How Much Does It Cost to Form an LLC? Prices for All 50 States
The cost of forming an LLC varies greatly depending on a huge range of factors. The main cost is always going to be the state filing fee, which can also vary dramatically, starting at around $0, all the way up to $500 depending on where it is you’re forming your business.
It also depends on whether you want to form the LLC yourself or hire an LLC formation service to do all the hard work for you. Let’s take a look at the costs involved in forming an LLC, and the different options you have.
3 Main LLC Setup Options With Prices
1. Do it yourself:
Although it is the least expensive option available right now, the process of completing the paperwork and filing it correctly can be difficult to understand and manage.
All you will have to pay is the state filing fee which varies, but the average is around ~$120.
See how you can start an LLC yourself.
2. Hire a lawyer:
You can hire a lawyer to help you for a fee of $1,000 to $1,500 if you have the necessary budget. That’s our least recommended option. Unless you’re looking for some very specific business setup.
3. Use an LLC formation service:
LLC formation services can help you form an LLC at a reasonable price, typically starting at around ~$49 + state fees.
You may want to check out our guide on best-rated LLC formation services.
That’s our #1 recommended option.
- Jump to All 50 States LLC Setup Costs List
- 3 Main LLC Setup Options With Prices
- Fees Involved With Setting Up an LLC
- LLC Startup Costs
- Ongoing LLC Maintenance Costs
- Costs of Using Outside Help to Form an LLC
- Top-3 LLC Formation Services By Cost
- LLC Annual Costs by State (All 50 States)
- Other Costs Associated With LLCs
- All in All – How Much Does It Cost to Form an LLC?
Fees Involved With Setting Up an LLC
There are a few different costs to be aware of when setting up an LLC, even if you are planning on conducting the whole process yourself. You should try to form an LLC in the state where you plan to conduct the business, even if it is a little more expensive than the neighboring state, as otherwise there may be some unwanted costs and paperwork to deal with.
There are a few different free online courses that you can take to walk you through the process if you have never set up an LLC before. Regardless of which method you choose, you will still always have to pay the state filing fees, and possibly a few other fees. In 2023, the average state filing fee was ~$120.
LLC Startup Costs
Forming an LLC involves multiple fees including creation, filing, and registering costs. Besides, obtaining necessary permits, licenses, and certificates from local, state, and federal governments is also required. The amount spent on these aspects depends on individual preference to handle them on their own or seek external help.
This is the main cost that is associated with setting up an LLC, and will need to be paid no matter what state you are in. This fee is for filing your Articles of Organization with the State. This initial fee could cost you anywhere between $40 and $500 depending on the state. For example, in Alabama, the fee is usually over $200, whereas in Colorado it is only $50, and in Idaho, it is around $100. Some states also charge an ongoing cost which is charged annually or biannually.
The cost for publishing LLC notices may vary depending on the rates of state and local newspapers. However, entrepreneurs in New York, Nebraska, or Arizona are required to pay additional costs for publication. This is because LLCs in these states are mandated to publish notices in one or more newspapers across one or more articles of organization or more cities or counties for a specified period of time. In some cases, you will be paying $40, while in other states a huge $2000 will be charged.
Forming an LLC in Alabama comes with an extra fee, the name reservation fee so that your business’s name can be reserved. This generally only costs around $10 – $28. In other states, you are able to pay a fee to reserve a name, but this is optional.
The formation is the main cost, but then you will still have to maintain your LLC, which means a few more fees and expenditures. Some states will also charge state taxes. After registering, you will be responsible for covering the costs associated with maintaining the LLC, such as state and federal taxes, reporting fees, and any expenses for services used to keep the LLC in operation.
How Much are The Taxes?
Typical costs: Varies from state to state
LLCs are not exempt from taxes and are treated similarly to individuals and other entities. The federal government doesn’t directly collect taxes from LLCs but from the owners’ profits as pass-through income. However, LLCs may deduct up to $5,000 of various startup expenses, such as ongoing costs such as legal fees, office space, equipment, and market research.
