LLC setup costs rarely stop at the filing fee. The state filing is only the first charge, and extra costs can show up quickly: name reservations, DBAs, publication rules, and the occasional certificate of good standing later in the process.
Your total changes based on the state, the type of business, and any add-ons tied to formation or licensing. Some owners pay only the basic filing fee, while others need permits, insurance, or publication costs before opening. This guide covers startup costs, common extras, and the recurring fees that follow after formation.
Fees in this article are compiled from Secretary of State websites and the IRS, and are current as of publication. State fees change regularly: confirm the latest number with your state before filing.
LLC Cost Overview: What to Expect
Across the U.S., typical first-year LLC costs fall into these ranges:
State filing fee: $35–$500 (one-time), per each state's Secretary of State fee schedule
EIN: $0 (free directly from the IRS)
Name reservation: $10–$75 (optional, varies by state)
DBA filing: usually less than $100, per the SBA
Publication (NY, AZ, NE only): $30–$1,500+ depending on county
Registered agent service: $0 (DIY) to ~$300/year
Annual report / franchise tax: $0–$800+ per year
The single biggest variable is your state. California's $800 annual franchise tax and New York's publication requirement push first-year totals well above states like Montana ($35 filing fee) or Kentucky ($40). Detailed breakdowns and sourced figures for each cost follow below.
Required LLC Startup Costs and Fees
The Secretary of State filing is the first cost you'll see. Before the LLC exists on paper, the state usually asks for the filing fee, the business name, and the registered agent information.
State Filing Fees to Form an LLC
Most states charge an articles of organization filing fee, sometimes listed as a certificate of formation. This filing puts your address, registered agent, and LLC name on record. Filing the Articles of Organization in Montana costs $35.00, while every LLC doing business or organized in California pays a $70 filing fee plus an annual $800 franchise tax, so the gap between states is wide. A snapshot of representative states with their official sources:
Table: 2026 LLC formation filing fees, compiled from official Secretary of State sources.
State | Filing Fee (approx.) | Source |
Montana | $35 | |
Kentucky | $40 | |
Arkansas | $45 | |
Arizona | $50 | |
Colorado | $50 | |
California | $70 (+ separate franchise tax) | |
New York | $200 (+ publication) | |
Texas | $300 | |
Tennessee | $300 minimum (per-member structure) | |
Massachusetts | $500 |
Fees compiled from each state's Secretary of State (or equivalent business filings division). Verify your state's current rate before submitting, as schedules update frequently.
Go straight to your Secretary of State's website for the exact number for your state. Once you file, expect official-looking mail from companies offering services you don't need: your LLC registration is public info, and those letters are usually sales pitches.
Expedited Filing
Most states offer faster processing for an additional fee. Standard processing commonly takes anywhere from a few business days to several weeks. Expedited service can cut that down to 24 hours or, in some states, the same day, for additional surcharges set by each state's filings office.
Publication Fees
A few states, notably New York, Arizona, and Nebraska, require you to publish notice of your new LLC in local newspapers. New York's publication requirement (described in Section 206 of the NY LLC Law) is the costliest of the group, with the price set by the newspapers in the county of the LLC's office: rates run dramatically higher in Manhattan and Brooklyn than in upstate counties. Missing this step can suspend your LLC's authority to do business in New York, so check your state's rules before filing.
EIN Registration: Free
Your Employer Identification Number is your business tax ID, required to open a business bank account, hire employees, or file taxes as an LLC. Apply directly through the IRS for $0. Some formation services charge an add-on fee to file it for you. You can apply for an EIN yourself online; the IRS issues the number immediately upon successful submission.
Optional LLC Formation Costs to Consider
Registered agent service, licenses, name reservations, and DBA filings often add costs soon after the LLC paperwork starts.
Registered Agent Services
Every LLC is required by state statute to designate a registered agent (the U.S. Small Business Administration confirms LLCs need a registered agent in the state before filing). You can name yourself, but that puts your home address on public record and requires you to be available at that address during business hours. A commercial service keeps your address private and makes sure legal mail reaches you. Some services include mail forwarding, deadline reminders, or multi-state service, so compare what each provider includes before you choose one.
Name Reservation
Registering a trademark can take twelve to eighteen months. If you want to hold a business name with your state while you wait, most states offer a name reservation for a modest, state-set fee. For example, the California Secretary of State charges $10 to reserve a name for 60 days.
