How Much Does It Cost To Start An LLC? (2024 Guide)

Thinking about starting an LLC? It might be more affordable OR expensive than you think. Well, it depends on your state of choice or where you do business from.

The initial LLC formation costs usually range between $35 and $500, depending on where or state you’re filing. Annual report fees can be as low as $0 or over $800, depending on your state and what you need.

But there’s more to it.

You might also budget for registered agent services, business licenses, newspaper publications, and maybe even a “Doing Business As” (DBA) fee.

Don’t forget about taxes, either—these can add up too.

Setting up an LLC might sound like a big, pricey hassle, but it doesn’t have to be.

With some good planning and a little research, you can keep costs in check and still enjoy all the benefits of an LLC.

How Much Does an LLC Cost?

Starting an LLC involves several costs, which can vary based on your state and the specifics of your business. Here’s a breakdown of the typical expenses:

• Filing Fees: To register your LLC, you’ll pay a one-time filing fee ranging from $35 to $500. For instance, Montana’s fee is $35, while Massachusetts charges up to $500.
• Annual Report Fee: Most states require an annual report to keep your LLC in good standing. The fee can range from $0 to $800, depending on the state.
• Operating Agreement: Though not always required, having an operating agreement is a smart move. This can cost anywhere from $0 to $600, depending on whether you use free templates or hire a lawyer.
• Publication Requirements: Some states require you to publish a notice of your LLC formation in a local newspaper. This can set you back between $40 and $1,500.
• LLC Name Reservation: Reserving your LLC’s name, if required, typically costs between $10 and $70.
• Certificate of Good Standing: Obtaining a certificate of good standing usually costs between $10 and $100. This document verifies that your LLC is compliant with state regulations.
• DBA Fees: If you want your LLC to operate under a different name, you must file for a “Doing Business As” (DBA). The fee usually ranges from $10 to $100.
• Registered Agent: If you hire a registered agent to handle legal documents, expect to pay between $100 and $300 annually.
• Business Licenses: Additional licenses might be necessary depending on your business type and location, and their costs can vary widely.

Understanding these costs upfront helps plan and budget for your LLC formation and maintenance.

LLC Costs (Formation Fees)

Here’s a table of common expenses you may encounter while forming an LLC:

LLC Requirements	Cost
LLC Business Name	$0
Article of Organization	$35–$500
Operating Agreement	$0 – $600
EIN Number	$0 (free from IRS)
Annual Report	$0 – $800/annually
Newspaper Publication	$40 – $1,500
LLC Name Reservation Fee (optional)	$10 – $70
Certificate of Good Standing (optional)	$10 – $100
Foreign LLC Registration (optional)	$100 – $500
Fictitious Name (DBA) (optional)	$10 – $100
Taxes	Varies
Business License	$50–$1,000+
Registered Agent Services (optional)	$100 – $300
LLC Formation Services (optional)	$39 – $800
Total Cost	$150–$4,000+

Total LLC costs range from $150 to $4000. This range reflects the basic filing fees, potential additional costs, and ongoing expenses that entrepreneurs might encounter, depending on their circumstances and choices.

To break it down, the first mandatory expense is the Article of Organization, which can cost between $35 and $500, depending on your state and how you choose to file. Depending on your state’s requirements, you’ll also need to consider the annual report, ranging from $0 to $800. Obtaining an Employer Identification Number (EIN) is free from the IRS, and securing an LLC business name costs $0.

Now, let’s talk about additional costs.

An Operating Agreement is recommended but can cost between $0 and $600 if you choose to have one professionally drafted. Reserving your LLC name will typically cost between $10 and $70.

You might also want a Certificate of Good Standing, which can cost between $10 and $100. Registering a foreign LLC incurs a fee of $100 to $500. If you wish to operate under a different name (DBA), you’ll need to pay an additional $10 to $100.

Regarding registered agent services, you can either act as your agent or hire a professional service, which typically costs between $100 and $300. Suppose you choose to use LLC formation services, usually costing around $39 to $800. Also, remember that taxes and business licenses can vary significantly, ranging from $50 to $1,000 or more.

How Much Does It Cost To Start An LLC By State?

Here’s a summary of filing and annual fees across all 50 states.

