LLC formation costs vary by state from $40 to $500+. Here's the complete breakdown, state-by-state filing fees, and hidden costs to budget for.
Cheapest
$40
Kentucky, Arkansas
Most Expensive
$500
Massachusetts
National Average
$132
Filing fee only
Total First Year
$200–$800
Including registered agent
Required Costs
1. State Filing Fee
This is non-negotiable. Every state charges a fee to file Articles of Organization.
| State | Filing Fee | Annual/Biennial Fee |
|---|---|---|
| California | $70 | $800 annual franchise tax |
| Texas | $300 | $0 (franchise tax may apply) |
| Florida | $125 | $138.75 annual report |
| New York | $200 | $9 biennial statement |
| Delaware | $90 | $300 annual franchise tax |
| Wyoming | $100 | $60 annual report |
| Nevada | $425 | $350 annual list + business license |
| Kentucky | $40 | $15 annual report |
2. Registered Agent
Required in every state. The registered agent receives legal documents on behalf of your LLC.
- DIY: Be your own agent (free, but your address becomes public record)
- Service: $100–$300/year (Northwest, LegalZoom, ZenBusiness offer this)
3. EIN (Employer Identification Number)
Free from the IRS at IRS.gov/ein. Required for business bank accounts and tax filing.
Optional but Recommended Costs
Operating Agreement
Not required in most states, but essential if you have multiple members or want to protect your limited liability status. Cost: $0 (DIY template) to $200 (LegalZoom/ZenBusiness include it).
Business License and Permits
Varies by city and industry. Service businesses often need:
- General business license: $50–$150
- Home occupation permit (if operating from home): $0–$100
- Sales tax permit: Usually free
Business Bank Account
Most banks offer free business checking for small businesses. Some require a minimum deposit ($25–$100).
Should You Use a Formation Service?
| Service | Cost | Includes | Best For |
|---|---|---|---|
| DIY (Secretary of State) | $40–$500 | Filing only | Experienced, simple structures |
| ZenBusiness | $0 + state fee | Formation, registered agent (1 yr), operating agreement | Most new businesses |
| Northwest Registered Agent | $225 + state fee | Formation, registered agent, privacy | Privacy-focused owners |
| LegalZoom | $79 + state fee | Formation, optional add-ons | Brand recognition seekers |
| Incfile | $0 + state fee | Formation, registered agent (1 yr) | Budget-conscious startups |
Hidden Costs to Budget For
- Annual report/franchise tax: $0–$800/year depending on state
- Publication requirement: New York, Arizona, Nebraska require newspaper publication ($100–$1,500)
- Foreign qualification: If you form in Delaware but operate in California, you must register in California too ($70–$300)
- Amendments: $50–$200 if you change members, address, or business name
Compare LLC Formation Services
Side-by-side comparison of ZenBusiness, Northwest, LegalZoom, and Incfile by price, features, and speed.
Compare Now →LLC rules vary significantly by state. California charges an $800 annual franchise tax even if you make $0. Nevada has high initial fees but no state income tax. Research your specific state before forming. Our state guides include business formation considerations.