LLC PathfinderHow Much Does an LLC Cost?
In the US, forming an LLC usually means paying a state filing fee (in our table, $35–$500), then recurring annual or biennial report fees or taxes (from $0 in some states up to $800 a year in California). An EIN from the IRS is $0. A registered agent can be free if you qualify to serve yourself, or a paid commercial service if you hire one. The SBA notes that registering a business often totals under $300, but fees vary by state and structure — always check your state's office.
What you actually pay for
An LLC is created under state law. The SBA explains that LLCs combine liability protection with flexible pass-through taxation, and that you must appoint a registered agent in the state before you file. Federal tax IDs are separate: the IRS issues an EIN free of charge.
| Cost item | Typical range | Notes |
|---|---|---|
| State formation filing | $35–$500 | Articles/certificate of organization; one-time (expedite fees may apply) |
| Annual / periodic report or franchise tax | $0–$800/yr | Some states $0; California's $800 annual LLC tax is the high end in our data |
| Registered agent | $0 DIY, or a commercial fee | Required in every state; DIY only if you meet in-state address rules |
| EIN (Employer Identification Number) | $0 | Apply at IRS.gov — never pay a third party just for the number |
| Operating agreement | $0 DIY template, or attorney/service fee | Often not filed with the state; banks frequently ask for one |
| Formation service (optional) | Package price + state fee | Handles paperwork and often includes a year of registered agent |
| Licenses, DBA, publication | Varies by city/county/state | Local business licenses and name publication (e.g. some NY rules) are extra |
Cheapest and most expensive states (state fees)
Ranked by filing fee + recurring annualFee in our dataset (not including a commercial registered agent). Full list: LLC fees by state.
Among the lowest first-year state costs
| State | Filing | Recurring | |
|---|---|---|---|
| Arizona | $50 | $0/yr | Cost |
| Mississippi | $50 | $0/yr | Cost |
| Missouri | $50 | $0/yr | Cost |
| New Mexico | $50 | $0/yr | Cost |
| Kentucky | $40 | $15/yr | Cost |
| Montana | $35 | $20/yr | Cost |
| Hawaii | $51 | $12.50/yr | Cost |
| Colorado | $50 | $25/yr | Cost |
Montana's $35 filing is the lowest formation fee in the table; several states (Arizona, Mississippi, Missouri, New Mexico) show $50 to file with $0 recurring SOS-style fees. "Recurring $0" still means you must follow that state's other rules (for example Arizona may require publication of a formation notice).
Highest filing fees
| State | Filing | Recurring |
|---|---|---|
| Massachusetts | $500 | Annual report $500 |
| Nevada | $425 | Annual list $150 + state business license $200 |
| Tennessee | $300 | Annual report $50 per member (min. $300, max. $3,000) |
| Texas | $300 | No annual SOS fee; annual report to the Comptroller due May 15. At or below the no-tax-due threshold ($2,650,000 for 2026-2027), file only the Public Information Report or Ownership Information Report |
| Alaska | $250 | Biennial report $100 (initial report within 6 months, no fee) |
Highest recurring state costs
| State | Approx. yearly | What it is |
|---|---|---|
| California | $800 | Statement of Information $20 every 2 years + $800 annual FTB tax |
| Massachusetts | $500 | Annual report $500 |
| Delaware | $400 | Annual LLC tax $400 (raised from $300 by HB 400, 2026) |
| Nevada | $350 | Annual list $150 + state business license $200 |
| District of Columbia | $300 | Biennial report $300 |
First-year vs ongoing: three examples
Totals below are state fees only (filing + the recurring amount we track as annualFee). Add a commercial registered agent and any local licenses on top. Timing of the first periodic fee varies by state — California's $800 is typically due in the first year; many SOS annual reports begin on the anniversary or a fixed calendar date.
| New Mexico (low) | Wyoming (mid / popular) | California (high) | |
|---|---|---|---|
| Formation filing | $50 | $100 | $70 |
| Recurring (our table) | $0 — No annual report for LLCs | $60 min. license tax | $800 FTB tax (+ SOI $20 biennial) |
| Rough first-year state total | ~$50 | ~$100 + first license tax when due | ~$870 if $800 is paid in year 1 |
| Ongoing (after year 1) | Often $0 SOS report | At least $60/yr | ~$800/yr + biennial SOI |
Texas mid/high filing, low SOS annual: Texas charges $300 to file. Our table shows no annual SOS fee; Texas LLCs file an annual report with the Comptroller (due May 15). At or below the Comptroller's no-tax-due threshold for 2026–2027, that is typically an information report rather than a franchise tax payment — confirm current thresholds on the Comptroller site. Details: how to start a Texas LLC.
Registered agent: $0 DIY vs paid
Every state requires an agent with a physical street address in that state who can accept lawsuits and official mail during business hours. The SBA recommends naming one before you file. If you live in the formation state and meet the rules, you can often be your own agent for $0 — but your address usually becomes public, and you must actually be available to receive service.
