LLC Cost Guide: How Much LLCs Cost By State (2026)

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A limited liability company (LLC) is a US business entity type that legally separates personal assets from business liabilities and offers flexible tax options for your business income. But forming one isn’t free, and the associated costs can vary dramatically from state to state—from a budget-friendly $35 registration fee in Montana to as much as $500 in Massachusetts.

As a business owner, where you establish your LLC can have a significant impact on startup margins, and that’s before factoring in costs like regular report preparation, franchise taxes, publication requirements, and legal or other professional help.

In this guide, you’ll find the information you need to factor LLC costs into your startup budget, wherever you set up your new company.

What is an LLC?

A limited liability company is a popular business structure that protects the personal property of owners from business liabilities, such as debt and lawsuits, and offers flexible income tax options. An LLC can be owned by a single or multiple members, and like a sole proprietorship or partnership, and the profits of the LLC can pass through to its members, who then pay taxes on them at their personal income tax rates. An LLC can also elect to be taxed as a corporation.

LLC members can be domestic or international individuals, corporations, and other LLCs. There is no limit to the number of members an LLC may have. 

Key benefits of an LLC

The LLC structure has the following advantages:

Personal liability protection

If an LLC is sued or subject to bankruptcy proceedings, the homes, vehicles, and savings of members are typically safe from legal judgments and creditors’ claims, so long as the members have not intermingled their business and personal finances.

Pass-through taxation

LLC profits can pass through directly to members, who pay individual income taxes at their personal rate on those earnings. In contrast, C corporation owners or shareholders are subject to double taxation, where earnings are taxed at the corporate level and again when owners or shareholders receive payouts from the company.

Minor compliance requirements

LLCs also avoid the corporate legal requirements of a board of directors, formal annual meetings, and complex recordkeeping and reporting.

Potential drawbacks of an LLC

There are also some drawbacks to keep in mind when it comes to LLCs:

Fees

LLCs may be subject to filings fees, state-required annual or biennial fees, and fees for a registered agent, the person or business that receives legal documents on the LLC’s behalf. Some businesses operating across state lines may face additional registration fees and compliance obligations.

Self-employment taxes

Unless the company opts to be taxed as an S corp, members typically pay federal self-employment taxes, presently set at 15.3%, on all distributed profits. 

Limited access to capital

LLCs have limited options for raising capital. They can accept investments from members and outside parties but can’t issue shares like corporations.

Difficulty selling or restructuring

Selling, restructuring, or dissolving a multimember LLC can prove difficult and may require a majority vote of the membership. For the same reason, a liquidation may be the only option for resolving major disagreements among members.

Alternatives to an LLC

Before committing to the LLC structure, study your business’s specific circumstances, niche, and market conditions, and consider consulting a lawyer to determine whether an alternative entity type is a better fit. These options include:

• Sole proprietorship. No significant formation costs, but no personal liability protection.

• Partnership. Simple formation process and pooled resources, but members may be subject to unlimited personal liability.

• S corporation. Potential self-employment tax savings, but stricter compliance rules.

• C corporation. Unlimited growth and capital-raising potential, but subject to double taxation. 

LLC filing fees by state

LLCs must pay a filing fee when the company is initially formed. LLCs must also pay a foreign LLC filing fee if they begin “transacting” or doing business in any state outside of their state of formation. Transacting businesses generally do more than sell products or services. They might open a physical office, hire local employees, or regularly contract services in the foreign state. 

Some states also require LLCs to periodically file reports, typically once a year or every other year, for which they may charge a fee.

Below is a list of essential LLC filing fees in all 50 states and the District of Columbia. Use this list as a reference, but make sure to check your state’s Secretary of State website or consult a legal professional for the most up-to-date information and a full accounting of state fees. States may charge additional processing fees, such as when paying online with a credit card, or archive fees:

• Alabama: $200 formation fee, $150 foreign LLC fee, $25 name reservation fee

• Alaska: $250 formation fee, $350 foreign LLC fee, $100 biennial fee ($200 for foreign LLC)

• Arizona: $50 formation fee, $150 foreign LLC fee; free online affidavit of publication ($35 expedited processing fee)

• Arkansas: $45 online formation fee ($50 for paper filing), $270 online foreign LLC fee ($300 for paper filing), $150 annual fee

• California: $70 formation fee, $70 foreign LLC fee, $20 biennial fee (starting within 90 days of registration), $800 minimum annual franchise tax

• Colorado: $50 formation fee, $100 foreign LLC fee, $25 annual fee

• Connecticut: $120 formation fee, $120 foreign LLC fee, $80 annual fee

• Delaware: $110 formation fee, $200 foreign LLC fee, $400 annual fee.

