How Much Does an LLC Cost? A State-by-State Fee Breakdown
Deciding to formalize your business is an exciting milestone, but one of the first hurdles every entrepreneur faces is budgeting. If you are asking, "How much does an LLC cost?", the answer depends almost entirely on where you choose to plant your roots. While forming a Limited Liability Company (LLC) offers invaluable protection for your personal assets, the price tag for that peace of mind varies significantly across the United States.
In this guide, we break down the mandatory state filing fees, ongoing maintenance costs, and hidden expenses so you can launch your venture with a clear financial roadmap.
The Two Types of LLC Costs: Setup vs. Maintenance
When calculating your startup budget, it is helpful to categorize expenses into one-time "getting started" fees and recurring "staying legal" fees.
Formation Fees (One-Time): This is the fee paid to the Secretary of State to file your Articles of Organization. It officially brings your business entity to life.
Ongoing Compliance Fees (Recurring): Most states require an annual or biennial report to keep your business information current. Some states also levy a franchise tax or a flat annual fee regardless of your revenue.
LLC State Filing Fees: A 50-State Comparison
Below is a detailed breakdown of the standard domestic LLC filing fees and the subsequent annual or biennial report costs. These figures represent the state's direct charges for online filings, which are typically the most efficient and cost-effective method.
| State | Initial Filing Fee | Annual/Biennial Fee |
| Alabama | $200 | $100 (Min. Privilege Tax) |
| Alaska | $250 | $100 (Biennial) |
| Arizona | $50 | $0 |
| Arkansas | $45 | $150 |
| California | $70 | $800 (Annual Tax) |
| Colorado | $50 | $10 |
| Connecticut | $120 | $80 |
| Delaware | $110 | $300 |
| Florida | $125 | $138.75 |
| Georgia | $100 | $50 |
| Hawaii | $50 | $15 |
| Idaho | $100 | $0 |
| Illinois | $150 | $75 |
| Indiana | $95 | $31 (Biennial) |
| Iowa | $50 | $30 (Biennial) |
| Kansas | $160 | $55 |
| Kentucky | $40 | $15 |
| Louisiana | $100 | $35 |
| Maine | $175 | $85 |
| Maryland | $100 | $300 |
| Massachusetts | $500 | $500 |
| Michigan | $50 | $25 |
| Minnesota | $155 | $0 |
| Mississippi | $50 | $0 |
| Missouri | $50 | $0 |
| Montana | $35 | $20 |
| Nebraska | $100 | $10 (Biennial) |
| Nevada | $425 | $350 |
| New Hampshire | $100 | $100 |
| New Jersey | $125 | $75 |
| New Mexico | $50 | $0 |
| New York | $200 | $9 (Biennial) |
| North Carolina | $125 | $202 |
| North Dakota | $135 | $50 |
| Ohio | $99 | $0 |
| Oklahoma | $100 | $25 |
| Oregon | $100 | $100 |
| Pennsylvania | $125 | $7 |
| Rhode Island | $150 | $50 |
| South Carolina | $110 | $0 |
| South Dakota | $150 | $50 |
| Tennessee | $300 | $300 (Min.) |
| Texas | $300 | $0 |
| Utah | $54 | $18 |
| Vermont | $125 | $35 |
| Virginia | $100 | $50 |
| Washington | $200 | $60 |
| West Virginia | $100 | $25 |
| Wisconsin | $130 | $25 |
| Wyoming | $102 | $62 |
Hidden and Optional Costs to Consider
While state fees are mandatory, several other expenses can impact your total investment.
Registered Agent Fees: Every LLC must have a registered agent. If you hire a professional service to protect your privacy and ensure you never miss a legal notice, expect to pay between $100 and $300 per year.
Operating Agreement: While you can find free templates online, having a customized legal document drafted by a professional can cost $50 to $200.
Name Reservation: If you aren't ready to file but want to hold your business name, states charge between $10 and $75 to reserve it for 30–120 days.
Publication Requirements: States like New York, Arizona, and Nebraska require you to publish a notice of your LLC formation in local newspapers. In New York, this can cost anywhere from $600 to $1,200 depending on the county.
Business Licenses: Depending on your industry (e.g., construction, catering, or professional consulting), you may need local or state permits ranging from $50 to $500.
Strategy: Choosing the "Right" State
For many, the temptation is to file in a low-cost state like Montana or Kentucky. However, if you are physically operating your business in your home state, you must register there. Forming an LLC in a "cheap" state while living elsewhere often triggers "Foreign LLC" registration fees in your home state, effectively doubling your costs and paperwork.
The most cost-effective approach for most small businesses is to form the LLC in the state where they will primarily do business.
Maximizing Your Investment
Starting an LLC is a foundational step in building a scalable business. While the initial costs may seem like a hurdle, the liability protection and professional credibility it provides are essential for long-term success. By understanding the fee structure in your state, you can avoid surprises and focus your resources on growth.
Ready to take the next step? Ensure you have your business name and registered agent info ready before you start your application.
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