The primary cost of forming an LLC is the state filing fee, which ranges between $40 and $500, depending on your state. In addition, you will also need to pay annual fees to maintain good standing of your LLC. If you choose to use a service provider to help form your LLC, you will face additional costs on top of the State filing fee.
When forming an LLC yourself the only cost you are responsible for is the state filing fee. However, a handful of states also require a publication fee or a name reservation fee. Here is a breakdown of all the costs you can expect to see.
State Filing Fees
The main cost when forming an LLC is typically the fee of filing your Articles of Organization with the State. This fee ranges between $40 and $500, depending on your state.
Publication Fees
Several states (Arizona, Georgia, Nebraska, Nevada, New York, and Pennsylvania) also require your newly incorporated LLC to publish a statement of formation in a local newspaper. Publishing costs can be anywhere between $40 and $2000, depending on your state’s specific requirements.
Name Reservation Fees
If you’re forming an LLC in Alabama, you will also need to reserve your LLC’s name for a small fee of $10-$28. Reserving a name is optional for all other States.
Where Should I Form My LLC?
The rule of thumb is that you should always form your LLC in the state where you plan to conduct business. Otherwise you may end up with additional unwanted costs and paperwork. For more information, read our article on the topic.
For a full list of costs by State view the table below.
In addition to the initial formation fees, there are regular fees that you will need to pay to keep your LLC in good standing. The maintenance costs usually only include an annual or biennial report fee. However in some states, you also need to pay certain state taxes, often known as a “franchise tax.”
Annual/Biennial Report
Most states require LLC's to submit an annual or biennial report which includes updating the name, address, and ownership of the LLC. The report fee varies state by state.
Franchise Tax
Some states levy a yearly tax on LLC's, often called a franchise tax. This is most often a flat tax, but can also vary according to your LLC's annual earnings in certain states.
The table below lays out all the filing fees in each State as well as what the ongoing costs include. For a more detailed report click the State name, you will be directed to our Form an LLC page.
| State | Set Up Costs | Ongoing Costs |
|---|---|---|
| Alabama | $200+ | Annual Privilege License |
| Alaska | $250 | $200 Biennially |
| Arizona | $50 + Publishing Requirement | No Annual Fee |
| Arkansas | $50 | $150 Annually |
| California | $70 | $20 Biennially + Annual Franchise Tax |
| Colorado | $50 | $10 Annually |
| Connecticut | $120 | $20 Annually |
| Delaware | $90 | $300 Annual Franchise Tax |
| District of Columbia | $220 | $300 Biennially + Annual Franchise Tax |
| Florida | $125 | $138.75 Annually |
| Georgia | $100 | $50 Annually |
| Hawaii | $50 | $15 Annually |
| Idaho | $100 | No Annual Fee |
| Illinois | $150 | $250 - $300 Annually |
| Indiana | $95 | $50 Biennially |
| Iowa | $50 | $30 - $45 Biennially |
| Kansas | $160 | $50 - $55 Annually |
| Kentucky | $40 | $15 - $30 Annually + Annual Entity Tax |
| Louisiana | $100 | $30 Annually |
| Maine | $175 | $85 Annually |
| Maryland | $100 | $300 Annually |
| Massachusetts | $500 | $500 Annually |
| Michigan | $50 | $25 Annually |
| Minnesota | $155 | Annual Partnership Tax |
| Mississippi | $50 | No Annual Fee |
| Missouri | $50 | No Annual Fee |
| Montana | $70 | $20 Annually |
| Nebraska | $100 + Publishing Requirement | $10 - $13 Biennially |
| Nevada | $75 | $125 Annually |
| New Hampshire | $100 | $100 Annual + Annual Enterprise Tax |
| New Jersey | $125 | $50 Annually |
| New Mexico | $50 | No Annual Fee |
| New York | $200 + Publishing Requirement | $9 Biennial + Annual Filing Fee |
| North Carolina | $125 | $200 Annually |
| North Dakota | $135 | $50 Annually |
| Ohio | $99 | Annual Commercial Activity Tax |
| Oklahoma | $100 | $25 Annually |
| Oregon | $100 | $100 Annually |
| Pennsylvania | $125 + Publishing Requirement | No Annual Fee |
| Rhode Island | $150 | $50 Annually |
| South Carolina | $110 | No Annual Fee |
| South Dakota | $150 | $50 Annually |
| Tennessee | $300 Minimum | Annual Franchise & Excise Tax |
| Texas | $300 | Annual Fee |
| Utah | $70 | $20 Annually |
| Vermont | $125 | $35 Annually |
| Virginia | $100 | $50 Annually |
| Washington | $180 - $200 | $60 Annually |
| West Virginia | $100 | $25 Annually |
| Wisconsin | $130 - $170 | $25 Annually |
| Wyoming | $100 - $102 | $50 or 0.02% value of assets Annually |
For an additional cost, you can use a professional formation service to create your LLC. This can save you both time and the hassle of filling out legal paperwork.
Various service providers have different packages, which generally charge for:
- LLC formation
- Registered agent service
- Creating your LLC's Operating Agreement
- Obtaining an Employer Identification Number (EIN) from the IRS
- Researching which business licenses your LLC will need
- LLC Seal and Kit
TIP
The "LLC Seal and Kit" packages are totally unnecessary and do nothing to add to your credibility.
Should I use a professional service?
Before using a paid service, we recommend checking out our free guide to understand what is involved in forming an LLC in your State. Depending on what where you want to form your LLC you may be able to do the entire formation yourself. Some States that require things like publications, or lengthy detailed forms it's probably best to use a service.
Two reliable formation services include:
- Nortwest Registered Agent ($39 + State Fees)
- LegalZoom ($79 + State Fees)
Read our review of our Top 5 LLC Formation Services