• District of Columbia: $99 formation fee, $220 foreign LLC fee, $300 biennial fee

• Florida: $125 formation fee, $125 foreign LLC fee, $138.75 annual fee

• Georgia: $110 formation fee, $235 foreign LLC fee, $60 annual fee

• Hawaii: $50 formation fee, $50 foreign LLC fee, $12.50 online annual fee ($15 if filing by mail); filings may be subject to $1 archive fee 

• Idaho: $100 online formation fee ($120 for paper filing), $100 online foreign LLC fee ($120 for paper filing); no cost for annual reports but paper filings may be subject to $20 fee

• Illinois: $150 formation fee, $150 foreign LLC fee, $75 annual fee

• Indiana: $75 online filing fee (plus optional $20 enhanced access fee for $95), $75 online foreign LLC fee (plus optional $30 enhanced access fee for $105)

• Iowa: $50 formation fee, $100 foreign LLC fee, $30 online annual fee ($45 for paper filing)

• Kansas: $85 online formation fee ($90 for paper filing), $115 foreign LLC fee, $90 online biennial fee ($110 for paper filings)

• Kentucky: $40 formation fee, $90 foreign LLC fee, $15 annual fee

• Louisiana: $100 formation fee, $125 foreign LLC fee, $30 annual fee

• Maine: $175 formation fee, $250 foreign LLC fee, $85 annual fee ($150 for foreign LLC)

• Maryland: $100 formation fee, $100 foreign LLC fee, $300 annual fee

• Massachusetts: $500 formation fee, $500 foreign LLC fee, $500 annual fee; $20 fee if filing by fax or online

• Michigan: $50 formation fee, $50 foreign LLC fee, $25 annual fee; fees may be waived if majority-owned by veterans

• Minnesota: $155 online or in-person formation fee ($135 if filing by mail), $205 online or in-person foreign LLC fee ($185 if filing by mail)

• Mississippi: $50 formation fee, $250 foreign LLC fee, $250 annual fee for foreign LLCs only

• Missouri: $50 online formation fee ($105 for paper filing), $105 foreign LLC fee; fees may be waived if majority-owned by veterans

• Montana: $35 formation fee, $70 foreign LLC fee

• Nebraska: $100 online formation fee ($110 for in-office filing), $100 online foreign LLC fee ($110 for in-office filing), $25 online biennial fee ($30 for paper filing), $25 online proof of publication fee ($30 for in-office filing) for domestic LLCs only

• Nevada: $75 formation fee, $75 foreign LLC fee, $150 initial list of managers or members fee, $200 business license fee, $150 annual list of managers or members fee, $200 business license renewal fee

• New Hampshire: $100 formation fee, $100 foreign LLC fee, $100 annual fee

• New Jersey: $100 formation fee, $100 foreign LLC fee, $75 annual fee

• New Mexico: $50 formation fee, $100 foreign LLC fee

• New York: $200 formation fee, $250 foreign LLC fee, $50 certificate of publication fee, $9 biennial fee, $25 to $4,500 annual fee depending on LLC structure and state gross income; $50 online proof of publication fee 

• North Carolina: $125 formation fee, $250 foreign LLC fee, $200 annual fee

• North Dakota: $135 formation fee, $135 foreign LLC fee, $50 annual fee

• Ohio: $99 formation fee, $99 foreign LLC fee

• Oklahoma: $100 formation fee, $300 foreign LLC fee, $25 annual fee

• Oregon: $100 formation fee, $275 foreign LLC fee, $100 domestic LLC annual fee, $275 foreign LLC annual fee

• Pennsylvania: $125 formation fee, $250 foreign LLC fee, $7 annual report fee; fees may be waived if majority-owned by veterans

• Rhode Island: $150 formation fee, $150 foreign LLC fee, $50 annual fee, $400 minimum annual corporate tax for LLCs not taxed as corporation

• South Carolina: $110 formation fee, $110 foreign LLC fee

• South Dakota: $150 online formation fee ($165 for paper filing), $750 online foreign LLC fee ($765 for paper filing), $55 online annual fee ($70 for paper filing)

• Tennessee: $300 to $3,000 formation fee depending on number of members, $300 to $3,000 foreign LLC fee depending on number of members, $300 to $3,000 annual fee depending on number of members

• Texas: $300 formation fee, $750 foreign LLC fee; fees may be waived if majority-owned by veterans

• Utah: $59 formation fee, $59 foreign LLC fee, $18 annual fee

• Vermont: $155 formation fee, $155 foreign LLC fee, $45 domestic LLC annual fee, $170 foreign LLC annual fee

• Virginia: $100 formation fee, $100 foreign LLC fee, $50 annual fee

• Washington: $200 online formation fee ($180 for paper filing), $200 online foreign LLC fee ($180 for paper filing), $70 annual fee

• West Virginia: $100 formation fee, $150 foreign LLC fee, $25 annual fee; $1 fee for online filing, fees may be waived if majority-owned by veterans

• Wisconsin: $130 online formation fee ($170 for paper filing), $100 minimum foreign LLC fee, $25 online domestic LLC annual fee ($40 for paper filing), $65 foreign LLC annual fee ($80 for paper filing)

• Wyoming: $100 formation fee, $150 foreign LLC fee, $60 minimum annual fee

Additional LLC costs

• Operating agreement drafting fee
• Fictitious business name application fee
• Expedited filing fee
• Registered agent fee
• Publication fees
• LLC name reservation fee
• Business license fees
• Professional and legal fees
• Franchise tax fees

Aside from the fees listed above, you might incur other costs for setting up an LLC.

