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How Much Does It Cost to Start an LLC?

The main cost of forming a limited liability company (LLC) is the state filing fee. This fee ranges between $0 and $500, depending on your state.

We recommend Northwest ($39 + State Fees) to help form your LLC.

Cost to Form an LLC in Every State (LLC Filing Fees)

The primary cost of forming an LLC (Limited Liability Company) is the fee to file your LLC’s articles of organization with the Secretary of State. The filing fees for these documents vary by state.

Additional startup costs for an LLC may include:

  • Business license renewal fees
  • Permit filing fees
  • Publication fees (required in states like Arizona, Nebraska, and New York)
  • Optional LLC name reservation fees (required in Alabama)
  • Optional fictitious name fees (also known as DBA name)

If you’re looking to save money, visit our How to Save Money Forming Your LLC page.

The table below outlines the state filing fees for each state, along with any annual expenses. Click on the state name for more detailed information.

State Filing Fees

 Setup CostsOngoing Costs
Alabama$200+$100+ Annually & Business Privilege License
Alaska$250$200 Biennially & $50 Annual Business License
Arizona$50 & Publishing RequirementNo Annual Fee
Arkansas$45+$150 Annual Franchise Tax
California$70+$20 Biennially, $800 Annual Tax, & Annual LLC Fee
Colorado$50$10 Annually
Connecticut$120$20 Annually
Delaware$90$300 Annual Franchise Tax
Florida$125$138.75 Annually
Georgia$100+$50 Annually
Hawaii$51$12.50–$15 Annually
Idaho$100+No Annual Fee
Illinois$150$75 Annually
Indiana$95+$50 Biennially
Iowa$50$30–$45 Biennially
Kansas$160+$50–$55 Annually
Kentucky$40$15 Annually
Louisiana$100$30 Annually
Maine$175$85 Annually
Maryland$100$300 Annually
Massachusetts$500$500 Annually
Michigan$50$25 Annually
Minnesota$135+Annual Partnership Tax
Mississippi$50No Annual Fee
Missouri$50+No Annual Fee
Montana$35$20 Annually
Nebraska$100+ & Publishing Requirement$10 Annually
Nevada$425$150 Annual List & $200 Annual Business License
New Hampshire$100$100 Annually, Annual Business Profits Tax, & Annual Business Enterprise Tax
New Jersey$125$50 Annually
New Mexico$50No Annual Fee
New York$200 & Publishing Requirement$9 Biennially & Annual Filing Fee
North Carolina$125$200 Annually
North Dakota$135$50 Annually
Ohio$99Annual Commercial Activity Tax
Oklahoma$100$25 Annually
Oregon$100$100 Annually
Pennsylvania$125No Annual Fee
Rhode Island$150$50 Annually
South Carolina$110No Annual Fee
South Dakota$150+$50 Annually
Tennessee$300+$50 per Member Annually & Annual Franchise/Excise Taxes
Texas$300Annual Franchise Tax
Utah$54$13 Annually
Vermont$125$35 Annually
Virginia$100$50 Annually
Washington$180+$60 Annually
West Virginia$100$25 Annually
Wisconsin$130+$25 Annually
Wyoming$100+$50 or 0.02% Value of Assets Annually
Washington D.C.$99+$300–$400 Biennially

Other LLC Costs and Fees

Business License Renewal Fees and Permits

Depending on your industry and location, your business may need federal, state, and local permits or licenses to operate legally. This requirement applies whether you form an LLC or choose another business structure.

Recommended: Visit our state-by-state How to Get a Business License guide.

Publication Fees

Certain states, including Arizona, Nebraska, and New York, require new LLCs to publish a statement of formation in a local newspaper. The cost for publishing can range from $40 to $2,000, depending on the state’s specific requirements.

Name Reservation Fee

In Alabama, you must reserve your LLC’s name for a fee between $10 and $28. Reserving a name is optional in other states.

Fictitious Name Fee

A fictitious name, also known as a DBA (Doing Business As) name, isn’t required for an LLC. However, if you want to create a separate brand under your LLC, you may choose to register a fictitious name after forming your LLC.

Recommended: Learn more about LLC formation services in our best LLC services review.

Ongoing Maintenance Costs

Additional LLC Maintenance Costs

In some states, LLCs may face additional maintenance costs that they are required to pay annually. These costs can include:

Franchise Tax

Certain states impose a yearly tax on LLCs, often referred to as a franchise tax. While this is usually a fixed amount, in some states, it may vary based on your LLC’s annual earnings.

Annual/Biennial Report

Most states require LLCs to file an annual or biennial report, which includes updating details such as the LLC’s name, address, and ownership. The fee for this report varies by state.

How to Register an LLC Yourself

Forming an LLC on your own is simple. Use our guide to help you through the process of forming your LLC.

Recommended: Learn more about LLC formation services in our best LLC services review.

LLC Cost FAQ

The cost to start an LLC primarily involves paying a filing fee to the state. In addition to the initial filing costs, business owners may be responsible for paying corporate income taxes and potentially ongoing fees related to franchise taxes or other state-imposed costs for LLCs. Depending on the nature of the business, LLC owners might also need to obtain business licenses. Some businesses may opt to use a fictitious business name, which also requires an associated fee.

In some states, there is an annual franchise tax and/or annual report fee. To learn about the specific ongoing fees required in your state, visit our LLC annual report guide and select your state for detailed information.

An LLC offers limited liability protection, safeguarding your personal assets in the event of a business loss, such as a lawsuit or unpaid debt.

We recommend that any small business facing even minimal risk or liability consider forming an LLC. For more details, check out our Should I Start an LLC guide.

You can save money on forming an LLC by:

  • Completing the formation process yourself
  • Drafting your own operating agreement
  • Acting as your own registered agent
  • Obtaining your own EIN

For more tips, check out our How to Save Money Forming Your LLC guide.

You should always form your LLC in the state where you plan to conduct business. Otherwise, you could face extra costs and paperwork. To learn more, visit our Best State to Form an LLC guide.

You can pay yourself a salary from your LLC, but if your LLC is taxed in the default way by the IRS, it would be called a draw or distribution.

An S corporation (S corp) is an IRS tax status, not a business entity type. An LLC can be taxed either in the default way or as an S corp. For some businesses, electing S corp status can offer significant benefits.

LegalZoom creates more LLCs than any other provider, but they have mediocre reviews and charge higher fees than other service providers. We believe there are better LLC formation services available.

A sole proprietorship is only suitable for businesses with very low liability risk because it doesn't provide any liability protection.

There are many advantages to starting an LLC. Visit our guide to learn more about the benefits of an LLC.

An LLC can help with taxes if your business needs more options. An LLC can be taxed via pass-through taxation, as an S corp, or as a C corp.

Both corporations and LLCs offer limited liability protection.

LLCs are easier to set up and run, and they also cost less. Corporations are more suitable for small businesses and startups that need to rely on outside investors.

Yes, LLCs can protect a business owner's personal assets, but you'll need small business insurance to protect the business's assets.

Empowering individuals by providing accessible, actionable information is key to helping them achieve success. By equipping people with the knowledge and tools they need, we enable informed decision-making and foster personal and professional growth.

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