Forming an LLC is a smart choice for individual entrepreneurs and small business owners aiming to grow their ventures.
An LLC provides superior liability protection for both business and personal assets compared to self-employment or sole proprietorship. In many states, LLCs also offer tax advantages, as they are typically exempt from corporate profit taxes. This means you only pay personal income tax as an LLC member.
Curious about the costs involved in setting up an LLC? Let’s explore!
Costs by Category
- LLC Filing Fees (Article of Organization)
- Publication fees
- Annual report fees
- Optional LLC related costs
1. LLC Filing Fees (Article of Organization)
Every US state charges a mandatory state filing fee for company formation. It’s a sum that goes to the government for processing your request. In return, you receive articles of organization — a legal document stating that you’ve incorporated a business entity.
Some states let you file for LLC formation online, while others only accept paper-based forms. Filing fees range from $45 – in Arkansas – to $500, the highest in Massachusetts for domestic LLC formation. A domestic LLC is a business structure operating in the state where it was registered.
The filing fees are slightly higher for foreign LLCs — entities that carry out business activity in different states. A company with a physical presence, employees, or significant revenue coming from another state must register as a foreign entity in that state.
State | LLC filing fees |
Alabama | $200 |
Alaska | $250 |
Arizona | $50 + publication fee |
Arkansas | $45 (online filling) or $50 (paper-based) |
California | $70 |
Colorado | $50 |
Connecticut | $120 |
Delaware | $90 |
District of Columbia (D.C.) | $99 |
Florida | $125 |
Georgia | $100 |
Hawaii | $50 |
Idaho | $100 (+$20 if you mail a paper form) |
Illinois | $150 |
Indiana | $90 |
Iowa | $50 |
Kansas | $165 |
Kentucky | $40 |
Louisiana | $100 |
Maine | $175 |
Maryland | $100 |
Massachusetts | $500 |
Michigan | $50 |
Minnesota | $135 |
Mississippi | $50 |
Missouri | $105 |
Montana | $35 |
Nebraska | $100 + publication fee |
Nevada | $75 |
New Hampshire | $100 |
New Jersey | $125 |
New Mexico | $50 |
New York | $200 + publication fee |
North Carolina | $125 |
North Dakota | $135 |
Ohio | $99 |
Oklahoma | $100 |
Oregon | $100 |
Pennsylvania | $125 |
Rhode Island | $150 |
South Carolina | $135 |
South Dakota | $150 (or $165 if filed by paper) |
Tennessee | $300 minimum (+$50 per extra member) |
Texas | $300 |
Utah | $59 |
Vermont | $125 |
Virginia | $100 |
Washington | $200 ($180 if filed by paper) |
West Virginia | $100 +$1 |
Wisconsin | $130 + 1 |
Wyoming | $100 |
2. Publication fees
Three states — Arizona, Nebraska, and New York — have a mandatory publication fee. It means you need to publish a statement of limited liability company formation at one of the approved local newspapers within a specified period of incorporation.
The publication fees include:
- Affidavit of publication fee: paid to the government. It’s $50 in New York, zero in Arizona, and $10 online/$30 in person in Nebraska.
- Newspaper publication fees: You must also pay a local newspaper to publish an ad about your company formation for three consecutive weeks (Arizona and Nebraska) and six weeks in New York. The publication costs depend on the publisher. Re-check the information locally.
3. Annual report fees
Most states require LLCs to file a yearly or biennial report with the local Secretary of State (SOS) that contains current information on the LLC’s contacts. If there are any changes, you are required to file a change request separately.
Such annual filings are also called periodic reports or statements of information. The fee varies between $25 to $100 on average. States such as Alabama, Arizona, Delaware, Idaho, Missouri, Mississippi, New Mexico, Ohio, Pennsylvania, South Carolina, and Texas waived that fee. It did not require regular fillings if there were no changes to your business details.
