How Much Does It Cost To Form An LLC In 2026?

Forming a U.S. Limited Liability Company (LLC) generally costs anywhere from $35 to over $500 in initial fees. However, this figure varies widely according to each state and may exceed this range in certain states, such as California and Massachusetts. In addition, some states require an Annual or Biennial Report fee to keep the LLC active and in good standing, with these fees also varying depending on the state.

Other mandatory state-level costs depend on your LLC’s operating location. Therefore, your exact LLC formation costs heavily depend on your registration location, state filing requirements, and chosen business structure.

You can refer to the table below for an overview of the main LLC filing fees and required Annual or Biennial Report costs in all 50 U.S. states plus Washington DC. Click on each state to see a detailed LLC formation cost breakdown.

Or of you want a rough estimate of how much an LLC costs in each state, you can use my LLC Cost Calculator.

In this article, I will discuss the potential costs associated with forming an LLC in the U.S. You’ll learn about the initial costs, ongoing expenses, and optional fees. This should help you budget properly when forming and maintaining your LLC.

For detailed step-by-step guide, you can read my article: How To Start An LLC.

Initial LLC Costs

LLC formation laws vary between states. Each U.S. state sets its own filing fees and LLC approval requirements. Therefore, the cost of setting up your LLC depends on your registration location.

1. LLC Formation Fee

The LLC formation fee is a one-time fee required to form your U.S. LLC. All operating states require you to pay the state filing fee to legally create your LLC before operating.

This foundational legal document is known by different names depending on your operating state:

• Articles of Organization.
• Certificate of Formation.
• Certificate of Organization.

Each one serves the same legal purpose and is used to officially recognize your LLC as a separate business entity.

For learning how to file your formation document, you can read this article: LLC Articles Of Organization.

The state will review and approve your LLC once you’ve filed your formation documents and paid the required fees. It generally takes several business days for your filing to be approved by each state.

Some states allow you to use an expedited filing service for an additional fee. This allows your LLC formation documents to be approved much faster than the standard processing methods. However, the filing fees are generally much higher.

Example: The state of New York requires a $200 filing fee to form your LLC. It also offers an two hour expedited filing process for an additional $150 fee.

2. Publication Fees

Some states require an additional step when forming an LLC, known as the publication requirement. This requirement applies in addition to filing the Articles of Organization and typically involves mandatory fees that CANNOT be avoided.

The states of Arizona, Nebraska, and New York require you to file a public notice when forming your LLC.

You have two main costs to consider when your operating state has a publication requirement:

• Publishing fee: This one-time fee is charged by the newspaper to publish your LLC formation notice.
• State filing fee: This one-time fee must be paid to the state to file your Certificate of Publication along with your Affidavit of Publication.

Your total publication notice costs depend on your LLC’s operating location, state-specific publication rules, and advertising costs (charged by the newspapers).

Example: Publication costs generally range from $200 to $1,200 in New York. The state requires you to run notices in two different newspapers once per week for six consecutive weeks. These are designated by your County Clerk, where the LLC office address is located.

You must also file your Certificate of Publication with the New York Department of State once you’ve received your Affidavit of Publication from the newspapers. Your Certificate of Publication requires a $50 state filing fee.

For more information, you can read my article here: LLC Publication Requirements

3. Business Licenses & Permits

All U.S. states require LLCs to obtain certain business licenses before performing full business operations.

Your license and permit requirements depend on two main things:

1. Your operating location: Each U.S. state has its own licensing and permit requirements.
2. Your operating industry: Some states require permits and licenses at the state or federal level to provide or sell certain services and/or products.

These licenses and permits must be renewed periodically if your LLC is required to get them. Therefore, make sure you add your business license renewal fees as part of your ongoing compliance costs.

Example: Delaware LLCs must pay their initial and annual business license fees to the state. While rates vary, it’s generally around $75 for a first business location.

I recommend carefully researching your license requirements before operating. With these depending on your operating location and industry, you should check your specific requirements to avoid potential penalties and fines.

