Comparing LLC Costs Across States: A State-by-State Guide

Written by Paul Donovan – Attorney, updated on

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


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
Note: The above information is from July 2024. State filing fees are subject to change. Always double-check the data with a local Secretary of State.

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.

Keeping up with the due dates can help you avoid legal penalties and fines.

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)

Disclaimer: The above information is from July 2024. Recurring LLC fees may change. Re-check the data with a local regulator.

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.

LLC formation costs include governmental fees, annual LLC maintenance fees, and your approach to incorporation.
LLC formation costs include governmental fees, annual LLC maintenance fees, and your approach to incorporation.

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.

Advertisement

LLC Formation Service

LLC Formation: $39 + state fees
Pricing:
Turnaround Time:
Help & Support:
Customer Satisfaction:
Ease of use:
  • Formed 1,000,000+ LLCs
  • $39 formation includes registered agent service
  • Fast formation & same day filing
  • Exceptional customer reviews
Last updated: Jan 2025
Paul Donovan

Article by:

Paul Donovan

Attorney

Paul Donovan is an attorney, CPA, real estate developer, and broker with 25 years of experience advising real estate clients on the legal, tax, and financial aspects of real estate. Paul spent much of his career working for the “Big 4” advising Fortune 500 companies on complicated tax issues involved in the acquisition and disposition of real estate assets around the world.

Small business tips straight to your inbox

Already running a small business? Get free tips to your inbox.

We respect your privacy. We're GDPR compliant.