State	Filing Fee	Annual Report Fee
Alabama	$200	$10/annually
Alaska	$250	$100/biennially
Arizona	$50 or $85	$0
Arkansas	$45	$150/annually
California	$70	$800/annually
Colorado	$50	$10/annually
Connecticut	$120	$80/annually
Delaware	$110	$300/annually
Florida	$125	$138.75/annually
Georgia	$100	$50/annually
Hawaii	$50	$15/annually
Idaho	$100	$0
Illinois	$150	$75/annually
Indiana	$95	$32/biennially
Iowa	$50	$30/biennially
Kansas	$160	$50/annually
Kentucky	$40	$15/annually
Louisiana	$100	$30/annually
Maine	$175	$85/annually
Maryland	$100	$300/annually
Massachusetts	$500	$500/annually
Michigan	$50	$25/annually
Minnesota	$155	$0
Mississippi	$50	$0
Missouri	$50	$0
Montana	$35	$20/annually
Nebraska	$100	$25/biennially
Nevada	$425	$150/annually
New Hampshire	$100	$100/annually
New Jersey	$125	$75/annually
New Mexico	$50	$0
New York	$200	$9/biennially
North Carolina	$125	$200/annually
North Dakota	$135	$50/annually
Ohio	$99	$0
Oklahoma	$100	$25/annually
Oregon	$100	$100/annually
Pennsylvania	$125	$7/annually
Rhode Island	$150	$50/annually
South Carolina	$110	$0
South Dakota	$150	$50/annually
Tennessee	$300	$300/annually
Texas	$300	$0
Utah	$54	$20/annually
Vermont	$125	$35/annually
Virginia	$100	$50/annually
Washington	$200	$60/annually
West Virginia	$100	$25/annually
Wisconsin	$130	$25/annually
Wyoming	$100	$60/annually

LLC Business Name Cost ($0)

Searching for an LLC business name is usually free of charge. Most states provide an online tool through their Secretary of State’s website that lets you check if your desired name is available. This service is invaluable as it ensures that the name you choose for your LLC is unique and not already in use.

For example, in California, you can use the free Business Name Search tool on the Secretary of State’s website. Similarly, Texas offers a no-cost Business Name Search through its Secretary of State’s online portal. The Department of State provides a free Business Entity Database search in New York.

At the same time, Florida has a free online tool for verifying business name availability through the Division of Corporations. Additionally, Illinois offers a free Business Entity Search on its Secretary of State’s website.

By using these online resources, you can easily confirm the availability of your business name without incurring any cost, which is a great way to start your LLC formation process on the right foot.

Articles of Organization ($35–$500)

The Articles of Organization are a crucial document required to establish a Limited Liability Company (LLC) formally. This document serves as the official filing with the state, signaling your intention to create an LLC and providing essential information about your business.

The cost to file the Articles of Organization can vary significantly, typically from $35 to $500, depending on several factors.

One primary reason for the cost variation is the differences in filing fees across states. Some states, like Kentucky, may charge as little as $35 for this filing, while others, such as California, can charge upwards of $500. This variation is often based on the state’s regulatory environment and the administrative costs of processing these applications.

Additionally, the method you choose to file your Articles of Organization can impact the overall cost. Many states offer online filing options, often less expensive and more efficient than submitting a paper application by mail.

Some jurisdictions may also offer expedited processing for an additional fee, allowing you to establish your LLC more quickly, though this will increase the total cost.

Lastly, ensuring that the Articles of Organization are filled out accurately and completely is vital. Errors or omissions can result in delays in processing or even rejection of the application, which could incur additional costs for resubmission.

Publication Fees ($40–$1,500)

Starting your LLC may incur publication fees depending on your state. Some states require you to publish a notice of your LLC formation in a local newspaper for a certain period.

The costs for publication can vary widely. For example, fees may range from $40 to $1,500. Here’s a quick breakdown of what you might expect:

• Low-End States: $40 – $100
• Mid-Range States: $100 – $500
• High-End States: $500 – $1,500

In New York, for example, publication fees can be quite high, often ranging from $300 to $1,600. This is due to the requirement to publish in designated newspapers and provide proof of publication to the state.

In California, publication costs are generally lower, typically between $40 and $100. California requires you to publish a notice of your LLC formation in a local newspaper, but the overall fees tend to be on the lower end of the spectrum.

Arizona also has moderate publication fees, generally ranging from $60 to $300, depending on the county and the newspaper chosen for the publication.

On the other hand, many other states, like Texas, Wyoming, etc, do not require publication for LLCs, so you would not incur these fees. Instead, you would only need to file your Certificate of Formation with the state.