LLC profits are subject to taxation at both the federal and state level. While most states follow the federal taxation structure where profits are passed through to members’ personal tax returns, some states require LLCs to pay franchise taxes. The amount of the franchise tax varies by state, for instance, the annual franchise tax due in Delaware is $300, and in California, it is at least $800 per year.
LLCs may have to pay reporting fees at the state government level. The fees vary from state to state but typically average around $100 per year for business attorney.
Registered Agent Fees
Typical costs: $0 to $300
The registered agent serves as the registered agent service and the primary communication link between the state and the LLC. They receive legal documents and official mail, and anyone who is an adult and lives in the same state as the LLC can be a registered agent as long as they are available during business hours. This flexibility means that businesses can designate a registered agent without incurring any additional costs. However, there are companies that offer to serve as your registered agent for a fee ranging from $100 to $300 per year.
Ongoing LLC Maintenance Costs
LLCs are required to pay ongoing maintenance costs and taxes in certain states which are as follows:
In certain states, LLCs are required to pay a yearly tax known as a franchise tax. The tax is typically a fixed amount but may vary based on the LLC’s annual income in some states.
LLCs are generally required to submit a report annually or biennially that updates the name, address, and ownership of the business name or LLC. The cost for this report varies depending on the state (check them here).
Costs of Using Outside Help to Form an LLC
If you do not feel confident setting up an LCC yourself, or you don’t have the time, you may consider paying an organization to do the work for you. It is sometimes better to use a service, especially if the process is a bit more complicated and you are requiring things like publications or your forms are more lengthy and detailed.
Usually, any LLC creation service provider offers a few different services in addition to just the formation, and you can pick the package that suits your needs. A basic LLC formation service will include the formation, and registered agent services, they will look into the business licensing requirements, obtain an Employer Identification Number from the IRS, and a few other services.
Another option is to hire a private lawyer, which can cost you somewhere between $1000 and $1500 (which is not needed and we don’t recommend it in 95% of cases). Hiring a lawyer is possibly one of the most expensive options, but if you have someone you know and trust, you may want to consider using them as your registered agent. Things like Operating Agreements are more likely to be part of the package with a lawyer unless your business is particularly complicated.
Top-3 LLC Formation Services By Cost
Choosing the right LLC service is a very important choice, and can help you start your business off on the right foot. If you are looking for a reputable LLC formation service, while also trying to keep the costs down, take a look at three of the best below. Always be slightly wary of just going for the cheapest LLC service you can find, as at the end of the day, you get what you pay for. Don’t comprise service for the sake of affordability, as this can sometimes lead to failure to meet compliance requirements.
ZenBusiness is one of the most affordable and best-value LLC formation services available. The starter package is priced at just $0 + state fees, and offers everything you need to start a new business. You would think that this cheap price means you will only get the very basics in a package, but this is not strictly the case. Even the cheapest package available offers everything you need and nothing you don’t, plus you get a risk-free consultation session with one of the team’s CPAs.
The customer reviews for this business are outstanding. An added benefit is that they provide a full year of registered agent service with all LLC service packages, which usually cost $99 a year. This alone is a lower rate than many of their competitors. The reason this company is so cheap in comparison to others is that they have found a way to automate large portions of the process, meaning that businesses can be formed a lot faster than most other competitors.
If you want to know more — check out the full ZenBusiness review.
$0 + State Fees
Review count: 4830+
Form an LLC today with ZenBusiness for only $0 + State fees. They Have 98% customer satisfaction rating and over 4830+ verified reviews.
IncAuthority is another company that has thousands of glowing reviews online, the difference is, they offer the service for free with their starter package. You will be able to make use of 12 months of their registered agent service with every package, which usually costs $99 a year after that, which again is lower than the average price. Although the base package is $0, there are a lot of add-ons and extras you can include, which is where they start to earn their money.
Also, feel free to check our full review of IncAuthority here.
