Key takeaways:
- Starting an LLC comes with many expenses: filing fees, ongoing annual reports, and additional expenses.
- The total cost of forming an LLC varies significantly by state because they all have their own respective requirements.
- Although it’s tempting to choose the cheap states, it’s not always the best choice if you won’t be active there. It will only double your expenses.
One of the main concerns when starting a limited liability company (LLC) is how much it costs to start one.
To give you a quick answer, the initial filing fee for an LLC typically ranges from $35 to $500 nationwide for the basic filing fee. But that’s just the beginning.
The total cost to get your LLC up and running and to keep it active depends on several key factors: your state, your filing method, and whether you handle the paperwork yourself or hire a professional service.
So, factoring these in, how much does it cost to start an LLC in 2025? This blog will break down the key costs during and after the filing, so you know what to expect.
How much is it to start an LLC?
The cost to form and maintain an LLC involves both one-time and ongoing expenses. The total price includes an initial one-time filing fee for the formation documents and recurring payments to keep your business in good standing. Other considerations include several additional costs and fees.
Let’s discuss these further below.
One-time startup costs
As their name suggests, one-time startup costs include all state law-required initial fees that a business entity should pay to form an LLC. These are typically:
- LLC name reservation fee. Some states allow you to reserve an LLC name for one to two months. The pricing varies per state, but it ranges between $10 and $50. This is optional and not a strict requirement before filing.
- Filing fee. Forming an LLC requires submitting articles of organization to your state government and paying state filing fees. This cost varies by state, and if you use a third-party service.
- Fictitious business name (FBN). Also known as a “Doing Business As” (DBA) name. This allows you to operate your LLC under a different name from the legal one. This also varies per state, and to get the exact cost, check with your state’s specific county.
Ongoing fees and expenses
These ongoing costs include annual/biennial fees to remain in good standing. The fee amount and reporting frequency vary widely by state.
Each state uses a different term, but they’re usually called:
- Annual report
- Annual fee
- Biennial report
- Annual franchise tax report
Aside from annual fees, other ongoing costs include:
Annual LLC taxes
In some states, LLCs are subject to a separate annual tax. For example, California has a minimum annual franchise tax of $800, and Massachusetts has a $500 annual report fee.
Another common LLC tax is the franchise tax, which some states charge instead of income tax. Texas is an example of this. But some states, like California, charge both income tax and franchise tax.
For a more in-depth explanation, read our guide on filing business taxes for LLCs.
Business license renewal fees
Depending on your business’s location and industry, you will need various licenses and permits from local, county, or state governments. These can have both one-time application fees and recurring renewal costs.
Registered agent fees
Since all LLCs are legally required to have a registered agent within their desired state, it adds to the annual upkeep and operating costs. Registered agent fees typically cost $100 to $300 a year for LLC owners who hire a professional service in their state.
State-specific post-filing requirements
Some states have extra requirements after forming an LLC that adds expenses to the total cost. For example, states like New York, Arizona, and Nebraska require a newly registered LLC to obtain a certificate of publication within 120 days. This involves publishing notices and announcements in two newspapers.
The certificate itself costs $50, and the publication costs vary per county and newspaper, but they range from roughly $150 to over $1,500.
Meanwhile, California LLCs need to submit a Statement of Information to the Secretary of State within 90 days every two years.
Operational expenses
Aside from the required fees, many new LLCs also pay ongoing fees related to operations. This could include:
- Administrative costs such as payroll for administrative staff, office supplies, software subscriptions, and professional fees for legal advice.
- Facility costs such as rent or mortgage payments, utilities, and general maintenance or repairs.
- Marketing includes paid advertising, social media campaigns, content creation, promotional materials, and website hosting.
If you need a solid domain name for your LLC, use our domain name generator to look for ideas.
How much does it cost to get an LLC by state in 2025?
LLC costs aren’t one-size-fits-all. Each state has its own set of requirements, rules, and fees for starting an LLC. If you plan to operate in multiple states, you need foreign LLC registration in each one.
