How much does an LLC cost?

    How much does an LLC cost? The all-in number is the state filing fee ($40–$500) plus annual reports and registered agent service. Full state-by-state breakdown below — or start your LLC with ClearFormation (state fee + agent + EIN in one checkout).

    By ClearFormation editorial Updated June 17, 2026·9 min readOriginally published May 27, 2026

    Mandatory LLC startup costs

    Every LLC pays these — skipping any one blocks banking, contracts, or good standing:

    • State filing fee — Articles of Organization, typically $50–$300.
    • Registered agent — physical in-state address; $0 if you're your own agent, ~$100–$200/yr commercial. Included with ClearFormation.
    • EIN — $0 from the IRS; required for almost every business bank account.

    Optional LLC startup costs

    • Expedited state processing — $25–$150 for same-day or 24-hour approval.
    • Operating agreement — $0 with a template; $200–$1,500 with counsel for custom multi-member terms.
    • Publication — NY, AZ, NE only; $40–$1,600+.
    • Foreign qualification — if you operate in a second state from day one.
    • CPA / Form 5472 — foreign-owned single-member LLCs budget $400–$900/yr.

    Overall LLC costs

    Most US founders land $100–$400 in year one and $60–$300 per year after that, before accounting or legal extras. California and Delaware are the expensive outliers ($800+/yr). New Mexico can be $50 once with $0 ongoing reports. Use the tables below for state-specific numbers.

    What an LLC actually costs

    How much does an LLC cost? For most founders the answer is $100–$400 in year one and $60–$200 per year after that — but California, Delaware, and New York are expensive outliers. The state filing fee is the only mandatory cost every LLC pays; everything else depends on where you form and whether you outsource registered agent or EIN filing.

    The state filing fee is a one-time charge to the Secretary of State for processing your Articles of Organization — and after that, costs fall into three buckets: annual or biennial reports (most states), franchise or business taxes (a handful of states), and registered agent service (every state, though free if you use your own in-state address). The IRS issues EINs at no charge — see the IRS EIN application page.

    First-year cost formula

    State filing fee + registered agent + EIN ($0) + operating agreement ($0 if DIY) + any publication

    Ongoing yearly cost formula

    Annual report + franchise tax (if any) + registered agent renewal

    Year 1 vs year 2 — worked examples

    How much does an LLC cost in practice depends on your state and whether you outsource formation. These three scenarios assume ClearFormation's all-in plan (state fee + registered agent + EIN) — DIY saves the service fee but you still pay every state charge.

    Wyoming LLC — online business, non-US founder

    ItemYear 1Year 2+
    State filing fee$100
    Annual report$60
    Registered agentIncluded~$125/yr
    EIN (IRS)$0
    Form 5472 + CPA (foreign owner)~$500–$900~$500–$900/yr
    Typical total~$725–$1,125~$685–$1,085/yr

    Wyoming has no state income tax on out-of-state income. Foreign-owned single-member LLCs still need annual Form 5472 even at $0 revenue.

    Texas LLC — US resident, local service business

    ItemYear 1Year 2+
    State filing fee$300
    Annual report$0
    Franchise tax$0 (under revenue threshold)$0 (under ~$2.65M revenue)
    Registered agent (self)$0$0
    Typical total (state only)$300$0–$50/yr

    Texas has a high one-time filing fee but no annual LLC report. Most small LLCs never hit the franchise tax filing threshold.

    California LLC — founder lives and works in CA

    ItemYear 1Year 2+
    Articles of Organization$70
    $800 minimum franchise tax$800$800
    Statement of Information$20$20 (every 2 years)
    Registered agent$0–$150$0–$150/yr
    Typical total (state only)~$890–$1,040~$820–$970/yr

    California's $800 franchise tax applies even at $0 revenue. Forming a Wyoming LLC while living in CA does not avoid it — you still foreign-qualify and pay CA.

    State filing fees compared

    StateLLC filing feeAnnual reportNotes
    Montana$35$20None
    Kentucky$40$15Limited Liability Entity Tax applies
    Arkansas$45$0$150 annual franchise tax due May 1 (tax filing with SOS — not an information report)
    Arizona$50$0None for LLCs
    Colorado$50$25None
    Iowa$50$30 online / $45 mail (biennial)None for LLCs
    Michigan$50$25None for LLCs
    Mississippi$50$0None for LLCs
    Missouri$50$0None
    New Mexico$50$0None
    Hawaii$51$15None (general excise tax applies)
    Utah$59$18None for LLCs
    California$70$20$800 minimum annual franchise tax
    Louisiana$75$25None for LLCs by default
    Indiana$97.04$0None
    Ohio$99$0Commercial Activity Tax above $150k gross receipts
    Georgia$100$50None
    Idaho$100$0None
    Maryland$100$300None (annual report fee instead)
    Nebraska$100$25None
    New Hampshire$100$100Business Profits Tax may apply
    Oklahoma$100$25None for LLCs
    Oregon$100$100Corporate Activity Tax may apply
    Virginia$100$50None for LLCs
    West Virginia$100$25None for LLCs
    Wyoming$100$60 minimumNone
    Delaware$110$0$300 annual LLC franchise tax due June 1 (tax payment only — not an annual report filing)
    Connecticut$120$80Business Entity Tax repealed; PE tax may apply
    Florida$125$138.75None for LLCs
    New Jersey$125$75None for LLCs
    North Carolina$125$200None for LLCs by default
    Pennsylvania$125$7None for LLCs
    South Carolina$125$0None for LLCs taxed as partnerships
    Vermont$125$35None for LLCs
    Wisconsin$130$25None for LLCs
    Minnesota$135$0None for LLCs
    North Dakota$135$50None
    Illinois$150$75None for LLCs
    Rhode Island$150$50None for LLCs
    South Dakota$150$50None
    Kansas$160$55 biennialNone
    Maine$175$85None
    Alabama$200$0Business Privilege Tax (min $100/yr, filed separately with the Alabama Dept. of Revenue)
    New York$200$9None for LLCs (but NYC unincorporated business tax may apply)
    Washington$200$70None (B&O tax applies on gross receipts)
    Alaska$250$100None
    Tennessee$300$300 minimumFranchise and Excise Tax applies
    Texas$300$0 below thresholdFranchise Tax; no tax due below revenue threshold
    Nevada$425$350None
    Massachusetts$500$500None for LLCs