If you operate in a highly-regulated industry, you also need to obtain occupational licenses from specific federal agencies. These are often needed alongside your local and state licenses.

You can use the Small Business Administration as a good resource to determine the types of licenses and permits your LLC may need.

If you want to learn more different states’s licensing requirements, read this article: Business License Requirements For LLCs.

Ongoing LLC Costs

Forming your LLC means that your business is legally recognized as a separate entity in the state. However, some states have several ongoing annual obligations that must be completed to remain active and compliant when operating.

These requirements may include:

• Renewing your required business licenses.
• Paying your Annual Franchise Tax.
• Paying your Annual or Biennial Report fee.
• Paying your applicable taxes.

1. Business Licenses Renewal Fee

Your business license renewal requirements depend on your operating state. Therefore, you must check with your local and state agencies to confirm.

If you operate without a valid business license, your LLC becomes exposed to penalties and potential shutdown.

2. Annual Franchise Tax

Your LLC Annual Franchise Tax, also referred to as your annual fee, is a recurring state fee that must be paid for each year of business operations.

This tax must be paid regardless of whether your LLC was profitable in the filing year. The state will dissolve your LLC if you fail to pay your required fees.

Example: You must pay an $800 Annual Franchise Tax to the California Franchise Tax Board when operating in California. This allows your LLC to keep operating in the state.

3. Annual Or Biennial Report Filing Fee

Most U.S. states require legal business entities to submit an Annual Report and fee once per year to maintain accurate and up-to-date business records. Some states instead require a Biennial Report, which is filed every two years, or another type of Periodic Report that may be known by a different name. There are also states that do not require any ongoing report filing at all.

Completing your filing provides the state with up-to-date business information, including:

• Your current managing LLC members and owners.
• Your Registered Agent’s business address.
• Any changes that may have occurred since your last filing.

Filing your Annual Report keeps your LLC in compliance with state regulations, preserves your limited liability protection, and keeps your flow-through tax status.

For more information, you can read this article: LLC Annual Report Requirements By State.

Example: Your Washington LLC must file an Annual Report and pay the $70 filing fee to maintain good standing with the state.

While some states send a reminder notice, this is provided only as a courtesy. You must still file and pay your Annual Report fees even if you don’t receive a state notice. Failing to do so means that your LLC will lose its good standing and eventually be shut down by the state.

4. Paying Taxes

Forming your LLC often requires ongoing tax costs that must be included in your overall LLC operating budget.

By default, your LLC does NOT pay federal income tax. Instead, LLC profits and losses pass through to LLC owners and get reported on their personal income tax returns.

You may be required to pay several federal tax types, depending on how your LLC is taxed. These include the:

• Federal income tax: This applies to LLC profits reported by members or may be paid by your LLC if you elect corporate taxation.
• Self-employment tax: This covers LLC members’ Social Security and Medicare. They must be actively working in your business.
• Federal payroll taxes: This applies if your LLC has employees.
• Federal excise taxes: This applies to certain regulated industries.

Alongside these federal taxes, your LLC may need to pay local and state taxes. Your obligations depend on your operating location.

Generally speaking, these may include Income Taxes, Franchise Taxes, Sales and Use Taxes, and Gross Receipts Taxes. Your local and state tax rates depend on your operating location and the nature of your business operations.

Optional LLC Costs

Operating your LLC may involve optional costs in addition to your mandatory initial costs and ongoing costs. Some additional services may improve the efficiency of your operations, while others may not be needed. This is based on your business structure and needs.

I will discuss the main ones in the following sections:

1. Registered Agent Service

Every U.S. state requires your LLC to appoint and maintain a Registered Agent when operating. Your agent acts as your key contact point between your business and the Secretary of State. They receive and process important state notices, legal filings, and service of process.

