How Much Does It Cost To Form an LLC?
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Key Takeaways
- State filing fees range from $35 to $500, depending on where you form your LLC. Most states fall between $50 and $200, with a national average of $132.
- Additional costs include appointing a registered agent, drafting an operating agreement, and obtaining business licenses. These are optional or vary by state.
- Most states charge annual report fees or franchise taxes to keep your LLC in good standing. Budget for these every year.
Editor's note: This post was originally published April 11, 2024 and has been updated for accuracy, comprehensiveness, and freshness on May 14, 2026
Starting an LLC doesn't have to be complicated, but the costs can catch you off guard if you don't know what to expect. The cost to form an LLC depends on two things: where you register your business and how much professional help you choose to use.
The good news is that a single-member LLC owner who handles the paperwork personally can form an LLC for under $500 in most states. A LegalShield® plan can connect you with a lawyer to help you along the way.
State filing fees: Mandatory costs to start your LLC
Here are some examples of the fees different states charge:
Some states charge a one-time fee to process your LLC's Articles of Organization. You pay this fee when you form your LLC, and it is non-refundable even if your application is rejected.
Filing online is faster than mailing your documents, and most states process them in 1 to 4 weeks. Some states now require you to file online. For example, California no longer accepts Articles of Organization by mail. Check your state's website to see your options before you begin. Using a credit card online may come with a separate processing fee.
One important thing to remember: If you do business in another state than the one you live in, you may need to register your business there, also called foreign registration. Fees for foreign registration also vary from state to state, and you will also need to keep up with your requirements.
For most small business owners, forming an LLC in their home state is the simplest and most cost-effective option.
Ongoing maintenance: Annual reports and franchise taxes
Forming your LLC is a one-time expense, but keeping it active costs money each year. Most states require you to file an annual or biennial report to update your LLC's information and pay a maintenance fee.
Some states, like Arizona, do not require annual reports. In states that do, fees can range from just a few dollars to $800. Missing a deadline can lead to late fees, loss of good standing, or even having your LLC revoked by the state, which means you lose your liability protection.
The due date for your annual report varies by state. Some states use your LLC's anniversary date. Others use a fixed calendar date that applies to all LLCs. Choosing the right state for your business influences not just your initial filing fee but also your ongoing annual costs. Set a calendar reminder well before your state's deadline every year. A missed filing is one of the most avoidable and most costly mistakes an LLC owner can make.
Other LLC services and administrative costs
The following costs can be more flexible, but there’s a tradeoff in taking the cheap route. Trying to save money in one area can mean more work for you or issues with your business down the road.
Registered agent service fees
Every LLC must designate a registered agent. This is the person or business you authorize to receive legal documents and official notices on your LLC's behalf. Every state requires one, and your registered agent must have a physical address in the state of formation and be available during normal business hours.
Your two options: serve as your own registered agent for free, or hire a professional service for $50 to $300 per year, depending on the provider. There can be consequences if you miss communications from the government, so hiring a service is often a good idea.
Operating agreements and EIN registration
An operating agreement is an internal document that explains how your LLC works. It covers topics such as ownership shares, management roles, profit sharing, and what happens if someone leaves or the LLC closes. Not every state requires one, but every LLC should have one, especially if you have more than one member.
You can use a free template from a trusted source and pay nothing, or you can hire a lawyer to create a custom agreement. A lawyer-drafted operating agreement usually costs $500 to $2,000 or more, depending on how complex your LLC is.
An EIN (Employer Identification Number) is your LLC's tax ID with the IRS. You can apply for free on the IRS website, and the online application takes about 10 to 15 minutes. Some filing services will handle this for you for $50 to $100.
Expedited filing
Filing online is usually faster than mailing. If you need your LLC set up quickly, most states offer fast-tracked processing for an extra fee.
Here is what expedited filing costs in a few common states:
- Delaware: 24-hour processing for $50; 1-hour processing for $1,000
- Texas: 24-hour processing for $25
- New York: Accelerated processing starts at $25
- Nevada: 24-hour processing for $125; 2-hour processing for $500
You may also need to hire a courier service for expedited shipping or even hand-delivery. These costs add up. Planning ahead will help you eliminate expedited processing costs.
