How much does it cost to start an LLC in 2026? Get the exact filing fees for all 50 states, plus hidden costs most guides don't mention. Updated for 2026.
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Table of Contents
- Quick Answer: What Does an LLC Actually Cost?
- One-Time LLC Formation Costs
- LLC Filing Fees for All 50 States (2026 Table)
- Ongoing Annual LLC Costs You Must Budget For
- Hidden LLC Costs Most Guides Don't Tell You About
- Should You Use an LLC Formation Service or DIY?
- How to Reduce Your LLC Costs
- Total LLC Cost by Scenario (Real Examples)
- Frequently Asked Questions
Quick Answer: What Does an LLC Actually Cost?
The cost to start an LLC ranges from $40 to $500 in one-time state filing fees, depending on where you live. Most states fall between $50 and $200.
But the filing fee is just the beginning.
When you add up registered agent fees, annual reports, operating agreement templates, an EIN, and business banking — the true first-year cost of starting an LLC is typically $100 to $800 for most freelancers and small business owners.
The good news? You can start an LLC for the cost of the filing fee alone if you do it yourself. No attorney. No expensive service. Just you and your state's Secretary of State website.
This guide gives you the exact numbers for every state, every hidden fee, and every way to save money — so there are no surprises.
One-Time LLC Formation Costs
When you first form your LLC, here are the costs you'll likely encounter:
1. State Filing Fee (Required)
This is the fee you pay your state to officially register your LLC. It's a one-time cost and is the only truly unavoidable expense. Fees range from $40 (Kentucky) to $500 (Massachusetts).
2. Registered Agent Fee (Sometimes Required)
A registered agent receives legal documents on behalf of your LLC. In most states, you can serve as your own registered agent for free. If you use a commercial registered agent service, expect to pay $50–$300 per year.
3. Name Reservation Fee (Optional)
If you want to reserve your LLC name before filing, most states charge $10–$50 for a reservation period of 60–120 days. This is optional — most people skip it and file directly.
4. Certified Copies & Certificate of Good Standing (Optional)
Some banks and lenders require certified copies of your Articles of Organization. These typically cost $10–$30 per copy, depending on the state.
5. Operating Agreement (Free to Low Cost)
An operating agreement is not required by most states, but it's strongly recommended. You can write one yourself for free using a template, or pay $50–$200 for a professional template.
6. EIN — Employer Identification Number (Always Free)
Your EIN is your business's federal tax ID. You apply for it directly on the IRS website (irs.gov) at absolutely no cost. Any service charging you for an EIN is overcharging you — this is always free.
LLC Filing Fees for All 50 States (2026)
Use this table to find the exact cost to form an LLC in your state:
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| State | Filing Fee | Annual Fee | Notes |
|---|---|---|---|
| Alabama | $200 | $50/year | |
| Alaska | $250 | $100/year | |
| Arizona | $50 | $0 | No annual report required |
| Arkansas | $45 | $150/year | |
| California | $70 | $800 minimum franchise tax/year | Most expensive ongoing cost in the US |
| Colorado | $50 | $10/year | |
| Connecticut | $120 | $80/year | |
| Delaware | $90 | $300/year | Popular for investors, not for most freelancers |
| Florida | $125 | $138.75/year | |
| Georgia | $100 | $50/year | |
| Hawaii | $50 | $15/year | |
| Idaho | $100 | $0 | No annual report |
| Illinois | $150 | $75/year | |
| Indiana | $95 | $31/year | |
| Iowa | $50 | $45/year | |
| Kansas | $160 | $55/year | |
| Kentucky | $40 | $15/year | Cheapest state to form an LLC |
| Louisiana | $100 | $35/year | |
| Maine | $175 | $85/year | |
| Maryland | $100 | $300/year | |
| Massachusetts | $500 | $500/year | Most expensive state to form an LLC |
| Michigan | $50 | $25/year | |
| Minnesota | $155 | $0 | No annual report |
| Mississippi | $50 | $0 | No annual report |
| Missouri | $50 | $0 | No annual report |
| Montana | $35 | $20/year | |
| Nebraska | $100 | $13/year | |
| Nevada | $75 | $350/year | High annual fees despite low formation cost |
| New Hampshire | $100 | $100/year | |
| New Jersey | $125 | $75/year | |
| New Mexico | $50 | $0 | No annual report — very LLC-friendly |
| New York | $200 | $9/year + Publication requirement | Publication can cost $300–$2,000+ |
| North Carolina | $125 | $200/year | |
| North Dakota | $135 | $50/year | |
| Ohio | $99 | $0 | No annual report |
| Oklahoma | $100 | $25/year | |
| Oregon | $100 | $100/year | |
| Pennsylvania | $125 | $7/year | |
| Rhode Island | $150 | $50/year | |
| South Carolina | $110 | $0 | No annual report |
| South Dakota | $150 | $50/year | |
| Tennessee | $300 | $300/year | |
| Texas | $300 | $0 (No Tax Permit required) | No annual report for most LLCs |
| Utah | $54 | $18/year | |
| Vermont | $125 | $35/year | |
| Virginia | $100 | $50/year | |
| Washington | $180 | $60/year | |
| Washington D.C. | $99 | $300/year | |
| West Virginia | $100 | $25/year | |
| Wisconsin | $130 | $25/year | |
| Wyoming | $100 | $60 minimum/year | Popular for privacy — low annual fee |
⚠️ Note: Filing fees are subject to change. Always verify the current fee on your state's official Secretary of State website before filing.
