agent for the first year. Northwest Registered Agent and Bizee both offer this.
• Hire a standalone registered agent service. Expect to pay $100 to $300 per year. After the first free year from a formation service, annual renewals are typically $100 to $199.

Forming your LLC is just the beginning. Most states have recurring costs to keep your LLC in good standing:

California is notably expensive — the state imposes a minimum $800 annual franchise tax on all LLCs, even if the business earns no income. This is one of the highest in the country.

On the other end, states like Ohio, Missouri, and Arizona have no annual report requirement and no franchise tax, making them among the cheapest to maintain an LLC.

Beyond the essentials, there are several optional expenses you may encounter:

• EIN filing assistance ($25 – $100): The IRS provides EINs for free, but some services charge to file on your behalf. Only pay for this if you value the convenience.
• Operating agreement template ($0 – $200): Many formation services include a basic template. For complex multi-member LLCs, an attorney-drafted agreement is recommended.
• DBA (Doing Business As) registration ($10 – $100): If you want to operate under a different name than your LLC's legal name.
• Business insurance ($300 – $3,000+/year): General liability insurance is not legally required in most cases but is highly recommended.
• Website and domain ($10 – $50/year): For establishing an online presence.
• Bookkeeping software ($0 – $30/month): Essential for tracking income, expenses, and maintaining proper records.

Here are some of the most commonly searched states and their LLC filing fees:

1. Use a free or low-cost formation service. Services like ZenBusiness ($0), Bizee ($0), and Northwest Registered Agent ($39) handle the filing for little to nothing.
2. Take advantage of free registered agent offers. Northwest and Bizee include a free registered agent for the first year, saving you $100 to $300.
3. File your EIN yourself. The IRS website lets you get an EIN in minutes at no cost. Do not pay a service to do this unless you strongly prefer the convenience.
4. Skip unnecessary add-ons. Formation services often upsell packages like business kits, compliance monitoring, and operating agreement upgrades. Evaluate each one carefully before adding it to your order.
5. Form in your home state. Unless you have a specific reason to form elsewhere, your home state is almost always cheapest since you avoid foreign registration fees.