How much does it cost to form an LLC?
The state filing fee to form an LLC averages about $132 and ranges from $35 to $500. Formation services and annual fees add more.
Key takeaways
- The state filing fee is the one unavoidable cost; it averages about $132 in 2026 and ranges from $35 (Montana) to $500 (Massachusetts), per LLC University.
- You can file yourself for just the state fee, or pay a formation service - Bizee's tiers run $0, $199, and $299 plus the state fee.
- Registered agent service, if you buy it, typically adds around $100-$200 per year.
- Ongoing annual or franchise fees vary wildly: some states charge $0, while California charges an $800 annual franchise tax.
- Because fees are set state by state, compare both the upfront filing fee and the recurring annual cost before choosing where to form.
Forming an LLC costs a one-time state filing fee that averages about $132 and ranges from $35 to $500, depending on the state. Filing yourself costs only that state fee; using an online formation service adds $0-$300+ on top. Most states also charge a recurring annual or franchise fee – from $0 to $800 – so the true cost depends heavily on where you form.
What it costs to form an LLC
Every LLC starts with a state filing fee paid to the Secretary of State (or equivalent office). According to LLC University, the average U.S. LLC filing fee in 2026 is $132, spanning from a low of $35 in Montana to a high of $500 in Massachusetts. Beyond that one-time fee, you can either file the paperwork yourself or pay a formation service, and nearly every state charges an ongoing fee to keep the LLC in good standing.
| Cost item | Typical range | Notes |
|---|---|---|
| State filing fee (one-time) | $35 – $500 | Average ~$132; unavoidable |
| DIY filing | $0 + state fee | File directly with the state yourself |
| Formation service tiers | $0 – $299 + state fee | Bizee: $0 / $199 / $299 plus state fee |
| Registered agent (optional) | ~$100 – $200/yr | Bizee lists $199/yr; some services include year one |
| Annual / franchise fee | $0 – $800/yr | Set by each state; California = $800 |
These fees vary heavily by state. LLC University lists budget states like Kentucky ($40), Arkansas ($45), Arizona ($50), and Hawaii ($50); mid-range states like Delaware ($110), Florida ($125), and New York ($200); and higher-cost states like Tennessee ($300), Nevada ($425), and Massachusetts ($500). California’s initial filing is only $70, but the state charges an $800 annual franchise tax – a reminder that a low upfront fee does not always mean a cheap state.
What moves the price
- Which state you form in. The filing fee alone ranges from $35 to $500, and annual fees differ even more. This is the biggest driver of total cost.
- DIY vs. a formation service. Filing directly costs only the state fee. Services add convenience and extras – Bizee’s plans are $0, $199, and $299 plus the state fee, with the paid tiers adding items like an EIN, operating agreement, and expedited filing.
- Registered agent. You can act as your own agent for free in many cases, or pay a service roughly $100-$200 per year (Bizee lists $199/yr).
- Ongoing compliance. Some states (e.g. Arizona, Ohio, New Mexico) charge no annual report fee, while others charge annually or biennially – California’s $800 franchise tax is the most notable.
- Add-ons. An EIN is free from the IRS, but services often bundle it; expedited processing, a business license, or a virtual address raise the total.
The cheapest path is to file directly with your state and serve as your own registered agent, paying only the state filing fee. Paid services trade money for time and hand-holding.
Don’t just chase the lowest filing fee
A common mistake is picking a state purely on its upfront filing fee. What you’ll actually pay over time is the filing fee plus the recurring annual or franchise fee, and those two numbers don’t move together. LLC University’s data shows the point clearly: California’s initial filing is a modest $70, but the state layers on an $800 annual franchise tax, while a state with no annual report fee – such as Arizona, Ohio, or New Mexico – can be far cheaper to maintain even if its filing fee is higher. Delaware, popular with startups, charges $110 to file and a $400 annual franchise tax. For most small businesses, forming in your home state is simplest; registering an LLC in another state usually means you still have to register (and pay again) as a “foreign” LLC where you actually operate.
Other choices affect the total too. Expedited processing costs extra where offered, an EIN is free directly from the IRS even though services often bundle it, and add-ons like a business license, operating agreement, or virtual address raise the price of a package. Adding these up front is the honest way to compare a $0 DIY filing against a $199 or $299 service tier.
This is general information, not legal or tax advice. State filing fees and annual/franchise fees change – confirm current amounts with your state’s Secretary of State before filing.
This is general cost information, not legal advice — fees vary by state and county, so confirm with your local court, secretary of state, or a licensed attorney.
Frequently asked questions
What is the cheapest state to form an LLC?
By filing fee, Montana is lowest at $35, followed by states like Kentucky ($40) and Arkansas ($45), per LLC University. But weigh the annual fee too - a low filing fee doesn't guarantee low ongoing cost.
What is the most expensive state to form an LLC?
Massachusetts has the highest filing fee at $500. California's filing fee is only $70, but its $800 annual franchise tax makes it costly to maintain.
Can I form an LLC for free?
No - the state filing fee is unavoidable (averaging about $132). But you can avoid service fees by filing directly with the state yourself and acting as your own registered agent.
How much do LLC formation services cost?
They vary by tier. Bizee, for example, offers $0, $199, and $299 packages, all plus the state filing fee, with higher tiers adding an EIN, operating agreement, and expedited filing.
Do I have to pay every year to keep my LLC?
In most states, yes. Annual or biennial report fees range from $0 in a few states to hundreds of dollars; California charges an $800 annual franchise tax. It varies by state.
Is a registered agent an extra cost?
It can be. You may act as your own agent for free in many situations, or pay a service - Bizee lists $199/year. Fees vary by provider.
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