Ask how much an LLC costs and you'll usually hear one number: the state filing fee. That's the biggest required cost for most people, but it isn't the whole picture. Some costs come once, some come every year, and a few only apply in certain states.
Here's every fee you're likely to run into, what's required, and what's optional.
The state filing fee
Every state charges a fee to file the document that creates your LLC, usually called articles of organization or a certificate of formation. It's paid to the state, and you'll pay it whether you file yourself or use a formation service.
Across the 50 states, LLC filing fees range from roughly $35 to $500. Where your state falls in that range depends entirely on its fee schedule, and states update their fees from time to time. For your state's current fee and filing details, check our LLC state guides.
A few things can change what you pay at filing:
- Filing method. Some states charge different amounts for online and paper filings.
- Expedited processing. Many states offer faster processing for an extra fee.
- Name reservation. If you reserve your name before filing, that's usually a separate fee.
Registered agent costs
Every LLC must have a registered agent: a person or company with a physical address in the state who accepts legal papers and official notices for the business.
You have two options:
- Serve as your own agent. There's no direct cost if you live in the state and meet its requirements, but your address goes on the public record and you need to be available at that address during business hours.
- Hire a registered agent service. Services charge an annual fee. EZ Entity Setup's registered agent add-on is $99 for the first year, then $199 a year.
If you form your LLC in a state where you don't have a physical address, you'll need a registered agent service there.
Recurring state fees: annual reports and franchise taxes
This is the part people forget to budget for. Forming the LLC is a one-time cost, but keeping it in good standing usually isn't.
Annual or biennial reports
Most states require LLCs to file a periodic report, either every year or every two years, to confirm or update basic information like addresses, the registered agent, and members or managers. Many states charge a fee for it. Report fees, deadlines, and requirements vary widely, and a few states don't require a report from LLCs at all.
Franchise taxes and annual taxes
Some states charge LLCs an annual franchise tax, privilege tax, or minimum tax. In some of those states it's owed even if the business made no money that year. This is separate from income tax and is easy to overlook.
Missing a report or tax payment can lead to late fees and, eventually, loss of good standing or administrative dissolution. Our guide to annual reports and franchise taxes covers how to stay on top of them.
Publication requirements in a few states
A small number of states require newly formed LLCs to publish a notice of their formation in a newspaper. New York, Arizona, and Nebraska are known examples. The details differ by state, including the deadline, how many times the notice must run, and whether any exemptions apply.
Publication costs are set by the newspapers, not the state, and can vary considerably depending on where the notice runs. If you're forming in a state with this requirement, budget for it up front and calendar the deadline.
Optional and situational costs
These depend on your business, your state, and how much you want to do yourself.
EIN
An Employer Identification Number is free from the IRS. You can apply online on IRS.gov. Formation services may charge to handle the application for you, but the IRS itself never charges for it.
Operating agreement
An operating agreement sets out how your LLC is owned and run. A few states require one, and banks often ask for it. You can write one from a template at no cost, have a formation service prepare one, or hire an attorney, which costs the most but makes sense for multi-member LLCs and complex deals.
Business licenses and permits
Depending on your industry and location, you may need a general business license, professional licenses, health permits, or zoning approvals from your city, county, or state. Costs and requirements vary widely.
Sales tax registration
If you sell taxable products or services, you'll likely need to register with your state's tax agency before you make sales. Some states charge for this registration and some don't.
Expedited filing
If you need your LLC approved quickly, many states will speed things up for an additional fee.
Certified copies and good standing certificates
Banks, lenders, or other states sometimes ask for certified copies of your formation documents or a certificate of good standing. States charge for these.
Registering in other states
If your LLC does business in a state other than the one where it was formed, you may need to register there as a foreign LLC. That means another filing fee, another registered agent, and another set of annual requirements. It's one reason forming in a state where you don't operate can cost more than it saves. See Delaware vs. Wyoming vs. your home state.
One-time vs. recurring LLC costs
| Cost | One-time or recurring | Required? |
|---|---|---|
| State filing fee | One-time | Yes |
| Name reservation | One-time | No |
| Expedited processing | One-time | No |
| Newspaper publication | One-time | Only in a few states |
| EIN from the IRS | One-time, free | Often needed in practice |
| Operating agreement | One-time, plus updates as things change | Required in a few states; recommended everywhere |
| Registered agent service | Recurring, annual | An agent is required; a paid service is optional |
| Annual or biennial report fee | Recurring | In most states |
| Franchise or minimum tax | Recurring | In some states |
| Business licenses and permits | Varies; many renew periodically | Depends on your business and location |
| Foreign registration in other states | One-time filing, plus recurring requirements | Only if you do business elsewhere |
DIY vs. a formation service
You can file your LLC directly with the state and pay only the state's fees. Many people do. A formation service adds convenience: it prepares the filing, handles the details, and can bundle the extras.
At EZ Entity Setup, the Starter plan is $0 plus state fees and files in 7 to 14 days. The Advanced plan is $249 a year plus state fees, files in 1 to 5 days, and includes an EIN, an operating agreement, a sales tax license, and the first year of registered agent service. Premium is $399 a year plus state fees and gets the fastest queue with everything included. You can compare them on our pricing page.
Whichever route you choose, the state fees are the same. Formation costs may also be partly deductible for tax purposes, so keep your receipts and ask a tax professional how to treat them.
The short version
The required cost to start an LLC is the state filing fee, which ranges from roughly $35 to $500 depending on the state. On top of that, budget for a registered agent if you won't serve as your own, recurring annual or biennial report fees, franchise or minimum taxes in some states, and newspaper publication in a few states like New York, Arizona, and Nebraska.
An EIN is free from the IRS. Everything else, from operating agreements to expedited filing, depends on your business and how much you want to handle yourself. Check your state's guide for exact numbers before you file.
This article is general information, not legal or tax advice. For decisions about your situation, talk to an attorney or a tax professional.