Operating agreement drafting fee

An operating agreement is a legal document that lays out the ownership and management structure of an LLC, along with operating procedures. It can be helpful in sorting out financial obligations and legal disputes. 

Online business formation services can charge between $40 and $100 for an operating agreement, according to UpCounsel, while hiring an attorney for a custom document can cost $200 to $1,000-plus. Total price can depend on the number of LLC members and the complexity of the agreement. 

Some states require LLCs to draft an operating agreement but not file it, meaning they don’t charge a filing fee, since it’s an internal document.

Fictitious business name application fee

If you plan to operate your LLC under a name other than the one it’s registered under, states will require you to set up a fictitious business name, also called a DBA (doing business as) or assumed name. This doesn’t require the creation of a new entity or change how the LLC is taxed. It simply registers the public-facing name of the business. 

Fees will vary state by state and are often set at the county level. The fee in Los Angeles County, California, for example, is $26, while in Wayne County, Michigan, the filing fee is $16.

Expedited filing fee

Many states offer expedited processing for filing LLC documents, and some even offer same-day processing or within the hour. In some cases, filing online or in person automatically comes with an expedited fee. Fast filing can cost from around $20 to $1,000.

Registered agent fee

All states require that LLCs require a registered agent—a person who can receive legal documents on behalf of the company during normal business hours. An LLC member can act as its registered agent if they meet the requirements. Usually, agents must live in the state and have some kind of physical address where they can receive documents. Many LLCs use a registered agent service, which can cost hundreds of dollars a year.

Publication fees

Some states, including New York, Nebraska, and Arizona, require new LLCs to publish a public notice of formation. For example, in New York, LLCs must publish this notice in two printed newspapers (one daily and one weekly) in the county where the LLC’s office is located for six consecutive weeks. New York publication costs can range from hundreds to thousands of dollars, according to LLC Publishers, depending on the newspaper’s advertising prices. LLCs must also pay a $50 filing fee for a state Certificate of Publication. Arizona doesn’t require LLCs to file proof of publication, and newspaper publishing isn’t required in Maricopa County and Pima County.

LLC name reservation fee

You may want to reserve your business name ahead of time while setting up your LLC. Many states offer the ability to do so for a fee and for a set period of time. For example, in Illinois, it costs $25 to reserve an LLC name for 90 days. Alabama is the only state that requires LLCs to reserve a name before filing formation or foreign LLC documents, and charges $25 for it.

Business license fees

If you plan to collect sales tax or conduct business in a regulated industry (alcohol, beauty salons, and financial advisers, among others), you will probably need a state business license or permit. Some county and municipal governments may also require a business license or permit to operate locally. State and local authorities sometimes charge periodic business license renewal fees as well.

Professional and legal fees

You may want to use an LLC formation service, attorney, or other licensed professional (like an accountant) to help you form an LLC. These services or professionals can help you compile LLC formation documents, understand liability and tax benefits, prepare tax documents, and file required annual or biennial reports. They can also help you obtain an employer identification number (EIN) from the US Internal Revenue Service, which is typically required to open a business bank account. (You can also obtain this number yourself, free of charge.)

Franchise tax fees

Some states charge LLCs a special franchise tax—a fee that’s separate from income tax and owed even when the LLC doesn’t run at a profit. This fee is distinct from the annual report fee.

Not every state requires one. Wyoming, Nevada, South Dakota, and Florida don’t. But where they do apply, costs can vary widely. Delaware, for example, charges a flat $400 a year. California requires $800 annually, and LLCs may be subject to additional fees based on earnings in the state starting at $250,000. Some states calculate the franchise tax based on revenue or an entity’s net worth.

Total estimated LLC costs

Forming and maintaining an LLC involves a mix of one-time and recurring costs. 

On the one-time side, expect to pay an initial state filing fee (typically $35 to $300, though a few states run higher), plus optional costs like an expedited filing fee, a name reservation fee, or professional help drafting an operating agreement. 

On the recurring side, most states charge an annual or biennial report fee (commonly $25 to $300), and some add a separate franchise tax on top of that (anywhere from $0 a year if the state calculates tax based on income, and no income is earned, to an $800 minimum in California). 

Most LLC owners can expect to spend somewhere from a few hundred dollars to over $1,000 in their first year.