Ongoing Annual LLC Costs You Must Budget For
Forming the LLC is a one-time cost — but running it comes with recurring expenses. Here's what to plan for every year:
Annual Report / Renewal Fee
Most states require you to file an annual report and pay a renewal fee to keep your LLC active. Fees range from $0 (Arizona, Missouri, Wyoming minimum) to $500/year (Massachusetts).
Failing to file your annual report can result in your LLC being administratively dissolved — meaning your liability protection disappears.
Registered Agent Fee (If Using a Service)
If you use a commercial registered agent (recommended if you travel, work remotely, or want privacy), budget $50–$150/year for a reputable service.
Business Bank Account Fees
Many business checking accounts charge monthly fees of $10–$30/month unless you maintain a minimum balance. Mercury, Relay, and Bluevine all offer free business checking — excellent options for new LLC owners.
Accounting Software
Keeping clean books is essential for an LLC. Budget $0–$30/month depending on the tool:
- Wave — Free (great for basic bookkeeping)
- QuickBooks Self-Employed — ~$15/month
- FreshBooks — ~$17/month
Tax Preparation
If you hire a CPA to prepare your business taxes, budget $200–$500/year for a simple single-member LLC return, more for complex situations.
Hidden LLC Costs Most Guides Don't Tell You About
These are the costs that catch new LLC owners off guard:
New York's Publication Requirement
New York requires new LLCs to publish a formation notice in two local newspapers for six consecutive weeks. In New York City, this can cost $1,500–$2,000+. In upstate counties, it's closer to $300–$500. This is a state law that has been in place for decades — there's no way around it if you're forming a New York LLC.
California's $800 Minimum Franchise Tax
California charges every LLC a minimum $800 franchise tax per year, regardless of whether your business made any money. New LLCs are exempt in their first taxable year (if formed after January 1, 2021), but from year two onward, that $800 is due every year.
Foreign LLC Registration Fees
If you form your LLC in Wyoming or Delaware but live and operate in California — you'll need to register as a foreign LLC in your home state and pay that state's fees too. This is a common mistake that ends up costing more than simply forming the LLC locally.
Franchise Taxes in Other States
Some states (Texas, Tennessee, etc.) have franchise taxes or gross receipts taxes that apply to LLCs above certain revenue thresholds. These vary widely and can add hundreds to thousands of dollars per year at higher income levels.
Business License Fees
Depending on your city, county, and industry, you may need one or more business licenses to legally operate. These vary widely — from free to several hundred dollars per year.
Should You Use an LLC Formation Service or DIY?
You have three options when forming your LLC:
Option 1: DIY Through Your State Website (Recommended for Most)
Cost: State filing fee only
Time: 30–60 minutes to complete
Best for: Freelancers, solopreneurs, and anyone comfortable with a basic online form
Go directly to your state's Secretary of State website, fill out the Articles of Organization form, pay the filing fee, and you're done. The process is simpler than most people expect.
Option 2: Use an LLC Formation Service
Cost: $0–$300 service fee + state filing fee
Examples: ZenBusiness ($0 + state fee), Northwest Registered Agent ($39 + state fee), LegalZoom ($0–$249 + state fee)
Best for: People who want hand-holding or package deals that include registered agent service
These services don't do anything you can't do yourself — but they're convenient and some include extras like registered agent service, operating agreements, and EIN assistance.
💡 If you use a service, ZenBusiness and Northwest are generally better value than LegalZoom for basic LLC formation.
Option 3: Hire an Attorney
Cost: $500–$2,000+
Best for: Complex situations — multiple members, investor agreements, industry-specific compliance needs
For a standard single-member freelance LLC, hiring an attorney is overkill and unnecessary. Save attorney fees for when you genuinely need legal strategy or contract review.
