Cost to Start an LLC: State Filing Fees & Total Costs (2026 Guide)

Picture this: you are ready to make your business official. You search “how much does it cost to start an LLC,” and the answers you find range from $50 to $500 to “it depends.” Not exactly helpful when you are trying to put together a real budget.

Here is the honest answer. Starting an LLC in the United States typically costs between $100 and $800 in the first year, but that number shifts depending on your state, your industry, and the services you choose. Some states charge as little as $35 to file. Others layer on franchise taxes and annual fees that push your total cost well past $1,000.

This DoMyLLC guide breaks down every cost you should plan for, from the required state filing fee to registered agent services, business licenses, and ongoing annual expenses, so you can start an LLC with a clear budget and no surprises.

Key Takeaways

• The cost to start an LLC varies by state and depends on your specific filing requirements.
• State filing fees are only one part of the total cost of forming an LLC.
• Additional expenses like registered agent services, business licenses, and optional formation help can affect your startup budget.
• Some states require annual reports, franchise taxes, or other recurring fees to keep your LLC in good standing.
• Understanding both startup and ongoing LLC costs helps you budget with confidence and avoid unexpected fees.
• Comparing state-specific filing fees and compliance requirements can help you make an informed decision before you file.

How Much Does It Cost to Start an LLC?

Starting an LLC in the United States typically costs between $100 and $800 in the first year, depending on your state and the services you choose. The state filing fee alone ranges from $35 to $500. Montana holds the record for the lowest LLC filing fee at $35, while Massachusetts charges the highest at $500. The national average sits around $132.

Every state sets its own rules, and no two states charge exactly the same. Some states are genuinely affordable to start and maintain. Others, like California, offset a modest filing fee with a hefty annual franchise tax. That is why looking at the total cost of formation and the first year of operation gives you a much clearer picture than the filing fee alone.

Beyond the filing fee, you may also pay for a registered agent, business licenses, and optional services like professional formation help or an attorney. Those choices can push your first-year costs higher, but they can also save you time and help you avoid mistakes.

What Makes Up the Cost?

Let us walk through every possible startup expense so you know exactly what to expect.

State Filing Fee

The state filing fee is the one cost every LLC owner pays. This is what you pay when you submit your Articles of Organization to your state. It is a one-time fee that officially creates your LLC as a legal entity. Filing fees range from $35 to $500 depending on your state, and many states fall between $50 and $200, though total first-year costs can be higher once annual reports or franchise taxes are included.

Registered Agent Service

Every state requires LLCs to have a registered agent who can receive legal documents and official notices on behalf of your business during regular business hours. You can serve as your own registered agent at no cost, as long as you have a physical address in the state where your LLC is formed.

If you prefer privacy, live in a different state, or want a professional to handle legal papers, hiring a registered agent service typically costs between $100 and $300 per year. Professional registered agent services also help make sure you never miss an important filing deadline or a time-sensitive legal notice.

Business Licenses and Permits

Most LLCs also need one or more business licenses or permits before they can legally operate. These vary widely depending on your industry, your city, your county, and your state. A freelance web designer and a food truck owner will have very different licensing requirements.

Business license costs can range from a small local fee to much higher amounts in regulated industries. California’s contractor licensing fees, for example, include a $350 initial license fee and a separate $450 application fee. Renewal fees also vary by license type, location, and industry.

According to the SBA, many businesses need federal, state, or local licenses and permits depending on their industry and location, making licensing costs an important part of your startup budget.

Operating Agreement

Most states do not require an LLC operating agreement to be filed with the state, but every LLC should have one. This document outlines how your business is owned and managed, how profits are distributed, and what happens if a member leaves. Without one, your LLC is governed by your state’s default rules, which may not reflect what you actually want.

You can find a free operating agreement template online, which keeps this cost at zero if you are comfortable setting it up yourself. If you want something tailored to your specific situation, an attorney can draft one for a few hundred dollars or more.

Employer Identification Number (EIN)

Your EIN is like a Social Security number for your business. You need it to open a business bank account, hire employees, and file taxes. According to the IRS, you must form your LLC with the state before you can apply for one, which is exactly why getting your formation done right from the start matters.

A professional formation service keeps the process in the correct order and makes sure nothing gets missed. You can also learn more about how to get an EIN number on our site.

Business Banking Costs

Opening a business bank account is one of the most important steps after forming your LLC. It helps keep your personal and business finances separate, which is important for maintaining clear records and supporting liability protection. Most business checking accounts are free or low-cost to open, though some banks require a minimum deposit.

Factor in costs like business checks, payment processing fees, and a business credit card if you plan to use one. These are not formation costs, but they are real first-year expenses that belong in your budget.

Average Cost to Start an LLC by State

The table below gives you a snapshot of filing fees, annual fees, and franchise taxes for some of the most commonly searched states, plus a few notable ones to consider.