Commercial agents are useful when you form out of state, travel, want privacy, or do not want to miss a notice. Prices are bundled into many formation packages for year one; renewals are a separate line item. See our Texas registered agent guide for a concrete example of the rules, and service comparison for providers.
Home state vs forming elsewhere
If you live and operate in one US state, forming there is usually the cheapest path. Forming in Wyoming or Delaware "for the brand" while you do business at home often means foreign qualifying in your home state: a second filing fee, a second registered agent, and two sets of reports. The SBA describes foreign qualification when you conduct business activities outside your formation state (for example a physical presence, employees, or substantial in-state revenue).
That double cost is why "cheapest filing fee" rankings are misleading if you already have a home state. Out-of-state formation can still make sense for non-US residents with no US home state, or for specific legal strategies — covered in best state to form an LLC and our Wyoming LLC guide.
Delaware and Nevada are often marketed for credibility or privacy. In our fee table Delaware's annual LLC tax is $400 (raised for 2026), and Nevada's formation filing is $425 with a sizable annual list + business license combination — so neither is a low-fee default for a simple local business.
DIY vs formation services
DIY: create an account on your state's business portal, appoint a registered agent, file the formation document, pay only the state fee, write an operating agreement, then get an EIN. Services add a package fee on top of the state charge and usually handle the filing plus a registered agent for the first year.
Package prices change often. Examples from our affiliate data (always confirm live pricing): ZenBusiness and Bizee advertise $0 + state fee starter options; Northwest lists $39 + state fee; Firstbase targets non-US founders from higher package prices. Compare: best LLC services.
Visit ZenBusiness Visit Northwest Registered Agent Visit Bizee (formerly Incfile)
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EIN is free — ignore paid "EIN filing" sites
The IRS issues EINs at no charge and warns you never have to pay a fee for an EIN. The FTC has also warned consumers about companies that charge for what the IRS provides free. Form the LLC with the state first, then apply — the IRS notes applications can be delayed if the entity is not yet formed. Step-by-step: EIN number guide.
Other costs people forget
- Operating agreement — usually not filed; still worth writing (especially multi-member).
- Business bank account — banks want formation docs + EIN; monthly fees vary by bank.
- Licenses and sales tax permits — city/county/state; industry-specific.
- Bookkeeping / CPA — optional at first; more important if you hire or elect S-corp status (LLC vs S corp, Form 2553).
- Insurance — the SBA notes structure alone has limits and recommends insurance for risks you could not pay out of pocket.
Non-US residents
Non-resident founders without a US home base commonly pick a formation state (Wyoming and New Mexico are popular for fees/privacy) and hire an in-state registered agent. You still need an EIN (often by phone/fax/mail if you cannot use the online tool), banking, and tax advice in both the US and your country. This site's founder, Simon Chan (Hong Kong–based), formed a Wyoming LLC as a non-resident — see About. Non-US owners generally cannot be S-corp shareholders.
Sources
- SBA — Choose a business structure / register your business (registered agent; registration often < $300 but varies)
- IRS — Get an employer identification number (EIN free)
- FTC — Don't pay to get your EIN
- California FTB — Limited liability company ($800 annual LLC tax)
- LLC Pathfinder — LLC fees by state (SOS / official sources, verified 2026-10-11)
- Example state pages: California, Texas, Wyoming, New Mexico
FAQ
How much does it cost to start an LLC?
State filing fees in our table range from $35 to $500. Add any first-year report or franchise tax (California's $800 annual LLC tax is a common high-cost example), plus a registered agent if you hire one. An EIN from the IRS is free.
What is the cheapest state to form an LLC?
By state fees alone, low filing fees plus $0 recurring SOS fees (for example New Mexico, Missouri, Arizona, or Mississippi in our data) are among the cheapest. Your home state is usually cheapest overall if you live and sell there.
How much does a California LLC cost per year?
California's SOS filing fee is $70 in our table. The Franchise Tax Board requires an $800 annual LLC tax for LLCs doing business in California or registered with the SOS, plus a Statement of Information ($20 every two years).
Is an EIN free?
Yes. Apply directly with the IRS. You never have to pay a fee just to get an EIN. Avoid third-party sites that charge only to submit the same free application.
Do I need a paid registered agent?
Every LLC needs a registered agent with a physical address in the formation state. You can often serve yourself if you meet the rules; many owners hire a service for privacy and reliable mail handling.
Does forming an LLC in Wyoming save money if I live elsewhere?
Only if you do not also have to foreign-qualify in your home state. Doing business at home usually means paying fees in both states — see our best-state guide.
How much do LLC formation services cost?
Services charge a package fee on top of the mandatory state filing fee. Starter plans are sometimes advertised at $0 + state fee; others start higher. Compare total first-year cost including registered agent renewals.
What ongoing costs should I budget for?
Annual or biennial reports, franchise or LLC taxes where applicable, registered agent renewal, licenses, bookkeeping, and optionally insurance. California's $800 tax is the largest flat recurring state charge in our dataset.
Last updated 2026-10-16. Not legal or tax advice.