How to Reduce Your LLC Costs
Here are practical ways to keep your LLC costs as low as possible:
1. Form the LLC yourself — Don't pay a service for something you can do in 30 minutes on your state website.
2. Be your own registered agent — If you have a permanent address in your state and are available during business hours, this saves $50–$300/year.
3. Choose a low-fee state — If you're deciding between states, compare ongoing annual costs, not just formation fees. Kentucky, New Mexico, and Colorado are among the most affordable.
4. Get your EIN directly from the IRS — It's always free at irs.gov. Never pay a service for an EIN.
5. Use free accounting software — Wave handles basic bookkeeping for free. No need to pay for software until your business grows.
6. Open a free business bank account — Mercury and Relay both offer free business checking accounts with no minimum balance requirements.
7. Write your own operating agreement — Use a free template from your state bar association or a reputable legal resource. A single-member LLC operating agreement doesn't need to be complex.
Total LLC Cost by Scenario (Real Examples)
Scenario 1: Freelance Writer, First Year, Texas
- State filing fee: $300
- Registered agent (DIY): $0
- EIN: $0
- Operating agreement (self-written): $0
- Business bank account (Mercury): $0/month
- Annual report: $0
- Total First Year: $300
Scenario 2: Online Consultant, First Year, Florida
- State filing fee: $125
- Registered agent service: $99/year
- EIN: $0
- Operating agreement template: $0
- Business bank account (Relay): $0
- Annual report: $138.75
- Total First Year: ~$363
Scenario 3: Freelance Developer, First Year, California
- State filing fee: $70
- Registered agent service: $99/year
- EIN: $0
- Annual franchise tax (year 2+): $800
- Annual report: $20
- Total First Year: ~$169 | Year 2+: ~$989/year
Scenario 4: Non-Resident Forming Wyoming LLC
- State filing fee: $100
- Registered agent (required): $100/year
- EIN (with ITIN): $0
- Annual report: $60 minimum
- Total First Year: ~$260
Frequently Asked Questions
Q: What is the cheapest state to form an LLC?
Kentucky has the lowest filing fee at $40, with a $15/year annual fee. New Mexico and Missouri are also popular low-cost options with no annual report requirement.
Q: Can I form an LLC for free?
No — you cannot form an LLC completely for free because state filing fees are unavoidable. However, you can minimize all other costs by doing it yourself, using free tools, and being your own registered agent.
Q: Is California really that expensive for an LLC?
Yes. California's $800 minimum annual franchise tax makes it one of the most expensive states for LLC owners — especially at early income stages. For California residents, there's no way around it unless you operate as a sole proprietor instead.
Q: Do I have to pay for an operating agreement?
o. You can write your own operating agreement using a free template. It doesn't need to be complicated for a single-member LLC. The important thing is having one on file.
Q: Is an LLC worth the cost for a part-time freelancer?
f you're making under $10,000/year from freelancing, the cost may outweigh the benefit in the short term — especially in high-fee states like California. If you're consistently billing clients and signing contracts, the liability protection is well worth the cost.
Q: Does my LLC need a business license?
An LLC registration is separate from a business license. Depending on your city, county, and industry, you may need additional licenses to legally operate. Check your local government website for requirements.
Q: Can I change my LLC's state later?
Yes, but it involves dissolving the old LLC and forming a new one in the new state (or domesticating the LLC if your state allows it). It's easier to form in the right state from the beginning.
Q: Are LLC formation services worth paying for?
For most solo freelancers: no. You can do everything yourself. That said, services like ZenBusiness (free + state fee) or Northwest ($39 + state fee) are reasonable if you want convenience or want a registered agent included.
The Bottom Line
Starting an LLC is one of the best financial decisions you can make as a freelancer or small business owner — and in most states, it costs less than a single client invoice.
The real cost breakdown:
- Filing fee: $40–$500 (one-time, unavoidable)
- First-year total (DIY): $40–$800 depending on your state
- Ongoing annual cost: $0–$900/year depending on state and services
Avoid unnecessary services, get your EIN free from the IRS, and be your own registered agent if possible. The money you save can go straight back into your business.
Continue building your LLC foundation:
- How to Get an EIN for Free: Step-by-Step IRS Guide
- Do I Need an LLC as a Freelancer?
- Best Business Bank Accounts for LLCs in 2026
Disclaimer: Filing fees and state requirements change frequently. Always verify current fees on your state's official Secretary of State website. This content is for educational purposes only and does not constitute legal, tax, or financial advice. Consult a qualified professional before making business decisions.
© 2026 StartupLLCGuide.com — Written by Alex Sterling