Professional help vs. DIY: Cost-benefit analysis
Small business owners usually have four options for forming an LLC: do it yourself, use an online filing service, hire a lawyer, or a combination of services. The best choice depends on your budget and the complexity of your LLC.
Doing it yourself only costs the state fees. Online filing services can cost up to $500, plus state fees, and can help you avoid mistakes. Starting an LLC has several steps, and small errors can cause delays.
Lawyer fees for forming an LLC range from $500 and up for a simple LLC and $1,500 and higher for complex, multi-member LLCs. Hiring a lawyer is a good idea if you want to be sure about how to file, have multiple members, outside investors, or special legal needs.
How do you file for an LLC?
Filing for an LLC takes five main steps. Here's what to do and where to find more details for each one:
- Name your business. Check your state's Secretary of State website to confirm your name is available and meets naming requirements.
- Choose a registered agent. Serve as your own registered agent for free or hire a professional service, generally starting at $50 per year.
- File your Articles of Organization. Submit the proper organizational form to your state's Secretary of State with the required filing fee. Online filing is faster in almost every state.
- Create an operating agreement. Not every state requires a written operating agreement, but every LLC benefits from having one.
- Get an EIN. Apply for your new LLC's EIN directly at IRS.gov for free. The online application takes about 10 to 15 minutes.
LLC filing tips
Here are a few tips to help the process go smoothly:
- Reviewing the documents your LLC needs before you file helps you know what to prepare and what to focus on.
- Check that your business name is available before you file. If your name is rejected, you'll have to start over.
- Your business name usually needs to include "LLC," "L.L.C.," or "Limited Liability Company."
- Don't use industry-specific terms such as "medical," "bank," or "attorney" in your business name unless you have licensed professionals at your company. Also, don’t use profanity or suggestive naming. The Secretary of State has full authority to reject any name it thinks is questionable, even if the name seems available when you do a search.
- If you need more time before filing, reserve your business name with the Secretary of State. Most states charge $10 to $50 for this service.
- File online whenever you can. It's more efficient and you don’t have to worry about something getting lost in the mail.
- Keep copies of all your filed documents in a safe place.
Get ongoing legal help for your new business with LegalShield Small Business Plans
Now that you know the cost to form an LLC, the next step is making sure your business stays on solid legal ground. Questions about contracts, employment issues, and more come up regularly once you're up and running.
LegalShield Small Business plans start at $59.95 per month and give you access to a provider law firm that can consult you on matters like professional letters, document reviews, and collection letters. You also get 25% off their standard hourly rate for additional services your provider law firm handles beyond the plans.
See what a LegalShield Small Business Plan covers.
Frequently asked questions about LLC costs
Here are answers to some frequently asked questions about LLC costs.
Do I have to pay every year for my LLC?
Most states require annual or biennial report fees to keep your LLC in good standing. Some states don’t have filing requirements, and some don’t have fees. When fees are required, they can range from a few dollars to $800 or more. Missing your state's deadline can trigger late fees, loss of good standing status, and even administrative dissolution of your LLC.
Can I start an LLC for free?
No state offers LLC formation for free. Every state requires at least a filing fee to process your Articles of Organization. You can considerably reduce your total cost by filing yourself and serving as your own registered agent.
Is the LLC formation fee tax deductible?
In most cases, yes. Talk to a tax professional for guidance on your specific situation.
Pre-Paid Legal Services, Inc. (“LegalShield”) provides access to legal services offered by a network of provider law firms to LegalShield members through membership-based participation. Neither LegalShield nor its officers, employees or sales associates directly or indirectly provide legal services, representation, or advice. Small Business Legal Plans and certain benefits are not available in all states. See a Small Business Legal Plan contract for a specific state for complete terms, coverage, amounts, and conditions. The information made available in this blog is meant to provide general information and is not intended to provide legal advice, render an opinion, or provide a recommendation as to a specific matter. The blog post is not a substitute for competent legal counsel from a licensed professional lawyer in the state or province where your legal issues exist, and you should seek legal counsel for your specific legal matter. Information contained in the blog may be provided by authors who could be a third-party paid contributor. All information by authors is accepted in good faith, however, LegalShield makes no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of such information.
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Content Specialist at LegalShield, creating educational resources about legal and consumer protection topics. She focuses on making complex legal and financial concepts accessible to readers and has contributed to various educational articles on consumer rights and protections.
