LLC Filing Fees by State (Plus Annual Fees by State 2024)
Starting an LLC can seem overwhelming, especially when understanding the costs involved. Many assume that forming an LLC will break the bank, but this isn’t always true.
The average cost to form an LLC in the U.S. is about $132, but fees vary significantly from state to state. Knowing the specific fees for your chosen LLC state or location can save you time and money.
Some states, like Massachusetts, have high LLC formation fees of $500, while others, such as Kentucky, are ridiculously affordable with an on-time $40 formation fee.
But that’s not all.
Awareness of each state’s annual or biennial report fees is crucial, as they can impact your overall budgeting and ongoing LLC maintenance. This article will explore the LLC filing fees specific to each state, helping you understand exactly what to expect and plan for when starting your business.
LLC Filing Fees and Cost by State – 2024
Here is a list of the LLC filing fees and annual report fees for 50 states in the U.S:
| State LLC | LLC Filing Fee | Annual Report Fee |
|---|---|---|
| Alabama | $200 | $100 (Yearly) |
| Alaska | $250 | $100 (Biennial) |
| Arizona | $50 | None |
| Arkansas | $45 | $150 (Yearly) |
| California | $70 | $800 (Franchise Tax, Yearly) |
| Colorado | $50 | $10 (Yearly) |
| Connecticut | $120 | $80 (Yearly) |
| Delaware | $90 | $300 (Yearly) |
| Florida | $125 | $138.75 (Yearly) |
| Georgia | $100 | $50 (Yearly) |
| Hawaii | $50 | $15 (Yearly) |
| Idaho | $100 | None |
| Illinois | $150 | $75 (Yearly) |
| Indiana | $95 | $50 (Biennial) |
| Iowa | $50 | $60 (Biennial) |
| Kansas | $160 | $50 (Yearly) |
| Kentucky | $40 | $15 (Yearly) |
| Louisiana | $100 | $30 (Yearly) |
| Maine | $175 | $85 (Yearly) |
| Maryland | $100 | $300 (Yearly) |
| Massachusetts | $500 | $500 (Yearly) |
| Michigan | $50 | $25 (Yearly) |
| Minnesota | $135 | $0 (Yearly) |
| Mississippi | $50 | $0 (Yearly) |
| Missouri | $50 | $0 (Yearly) |
| Montana | $70 | $20 (Yearly) |
| Nebraska | $100 | $13 (Biennial) |
| Nevada | $425 | $350 (Yearly) |
| New Hampshire | $100 | $100 (Yearly) |
| New Jersey | $125 | $75 (Yearly) |
| New Mexico | $50 | None |
| New York | $200 | $9 (Biennial) |
| North Carolina | $125 | $200 (Yearly) |
| North Dakota | $135 | $50 (Yearly) |
| Ohio | $99 | None |
| Oklahoma | $100 | $25 (Yearly) |
| Oregon | $100 | $100 (Yearly) |
| Pennsylvania | $125 | $70 (Biennial) |
| Rhode Island | $150 | $50 (Yearly) |
| South Carolina | $110 | $0 |
| South Dakota | $150 | None |
| Tennessee | $300 | $300 (Yearly) |
| Texas | $300 | $0 (Yearly) |
| Utah | $70 | $20 (Yearly) |
| Vermont | $125 | $35 (Biennial) |
| Virginia | $100 | $50 (Yearly) |
| Washington | $200 | $60 (Yearly) |
| West Virginia | $100 | $25 (Yearly) |
| Wisconsin | $130 | $25 (Yearly) |
| Wyoming | $100 | $60 (Yearly) |
Remember that these fees can change, so it’s best to verify the costs with your state’s Secretary of State office.
Difference Between The Initial Filing Fees vs. The Articles of Organization Fees?
The terms “initial filing fees” and “Articles of Organization fees” can be confusing because they often overlap but aren’t always the same.
Let’s break me down.
Articles of Organization Fees
When forming your limited liability company (LLC), one of the first steps is to file a document called the Articles of Organization (sometimes called a Certificate of Formation or Certificate of Organization, depending on the state). This document officially registers your LLC with the state. For instance, in California, the fee to file the Articles of Organization is $70. In Texas, it’s $300.
The fee you pay to file this document is commonly known as the “Articles of Organization fee.”
Initial Filing Fees
Now, “initial filing fees” is a broader term. It often includes the Articles of Organization fee but can also cover other costs associated with setting up your LLC. For example, some states might require you to file an Initial Report or pay for a business license right after forming your LLC. These additional filings are part of the “initial filing fees.”
For instance, the Articles of Organization fee is $200 in New York. However, New York also requires LLCs to publish a notice of formation in local newspapers, which can add significant costs, often ranging from $1,000 to $2,000, depending on the county. These additional costs are part of the initial filing fees.
The initial filing fees in Nevada include more than just the Articles of Organization fee. You’ll pay $75 for the Articles of Organization, but you must also file an Initial List of Managers/Members and a State Business License, which is about $425.
