The cost to start an LLC is one of the first questions every new founder asks, and the honest answer is that it depends on your state. The state filing fee alone can run from $35 to $500. Add a registered agent, yearly reports, and in some states a franchise tax, and two founders can pay very different totals for the same type of business.
This guide breaks down the filing fee, the yearly cost, and the extras people forget, so you can budget with no surprises.
Cost to Start an LLC: The Short Answer
The SBA notes that in most cases the total cost to register a business is under $300, but that figure covers registration only. It does not cover every yearly charge that follows.
For a simple do-it-yourself filing, a realistic first-year range looks like this:
- Low-cost states: about $150 to $300, if you act as your own registered agent and need no special license.
- Mid-range states: about $300 to $600, once an agent service and an annual report are added.
- High-cost states: $900 or more in the first year, mainly because of California’s $800 yearly franchise tax or New York’s publication rule.
Fees are set by each Secretary of State and can change, so check the state page before you pay and treat these as 2026 planning figures, not quotes.
State Filing Fees and Yearly Costs Compared
The table shows the filing fee and the main yearly cost that follows. A registered agent service is extra, listed below.
| State | Filing fee | Main yearly cost |
|---|---|---|
| Montana | $35 | About $20 annual report |
| Arizona | $50 | No annual report in most cases |
| Colorado | $50 | About $25 periodic report |
| New Mexico | $50 | No annual report in most cases |
| Ohio | $99 | No annual report in most cases |
| Wyoming | $100 | About $60 minimum annual report license tax |
| California | $70 | $800 minimum franchise tax, plus a $20 statement of information every two years |
| Delaware | $110 | About $300 annual LLC tax, due June 1 |
| Florida | $125 | $138.75 annual report, due between January 1 and May 1 |
| New York | $200 | $9 biennial statement, plus publication costs (see below) |
| Texas | $300 | No franchise tax below the revenue threshold, but a yearly public information report is still filed |
| Massachusetts | $500 | About $500 annual report |
Two points stand out. First, the cheapest filing fee is not always the cheapest LLC. California charges only $70 to file, then $800 every year, even in a year with no income, until the LLC is formally cancelled. Second, a higher filing fee can still mean lower yearly costs. Texas charges $300 up front, but many small LLCs owe no franchise tax under the current revenue threshold.
The Costs People Forget
Registered agent: $0 to $300 a year
Every state requires a registered agent, a person or service with a street address in the state that can receive legal mail during business hours. You can serve as your own agent in most states if you have an address there and are available during the day. A professional service usually charges $100 to $300 a year. If you form in a state where you do not live, you will almost always need a paid service there.
Operating agreement: $0 to $500
An operating agreement sets out who owns the LLC, how decisions are made, and how profits are shared. You can write a simple one yourself for free. A lawyer-drafted agreement for a multi-owner business can cost a few hundred dollars. Our guide explains what belongs in it: https://wealthgrowerhub.com/llc-operating-agreement/
EIN: free from the IRS
An Employer Identification Number is free when you apply directly through the IRS. You do not need to pay a filing service for it. If you have not applied yet, start here: https://www.irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number – and see the step-by-step walkthrough at https://wealthgrowerhub.com/how-to-get-an-ein-for-your-llc/
Business licenses and permits: varies widely
A state filing does not replace city, county, or industry licenses. A home-based seller may need only a local license for $50 or less, while a food business or contractor can face several permits. Check local rules before you open.
Publication: mainly New York, and sometimes Arizona and Nebraska
New York requires a new LLC to publish a notice in two newspapers for six weeks, then file a certificate of publication for $50. The newspaper cost varies a lot by county, from a few hundred dollars upstate to more than $1,000 in New York City in some reports. This single rule can make New York the most expensive state to start in, even though its $200 filing fee looks average.
Foreign qualification: the out-of-state trap
Forming in Wyoming or Delaware does not free you from your home state if that is where you actually work. If you live and operate in California but form in Wyoming, California will usually still want a foreign LLC registration and its $800 franchise tax. For most small businesses, forming where you live is cheaper. See: https://wealthgrowerhub.com/best-state-to-form-an-llc/
Three Real First-Year Examples
Wyoming, do-it-yourself with a paid agent: $100 filing fee plus about $100 for the agent, about $200 in year one, then about $60 a year for the annual report plus the agent fee after that.
California, do-it-yourself with a paid agent: $70 filing fee plus $800 franchise tax plus about $100 for the agent, about $970 in year one, before any license or bookkeeping cost.
Texas, do-it-yourself with a paid agent: $300 filing fee plus about $100 for the agent, about $400 in year one, with no franchise tax owed below the revenue threshold, though the yearly information report still has to be filed.
These examples leave out optional extras on purpose. A formation service, expedited processing, or a lawyer review will push each total higher.
Do It Yourself or Pay a Service?
Filing yourself means you pay only state fees, plus anything you choose to add, like an agent service. The form is short in most states: the LLC name, the agent, a business address, and whether members or managers run the company.
A formation service typically charges $100 to $300 on top of state fees, plus yearly renewals for the agent and reminders. That can be worth it if you want someone else to handle paperwork and deadlines. It is not worth paying for an EIN through a service, since the EIN itself is free from the IRS.
Either way, the tax side still needs attention. An LLC is usually taxed as a pass-through business, so profits are taxed on the owners’ returns, and self-employment tax applies in many cases. Our tax guide walks through the basics: https://wealthgrowerhub.com/llc-taxes-usa/ – and if you are weighing an S corp election, compare the two structures first: https://wealthgrowerhub.com/llc-vs-s-corp/
How to Keep the Cost Down
File in your home state unless you have a clear, specific reason to form elsewhere. Serve as your own registered agent only if you meet your state’s rules and are comfortable with your address being on public record. Skip paid extras you do not need in year one, and put the money you save toward a separate business bank account and simple bookkeeping. Most of all, diarise the yearly deadline. A late annual report can add a penalty, and in Florida, for example, filing after May 1 adds a $400 late fee on top of the $138.75 report.
FAQ
How much does it cost to start an LLC in the USA in 2026?
State filing fees run from $35 to $500. A typical do-it-yourself first year, including a registered agent, lands between about $150 and $600 in most states, and higher in California or New York for the reasons explained above.
Is the EIN really free?
Yes. Applying directly through the IRS costs nothing. Any service that charges you for an EIN is charging for doing the form on your behalf, not for the number itself.
Do I have to pay the $800 California franchise tax every year?
Yes, California LLCs pay a minimum $800 franchise tax each year until the LLC is formally cancelled, even in a year with no income. That yearly charge matters far more than the $70 filing fee when you choose a state.
Can I form an LLC in a cheap state while living in another state?
You can, but if you operate from your home state, that state will usually require a foreign registration and its own fees and taxes. For most small businesses, the home state ends up cheaper overall.
Disclaimer
This guide is general information, not legal or tax advice. State fees and tax thresholds change, so confirm the current fee on your Secretary of State website before filing, and talk to a licensed professional if your situation involves partners, investors, or a regulated industry.
