Starting your own business? That’s amazing—big high five to you! 🙌 But before you dive into your entrepreneurial journey, let’s tackle one of the first questions that comes up: How much does it cost to form an LLC? Spoiler alert—it depends. The “LLC cost by state” is a big deal because these fees vary a lot. Some states are super affordable, while others? Well, they’re like that fancy coffee shop where a single latte can cost as much as lunch.
Think of it like ordering your morning coffee. Some states are the no-frills black coffee for $2, while others go full-on triple espresso, oat-milk, a vanilla-syrup extravaganza that makes you do a double-take at the price.
Understanding the LLC cost by state is kind of like finding the perfect coffee order—it’s all about knowing what works best for you.
The good news? We’re about to break it all down, one state at a time, so you’ll know exactly what to expect. By the time we’re done, you’ll have a clear picture of how much it’ll cost to officially kickstart your business, no surprises.
Let’s get brewing! ☕
Initial LLC Filing Fee
The Initial LLC Filing Fee is like the cover charge for getting your LLC officially recognized by the state. It’s a one-time cost you pay when filing the paperwork to bring your LLC dream to life. Depending on where you’re forming your LLC, this fee can vary quite a bit. For example:
- In most states, you’re looking at a reasonable fee between $50 to $200.
- Some states, like Massachusetts, crank it up to $500—ouch!
- Others, like California, also throw in an initial report requirement within 90 days of forming your LLC, which comes with a modest $20 fee.
The exact cost depends on the state, so it’s always a good idea to check with the Secretary of State’s office (or their website) to get the latest details. Think of it as investing in making your business official—it’s a small price for the peace of mind that comes with being legit!
And hey, it’s a one-time fee, so once it’s paid, you’re good to go and can focus on building your business! 🚀
Ongoing LLC Filing Fees (Annual/Biennial Reports)
Ongoing LLC filing fees, also known as Annual or Biennial Report fees, are like your LLC’s way of checking in with the state to say, “Hey, I’m still here and running the show!” These filings are a must-do in most states to keep your LLC in good standing and ensure your business information stays up-to-date with the state authorities.
What Are These Reports All About?
Think of them as a quick status update for your LLC. You’re basically letting the state know that your LLC’s details—like your business address, registered agent, and ownership info—are still accurate. It’s also how the state keeps tabs on active businesses and collects a little extra revenue to keep things moving smoothly.
How Often Do You File?
The timing depends on where your LLC is based. Some states want to hear from you every year (Annual Reports), while others are more laid-back and only need an update every two years (Biennial Reports). A few states don’t ask for these reports at all, which feels like a small win for business owners!
What’s the Cost?
The fees vary widely, depending on your state. In some places, it’s as low as $10 or even free, while others may ask for a few hundred bucks (looking at you, California and Maryland!). And, just to keep things spicy, some states charge additional franchise taxes or business privilege taxes along with the report.
What Happens If You Forget?
Missing your filing deadline isn’t the end of the world, but it can come with consequences. States may charge late fees or penalties, and in extreme cases, they can suspend or dissolve your LLC. Ouch. Keeping track of these deadlines is key to avoiding unnecessary stress (and extra costs).
Pro Tip for Staying on Top of It
Mark your calendar or set reminders well in advance of your report’s due date. If you’ve got a registered agent service, they’ll often keep you informed about upcoming deadlines so you’re not scrambling at the last minute.
In short, these ongoing filing fees and reports are part of the “cost of doing business” for LLC owners. Staying compliant keeps your LLC in good standing, which is crucial if you want to keep running your dream business without any hiccups. It’s a small price to pay for peace of mind and staying in the state’s good books!
LLC Cost By State in 2025
Let’s dive into the cost of forming an LLC while sprinkling in a handy tip about where to form it, especially if you’re in the U.S. 🌟
What Does It Cost to Form and Maintain an LLC
When you’re setting up your LLC, there are two main costs to think about: the formation fee (what you pay upfront to create your LLC) and the annual maintenance fees (to keep it in good standing with your state).
Formation Fees
Starting your LLC can cost as little as $50 in states like Arizona or Arkansas. But if you’re forming in California, you’ll pay $70 upfront—plus brace yourself for an $800 annual franchise tax. Ouch! Some states, like Massachusetts, take it even higher with a hefty $500 formation fee.
On average, most states charge around $132 to officially set up your LLC. Not too bad when you’re making your business dreams official!
Annual Maintenance Fees
Now that your LLC is formed, you’ve got to keep it in good standing with the state. On average, this will cost about $91 per year. But some states go easy on you—Arizona, Ohio, and Missouri don’t even charge annual fees. Yay for free! 🎉
Other states, like Tennessee, hit you with a $300 minimum annual fee. And in Nevada, you’ll pay $350 every year for a required business license. Not exactly pocket change.
California, as always, keeps things spicy with its $800 annual franchise tax, which can feel like a lot if you’re just getting started. On the bright side, a few states like Alaska and Nebraska ask for fees every two years instead of annually. It’s like getting a little breather.