Rating: 4.8 out of 5 Stars
They are a well-known business service provider with very affordable costs. They will do everything for you starting from $0 + state fees.
Northwest is our #1 rated LLC formation service provider. It has one of the best customer support out there as well as the prices for LLC filing (considering the free Registered Agent service you’re getting). You can’t go wrong with them.
Here you can see our full review of Northwest.
Review count: 4850+
Form an LLC today with Nortwest. They have 98% customer satisfaction rating and over 4150+ verified reviews. They will include 1 year of free registered agent service!
LLC Annual Costs by State (All 50 States)
|State||LLC Set-Up (Filing) Fee||LLC Annual/Biennial Fee|
|Alabama||$183||$100 minimum (every year)|
|Alaska||$250||$100 (every 2 years)|
|Arizona||$50||$0 (no fee and no information report)|
|Arkansas||$45||$150 (every year)|
|California||$70||$800 (every year) + $20 (every 2 years)|
|Colorado||$50||$10 (every year)|
|Connecticut||$120||$80 (every year)|
|Delaware||$90||$300 (every year)|
|Florida||$125||$138.75 (every year)|
|Georgia||$100||$50 (every year)|
|Hawaii||$50||$15 (every year)|
|Idaho||$100||$0 (informational report must be filed every year)|
|Illinois||$150||$75 (every year)|
|Indiana||$95||$30 (every 2 years)|
|Iowa||$50||$45 (every 2 years)|
|Kansas||$160||$50 (every year)|
|Kentucky||$40||$15 (every year)|
|Louisiana||$100||$35 (every year)|
|Maine||$175||$85 (every year)|
|Maryland||$100||$300 (every year)|
|Massachusetts||$500||$500 (every year)|
|Michigan||$50||$25 (every year)|
|Minnesota||$155||$0 (information report must be filed every year)|
|Mississippi||$50||$0 (information report must be filed every year)|
|Missouri||$50||$0 (no fee and no information report)|
|Montana||$70||$20 (every year)|
|Nebraska||$105||$10 (every 2 years)|
|Nevada||$425||$350 (every year)|
|New Hampshire||$100||$100 (every year)|
|New Jersey||$125||$75 (every year)|
|New Mexico||$50||$0 (no fee and no information report)|
|New York||$200||$9 (every 2 years)|
|North Carolina||$125||$200 (every year)|
|North Dakota||$135||$50 (every year)|
|Ohio||$99||$0 (no fee and no information report)|
|Oklahoma||$100||$25 (every year)|
|Oregon||$100||$100 (every year)|
|Pennsylvania||$125||$70 (every 10 years)|
|Rhode Island||$150||$50 (every year)|
|South Carolina||$110||$0 (no fee and no information report, unless LLC is taxed as an S-Corp )|
|South Dakota||$150||$50 (every year)|
|Tennessee||$300||$300 (every year)|
|Texas||$300||$0 for most LLCs (a No Tax Due Report and Public Information Report must be filed every year)|
|Utah||$70||$20 (every year)|
|Vermont||$125||$35 (every year)|
|Virginia||$100||$50 (every year)|
|Washington||$200||$60 (every year)|
|Washington DC||$220||$300 (every 2 years)|
|West Virginia||$100||$25 (every year)|
|Wisconsin||$130||$25 (every year)|
|Wyoming||$100||$50 minimum (every year)|
Other Costs Associated With LLCs
There are a few other costs to think about when thinking about an LLC. These are stated below.
If you are looking to open up a business bank account, you will need to obtain a Federal Tax ID Number, usually referred to as an EIN. In addition to being used to open a bank account, this number will also be used for obtaining finances, getting business credit cards, filing taxes and a few other uses. This service is free to do yourself.
Before obtaining your EIN, always wait for your LLC to be approved, otherwise, it will not be attached to your LLC, it will be attached to you as an individual.
If you hire a lawyer, it may or may not be included in their fees, can cost you between $50 and $100, just depending on their hourly rate. If you are using a service provider, again it could be included in the fee if the package you purchased is mid-level or high-end, or you will need to pay extra, which could vary between $50 to $100.