DBA Filing
Sometimes the legal name on your LLC paperwork isn't the name you want customers to see. If you filed as "JDM Holdings, LLC" but want to operate as "Bright Coast Coffee," file a DBA ("doing business as"). The SBA notes that DBA registration fees are usually less than $100. In California, for example, DBA statements (known as Fictitious Business Name statements) are filed with the city or county clerk and must be published in a local newspaper once a week for four successive weeks. Check with your county clerk or state business filings office for the exact fee where you operate.
Operating Agreement
No state requires an operating agreement, but it's the document that defines ownership shares, profit splits, decision-making rules, and what happens if a member leaves. Free templates work for many single-member LLCs. Multi-member LLCs commonly invest in an attorney-drafted version; pricing is quoted by the attorney based on state, hourly rate, and the complexity of the ownership structure, so get a written estimate before engaging counsel.
Business Licenses and Permits
Licenses often show up late in the process, when the business is almost ready to open. Your state, county, or city may require specific business licenses depending on your industry, and food-based, mobile, or regulated operations often need multiple permits before the first sale.
S-Corp Election (Form 2553)
An LLC can choose S-Corp tax treatment if profits are high enough to offset the extra payroll and tax filing work. The election itself is free through the IRS via Form 2553, but expect added accounting costs: running payroll for yourself and filing Form 1120-S typically adds CPA fees each year. Talk to a tax professional before electing S-Corp status. The savings depend on how much you pay yourself, what your state charges, and what payroll will cost.
DIY vs. LLC Formation Service: Cost Comparison
A low advertised price can grow once the checkout page adds registered agent service, EIN filing, and operating agreement templates. Whether you file yourself, use a formation service, or hire an attorney changes the total.
You have three realistic paths to forming an LLC:
Path | Typical Cost | Best For |
DIY through Secretary of State | State filing fee only | Confident solo founders |
Formation service
(LegalZoom, ZenBusiness, Northwest, Bizee, etc.) | Free or low-cost basic tier + state fee, with paid upgrades | Owners who want a guided checklist |
Business attorney | Quoted by the attorney | Multi-member LLCs, complex ownership |
Most formation services advertise a low-cost "basic" tier, then upsell registered agent, EIN, and operating agreement add-ons. Filing directly with your state is almost always the cheapest route if you're willing to read your state's filing instructions and complete the forms yourself.
LLC Business Insurance Costs
Insurance is a separate budget item from formation. The LLC can limit personal liability for many business debts, but insurance is what covers a claim if a client says your work caused a loss.
Small LLCs often price out a few common policies. Premiums change based on industry, location, claims history, and revenue:
General liability insurance. Covers third-party bodily injury and property damage (e.g., a client slips in your office). Often the lowest-cost policy for small service businesses.
Professional liability (E&O). Covers claims that your advice or work caused financial harm. Important for consultants, agencies, and service providers.
Business owner's policy (BOP). Bundles general liability with property coverage, typically at a discount versus buying separately.
Workers' compensation. Required in most states the moment you hire your first W-2 employee.
Cyber liability. Worth pricing if you handle client data.
Get quotes before you launch so you have a real number to budget for.
Annual LLC Costs and Recurring Fees
Keeping an LLC active means paying recurring state fees, renewing licenses, and setting aside money for taxes. The first annual report notice often arrives only a few months after formation.
Annual and Biennial Reports
Most states require an annual or biennial filing to keep your LLC active, and these recurring filings are part of the ongoing annual maintenance an LLC requires. On the high end, every LLC doing business or organized in California must pay an annual tax of $800, regardless of income or activity (see the California Franchise Tax Board's LLC page for current rules). Miss the deadline, and you could face late fees or even administrative dissolution, so mark the due date on your calendar the day you file.
License Renewals
If your industry requires a business license, expect that bill to come back at renewal time. The amount changes by state and license type, and it doesn't stop just because business is slow.
Federal and State Taxes
LLC owners typically owe federal self-employment tax of 15.3% (12.4% Social Security + 2.9% Medicare) on net earnings, plus federal and state income tax. Most owners also make quarterly estimated tax payments throughout the year, and paying those quarterly taxes online through IRS Direct Pay or EFTPS keeps a clean record of each payment. A handful of states also charge a separate annual franchise or LLC tax on top of the report fee, and missing a quarterly deadline carries its own penalty. Set tax money aside from the start using a dedicated business checking account so April doesn't hit all at once.