So, the Articles of Organization fee is just one part of the overall initial filing fees you might face, depending on the state where you’re forming your LLC.
Other LLC Filing Costs
When setting up an LLC, the Articles of Organization and initial filing fees aren’t the only costs to consider. You might encounter several other expenses, some of which are mandatory while others are optional.
Let’s walk through some of the common ones:
Annual Report Fees
Most states require LLCs to file an annual report (or a similar document) to keep their business in good standing. This report typically updates the state of your LLC’s current address, members, and other relevant details.
The fee for filing an annual report can vary widely from state to state. For example, in Florida, it’s $138.75, while in Delaware, it can be as high as $300. This fee is mandatory if your state requires an annual report.
Publication Fees
Some states, like New York, Nebraska, and Arizona, require you to publish a notice of your LLC formation in local newspapers. The cost for this can vary depending on the publication and location, with New York’s fees often ranging from $1,000 to $2,000. This fee is mandatory if your LLC is in one of these states. However, many other states don’t have this requirement at all.
Name Reservation Fee
You can pay a name reservation fee if you want to reserve a specific name for your LLC before officially forming it. This optional fee typically ranges from $10 to $50 depending on the state.
For example, in Georgia, reserving a name costs $25. This is handy if you’re still in the planning stages but want to ensure your preferred name is available.
Expedited Processing Fees
If you’re hurrying to get your LLC up and running, consider paying for expedited processing. This optional fee can speed up the state’s processing time, sometimes cutting it down from weeks to just a few days or hours. For instance, in California, standard processing can take several weeks, but for an additional $350, you can have it processed within 24 hours.
Doing Business As (DBA)
If your LLC operates under a name different from the one you registered, you’ll need to file a “Doing Business As” (DBA) name. This allows you to conduct business legally under that alternate name.
The cost to file a DBA varies, but it’s usually between $10 and $100. Whether you need a DBA depends on how you want to brand your business. It’s not mandatory unless you’re using a name different from your LLC’s legal name.
Best LLC Filing Service: Northwest
We recommend Northwest for your LLC ($39 + State Fees) as the overall best online business formation service because of its affordability, privacy and record-breaking customer support. The sweet part? Their registered agent service is free for the first year, saving you up to $300 in formation fees.
LLC Formation Process (Quick Rundown)
Starting an LLC involves several important steps. Each step is crucial for ensuring your business is legally formed and runs smoothly. Below are the key aspects of forming an LLC.
Choosing an LLC Name
Your LLC name must be unique and not already used by another business in your state. Most states require that the name include “LLC” or “Limited Liability Company” in it.
To check name availability, visit your state’s business registry website. Remember that some states may have additional requirements, such as avoiding certain words or phrases. Brainstorming several names in case your first choice is unavailable can be helpful.
Appointing a Registered Agent
A registered agent is a person or a business entity that acts as your LLC’s official point of contact. This agent receives legal documents, tax notifications, and other important correspondence.
Your registered agent must have a physical address in the state where you form your LLC. You can choose yourself, a partner, or hire a professional registered agent service.
Filing Articles of Organization
As mentioned earlier, filing Articles of Organization is the formal step to creating your LLC. This document includes basic information such as your LLC’s name, address, and details about the registered agent.
Creating an Operating Agreement
An operating agreement outlines the management structure and operating procedures for your LLC. It is not always required by law, but it is highly recommended.
This document helps clarify roles, responsibilities, and ownership percentages among members. It can also address how profits are distributed and decisions made within the LLC.
Read more: Operating Agreement Guide for LLC
Which state is the cheapest in which to register an LLC?
Here are some of the cheapest options for filing fees:
| State | Filing Fee |
|---|---|
| Kentucky | $40 |
| Mississippi | $50 |
| Arkansas | $50 |
| Colorado | $50 |
| New Mexico | $50 |
| Michigan | $50 |
| Indiana | $95 |
| Ohio | $99 |
As you can see, Kentucky is the most affordable state for LLC formation, with an initial LLC filing fee of just $40. That’s hard to beat!
If Kentucky doesn’t work for you, Mississippi, Arkansas, Colorado, New Mexico, and Michigan are excellent options, with filing fees of just $50.
Indiana and Ohio have slightly higher fees at $95 and $99, respectively. While these are a bit more, they’re still pretty low compared to states where you might pay over $100 just to get started.
What State Has the Highest LLC Fee?
| State | LLC Filing Fee |
|---|---|
| Massachusetts | $500 |
| Nevada | $425 |
| Texas | $300 |
| Tennessee | $300 |
| Alaska | $250 |
| New York | $200 |
| Washington | $200 |
Massachusetts charges the highest LLC filing fee, $500, followed by Nevada, $425. Texas and Tennessee both charge $300, while Alaska charges $250. New York and Washington are more budget-friendly, charging $200.
Frequently Asked Questions
How much does it typically cost to file an LLC in 2024?