The majority of states will also have an annual fee that you have to pay in order to keep your LLC in good standing. If you don’t pay this in the required time, the state has the power to shut down your LLC. If you are working with an LLC formation service, they will likely remind you when the time comes to pay the fees. If you have formed the LLC yourself, it is down to you to pay it on time.
You should expect to pay somewhere between nothing to $800 annually, but on average, the LLC annual fee is $91.
If you don’t know the ins and outs of forming an LLC, you may be drawn into adding some extra service to the formation process, so the company you are working with can get a little extra money. Some companies will stuff unnecessary fees into their packages, so here is what you have to look out for.
You really don’t need a kit and seal, as it is essentially a binder and seal, which, if you wanted to, you could easily make yourself. Some websites might make it sound like a legal requirement, which isn’t true. So, unless you want to be particularly fancy, you can skip this one.
You can look up your desired LLC name for free on your state’s website, so if you see a company offering to do this for a charge, skip past. The process is easy and you don’t need to pay anyone to do this for you.
If you choose to use a company to help you form your LLC, always check the terms and conditions. Some may force you to also use them as your registered agent after forming your LLC, which means you will start have to pay annual fees.
The majority of the time, you won’t need certified copies, but if you do, then just order them directly from the state yourself. You might have to pay for this, but it shouldn’t be more than just a few dollars.
Sure, na LLC Membership Certificate may look nice and fancy, but they are completely unnecessary. There is no legal obligation to have one, it would simply be to put on your wall if you fancy it. Some registered agents give them away for free as part of a package, so read the terms and conditions if this is something you are interested in.
All in All – How Much Does It Cost to Form an LLC?
Short answer — it will depend a lot on multiple variables but the average is around ~$210 (if you’re using an LLC formation service + State fees).
There is no set cost when it comes to forming an LLC, a lot depends on where you are forming the LLC and if you decide to take on the process yourself or not. If you are trying to keep costs down, then doing it yourself means you will only have to pay the state fees and maybe a few other charges, but if you want ease and peace of mind, hire someone to do the work for you.
Some companies are much cheaper than others, so it is always worth doing a little research to find the best deal. For that, you can check out our LLC service reviews section.
Don’t Overthink and Save Your Valuable Time & Money
$0 + State Fees
Review count: 4830+
Form an LLC today with ZenBusiness for only $0 + State fees. They Have 98% customer satisfaction rating and over 4830+ verified reviews.
Do you have to pay for an LLC every year?
It is required by most states to file an annual report every year (or every two years). Failing to do so may result in not being in good standing with the state. A filing fee is charged for the cost to start an annual report. Some states also require franchise taxes, but not all.
How much money should you start with an LLC?
The largest cost to form an LLC is the State Filing Fee. The fee varies according to your state, much does it cost anywhere from $50 to $100. The best option to form an LLC involves hiring a professional LLC formation firm (with a small fee).
Can I pay myself a salary from my LLC?
You are allowed to give yourself a salary from your LLC. The approach you choose will depend on the type of business bank account and of LLC you have selected, whether it’s a Single-member LLC or a Multi-member LLC. You may use different methods such as paying with an owner’s draw, paying as a partnership, using guaranteed payments or selecting to be taxed as a C/S Corp and paying as an employee.
Does having an LLC help with taxes?
In general, choosing to register the fictitious business as an LLC can potentially offer tax advantages as you have the option to choose how you want to be taxed – as a sole proprietorship, partnership, or corporation. It is recommended to seek the advice of a CPA to determine the most beneficial tax option for your particular business.
Do foreign LLCs pay more for formation?
In most cases, foreign LLCs (LLCs that have a physical location in one state but conduct their business in another state) have to pay a higher filing fee than domestic LLCs. The difference in fees may not be significant, but you can find out the exact annual fee amount by checking the filing fees in the state where you want to register your LLC.