Pro Tip: If You’re in the U.S., Stick to Your Home State
Here’s the deal: forming your LLC in another state might seem tempting if their fees are lower. (Wyoming and Delaware, I see you!) But if you live and operate in your home state, forming your LLC elsewhere can create double the work and double the taxes.
Why? Because you’ll likely have to register as a foreign LLC in your home state to legally operate there, which means paying fees in BOTH states. Plus, handling taxes in two states can be a huge hassle—and a lot more expensive than you’d expect.
So, unless you have a really compelling reason (like doing business nationwide or needing specific legal protections), it’s almost always smarter—and cheaper—to form your LLC in your home state.
Pro Tip for Non-U.S. Residents: Choosing the Best State for Your LLC
Hey there, future LLC owner! If you’re not based in the U.S., picking the right state for your LLC might feel like choosing a destination without a map. But don’t stress—I’ve got you covered. Here’s the golden rule: choose the state where you’re actually planning to conduct business.
For example, if most of your clients are in California or your team operates from Florida, that’s the state you’ll want to focus on. Why? Because doing business in a state other than where you formed your LLC often means you’ll have to file as a foreign LLC, which adds extra costs and paperwork. Yuck!
But what if your business isn’t tied to any one state? Maybe it’s an online business or you’re working globally. In that case, Delaware or Wyoming could be smart picks. They’re super business-friendly, have low fees, and are favorites for entrepreneurs who want smooth sailing.
So, skip the guesswork. Match your LLC to where you’re hustling, and you’ll save yourself a ton of headaches later. 🌟
What Really Matters?
The cost of forming and maintaining your LLC is just one part of the puzzle. Choosing the right state is equally important, especially if you want to avoid unnecessary headaches and fees. In most cases, your home state is your best bet. It keeps things simple, compliant, and tax-friendly.
At the end of the day, forming an LLC is an exciting step toward building your dream business. And with a little research and planning, you’ll be off to a strong, stress-free start. 😊
| State | Filing Fee | Annual/Biennial Fee | Details |
|---|---|---|---|
| Alabama | $200 | $50+ | Pay the Business Privilege Tax within 2.5 months of forming your LLC. Fancy name, right? |
| Alaska | $250 | $100 (every 2 years) | File a biennial report every other January. Chill vibes in Alaska! |
| Arizona | $50 | $0 | No annual fees or reports. Arizona likes to keep it simple! |
| Arkansas | $45 | $150 | The annual Franchise Tax Report is due by May 1. Don’t snooze! |
| California | $70 | $800 + $20 | California loves its $800 Franchise Tax. The cost of sunny dreams! |
| Colorado | $50 | $10 | File your $10 periodic report every year—so affordable! |
| Connecticut | $120 | $80 | Stay compliant with an annual report. It’s worth it for Connecticut! |
| Delaware | $90 | $300 | LLC central! But that $300 annual Franchise Tax stings a bit. |
| Florida | $125 | $138.75 | Annual reports are due by May 1. Stay sunny and on time! |
| Georgia | $100 | $50 | Pay your annual registration fee by April 1—no April Fools here! |
| Hawaii | $50 | $15 | Aloha! Low fees make it a paradise for LLCs, too! |
| Idaho | $100 | $0 | Free annual reports? Yes, please! Idaho wins for simplicity. |
| Illinois | $150 | $75 | Pay your annual report fee in your LLC’s anniversary month. |
| Indiana | $95 | $31 (every 2 years) | Biennial reports make it easier to manage your LLC. |
| Iowa | $50 | $30 (every 2 years) | Biennial reports are due in odd-numbered years. |
| Kansas | $160 | $50 | Annual reports are due by April 15. Stay sharp! |
| Kentucky | $40 | $15 | Affordable annual reports are due by June 30. |
| Louisiana | $100 | $35 | File your annual report during your LLC’s anniversary month. |
| Maine | $175 | $85 | Annual reports are due by June 1. Don’t miss it! |
| Maryland | $100 | $300 | Maryland loves its fees. File your report by April 15. |
| Massachusetts | $500 | $500 | Massachusetts has the highest fees in the nation. Yikes! |
| Michigan | $50 | $25 | Pay your annual statement fee by February 15. Easy peasy! |
| Minnesota | $155 | $0 | No annual fees in Minnesota. A definite win for small businesses! |
| Mississippi | $50 | $0 | No annual fees are required here. Woohoo! |
| Missouri | $50 | $0 | No annual reports or fees. Missouri keeps it simple! |
| Montana | $35 | $20 | Annual reports are due by April 15. Mark your calendar! |
| Nebraska | $100 | $13 (every 2 years) | Biennial reports are due in odd-numbered years. |
| Nevada | $425 | $350 | Nevada’s fees are steep but worth it for LLC perks. |
| New Hampshire | $100 | $100 | Annual reports are due by April 1. Stay on top of it! |
| New Jersey | $125 | $75 | File your annual report during your LLC’s anniversary month. |
| New Mexico | $50 | $0 | No annual fees or reports in New Mexico. Stress-free! |
| New York | $200 | $9 (every 2 years) | Biennial statements are easy and affordable. Go NY! |
| North Carolina | $125 | $200 | Annual reports are due by April 15. Keep it professional! |
| North Dakota | $135 | $50 | File your annual report by November 15 each year. |
