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One of the most common questions aspiring business owners ask is: “How much does it cost to start an LLC?” The short answer is that it depends on your state, but most people can form an LLC for between $50 and $500 in state filing fees alone. When you add in optional but recommended expenses like a registered agent service and operating agreement, the total first-year cost typically falls between $100 and $800.
This guide breaks down every cost associated with forming and maintaining an LLC in 2026, including state filing fees for all 50 states, registered agent costs, and a comparison of DIY vs. professional formation service pricing. By the end, you will know exactly what to budget for your new LLC.
Key Takeaways
- State LLC filing fees range from $35 (Montana) to $500 (Massachusetts). The national average is about $130.
- A registered agent costs $0 (if you serve as your own) to $249/year for a professional service. Northwest charges $125/year, ZenBusiness charges $199/year.
- An EIN from the IRS is completely free — never pay a third party for it.
- Total first-year cost for most LLCs: $100 to $800, depending on your state and whether you use a formation service.
- Using an LLC formation service (like Northwest at $39 + state fee) is often cheaper than hiring an attorney and faster than doing it all yourself.
State Filing Fees Overview
The largest mandatory cost of forming an LLC is the state filing fee for your Articles of Organization (sometimes called a Certificate of Formation or Certificate of Organization). This fee is paid to your state’s Secretary of State or equivalent office when you submit your formation documents.
Filing fees vary dramatically by state. Montana is the cheapest at just $35, while Massachusetts is the most expensive at $500. Most states fall in the $50–$200 range.
State-by-State LLC Filing Fee Table
| State | Filing Fee | State | Filing Fee |
|---|---|---|---|
| Alabama | $200 | Montana | $35 |
| Alaska | $250 | Nebraska | $105 |
| Arizona | $50 | Nevada | $425 |
| Arkansas | $45 | New Hampshire | $100 |
| California | $70 | New Jersey | $125 |
| Colorado | $50 | New Mexico | $50 |
| Connecticut | $120 | New York | $205 |
| Delaware | $110 | North Carolina | $125 |
| Florida | $125 | North Dakota | $135 |
| Georgia | $100 | Ohio | $99 |
| Hawaii | $50 | Oklahoma | $100 |
| Idaho | $100 | Oregon | $100 |
| Illinois | $150 | Pennsylvania | $125 |
| Indiana | $95 | Rhode Island | $150 |
| Iowa | $50 | South Carolina | $110 |
| Kansas | $160 | South Dakota | $150 |
| Kentucky | $40 | Tennessee | $300 |
| Louisiana | $100 | Texas | $300 |
| Maine | $175 | Utah | $54 |
| Maryland | $100 | Vermont | $125 |
| Massachusetts | $500 | Virginia | $100 |
| Michigan | $50 | Washington | $200 |
| Minnesota | $155 | West Virginia | $100 |
| Mississippi | $50 | Wisconsin | $130 |
| Missouri | $50 | Wyoming | $100 |
Note: Filing fees are accurate as of March 2026 and may change. Always verify the current fee on your state’s Secretary of State website before filing. Some states charge additional fees for expedited processing.
Registered Agent Costs
Every LLC is required to have a registered agent — a person or service authorized to receive legal documents, tax notices, and government correspondence on behalf of your LLC. You have three options:
| Option | Cost | Pros | Cons |
|---|---|---|---|
| Be your own RA | $0 | Free; no third party | Home address on public record; must be available during business hours |
| Professional RA service | $49–$249/yr | Privacy protection; guaranteed availability; compliance reminders | Annual recurring cost |
| Formation service bundle | Often free for year 1 | Convenient; bundled with formation at discount | Renews at standard rate in year 2 |
The most popular registered agent services and their pricing:
| Service | Formation Price | Registered Agent | Rating |
|---|---|---|---|
| Northwest Registered Agent | $39 + state fees | $125/yr | 4.8/5 |
| ZenBusiness | $0 + state fees | $199/yr | 4.7/5 |
| Incfile (Bizee) | $0 + state fees | $199/yr | 4.5/5 |
| LegalZoom | $0 + state fees | $249/yr | 4.2/5 |
Northwest Registered Agent offers the best overall value at $125/year, with a free first year included when you use their $39 formation package. Incfile (Bizee) also includes a free year of registered agent service with their $0 formation package.