State	Filing Fee	Annual Fee	Franchise Tax	Notes
California	$70	$20 Statement of Information	$800/year	High ongoing costs; first-year franchise tax waiver may apply
Texas	$300	$0	Franchise tax report required annually	No tax due for many small businesses below the threshold
Florida	$125	$138.75 annual report	$0	Annual report required to stay active
New York	$200	$9 biennial report	$0	Publication requirement can add significant cost
Delaware	$90	$300 annual franchise tax	$300/year	No annual report
Nevada	$75 filing + other startup fees	$350/year	$0	Initial list and business license increase total cost
Illinois	$150	$75 annual report	$0	Late fees apply for missed filings
Ohio	$99	$0	$0	No annual report or franchise tax
Arizona	$50	$0	$0	Publication may be required depending on county
Montana	$35	$20 annual report	$0	Very low filing fee
Massachusetts	$500	$500 annual report	$0	Highest ongoing cost
Kentucky	$40	$15 annual report	$0	Among the most affordable states

Cost to Start an LLC in California

According to the California Secretary of State, the filing fee to form a California LLC is $70, and newly formed LLCs must also file a Statement of Information within 90 days.

California is one of the more expensive states to maintain an LLC because of the $800 annual franchise tax. This fee applies each year, regardless of profit, though newly formed LLCs are generally exempt for the first year.

With the filing fee, Statement of Information, registered agent costs, and franchise tax, California LLC owners should budget well over $1,000 in the first two years.

Cost to Start an LLC in Texas

According to the Texas Secretary of State, the filing fee for a Certificate of Formation for a Limited Liability Company (Form 205) is $300, making it one of the required startup costs for forming a Texas LLC.

Texas does not have a traditional annual report requirement, but LLCs are subject to the Texas franchise tax, which is calculated based on revenue. Most small LLCs fall below the threshold and owe no franchise tax, but you are still required to file an annual franchise tax report with the Texas Comptroller. There is no state income tax in Texas, which is a meaningful financial advantage for many business owners.

Cost to Start an LLC in Florida

According to the Florida Division of Corporations, the filing fee to form a Florida limited liability company is $125, with additional optional fees available for certified copies and certificates of status.

Florida requires an annual report to keep your LLC in good standing. The annual report fee is $138.75 per year. Missing the deadline results in a $400 late fee, which can easily turn a manageable expense into a costly mistake. Florida has no state income tax, which is an attractive benefit for LLC owners operating there.

How Much Does an LLC Cost Per Year?

Starting an LLC is a one-time event. Maintaining it is an ongoing commitment.

Annual report fees average $50 to $150 per year in most states, though Arizona, Missouri, and New Mexico charge nothing. California sits at the other extreme, with a $20 Statement of Information fee plus $800 in annual franchise taxes.

Other recurring costs include registered agent services ($100 to $300 per year), business license renewals ($50 to $300), business insurance, and any accounting or compliance support you bring on. Missing a deadline can trigger late fees that far exceed the cost of staying current.”

Optional Costs That Can Increase Your LLC Startup Budget

Beyond the mandatory expenses, there are several optional costs that many business owners choose to include in their startup budget.

Expedited filing: Most states offer faster processing for an additional fee, which can be worthwhile if you need your LLC approved quickly.

DBA registration: If you want to operate under a name different from your LLC’s legal name, you will need to register a fictitious business name, sometimes called a DBA.

Trademark registration: If your business name or logo is core to your brand, trademark registration protects it at the federal level.

Business insurance: General liability insurance, professional liability, and other coverage types protect your business from unexpected claims.

Virtual business address: If you work from home and prefer not to list your personal address publicly, a virtual address service solves that.

Website and domain: Most businesses today need a professional online presence, which comes with its own costs.

Accounting software: Tools to manage invoicing, expenses, and taxes make financial management easier from day one.

DIY vs. Hiring an LLC Formation Service

When it comes to forming your LLC, you have two main paths. The table below breaks down the difference.

While DIY formation keeps upfront costs low, even experienced business owners can run into costly mistakes. A missed document, an incorrect filing, or the wrong state choice can create headaches that far outweigh any savings. A professional formation service handles everything correctly the first time, keeps you on top of compliance deadlines, and gives you one less thing to worry about as you build your business.

Common Mistakes That Increase LLC Formation Costs

A few missteps can turn an affordable LLC formation into a costly headache. Here is what to watch for.

Choosing the wrong state: Some entrepreneurs form LLCs in states like Delaware or Nevada thinking it will save money, then discover they still need to register as a foreign LLC in their home state, effectively paying double the fees.

Missing filing deadlines: Annual report fees are manageable. Late fees are not. Florida’s late fee alone is $400.

Forgetting annual reports: Failing to file an annual report can lead to your LLC being dissolved by the state, which means paying reinstatement fees on top of everything else.

Paying for unnecessary upsells: Some formation services bundle in services you do not need. Know what you are buying before you check out.

Not budgeting for annual fees: Many new business owners budget only for formation, then get caught off guard by annual report fees, franchise taxes, and registered agent renewals.

Ignoring compliance requirements: Skipping an initial report, failing to get a required sales tax permit, or not renewing a business license can result in fines and complications down the road.

Conclusion

Starting an LLC costs more than just the state filing fee, but none of it has to be overwhelming. Registered agent services, business licenses, annual reports, and ongoing compliance costs are all part of the real picture. Know which fees are mandatory, which are optional, and choose the formation path that fits your situation.

Start Your LLC with Confidence

Knowing the numbers is a great first step. Taking action is even better. Let DoMyLLC handle all the formation paperwork for you, so your LLC is filed correctly the first time. We also offer registered agent services to keep your business compliant after formation.

Ready to get started? Contact us today and let us take care of the details while you focus on your business.