How Much Does an LLC Cost? State-by-State Breakdown

LLC Cost Overview

The cost of forming and maintaining an LLC varies significantly depending on your state. The initial formation filing fee ranges from $40 (Kentucky) to $500 (Massachusetts), with most states falling in the $50-$200 range. But the filing fee is just one piece of the puzzle — ongoing annual costs, registered agent fees, and state-specific taxes can add up, and understanding the full picture is critical before you commit to a state.

The total first-year cost of an LLC typically ranges from $100-$1,500 depending on your state and the services you use. Annual renewal costs range from $0 (in states with no annual report requirement) to $800+ (in states like California with mandatory franchise taxes). Let us break down every cost category.

State Filing Fees

The state filing fee is the one-time cost to file your Articles of Organization (or Certificate of Formation) with the Secretary of State. Here is a sampling of major states: Alabama: $200, Alaska: $250, Arizona: $50, Arkansas: $45, California: $70, Colorado: $50, Connecticut: $120, Delaware: $90, Florida: $125, Georgia: $100, Hawaii: $50, Idaho: $100, Illinois: $150, Indiana: $95, Iowa: $50, Kansas: $160, Kentucky: $40, Louisiana: $100, Maine: $175, Maryland: $100.

Continuing with more states: Massachusetts: $500, Michigan: $50, Minnesota: $155, Mississippi: $50, Missouri: $50, Montana: $70, Nebraska: $100, Nevada: $75 (plus $150 business license fee), New Hampshire: $100, New Jersey: $125, New Mexico: $50, New York: $200 (plus publication costs), North Carolina: $125, North Dakota: $135, Ohio: $99, Oklahoma: $100, Oregon: $100, Pennsylvania: $125, Rhode Island: $150, South Carolina: $110.

And the remaining states: South Dakota: $150, Tennessee: $300 per member (minimum $300), Texas: $300, Utah: $54, Vermont: $125, Virginia: $100, Washington: $200, West Virginia: $100, Wisconsin: $130, Wyoming: $100. Note that these fees change periodically — always check your state's current fee schedule before filing.

Annual Report and Renewal Fees

Most states require LLCs to file an annual report (some states call it a biennial report or periodic report). This report confirms your LLC's current name, address, registered agent, and member/manager information. Annual report fees range from $0 to $500. Some states with notable annual costs include California ($20 annual report, but $800 franchise tax — see below), Delaware ($300 annual tax), Florida ($138.75 annual report), Illinois ($75 annual report), Massachusetts ($500 annual report), New York ($9 biennial report), Texas ($0 annual report, but franchise tax applies), and Wyoming ($60 annual report or minimum franchise tax).

States with no annual report requirement include Arizona, Missouri, New Mexico, and Ohio. While these states do not require annual reports, you may still need to update your information if it changes.

State-Specific Taxes

Some states impose additional taxes on LLCs beyond income tax. The most significant examples are California's franchise tax, which charges a minimum of $800 per year regardless of income. This applies even if your LLC earns zero revenue. New LLCs are exempt for their first tax year, but the $800 kicks in starting the second year. California also charges an additional LLC fee based on gross revenue: $0 for income under $250,000, $900 for $250,000-$499,999, $2,500 for $500,000-$999,999, $6,000 for $1,000,000-$4,999,999, and $11,790 for $5,000,000 or more.

Texas imposes a franchise tax (called a "margin tax") on LLCs with revenue exceeding $2.47 million. Most small LLCs are under this threshold and owe nothing, but you still need to file a "No Tax Due" report annually. Delaware charges a flat $300 annual franchise tax for LLCs. New Hampshire charges a Business Profits Tax (7.5%) and Business Enterprise Tax (0.5%) on business income, with no minimum.

Registered Agent Costs

Every LLC must maintain a registered agent in the state of formation. You have two options: be your own registered agent (free, but your address becomes public record and you must be available during all business hours) or hire a professional registered agent service ($49-$299/year). The average cost of a standalone registered agent service is $125/year. Services like FormifyAI include registered agent service with all plans, eliminating this as a separate expense.

Operating Agreement Costs

An operating agreement is essential for every LLC but does not need to be expensive. You can draft your own using a template ($0), use an online legal service ($50-$200), or hire a business attorney ($500-$2,000+). For most single-member LLCs, a good template is sufficient. Multi-member LLCs with complex ownership structures should invest in an attorney-drafted agreement.

EIN Costs

Your EIN from the IRS is completely free. Be wary of services that charge $50-$200 to "help" you get an EIN — they are simply filling out the same free online form. Apply directly at irs.gov/ein and save your money.

New York Publication Requirement

New York is unique in requiring new LLCs to publish a notice of formation in two local newspapers (one daily, one weekly) for six consecutive weeks. The cost of this publication requirement varies dramatically by county: Manhattan can cost $1,500-$2,000, Brooklyn and Queens: $800-$1,200, Albany area: $200-$400, and rural counties: $100-$300. After publication, you file a Certificate of Publication with the state ($50 fee). This is an unavoidable cost for New York LLCs and makes New York one of the most expensive states for LLC formation.

Hidden Costs to Watch For

When using an LLC formation service (not FormifyAI), watch for these common hidden charges: expedited processing markups (charging $100+ for something the state charges $25-$50 for), registered agent price increases (low first-year price, then 3x-4x increase on renewal), upselling unnecessary add-ons (compliance monitoring, operating agreement templates, annual report filing — all marked up significantly), and EIN procurement fees (charging $75-$150 for a free 5-minute IRS application).

FormifyAI avoids these traps with transparent monthly pricing that includes everything — formation filing, registered agent, compliance monitoring, operating agreement templates, and EIN assistance — starting at $29/month.

Total Cost Estimates by State

For a ballpark of total first-year costs (filing fee + registered agent + first annual fee) in the most popular states: Wyoming: $220 total (one of the cheapest), Delaware: $390 total, Florida: $364 total, Texas: $300 total (no annual report fee), California: $870 total (due to franchise tax), New York: $559-$2,259 total (due to publication requirement), and Nevada: $425 total.

How to Minimize LLC Costs

Choose the right state — form in your home state unless you have a specific reason not to. Out-of-state formation means paying fees in two states. Use a bundled service like FormifyAI that includes registered agent, compliance monitoring, and support for one monthly price. Skip unnecessary add-ons that formation services try to upsell. Get your EIN yourself for free from the IRS. Draft your operating agreement yourself if your LLC structure is simple.

The bottom line: forming and maintaining an LLC is affordable in most states, typically costing $200-$500 for the first year and $50-$300 annually thereafter. This is a small price to pay for liability protection, tax flexibility, and business credibility.