Remember that these fees are generally a one-time cost, but it’s always good to check if any additional fees may apply.

LLC Operating Agreement Cost ($0–$600)

Having an operating agreement is important when starting an LLC. This document explains how your LLC will operate and outlines the roles of its members. It helps prevent misunderstandings in the future.

If you go with Northwest Registered Agent, you can get your operating agreement for $0. This is a great way to save money when setting up your LLC. While some services may charge up to $600, Northwest offers this essential document for free.

In some states, LLCs are required to have an Operating Agreement. For instance, California requires all LLCs to have one to define their management and operational structure. Delaware also mandates an Operating Agreement for LLCs, though it doesn’t need to be filed with the state.

Not only is an Operating Agreement required in New York, but it must also be filed with the Department of State. Similarly, Missouri requires LLCs to maintain an Operating Agreement, although it doesn’t need to be submitted to the state.

While not all states impose this requirement, having an Operating Agreement is highly recommended to clearly outline the internal rules and responsibilities for the members, ensuring smooth operation and legal protection.

This agreement can help streamline your business operations and clarify and protect your interests as a member of the LLC. If you choose Northwest to form your LLC, take advantage of the no-cost option.

Registered Agent Fee ($0-$300/year)

When starting an LLC, you’ll need a registered agent to receive important documents. You can act as your registered agent, which has no fee. Just provide your name and address.

If you hire a registered agent service, the cost can range from $100 to $300 per year. Many businesses prefer this option for added privacy and convenience.

For example, Northwest Registered Agent offers a competitive deal. They provide free registered agent services for the first year you use them to form your LLC. After the first year, their fee is $125 annually.

Other options include LegalZoom, which charges around $249 each year, and ZenBusiness, with a fee of $199 annually. These services often include additional support and help you receive all necessary documents.

If you’re just starting, consider your budget and the level of service you need. While doing it yourself can save money, hiring a service can help protect your privacy and make managing your LLC easier.

EIN Cost ($0 from IRS website)

The good news is that getting an EIN costs you nothing. You can apply for this number directly from the IRS website at no charge.

The EIN serves as your business’s Social Security number. It is used for tax purposes and helps you open a bank account and hire employees. The application process is simple and can be completed online.

Here are some quick points about the EIN application:

• Free of Charge: There are no fees when applying through the IRS website. Be cautious of third-party websites that may try to charge you for this service.
• Immediate Processing: You can usually receive your EIN right after completing the online application. This quick turnaround saves you time.
• Simple Process: The application is straightforward. You’ll need basic information about your LLC, including its name and address.

Annual Report Fee ($0–$800)

When starting an LLC, understanding annual report fees is essential. Most states require LLCs to file an annual report to keep their business information current with the state.

The fees for these reports can vary widely. Here’s a general overview:

• Low Range: Some states, like Arizona, charge as little as $0 for the annual report.
• Mid Range: Many states, such as California and Michigan, have fees ranging from $20 to $150.
• High Range: In a state like Massachusetts, the fee can be as high as $500.

Paying this fee is necessary to keep your LLC in good standing. Missing the deadline could result in penalties or even the loss of your LLC status.

Some states also require biennial reports instead of annual ones. For instance, New York requires biennial reports, so check your state’s requirements.

Remember, these fees can change, so staying updated helps avoid surprises. Keeping track of deadlines and costs is crucial for effective LLC management.

Fictitious Name/DBA Cost ($10–$100)

When registering a fictitious name or “Doing Business As” (DBA), costs can vary significantly by state. For example, Virginia offers one of the lowest DBA filing fees at just $10, and Missouri is even more affordable at $7.

On the other end of the spectrum, Wyoming has some of the highest DBA fees, which can reach up to $100 depending on the county. Similarly, in New York, the cost is $25 in New York City and $20 elsewhere, but additional charges may apply for certified copies or other services.

LLC Name Reservation Fee ($10-$70)

When starting an LLC, you might want to reserve your business name to ensure it remains available while preparing your formation documents. The fee for reserving a name varies by state, typically from $10 to $70. Here are some state-specific examples:

• Low Cost: In Mississippi, you can reserve a name for just $25. Similarly, in New York, the fee is $20.
• High Cost: The name reservation fee in Wyoming is $60.

In most states, name reservations are valid for a limited period, usually between 30 to 120 days. However, some states do not require a name reservation, allowing you to file your LLC documents immediately if you are ready.

