How Much Does an LLC Cost?

LLC costs: $35–$500 to file, plus $0–$800 per year ongoing. See the true year-one cost of an LLC in every state, including fees, agent, EIN, and bank account.

The honest answer: an LLC costs about $35–$500 to form and $0–$800 per year to keep, depending on your state. Most owners spend roughly $150–$400 in year one when you count the essentials. Here's the full breakdown so there are no surprises.

One-Time Formation Costs

• State filing fee: $35 (Oklahoma) to $520 (Massachusetts) — the biggest single cost, paid to your Secretary of State.
• Registered agent: $50–$150/year, or $0 your first year with many formation services.
• Formation service (optional): $0–$400. Use it for convenience; your state's own portal is the cheap route.
• EIN: $0. The IRS issues one for free online in ~10 minutes.
• Operating agreement: $0 self-drafted, or $50–$200 attorney-drafted.
• Business bank account: $0 at most online banks; local branches may charge $10–$50/month.

See the exact formation cost by state before you file.

Ongoing Annual Costs

The recurring costs vary more than the filing fee:

• Annual report / franchise tax: $0 (Florida, Wyoming) to $800 (California's franchise tax).
• Registered agent renewal: $50–$150/year.
• Business insurance: ~$300–$1,000/year for general liability; more with employees.
• Bookkeeping/tax prep: $0 DIY to $1,000+ with a professional.

The LLC cost by state table shows both the filing fee and the annual fee for every state side by side.

Hidden Costs to Plan For

• Expedited filing: +$25–$200 when you need the certificate fast.
• Name reservation: +$10–$50 if you lock a name ahead of filing.
• Certificate of good standing: +$10–$50 when a bank or investor asks for proof.
• Foreign qualification: +$50–$300 per extra state where you do business.

What Does an LLC Cost in the Cheapest States?

State	Filing fee	Annual fee
Florida	$125	$0
Wyoming	$100	$60–$100
New Mexico	$50	$0
Texas	$300	$0 (franchise tax over $1.18M revenue)
Delaware	$90	$300 franchise tax
California	$70	$800 minimum franchise tax

Need the leanest route? Read the cheapest way to form an LLC.

Frequently Asked Questions

Is it free to form an LLC?

No state waives the filing fee entirely, but some run to $35–$50 (Oklahoma, New Mexico). Several online services cover the formation cost and only charge their state fee plus a small service fee.

How much is an LLC per year?

Between $0 and $800, depending on the state. Florida and New Mexico have no annual fee; California, Delaware, and Texas have meaningful annual franchise costs.

Does an LLC cost more than a sole proprietorship?

Yes — a sole proprietorship is free to start, while an LLC has state filing and annual fees. The cost buys personal liability protection that a sole proprietorship simply doesn't have.

Do I need to pay taxes on LLC profits if I don't withdraw?

Usually yes. LLC profits are pass-through: the IRS taxes them in the year earned, whether or not you take the money out. An S-corp election can change how salaries and distributions are taxed.