Starting an LLC can cost as little as $35 in state filing fees. However, some states charge $500 before optional services or recurring fees. Your real LLC cost depends on your state, annual requirements, taxes, and whether you hire professional help.
Direct answer: In 2026, state LLC formation fees generally range from $35 to $500. You may also face annual reports, franchise taxes, registered agent fees, publication costs, or local licenses. An EIN from the IRS is free, so you never need to pay a company solely to obtain one.
LLC Cost at a Glance
| Expense | Typical Cost or Range | When You Pay |
|---|---|---|
| State formation filing | $35–$500 | Usually once |
| Annual or biennial report | $0–$500+ | Recurring, depending on state |
| Registered agent | $0 if eligible to self-serve; paid services vary | Usually yearly |
| EIN | $0 through the IRS | Usually once |
| Operating agreement | $0 DIY; professional help varies | Usually once |
| Publication requirement | Varies by location | Required only in certain states |
| Business licenses | Varies by location and industry | Initial and sometimes recurring |
| Franchise or state taxes | Varies widely | Usually recurring |
State charges change, and special rules can affect the final amount. Always confirm current fees with your state before filing.
Key Takeaways
- State formation fees currently range from about $35 to $500.
- Massachusetts is among the most expensive states for basic formation filings.
- Montana is among the lowest-cost states based on current state-fee data.
- California adds a substantial annual tax on top of its formation charge.
- The IRS issues qualifying businesses an EIN for free.
- Some owners pay more for registered agents, attorneys, or formation services.
- Forming in a cheaper state may create extra costs if you operate elsewhere.
How Much Does an LLC Cost to Start?
The initial state filing fee is usually the largest mandatory startup charge. Each state sets its own fee for the formation document. That document may be called Articles of Organization or a Certificate of Organization.
Current 2026 data shows filing charges from roughly $35 to $500. Montana sits near the low end at $35. Massachusetts charges $500 for formation.
Several commonly chosen states fall between those numbers. Florida charges $125, while Texas charges $300 for formation. California charges $70 to file, but ongoing costs can make it much more expensive.
If you’re building a business, formation is only one early expense. Magazine Camp’s Business section covers other issues affecting entrepreneurs and growing companies. Planning those expenses together gives you a clearer startup budget.
LLC Cost by State: Examples for 2026
Costs can differ sharply even between neighboring states. A low filing charge does not always mean low long-term expenses. Recurring taxes and reports often matter more over several years.
| State | Formation Fee | Important Recurring Cost |
|---|---|---|
| Montana | $35 | Annual filing cost applies |
| Arizona | $50 | No standard annual report |
| California | $70 | $800 minimum annual tax, plus reporting rules |
| Florida | $125 | $138.75 annual report |
| Delaware | $110 | $300 annual tax |
| Texas | $300 | Franchise tax rules may apply |
| Massachusetts | $500 | $500 annual report |
| New York | $200 | Publication requirement can add costs |
These figures show why comparing only the formation charge can mislead you. California has a modest filing fee but a much larger recurring tax. Massachusetts combines a high formation charge with a costly annual report.
New York can also become expensive because of its publication requirement. Publication prices depend heavily on county and newspaper charges. Owners should investigate local costs before choosing where to organize.
What Fees Make an LLC More Expensive?
Several expenses can appear after you pay the formation fee. Some are required, while others depend on your business choices. Understanding the difference prevents unnecessary spending.
Annual or Biennial Reports
Many states require LLCs to submit recurring reports. These reports keep ownership and contact information up to date. Filing fees can range from nothing to several hundred dollars.
Florida, for example, charges an annual report fee of $138.75. Delaware instead imposes a $300 annual LLC tax. Massachusetts currently charges $500 for its annual report.
Missing a required filing can create extra penalties. Your company may also lose good standing with the state. Put recurring deadlines on a calendar after formation.
Registered Agent Costs
Every LLC needs a registered agent in its state of formation. The agent receives official notices and legal documents. You may be able to serve as your own agent.
Using yourself can reduce your cash expense to zero. A commercial service adds an annual fee. Prices vary by provider and package.
Privacy can influence this decision as much as price. Business owners using home addresses may prefer a commercial agent. Compare the convenience against the recurring expense before paying.
State Taxes and Franchise Fees
Some states collect fees that go beyond annual reports. They may call them franchise taxes, privilege taxes, or business taxes. The amount can depend on revenue, structure, or state-specific formulas.
California is a major example because many LLCs face an $800 minimum annual tax. Delaware also charges a $300 annual tax for LLCs. These recurring expenses can outweigh a low initial filing fee.
Tax treatment also depends on your federal classification and ownership structure. An LLC does not create one universal federal tax system. Consider professional tax advice when your situation becomes complex.
Is an EIN Free for an LLC?
Yes, you can get an EIN directly from the IRS for free. The IRS states that an EIN application carries no fee, and businesses never need to pay one. Eligible applicants can receive one through the agency’s online system.
You should normally form the legal entity with your state first. The IRS recommends registering an LLC before submitting the EIN application. This order helps avoid delays with the federal application.