While reserving a name is optional, it can provide peace of mind if you need extra time to finalize your LLC formation. Just remember that reserving a name does not grant permanent rights; you must still file your LLC formation documents to secure ownership of the name officially.

Certificate of Good Standing ($10-$100)

A Certificate of Good Standing confirms that your LLC is legally registered and compliant with state regulations. Depending on the state, the cost of obtaining this certificate generally ranges from $10 to $100.

Let’s take a look at a few states:

• Alabama: The fee for a Certificate of Good Standing is $25, making it a mid-range option.
• Texas: You can obtain this certificate for $15.
• Ohio: The cost is $5.
• Florida: Requesting a Certificate of Good Standing will set you back $5.
• Washington: The fee is $20.
• California: Obtaining this certificate can cost up to $5.
• New York: A Certificate of Good Standing fee is $25.

These fees can vary based on the state and the method you use to request the certificate. Many states offer online options, which can be more convenient and sometimes less expensive than requesting it by mail or in person.

Foreign LLC Registration Fee ($100-$500)

Registration fees can vary significantly by state when starting a foreign LLC. The average fee in the U.S. is around $186. However, some states offer more affordable options. For instance:

• Hawaii and Michigan have relatively low registration fees, costing just $50.

In contrast, some states have higher registration fees:

• Massachusetts charges $500 for foreign LLC registration.
• Texas and South Dakota both require a hefty $750.

In addition to the registration fee, you may need to appoint a local registered agent and file the necessary documents, including obtaining a certificate of good standing from your home state. Always research the specific requirements and fees for your chosen state to ensure you’re fully prepared and to avoid unexpected costs.

Business License (varies)

The cost and requirements for business licenses can vary significantly by state, with some states emphasizing the need to obtain specific licenses.

Here are a few states where business licenses are particularly important:

• California: Known for its detailed licensing requirements, California often requires multiple licenses depending on the type of business. This can include a general business license, health permits, and industry-specific licenses. Costs can range from $50 to several hundred dollars.
• New York: Business owners in New York need to secure various licenses and permits, including a general business license and potentially additional permits based on the industry, such as a Food Service Establishment Permit in New York City. Fees typically start around $100.
• Nevada requires a State Business License with a $200 fee, reflecting its emphasis on business regulation. Additional industry-specific permits may also be needed.

Compliance with licensing requirements is crucial in these states to avoid potential fines or operational issues. Always research your business’s specific licensing needs to stay compliant and avoid disruptions.

LLC Taxes

When you form an LLC, you must understand the applicable taxes. These taxes can vary based on your situation and location.

Types of Taxes:

• Federal Income Tax: Your LLC’s profits are taxed federally. You may pay this as personal income or corporate tax.
• State Taxes: Texas has no personal income tax, but you may face franchise tax based on your revenue.
• Payroll Taxes: If your LLC has employees, you must pay Social Security and Medicare payroll taxes.

For instance, LLCs benefit from no personal income tax in Texas but must pay a franchise tax starting at 0.375% for revenue under $1.23 million. In California, LLCs face an annual minimum franchise tax of $800, with additional fees ranging from $900 to $11,790 based on total income.

New York LLCs must pay a $25 annual fee plus a percentage of gross receipts, with rates varying by income bracket. In Florida, LLCs must pay an annual report fee of $138.75 and may also be liable for federal self-employment taxes and state sales tax if they sell goods or services.

Many small business owners spend between $400 to $900 per year on accounting services. This investment can help ensure you comply with tax regulations.

Keep accurate records of your income and expenses to manage your tax responsibilities effectively. Organizing your finances will make tax season less stressful.

Remember, taxes can be complicated. Consulting with a qualified accountant is a smart choice for tailored advice and assistance.

LLC Reinstatement Fee ($50-$500)

If your LLC is no longer active, you may need to pay a reinstatement fee to bring it back. Each state has different rules and costs for this process.

For instance, in Florida, the reinstatement fee starts at $100. Additionally, there is a charge of $138.75 for each year of reports that were due. In Illinois, fees can vary but often include a basic filing fee along with any accumulated penalties. This can add up if your LLC has been inactive for a while.

When planning for reinstatement, check your state’s specific requirements. You might need to file paperwork along with the payment. It’s important to act quickly, as fees can increase with time.

LLC Dissolution Fee ($25-$500)

The fee for dissolving an LLC can vary significantly depending on the state. For example, in Delaware, the cost is relatively low at $200, reflecting the state’s streamlined process. There is no fee to file the California dissolution forms. 

