How Much Does It Cost to Start an LLC? State-by-State

The short answer: forming an LLC costs between $35 and $500 in state filing fees, with the national average landing around $132 as of 2026. That single filing fee is the only cost you truly cannot avoid. Everything else - registered agent service, an operating agreement, an EIN - is either free if you do it yourself or optional depending on your situation.

But the sticker price at filing is only half the story. The state you choose, and the ongoing fees it charges, matter far more to your total cost over time than the one-time fee to get started. Here's exactly what you'll pay, broken down by state and by line item.

How much is an LLC, all in?

When people ask how much is an LLC, they usually mean one number - what will this actually cost me? The honest answer is that there are two figures, and confusing them is where budgets go wrong.

The first is the price to start the LLC: a one-time state filing fee of $35 to $500, averaging about $132 nationwide. The second is the price to own it: a recurring annual fee your state charges to keep the LLC active, which runs anywhere from $0 to $800+ per year.

For a rough all-in figure, a solo owner doing everything themselves in an average-fee state pays roughly $100-$150 to open and under $100 a year to keep it going. Add a registered agent service or file in a high-cost state like California or Massachusetts, and year one climbs toward $800-$1,000.

So there's no single sticker price for an LLC - it depends entirely on your state and how much you outsource. The sections below break both numbers down so you can pin your own total.

The one unavoidable cost: your state filing fee

To create an LLC, you file a document (usually called the Articles of Organization) with your state's business filing office, typically the Secretary of State. That filing fee is mandatory, and it's the baseline cost of forming an LLC anywhere in the U.S.

Fees vary widely by state:

According to LLC University's state fee breakdown, most states fall in the $50-$200 range. So if you're wondering how much to start an LLC in a typical state, budget around $100-$150 for the filing alone.

If you want to keep costs to an absolute minimum, see our guide on how to start an LLC for free - "free" here meaning you only pay the state fee and handle every other step yourself.

Don't forget annual and biennial fees

This is where the true cost of an LLC reveals itself. Many states charge an ongoing fee - an annual report, a franchise tax, or a biennial statement - just to keep your LLC in good standing. These recurring costs range from $0 to $800+ per year.

• No annual fee: Arizona, Mississippi, Missouri, New Mexico, Ohio, and South Carolina don't require a recurring report or charge $0, which is why starting an LLC in Ohio stays cheap well past year one.
• Modest annual fee: Most states charge somewhere between $10 and $100 per year.
• The outlier - California: California's filing fee is only $70, but every LLC owes an $800 minimum annual franchise tax - our California LLC walkthrough covers when that first payment falls due. The first-year exemption that once existed (under Assembly Bill 85) expired for LLCs formed on or after January 1, 2024, so newer LLCs owe the $800 in their first taxable year. Add the $20 initial Statement of Information, and California's real first-year cost is roughly $890, per LLC University's California guide.

The lesson: a low filing fee can be misleading. Massachusetts charges $500 to file and $500 for its annual report - $1,000 in state fees in year one. Always weigh the ongoing fee, not just the entry ticket.

The costs that are free (if you DIY)

Several things people assume they must pay for are actually free when you handle them yourself.

EIN - always free from the IRS

An Employer Identification Number (EIN) is your business's federal tax ID. You can apply for it directly on IRS.gov for $0, and the online application issues your number immediately. Any service charging you $50-$100 for an EIN is charging for a form you can complete in about 15 minutes. Learn more in our guide on how to get an EIN number.

Registered agent - free if you're your own

Every LLC needs a registered agent: a person or company with a physical in-state address to receive legal documents. You can be your own registered agent for free, as long as you're available at that address during business hours. A third-party registered agent service typically costs $100-$300 per year - worth it for privacy or if you operate out of state, but not required.

Operating agreement - free with a template

An operating agreement sets the rules for how your LLC runs. A handful of states require one; most don't. You can draft it yourself from a free template at no cost. Hiring an attorney to write a custom agreement can add several hundred to several thousand dollars - necessary for complex multi-member arrangements, overkill for a solo LLC.

Optional costs worth budgeting for

Depending on your business, a few extras may apply:

• LLC formation service: Companies like ZenBusiness or Bizee file your paperwork for you, often $0 + state fee up to $300+ for premium tiers. Our best LLC services comparison breaks down when this is worth it.
• Business license or permit: Separate from LLC formation and often required at the city, county, or state level. See how much a business license costs.
• Name reservation: $10-$50 in some states if you want to lock in your name before filing.
• Newspaper publication: New York and a few others require you to publish a formation notice - New York's can run $500-$1,200 depending on the county.

So what will you actually pay?

Here's a realistic picture of how much it costs to form an LLC, depending on how you approach it:

• Bare minimum (DIY, low-fee state): ~$35-$100. Just the state filing fee, you act as your own registered agent, free EIN, template operating agreement.
• Typical (average state, some help): ~$150-$350 in year one, including filing plus a registered agent service.
• High-cost state or full-service: $800-$1,000+ in year one (California, Massachusetts, or a premium formation package with add-ons).

For most people in most states, expect $100-$200 to start and under $100 a year to maintain.

Conclusion

The honest answer to "how much does it cost to start an LLC?" is that the required cost is just your state's filing fee - $35 to $500, averaging around $132. The bigger financial question isn't the day-one price; it's the recurring annual fee your state charges, which can range from nothing to $800 a year. Choose your state with both numbers in mind, DIY the free steps, and you can launch a fully legitimate LLC for the price of a single filing fee.

Ready to file? Walk through the full process step by step in our guide on how to start an LLC - or brush up on the basics first with what is an LLC.

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Sources: LLC University - Filing Fees by State, IRS - Apply for an EIN Online, LLC University - California LLC Annual Tax.