Many businesses need an EIN for employees, taxes, banking, or licensing. Some single-member LLCs may not need one for federal income tax purposes. They can still request one for banking or state requirements.
Do U.S. LLCs Have to Pay for BOI Reporting?
U.S.-created companies are currently exempt from federal beneficial ownership information reporting. FinCEN finalized that exemption in August 2026. The change means domestic LLCs generally do not file BOI reports under the current rule.
Certain foreign entities registered to operate in the United States remain covered. Their reporting rules differ from those for domestic companies. Owners should use FinCEN’s current guidance when their entity was formed outside the United States.
This change can reduce compliance work for new domestic companies. It also makes older articles about BOI deadlines outdated. Check current government guidance instead of relying on pre-2026 instructions.
Should You Form in the Cheapest State?
Choosing the cheapest state can sound attractive, but it often creates extra work. Most small businesses benefit from forming where they primarily operate. Registering elsewhere may require foreign qualification in your home state.
That situation can create two sets of filings and recurring fees. You might also need registered agents in more than one jurisdiction. The initial savings can disappear quickly.
A Wyoming or Delaware LLC is not automatically cheaper for every owner. Delaware can carry a $300 annual LLC tax despite its business-friendly reputation. Your operating location matters more than a headline filing fee.
Business owners should also budget for customer acquisition after formation. Magazine Camp explains how SEO services can support business visibility once the company is operating. Keep marketing expenses separate from legal formation costs.
Can You Start an LLC Without Paying a Formation Service?
Yes, owners can usually submit formation documents directly to their state. Doing the work yourself avoids a third-party service charge. You still must pay mandatory government fees.
A formation company can provide convenience, document preparation, or registered agent services. Its fee is separate from the state’s official charge. Compare what is included before buying a package.
Be especially cautious of services that charge only for an EIN. The IRS provides EINs free to eligible applicants. Paying a private company does not make the federal number itself more valuable.
Once your business launches, efficient systems can reduce other operating expenses. Magazine Camp also covers ways web design can improve business processes. Those costs belong in your operating budget, not the formation budget.
How to Estimate Your Real First-Year LLC Budget
Start with the official filing fee for the state where you operate. Then add any annual report, franchise tax, or publication requirement. This gives you the minimum government-related budget.
Next, decide whether you need paid professional services. Consider a registered agent, attorney, accountant, or formation provider. Don’t confuse these with mandatory state fees.
Finally, include licenses and permits required by your city or industry. A restaurant may face different requirements from an online consultant. Local costs can therefore change your total significantly.
For example, a $50 formation fee does not guarantee a $50 first year. Annual charges, licensing, and optional help can increase that number. Building a line-item budget prevents surprises after launch.
How to Keep LLC Expenses Lower
The easiest savings come from avoiding unnecessary middlemen. File directly with your state when you are comfortable handling the paperwork. Apply for your EIN directly through the IRS.
Also learn your recurring deadlines right away. Late annual reports can trigger penalties and administrative problems. A free calendar reminder can prevent avoidable charges.
Do not choose another state solely because its filing fee is lower. Foreign-registration costs may erase the difference. Compare the full multi-year cost before deciding.
Frequently Asked Questions About LLC Cost
What is the average LLC cost in the United States?
There is no single national price because every state sets its own filing fee. Current formation charges range from about $35 to $500. Recurring state fees can substantially increase the long-term total.
What is the cheapest state to start an LLC?
Current 2026 fee data places Montana among the cheapest at a $35 formation charge. Kentucky is also inexpensive, with a $40 filing fee. The cheapest filing state may not be cheapest for your actual business location.
Which state has the highest LLC filing fee?
Massachusetts currently charges $500 for its Certificate of Organization. It also has a $500 annual report fee. That makes recurring costs important when comparing states.
Do I have to pay LLC fees every year?
Many states require annual or biennial payments, but the rules vary. Some charge reports, taxes, or renewal fees. Others have little or no standard recurring report charge.
Does an LLC need a registered agent?
Yes, an LLC generally needs a registered agent in its state of formation. You may qualify to act as your own agent. Using a commercial service adds an optional recurring expense.
Does the IRS charge for an EIN?
No, an EIN obtained directly through the IRS is free. The IRS warns applicants that they never need to pay an EIN fee. Third-party companies may charge to prepare or submit applications.
Are domestic LLCs required to file BOI reports in 2026?
Domestic U.S. companies are currently exempt from BOI reporting. FinCEN made the exemption permanent through its August 2026 final rule. Certain foreign entities registered in the United States remain subject to separate requirements.
Plan for the Full Cost, Not Only the Filing Fee
Your formation payment is only one part of owning an LLC. Annual reports, state taxes, licenses, and optional services can change your long-term budget. Checking those expenses before filing helps you choose with better information.
Start by reviewing the official website for the state where you conduct business. Confirm its current formation charge and recurring requirements. Then decide which optional services are worth paying for.
The rules can change, so verify government fees before submitting documents. Legal or tax questions may also require professional advice. A realistic budget makes it easier to keep your new company compliant.