Foreign LLC Registration
If you form your LLC in one state (say, Delaware or Wyoming for privacy) but actually do business in another, you'll need to register as a "foreign LLC" in the state where you operate. Foreign registration fees vary by state and usually require a second registered agent and possibly a second annual report. For most small business owners, forming in your home state is cheaper and simpler.
Dissolution Costs
Closing an LLC isn't free either. Most states charge a fee to file articles of dissolution, and you may need to settle final tax filings, franchise taxes, and any outstanding annual reports before the state will close the file.
Sample LLC First-Year Cost Budgets
These examples show how first-year LLC costs stack up. Filing fees and annual taxes come from the official sources cited earlier in this article; insurance and registered agent figures are placeholders to show the line items.
Solo consultant in Texas (home-based):
Filing fee: $300 (TX SOS Form 205)
EIN: $0 (IRS)
Registered agent: $0 (acts as own)
Operating agreement: template
Professional liability insurance: get a quote
First-year baseline state cost: $300, plus insurance and any local licenses
E-commerce LLC in Wyoming (privacy-focused):
Filing fee: per Wyoming Secretary of State business fees
Registered agent service: quoted by provider
Operating agreement: template
General liability insurance: get a quote
Annual report: Wyoming charges a license tax with a state-set minimum (more if in-state assets are high)
First-year cost: filing + registered agent + insurance
Food truck LLC in California:
Filing fee: $70 (CA SOS)
Statement of Information: $20 (every two years)
Annual franchise tax: $800 (CA FTB)
Registered agent service: quoted by provider
Health permits + business license: set by your city and county
General liability + commercial auto: get quotes
State-level minimum: $890 in year one (filing + Statement of Information + franchise tax), before permits and insurance
How to Plan Your First-Year LLC Budget
A first-year LLC budget is easier to manage when each expense has its own line. Separate one-time setup costs from insurance and recurring state fees so money set aside for taxes or filings doesn't disappear into day-to-day spending. Many small business owners use the Profit First method to split each deposit into dedicated buckets for taxes, owner's pay, operating expenses, and profit before the money has a chance to be spent on something else.
Set aside money for filing fees, franchise taxes, insurance, and quarterly taxes before the first invoice goes out.
Open a Relay account to keep taxes, filing fees, payroll, and operating cash in separate accounts. You can create up to 50 checking accounts for different LLC expenses, move part of each deposit into taxes, and sync directly with QuickBooks Online and Xero. There are no monthly maintenance fees and no minimum balances. Get started with Relay to keep your LLC finances organized.
Frequently Asked Questions About LLC Setup Costs
What Is the Cheapest State to Form an LLC?
States like Montana and Kentucky have some of the lowest filing fees in the country (see the table above for the sourced figures), but the "cheapest" state for you is almost always your home state. Forming in Wyoming or Delaware to save money rarely pays off if you actually operate elsewhere: you'll still owe foreign LLC registration in your home state, plus a second registered agent and possibly two annual reports.
Can I Start an LLC for Under $100?
In a number of states, the basic filing fee comes in under $100 (Montana, Kentucky, Arkansas, Arizona, and Colorado all fall in that range per their official fee schedules). Extras like a registered agent, DBA filing, or name reservation can push the total higher.
Do I Need a Lawyer to Form an LLC?
Not in most cases. A straightforward single-member LLC can usually handle the Secretary of State filing alone. Multi-member LLCs are the main exception: attorney help is often worth it when partners need a customized operating agreement to head off future disputes.
What's the Difference Between Single-Member and Multi-Member LLC Costs?
The state filing fee is identical, but multi-member LLCs typically spend more on tax prep. They file a partnership return (Form 1065) plus K-1s for each owner, which usually adds CPA fees each year compared to a single-member LLC reported on Schedule C.
How Long Does It Take to Set Up an LLC?
Processing times depend on the state, ranging from a few business days to several weeks under standard processing, with paid expedited options available in many states. The EIN application takes only a few minutes online through the IRS once the LLC is approved. Publication rules, extra filings, or local permits can stretch the full timeline well beyond the initial state filing.
Do I Need Business Insurance for My LLC?
Maybe. The right answer depends on the work you do and the claims your business could face. Formation paperwork sets up the business entity, but it won't pay a claim, so owners often get insurance quotes before launch.
What Happens If I Don't File My LLC's Annual Report?
Most states charge a late fee first, then escalate to administrative dissolution if the report stays unfiled. Once dissolved, the LLC loses its legal standing and personal liability protection, which is a much bigger problem than the original report fee.