Operating Agreement Costs
An LLC operating agreement is an essential internal document, even though most states do not require one. Your cost options:
- Free template ($0): Use a reputable online template and customize it yourself. Suitable for simple single-member LLCs.
- Formation service template ($0–$39): Services like Northwest and ZenBusiness include operating agreement templates in their formation packages.
- Attorney-drafted ($500–$2,000+): Recommended for multi-member LLCs with complex ownership structures, significant assets, or unequal ownership splits.
EIN Cost
An Employer Identification Number (EIN) from the IRS is completely free. You can apply online at irs.gov in about 5 minutes and receive your EIN immediately.
Warning: Some websites charge $50–$200+ to “help” you get an EIN. This is unnecessary. The IRS application is simple, free, and takes minutes. Only pay for EIN filing if it is bundled into an LLC formation package you are already purchasing for other reasons.
Business License Costs
Depending on your business type and location, you may need one or more business licenses or permits:
- General business license: $50–$400, required in many cities and counties
- Professional license: $100–$1,000+, for regulated professions (contractors, real estate agents, CPAs, etc.)
- Sales tax permit: Usually free, required if selling taxable goods or services
- Home occupation permit: $0–$150, required in some cities if operating from home
- Industry-specific permits: Varies widely (food service, health care, transportation, etc.)
Not every LLC needs a business license beyond the state filing, but it is important to check with your city, county, and state to confirm requirements for your specific business type.
Optional Costs
Beyond the mandatory expenses, here are common optional costs to consider:
| Item | Cost | Notes |
|---|---|---|
| DBA (Doing Business As) | $10–$100 | Only needed if operating under a different name than your LLC’s legal name |
| Federal Trademark | $250–$350 | USPTO filing fee per class; protects your brand name nationally |
| Business Insurance | $300–$1,000+/yr | General liability insurance; cost depends on industry and coverage |
| Business Bank Account | $0–$25/mo | Many banks offer free business checking with low minimum balances |
| Accounting Software | $0–$60/mo | QuickBooks, Wave (free), FreshBooks — essential for tax season |
| Website & Domain | $12–$200/yr | Domain registration ($12/yr) plus hosting |
Total First-Year Cost Examples
Here are three realistic scenarios showing what you might actually spend in your first year:
| Expense | DIY (Cheapest) | Budget Service | Full Service |
|---|---|---|---|
| State Filing Fee | $100 (example: Georgia) | $100 | $100 |
| Formation Service Fee | $0 (self-filed) | $0 (ZenBusiness Starter) | $39 (Northwest) |
| Registered Agent (Year 1) | $0 (yourself) | $199 (ZenBusiness) | $0 (free with Northwest formation) |
| Operating Agreement | $0 (free template) | $0 (included) | $0 (included) |
| EIN | $0 (free from IRS) | $0 (free from IRS) | $0 (free from IRS) |
| TOTAL YEAR 1 | $100 | $299 | $139 |
As you can see, the Northwest Registered Agent full-service option is actually cheaper in Year 1 than the ZenBusiness budget option because Northwest includes free registered agent service with formation. This is why we recommend comparing total cost, not just the formation fee.
Formation Service vs DIY: Which Is Better?
You can absolutely form an LLC yourself by filing directly with your state’s Secretary of State website. Here is how the two approaches compare:
DIY Formation Is Better If…
- You are comfortable navigating government websites
- Your state has a straightforward online filing system
- You do not mind serving as your own registered agent
- You want to save every possible dollar
- You have time to research your state’s specific requirements
A Formation Service Is Better If…
- You want the process handled quickly and correctly the first time
- You prefer not to use your home address as registered agent
- You want compliance reminders for annual reports and deadlines
- You value having operating agreement and EIN included
- You want ongoing support for state compliance
For most first-time LLC owners, a formation service provides meaningful value for a small cost. The peace of mind of knowing everything was filed correctly, combined with a professional registered agent address and compliance alerts, is well worth $39–$199.