In New York, dissolving an LLC costs $60, but you may also need to pay for a Certificate of Tax Compliance if there are any unpaid taxes. Conversely, Texas has a lower fee of $40 for filing a Certificate of Termination, while Massachusetts has a fee of $100.

These costs can be influenced by the LLC’s duration, outstanding obligations, and additional documentation needed.

Consult your state’s secretary of state or relevant administrative office for the most accurate information on dissolution fees and requirements.

LLC Change of Registered Agent Fee ($0-$150)

The cost to change the registered agent for an LLC varies significantly by state, generally falling between $0 and $150.

For example, California charges a $20 fee for online changes, while New York has a $30 fee for mail-in requests. In Texas, the fee is $15 whether you file online or by mail. Delaware, known for its complex administrative processes, charges $50 for this service.

Conversely, in Oregon, you can change your registered agent for free if you file online, though there may be a fee for mail-in submissions. The fee can depend on the method of filing the change, whether online, by mail, or in person.

What is the Cheapest Way to Start an LLC?

Starting an LLC can be affordable if you choose the right method. Many states require a filing fee to register your LLC. This fee usually ranges from $35 to $500. The cheapest way is to file the paperwork to save on service fees.

You can often find the necessary forms on your Secretary of State website. Completing these forms takes time and careful attention, but it saves money. Some states offer low filing fees, so it’s worth researching your specific state.

Another potential cost-saving method is to skip optional services. For instance, initially, you might not need a registered agent or an operating agreement. These can be added later as your business grows.

However, there are some downsides. Filing yourself may lead to mistakes that could delay your LLC approval. Without a registered agent, you may miss important legal documents.

Using free online resources can help you understand the process better. Still, consider the time investment you will need. If you prefer a more straightforward path, hiring a professional might be worth the extra cost to avoid complications.

Should You Use an LLC Formation Service?

Starting an LLC can be complicated, and a formation service might be a good option. These services often help with filing paperwork and meeting all state requirements.

One benefit is peace of mind. When you hire a service, you can focus on your business instead of worrying about compliance. This can save you time and reduce stress. Companies like Northwest Registered Agent offer free access to experts who can guide you through the process.

Another advantage is privacy benefits. Many LLC services provide registered agent services, which help keep your personal address off public records and add a layer of confidentiality to your business.

On the downside, using a service can come with added costs. Depending on the company, you might pay anywhere from $50 to $800 just for the filing fees and other services. It’s essential to weigh these costs against the benefits of having professional help.

You could also handle the paperwork yourself and save money. However, this might lead to potential mistakes or overlooked requirements, which could result in fines or delays.

Ultimately, consider what matters most for your situation. If you prefer a hands-off approach with no headaches about paperwork, a formation service is likely worth considering.

FAQs on How Much Does An LLC Cost

Do I need an address for an LLC?

Yes, you need a physical address for your LLC. This address can be your home, a business location, or a registered agent’s address, which meets state requirements.

How much does it cost to form an LLC with an online service?

Using an online service to form an LLC typically costs between $50 and $300, depending on the service and the state. These services often offer packages that include filing fees and additional support.

What’s a DBA, and do I need one?

A DBA stands for “Doing Business As.” It allows you to operate under a name different from your LLC’s legal name. You may need a DBA to market your business with a more recognizable name.

What are the best online formation services?

Some highly rated online formation services include LegalZoom, Northwest, and ZenBusiness. These services help with paperwork and can save time when starting your LLC.

What’s the fee to register an LLC?

The fee to register an LLC varies by state, typically ranging from $35 to $500. The average filing fee is around $129. Check your state’s requirements for specific amounts.

Do I need to hire an attorney to form an LLC?

You don’t need to hire an attorney to form an LLC. Many people complete the process themselves. However, consulting an attorney can help you navigate complex legal matters.

What state has the lowest LLC fees?

Montana has one of the lowest filing fees for an LLC at just $35. Looking for low-cost options can help you save money when starting your business.

What’s the cheapest LLC filing service?

Northwest often offers the cheapest filing service, sometimes promoting free basic LLC filing with a nominal state fee. Always check for any extra charges that may apply.

What happens if I do not file my LLC annual report?

If you do not file your LLC’s annual report, your business may face penalties, including fines or administrative dissolution. Staying on top of annual requirements is essential to keep your LLC in good standing.