In 2024, the average cost to form an LLC in the United States is around $132, but this can vary significantly depending on the state. Initial filing fees are the biggest factor, with some states charging as little as $35 (like Kentucky) while others, like Massachusetts, can require up to $500. These fees are one-time payments made when you file the necessary documents, such as the Articles of Organization, with the state. It’s important to budget for this upfront cost and consider any additional fees that might apply in your state, such as publication or name reservation costs.
Which state is the cheapest to register an LLC?
If you’re looking to save on LLC formation costs, Kentucky is often considered one of the cheapest states, with a filing fee of around $40. Other states like Mississippi, Arkansas, Colorado, New Mexico, and Michigan also offer relatively low filing fees of $50, making them budget-friendly options. These lower fees make these states attractive choices for entrepreneurs looking to minimize startup costs.
Which state is the most expensive in which to register an LLC?
Massachusetts stands out with the highest initial filing fee at $500. However, if you consider ongoing costs, California is notorious for its high LLC formation expenses, largely due to its flat annual franchise tax of $800. This tax is mandatory regardless of income; higher-income businesses may face additional fees. These high costs are essential when deciding where to form your LLC, especially if you plan to operate in a state with a significant tax burden.
What’s the best way to reduce my LLC formation fees?
There are several strategies to reduce your LLC formation fees. First, consider handling some tasks yourself, like preparing your operating agreement or filing your paperwork directly with the state, instead of hiring a service. Shopping for the best deals on registered agent services and formation companies can also help you save money. Some companies offer discounts or promotions that can lower your overall costs.
Do LLCs pay taxes?
Yes, LLCs are subject to taxes, but the way they are taxed depends on how they choose to be treated for tax purposes. By default, LLCs are pass-through entities, meaning the profits are reported on the personal income tax returns of the members, avoiding the double taxation that corporations face.
However, an LLC can be taxed as a corporation, which could be beneficial depending on the business’s financial situation. It’s important to consult with a tax advisor to determine the best tax structure for your LLC, as this decision can significantly impact your tax obligations and overall financial strategy.
Do I have to pay LLC fees every year?
Yes, most states require LLCs to pay annual fees to maintain good standing. These fees can come in the form of franchise taxes, annual report fees, or renewal fees, depending on the state. For example, California has a mandatory annual franchise tax of $800, while states like Delaware require an annual report fee of $300. The amount and type of fees vary by state, so it’s crucial to understand your state’s specific requirements to avoid penalties or dissolution of your LLC.
Is it possible to form an LLC without paying any state fees?
Generally, no. You cannot form an LLC without paying a state fee. Every state charges a filing fee when you officially submit your Articles of Organization to create your LLC. While some formation services might offer promotions or discounts on their services, state-mandated fees are unavoidable. It’s important to budget for these costs as part of your LLC formation process.
What is the best LLC formation service company?
Northwest Registered Agent is often recommended for its excellent combination of reliable services and reasonable prices. They provide comprehensive support throughout the LLC formation process, including help with filing the necessary documents and serving as your registered agent. Their highly-rated customer service makes them a great choice for entrepreneurs who want a hassle-free experience.
Additionally, Northwest is known for its transparency with pricing, avoiding the upsells and hidden fees that some other services might include.
How long does it take to get an LLC approved?
The approval time for an LLC can vary widely depending on the state in which you’re forming your business. Some states, like Alabama and Alaska, can process LLC applications within a day if filed online. Others, like California and New York, may take several weeks to approve an LLC, especially if you file by mail or during peak business periods.
Many states offer expedited processing for an additional fee, which can significantly reduce the waiting time. It’s a good idea to check your state’s specific processing times and consider whether expedited service is worth the extra cost for your timeline.
Which states have the highest and lowest taxes for LLCs?
States like California and New York are known for having some of the highest taxes for LLCs, including hefty franchise taxes and additional fees based on income levels.
In contrast, states like Wyoming and Delaware are popular for their lower tax burdens, making them attractive options for LLC formation. Wyoming, for example, has no state income tax and very low annual fees, so it’s often chosen by entrepreneurs looking for tax efficiency. Delaware is also favored for its business-friendly legal environment and low franchise taxes, particularly for small businesses.
Can I be my own registered agent for my LLC?
Yes, you can serve as your own registered agent for your LLC, but there are a few requirements. You must have a physical address in the state where your LLC is registered (a P.O. Box won’t suffice), and you must be available during regular business hours to receive important legal documents and government notices. While being your own registered agent can save you money, it does come with responsibilities. Hiring a professional registered agent service might be a better option if you’re concerned about privacy or availability.
Disclosure: We may earn commissions if you buy via links on our website. Commissions don’t affect our opinions or evaluations. We’re also an independent affiliate of many platforms, including ClickFunnels, Kartra, GoHighLevel, Podia, Northwest Registered Agent, and others. We’re not employees of these services. We receive referral payments from them, and the opinions expressed here are our own and are not official statements of these companies.