Generally speaking, these are your Registered Agent requirements:

• They must have a physical address in your filing state. This can NOT be a P.O. box address. This will be listed on the state’s public record.
• They must be available during normal operating hours.
• They must have the legal authority to accept official documents on behalf of your LLC.

All U.S. states allow you to appoint an individual as your Registered Agent. This can be yourself or your friends, family members, etc.

Some LLC members or owners may decide to be their own Registered Agent. However, many LLCs choose to appoint a professional third-party Registered Agent service. This protects your personal details from appearing on the public record and ensures you meet your main compliance obligations.

Your Registered Agent costs depend on who you decide to hire. Most Registered Agent services generally cost between $100 and $300 each year.

In summary, while you can serve as your own Registered Agent, I highly advise hiring a professional service. You can see my top recommendations if you need more information: Best Registered Agent Services.

2. Getting An EIN

Your LLC must acquire an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) to open a dedicated business bank account, apply for a business credit card, obtain financing, and pay its required taxes.

You can apply for your own EIN or hire a professional service to help. These services will file your completed application for a fee, saving you valuable time and hassle.

If you want to file yourself, you have two main options. The best one depends on your U.S. residency status:

1. Online: Apply online using the official IRS website if you’re a U.S. resident with a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). This takes approximately 15 minutes, with your EIN given immediately once approved. You can read my guide for further information: How To Get EIN As A U.S. Resident.
2. By mail or fax: You must complete and submit Form SS-4 via mail or fax to the IRS if you’re a non-U.S. resident without an SSN or ITIN. This takes approximately 4 weeks when filing by mail or 4 business days if you file by fax. Use my guide if you need further guidance: How To Get EIN For Non-U.S. Resident.

3. Operating Agreement

An LLC Operating Agreement is a foundational internal contract among LLC members. It establishes how your LLC should be managed and operated, including members’ business shares and management responsibilities. Despite NOT being required by some states, all LLCs should complete and maintain one when operating.

Other states, such as New York, require you to have an Operating Agreement under NY Law Section 417.

A high-quality Operating Agreement should define how your LLC will be operated. This includes:

• Your company structure.
• Management responsibilities.
• Your allocation of funds.
• The purpose of your business.

I’ve provided some free Operating Agreement templates below if you want to write one yourself. You can download them using the links to get started. I’ve made one for each management structure as your agreement should accurately reflect how your LLC is managed, whether that’s member-managed or manager-managed.

• Member-managed LLCs: All LLC owners/members take part in the daily business operating and decision-making processes.
• Manager-managed LLCs: LLC members appoint one or more managers to run the business while other members take passive investor roles.

4. Reserving Your LLC Name

You do NOT need to reserve your desired LLC name before filing your formation documents in most U.S. states. However, some states, such as Alabama, have a mandatory reservation requirement.

If you’ve found your perfect LLC name and don’t want to form your business yet, you can reserve it with the Secretary of State in your chosen state for up to 120 days. This varies depending on your operating location.

I recommend reserving your LLC name if you find one that’s unique and complaince but you’re NOT ready to file your formation documents.

Example: The state of North Carolina allows you to reserve your LLC name for up to 120 days by filing an Application to Reserve a Business Entity Name. You must pay the $30 filing fee to submit your reservation request.

Conclusion

Forming your LLC in the U.S. involves several fees. These can be split into initial LLC costs, ongoing costs, and additional costs. Some are mandatory while others depend on your business needs and operating location.

The average upfront cost to start your domestic LLC (when no business licenses are required) is approximately $130. This is the national average state filing fee. Your actual LLC formation costs depend on your operating location and your required licenses and permits for your chosen business activities.

In addition to this, you must budget for your ongoing annual LLC expenses. Generally speaking, many LLC owners can expect to pay between $700 and $1,000 each year to meet their annual operating obligations. Again, these vary significantly depending on your state and business activities. They typically include your Annual or Biennial Reports, Annual Franchise or Minimum Taxes, and additional optional services such as hiring a Registered Agent.

Frequently Asked Questions