    Fees reviewed against state secretary of state sources (last reviewed June 2026). Confirm current amounts on your state's business filing portal before checkout.

    What changes your total LLC cost

    Two LLCs in the same state can have very different all-in costs depending on five variables: whether you act as your own registered agent, whether you need expedited state processing, whether publication is required (New York, Arizona, Nebraska), whether you have foreign owners who need Form 5472, and whether you operate in a second state that requires foreign qualification. A $50 New Mexico filing can still cost $600+ in year one if you add a formation service, commercial agent, and CPA for international tax filings — while a Texas founder filing DIY in their home state might pay only the $300 state fee.

    The state fee table below is the right starting point. Use the year 1 vs year 2 examples above to model your scenario, then compare all-in quotes from formation services rather than headline "$0 plus state fees" ads that exclude registered agent and EIN.

    Ongoing yearly costs

    The annual report is the single recurring filing in most states, with fees ranging from $0 (Arizona, Missouri, New Mexico, Ohio, South Carolina LLCs) to $300+ (Massachusetts $500, Delaware $300 franchise tax), and skipping it eventually triggers administrative dissolution of your LLC.

    Franchise and business taxes

    A few states charge an annual tax on top of (or instead of) the annual report — independent of income:

    • California: $800 minimum franchise tax every year, even with $0 revenue.
    • Delaware: $300 flat franchise tax, due June 1.
    • Tennessee: $300 franchise & excise tax minimum.
    • Texas: No annual report, but franchise tax above ~$2.65M revenue.

    A few states cost more than the filing fee

    New York, Arizona, and Nebraska require LLCs to publish a notice of formation in a newspaper after filing. The cost ranges from $0 (Maricopa/Pima County, AZ) to $1,600+ (NYC counties). This is paid by you directly to the newspaper — ClearFormation doesn't handle publication. Read the full breakdown in our state publication requirements guide.

    Hidden costs to watch for

    • Expedited processing. $25–$1,000 to skip the standard queue. Worth it only if you need to open a bank account immediately.
    • Certified copies. Lenders and some banks request one. $10–$50 from the state.
    • Foreign qualification. Form in WY but operate in CA? You pay both states. WY filing + WY agent + CA foreign filing ($70) + CA $800 franchise tax + CA agent.
    • Local business licenses. City and county licenses are separate from the state LLC filing. Usually $25–$200/year depending on jurisdiction.
    • Reinstatement. If you miss an annual report and the state dissolves your LLC, reinstatement runs $50–$300 plus the missed fees.

    DIY vs formation service vs lawyer

    The state filing fee is fixed no matter who files. What changes is who handles the paperwork, registered agent, and EIN — and what you pay for mistakes or delays.

    RouteTypical cost (excl. state fee)Best for
    DIY (state portal)$0–$50US residents filing in their home state who can be their own registered agent
    Formation service$150–$350 all-inNon-residents, anyone who wants agent + EIN bundled, founders who want one checkout
    Business attorney$500–$2,500+Complex multi-member equity, regulated industries, custom operating agreements

    Watch for upsells: some services advertise a low base price then charge separately for registered agent ($125/yr), EIN filing ($50–$150), and operating agreement ($50–$200). ClearFormation includes state fee, registered agent, EIN, and operating agreement in one price — compare all-in totals, not headline filing fees.

    Cheapest states overall

    For long-term cost — not just the first-year filing fee — the cheapest states to maintain an LLC are:

    1. New Mexico — $50 to file, no annual report, no annual fee.
    2. Arizona — $50 to file, no annual report (publication required in some counties).
    3. Missouri — $50 to file, no annual report.
    4. Ohio — $99 to file, no annual report.
    5. Wyoming — $100 to file, $60/year.

    Registered agent cost

    Every LLC needs a registered agent with a physical street address in the state of formation, available during business hours. You have three options:

    • Yourself: $0, if you have an in-state street address and are reliably there during business hours.
    • A commercial registered agent: $100–$300/year. Keeps your address off the public record.
    • Included with formation: ClearFormation includes the first year of registered agent service.

    Common mistakes

    • Forming in Wyoming or Delaware while operating elsewhere

      You'll pay both states. Cheap-state arbitrage rarely works for US-resident operating businesses.

    • Forgetting California's $800 franchise tax

      It applies even with $0 revenue and even if you're a single-member out-of-state LLC doing business in CA.

    • Missing the annual report

      Most states will administratively dissolve your LLC; reinstatement costs more than the report did.

    • Buying every upsell at checkout

      EIN filing, operating agreement templates, and basic compliance reminders should be included — not $50 add-ons.

    LLC cost — FAQ

    Ready to Start Your Company?

    Join thousands of founders