State | Annual LLC report filing fees |
Alabama | No annual report is required |
Alaska | $100 (biennial report filing fee) |
Arizona | No annual report is required |
Arkansas | No annual report is required |
California | $20 (biennial report filing fee) |
Colorado | $10 (annual report filing fee) |
Connecticut | $80 (annual report filing fee) |
Delaware | No annual report is required |
District of Columbia (D.C.) | $300 (biennial report filing fee) |
Florida | $138.75 (annual report filing fee) |
Georgia | $50 (annual report filing fee) |
Hawaii | $15 (annual report filing fee) |
Idaho | $0 (annual report filing is free) |
Illinois | $75 (annual report filing fee) |
Indiana | $32 (biennial report filing fee) |
Iowa | $30 (biennial report filing fee) |
Kansas | $55 (annual report filing fee) |
Kentucky | $15 (annual report filing fee) |
Louisiana | $30 (annual report filing fee) |
Maine | $85 (annual report filing fee) |
Maryland | $300 (annual report filing fee) |
Massachusetts | $500 (annual report filing fee) |
Michigan | $25 (annual report filing fee) |
Minnesota | $0 (annual report filing fee if entity is in good standing) |
Mississippi | $0 (you must do annual report filing online) |
Missouri | No annual report is required |
Montana | $20 (you must do annual report filing online) |
Nebraska | $25 (biennial report filing fee) |
Nevada | $150 (annual report filing fee) |
New Hampshire | $100 (annual report filing fee) |
New Jersey | $75 +$3 for credit card processing (annual report filing) |
New Mexico | No annual report is required |
New York | $25 (minimum annual report filing fee) |
North Carolina | $200 (annual report filing fee) |
North Dakota | $50 (annual report filing fee) |
Ohio | $0 (does not require to file an annual report) |
Oklahoma | $25 (annual report filing fee) |
Oregon | $100 (annual report filing fee) |
Pennsylvania | No annual report is required |
Rhode Island | $50 (annual report filing fee) |
South Carolina | No annual report is required |
South Dakota | $50 (annual report filing fee) |
Tennessee | $300 (minimal annual report filing fee) |
Texas | No annual report is required |
Utah | $18 (annual report filing fee) |
Vermont | $35 (annual report filing fee) |
Virginia | $50 (annual LLC registration fee) |
Washington | $60 (annual report filing fee) |
West Virginia | $25 (annual registration fee) |
Wisconsin | $25 (annual report filing fee) |
Wyoming |
Starting at $50 (annual report license tax) |
4. Optional LLC registration costs
The above are baseline company registration costs. But in most cases, you’ll need to budget for additional expenses such as the following.
Name reservation fee
Your LLC needs a unique business name that doesn’t violate any registered trademarks or sounds too close to another company. Most states allow you to reserve the desired company name for up to 120 days while completing the incorporation process. The name reservation cost is under $50 in most.
Expedited processing fees
Incorporation time varies from state to state. Washington processes new registration in two days (as of July 2024). In contrast, other states have a backlog of requests, with processing delayed by up to 3-5 weeks.
However, suppose you want to get your articles of incorporation sooner. In that case, you can pay an expedited fee for faster registration (within several days), and in some states — a same-day registration fee.
Registered agent fee
An agent is a person or entity designated to receive service of process and other correspondence for your LLC. You can act as your own agent, appoint someone else, or use a registered agent service. Most states also charge a fee for agent appointments.
Doing business as (DBA)
If you plan to operate under a different brand name than the one you are using for your LLC, you must file for DBA with your state. The fees range from $10 to $200.
Certified document copies
It’s good to have several legally certified copies of your business registration documents. But most states charge extras for those — $5 to $50 on average.
Business license and permits
Depending on your business type and industry, you may need to obtain extra licenses for your company from a local authority. Licenses and permits are provided on federal, state, and local levels. Some industries requiring business licenses include agriculture, law, medicine, and finance, among others. Service fees vary.
Federal Tax ID Number (EIN)
To open a business bank account and prepare for tax reporting, you’ll also need to request an employer identification number (EIN) from the IRS. It's free if you do it yourself, and you can apply online. But some choose to pay a lawyer to handle the chore for them.
Operating Agreement
An LLC operating agreement is a legal document detailing how your LLC will take important business and financial decisions and specifies the rights, duties, obligations, and liabilities of all company members.
Providing an operating agreement isn’t mandatory for company formation in most states, except California, Delaware, Missouri, and New York. These states ask you to create an operating agreement, but it shouldn’t be filed with the State Department. If you are a single-member LLC, you can make an operating agreement yourself. But if you are entering a partnership or plan to have several stakeholders, consider getting legal advice.
Legal assistance
Forming an LLC yourself can be overwhelming because you have to prepare many forms, confirm (and re-confirm) specific operational details with the authorities, and make special provisions based on compliance requirements for your industry. For that reason, some business owners choose to hire a lawyer to help with the incorporation.
Attorneys charge $100-$300 on average. But since some of the filing work will be done by paralegals, the total costs can be lower. Alternatively, small business owners also opt to use online company incorporation websites. They charge a small fee (under $100) on top of state filing fees to help you with the registration.
FAQs about LLC incorporation and costs
The following are some frequently asked questions regarding LLC incorporation fees.
LLC Formation Service
- Formed 1,000,000+ LLCs
- $39 formation includes registered agent service
- Fast formation & same day filing
- Exceptional customer reviews