🏆 Northwest Registered Agent
Formation: $39 + state fees
Registered Agent: $125/yr
- Free registered agent for 1 year
- Same-day filing available
- Dedicated Corporate Guides
- Privacy protection (no data selling)
⚡ ZenBusiness
Formation: $0 + state fees
Registered Agent: $199/yr
- $0 formation package
- Worry-free compliance included
- Operating agreement template
- Registered agent service
💰 Incfile (Bizee)
Formation: $0 + state fees
Registered Agent: $199/yr
- Free basic LLC formation
- Free registered agent for 1 year
- Order tracking dashboard
- Business tax consultation
How to Start an LLC on a Budget
If you are on a tight budget, here are strategies to minimize your LLC formation costs:
- Form in your home state. Unless you have a specific legal or tax reason to form in another state (like Delaware or Wyoming), form in the state where you physically do business. Forming in a different state means you will likely need to register as a foreign LLC in your home state anyway, doubling your filing fees.
- Be your own registered agent. This saves $100–$249 per year but means your home address becomes public record and you must be available during business hours to receive documents.
- Create your own operating agreement. Use a free template (see our operating agreement guide) instead of paying an attorney. This works well for simple single-member LLCs.
- Apply for your EIN yourself. The IRS online application is free and takes 5 minutes. See our step-by-step EIN application guide.
- Use a free business bank account. Many banks and credit unions offer free business checking accounts with low or no minimum balance requirements.
- Skip optional filings. You do not need a DBA, trademark, or business insurance on day one (although insurance is strongly recommended as soon as you start earning revenue or working with clients).
With this approach, you could potentially form an LLC for as little as $35 (Montana) to $500 (Massachusetts) with no other costs in Year 1.
Frequently Asked Questions
What is the cheapest state to form an LLC?
Montana has the lowest LLC filing fee at $35. Other affordable states include Kentucky ($40), Arkansas ($45), Arizona ($50), Colorado ($50), Hawaii ($50), and Iowa ($50). However, if you do business in a different state, you will need to register as a foreign LLC there too, which adds cost. For most people, forming in your home state is the most cost-effective choice.
Are there any hidden costs when starting an LLC?
The most commonly overlooked costs are annual state fees (annual reports or franchise taxes, ranging from $0 to $800+ per year), registered agent renewal fees (if you use a professional service), and publication requirements in states like New York (which can cost $300 to $1,500+). Always research your state’s ongoing compliance requirements before forming.
Can I start an LLC for free?
No state allows you to form an LLC for $0 in filing fees. However, several formation services like ZenBusiness and Incfile (Bizee) offer $0 formation service fees — you only pay the state filing fee. The absolute minimum cost is the state filing fee, which starts at $35 in Montana.
Is it worth paying for an LLC formation service?
For most people, yes. Formation services like Northwest Registered Agent ($39 + state fee) and ZenBusiness ($0 + state fee) handle the paperwork, provide registered agent service, include operating agreement templates, and offer compliance reminders. The small cost (or no cost beyond state fees) is well worth the convenience and peace of mind.
How much does an LLC cost per year after formation?
Annual LLC costs vary by state. Most states require an annual report filing ($0 to $300). Some states charge additional franchise taxes or fees — for example, California’s $800 annual franchise tax, Delaware’s $300 annual tax, or Texas’s franchise tax for LLCs earning over $2.47 million. Registered agent fees ($125 to $249/year) are also an ongoing cost if you use a professional service.
Related LLC Guides
- What Does LLC Stand For? Meaning, Benefits & How It Works
- Sole Proprietorship vs LLC: Key Differences
- How to Get an EIN for Your LLC
- LLC Operating Agreement Template
- Best LLC Formation Services 2026
- Florida LLC Annual Report Guide
- Delaware LLC Annual Tax Guide
- Texas LLC Franchise Tax Guide
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