| Ohio | $99 | $0 | No annual reports here—just smooth sailing for LLCs! |
| Oklahoma | $100 | $25 | File your annual certificate during your LLC’s anniversary month. |
| Oregon | $100 | $100 | File your annual report online. Quick and easy! |
| Pennsylvania | $125 | $7 | Affordable annual fees keep your LLC humming along! |
| Rhode Island | $150 | $50 | Annual reports are due by November 1. Don’t miss it! |
| South Carolina | $110 | $0 | No annual fees in South Carolina. Sweet! |
| South Dakota | $150 | $50 | Annual reports are due on your LLC’s anniversary month. |
| Tennessee | $300 | $300 | Big fees, but Tennessee loves its LLCs! |
| Texas | $300 | $0 | No annual fees, but watch out for franchise taxes! |
| Utah | $70 | $20 | File your annual renewal online. It’s quick and cheap! |
| Vermont | $125 | $35 | Annual reports are due by March 15 each year. |
| Virginia | $100 | $50 | File your annual report in your LLC’s anniversary month. |
| Washington | $200 | $60 | Annual reports are due by the end of your LLC’s anniversary month. |
| West Virginia | $100 | $25 | File your annual report by June 30. It’s simple! |
| Wisconsin | $130 | $25 (every 2 years) | Biennial reports are affordable and easy to manage. |
| Wyoming | $100 | $60 minimum every year | Low fees and LLC-friendly policies. Wyoming wins! |
LLC Cost By State FAQs
Let me help you out with a friendly rundown of the most common questions about LLC costs by state. Here we go!
1. What’s the average cost of forming an LLC across the U.S.?
The cost to form an LLC varies by state, but on average, you’ll spend $50 to $150 just to file your Articles of Organization (also called a Certificate of Formation in some states). Some states are a bit pricier, like California, with its $70 filing fee plus an annual $800 franchise tax. Meanwhile, states like Kentucky and Arkansas keep it budget-friendly at just $40 to $50.
2. Why do LLC formation costs vary so much between states?
Great question! Each state sets its own rules and fees for LLCs. The costs are based on things like:
- Administrative work is needed to process filings.
- Whether the state charges franchise or privilege taxes (yep, that’s a thing in some places).
- Additional perks they offer, like online filing portals or faster approval times.
It’s just one of those “state-by-state” things—kind of like local pizza styles!
3. Are there ongoing fees after I form my LLC?
In most states, yes! Filing your LLC is just the beginning. You’ll likely need to pay annual or biennial fees to keep your LLC in good standing. For example:
- Alabama charges $50 for an annual report.
- Wyoming has a $60 annual fee.
- California (oh, California!) wants $800 annually as a franchise tax.
Don’t forget about your Registered Agent fees if you hire one. Many services, like Northwest or Registered Agents Inc., offer the first year free if you form an LLC with them, but after that, it’s usually $125–$200/year.
4. Which states are the cheapest for LLC formation?
Looking to pinch those pennies? Here are a few of the most affordable states to form an LLC:
- Montana: $35 filing fee
- Kentucky: $40 filing fee.
- Arkansas: $50 filing fee.
- Missouri: $50 filing fee.
They’re simple, straightforward, and wallet-friendly!
5. What’s the most expensive state to form an LLC?
Brace yourself—Massachusetts takes the top spot with a $500 LLC formation fee, followed by California, which demands that infamous $800 franchise tax every year. States like Texas and Nevada also get pricey if you factor in extra taxes.
6. Can I form an LLC in another state to save money?
You can, but here’s the catch: If you’re doing business in your home state, you’ll still need to register as a foreign LLC there. That means paying fees in both states. It often ends up costing more in the long run unless your business operates entirely in that cheaper state (like online ventures).
7. Are there hidden LLC fees I should know about?
Oh, sneaky fees. They’re out there. Some examples include:
- Expedited filing fees: Want your LLC approved fast? States like New York can charge an extra $25–$150 for rush processing.
- Name reservation fees: Some states, like Alabama, require you to reserve your LLC name before filing, which adds another $10–$28.
- Publication fees: If you’re forming an LLC in Arizona or New York, you’ll need to publish a notice in a local newspaper, costing $50–$2,000 depending on the county.
8. Can I DIY my LLC to save money?
Totally! If you’re comfortable with paperwork and can follow instructions, DIY-ing your LLC is the cheapest way to go. You’ll just pay the state’s filing fee. But if forms and deadlines make your head spin, Check out Best LLC Services which I have listed after two months of research.
9. What’s the best state for forming an LLC?
The best state depends on your business needs. If you’re operating locally, stick to your home state—it’s simpler and often cheaper. For tax advantages or privacy, places like Wyoming and Delaware are popular. But remember, if you’re doing business elsewhere, you’ll need to register as a foreign LLC in those states, too.
10. Is forming an LLC worth the cost?
Absolutely! For just a small upfront investment, you get:
- Personal liability protection.
- A professional business structure.
- Potential tax benefits.
It’s one of the smartest moves you can make for your business—and your peace of mind.
