How Much Does an LLC Cost? A Complete Cost Guide for 2026

How much does an LLC cost? See typical state filing fees, annual report costs, registered agent pricing, and hidden expenses before you form your LLC.

How much does an LLC cost depends on your state, but most owners pay between $100 and $500 to form one and then $50 to $300 every year to keep it in good standing. The biggest expense is the state filing fee, and the most common ongoing costs are annual reports, franchise taxes, and registered agent service. Here's a breakdown of every cost you can expect.

State filing fees

The one-time fee to file your Articles of Organization is the main cost of forming an LLC. It typically ranges from $40 to $500, and it varies by state. Some states are on the cheap end, while others charge several hundred dollars just to get started.

You'll also pay this fee again if you ever need to file amendments or reinstate a dissolved LLC. Check your secretary of state's website for the exact current amount, since fees change over time.

Ongoing state costs

Most states charge something every year to keep your LLC active. The two most common charges are:

• Annual report fees, usually $20 to $100 per year, to confirm your business information is current.
• Franchise taxes, which some states charge based on your revenue or assets. California, for example, charges a flat annual franchise tax on top of its filing fee.

Not every state has both, and a few states have neither. Our guide to annual reports explains what to expect in your state. If you formed in a state known for low ongoing costs, like Delaware LLCs, the annual picture can look different than in California or New York.

Registered agent costs

Every LLC needs a registered agent with a physical address in the formation state. If you use your own home address, this costs nothing. If you hire a service, expect to pay $50 to $300 per year. Many owners pay for a service to keep their home address off public records and to make sure legal mail never gets missed.

Optional costs that are usually free

Some things people assume cost money are actually free:

• Getting an EIN from the IRS is free and takes about ten minutes online.
• Writing an operating agreement costs nothing if you do it yourself.
• Reserving your business name is free in many states, though some charge a small fee.

Opening a business bank account is also free at most banks, though some require a minimum balance. You don't need a lawyer to form an LLC, so legal fees are optional too.

DIY vs. formation service pricing

Filing yourself costs only the state fee, typically $40 to $500. A formation service charges an extra $50 to $300 on top, and many bundle a year of registered agent service into the price. The service doesn't change what the state charges; it just handles the paperwork for you.

Watch out for upsells. Services often push expedited filing, compliance calendars, and legal document templates that you may not need. Read the fine print so you know what's included and what renews automatically each year.

Hidden costs to plan for

A few expenses catch new LLC owners by surprise:

• Business licenses and permits, which your city or county may require on top of state fees.
• Self-employment taxes, since LLC profits are taxed as personal income.
• State income or franchise taxes that apply to LLCs in some states.
• Late fees if you miss your annual report deadline.

Before you file, budget for both the one-time formation cost and the yearly maintenance. For the full process from start to finish, read our guide on how to start an LLC.

Frequently Asked Questions

How much does it cost to start an LLC?

Most owners pay $100 to $500 to form an LLC. The main cost is the state filing fee, which typically ranges from $40 to $500 depending on your state. Filing yourself costs only that fee, while formation services add $50 to $300 on top of it.

How much does an LLC cost per year?

Ongoing costs usually run $50 to $300 per year. That covers annual report fees, franchise taxes in some states, and registered agent service if you use one. Some states have no annual fee at all, so the yearly cost can be as low as zero.

Is an EIN free?

Yes. Getting an Employer Identification Number from the IRS is completely free and takes about ten minutes online. Never pay a third party for an EIN, since the IRS provides it at no charge directly through its own website. You can apply online, by mail, or by fax.

Do I need a registered agent, and what does it cost?

Every LLC needs a registered agent with a physical address in the formation state. You can be your own agent for free, or hire a service for $50 to $300 per year to keep your home address private and avoid missing legal mail.

What is the cheapest state to form an LLC?

Filing fees vary widely by state, with some states charging around $40 and others several hundred dollars. The cheapest option overall is usually your home state, since forming elsewhere adds registered agent and annual report costs you wouldn't otherwise pay.