The cost of an LLC varies significantly by state. To give you a quick overview, here’s a table of the state filing fees along with other additional LLC costs as of 2025:
| State | LLC filing fee | LLC annual/biennial fee |
| Alabama | $200 | Minimum of $50 (yearly) |
| Alaska | $250 | $100 (every two years) |
| Arizona | $50 | None and no information report |
| Arkansas | $40 | $150 (yearly) |
| California | $70 | $800 (yearly) + 20 (biennial) |
| Colorado | $50 | $25 (yearly) |
| Connecticut | $120 | $80 (yearly) |
| Delaware | $110 | $300 (yearly) |
| District of Columbia | $99 | $300 (biennial) |
| Florida | $125 | $138.75 (yearly) |
| Georgia | $100 | $50 (yearly) |
| Hawaii | $50 | $15 (yearly) |
| Idaho | $100 | None, but needs an annual information report |
| Illinois | $150 | $75 (yearly) |
| Indiana | $95 | $31 (biennial) |
| Iowa | $50 | $30 (biennial) |
| Kansas | $160 | $50 (yearly) |
| Kentucky | $40 | $15 (yearly) |
| Louisiana | $100 | $35(yearly) |
| Maine | $175 | $85 (yearly) |
| Maryland | $100 | $300 (yearly) |
| Massachusetts | $500 | $25 (yearly) |
| Michigan | $50 | $25 (yearly) |
| Minnesota | $155 | None, but needs a yearly information report |
| Mississippi | $50 | None, but needs a yearly information report |
| Missouri | $50 | None and no information report |
| Montana | $35 | $20 (yearly) |
| Nebraska | $100 | $13 (biennial) |
| Nevada | $425 | $350 (yearly) |
| New Hampshire | $100 | $100 (yearly) |
| New Jersey | $125 | $75 (yearly) |
| New Mexico | $50 | None and no information report |
| New York | $200 +$50 required publication fee | $9 (biennial) |
| North Carolina | $125 | $200 (yearly) |
| North Dakota | $135 | $50 (yearly) |
| Ohio | $99 | None and no information report |
| Oklahoma | $100 | $25 (yearly) |
| Oregon | $100 | $100 (yearly) |
| Pennsylvania | $125 | $7 (yearly) |
| Rhode Island | $110 | $50 (yearly) |
| South Carolina | $150 | None, unless taxed as an S-corp |
| South Dakota | $150 | $55 (yearly) |
| Tennessee | $300 | $300 (yearly) |
| Texas | $300 | None, but requires a public information report every year |
| Utah | $59 | $18 (yearly) |
| Vermont | $155 | $45 (yearly) |
| Virginia | $100 | $50 (yearly) |
| Washington | $200 | $60 (yearly) |
| Washington DC | $99 | $300 (biennial) |
| West Virginia | $100 | $25 (yearly) |
| Wisconsin | $130 | $25 (yearly) |
| Wyoming | $100 | Minimum of $60 (yearly) |
The cheapest states to start an LLC
These states are often cited for their low combined initial and annual costs:
- Colorado. Low filing fee of $50 and a $25 annual fee.
- Kentucky. Low filing fee of $40 and minimal annual report fee of $15.
- Mississippi. Low filing fee of $50 and does not have a recurring annual fee.
- Missouri. Low filing fee of $50 and does not have a recurring annual fee.
- Montana. Low filing fee of $35 and $20 annual fee,
- New Mexico. Low filing fee of $50 and no annual report or recurring fees.
The most expensive states to start an LLC
These states are known for having high initial and recurring fees, higher annual fees, and additional requirements that increase LLC costs:
- California. California has one of the highest annual franchise taxes in the nation at $800. This is a significant ongoing cost, even though the initial filing fee is relatively low at $70.
- Massachusetts. Massachusetts has a high initial filing fee of $500 and an annual report fee of $500 if filed by mail and $520 if filed online.
- New York. Despite a moderate initial fee of $200 and a low annual fee of $9, New York is one of the most expensive states due to mandatory publication requirements, which can go over $1,000 depending on the county.
- Nevada. Nevada’s high costs are due to a combination of a high initial filing fee of $425 and a significant annual fee of $350.
What is the best state to form an LLC?
Choosing the best state to form an LLC requires looking beyond the lowest filing fees. You should consider both the starting and ongoing fees, as well as state taxes and compliance rules.
While it is possible to form your LLC in a low-fee state (like Montana or Kentucky), you’re required to register your business as a foreign LLC in the state where you will conduct business.
To determine the total cost of forming an LLC in your chosen state, research the mandatory fees and potential additional expenses. This information is usually present on the official website of the state’s Secretary of State or a business filing agency.
Make your LLC ready for business
The cost to start an LLC is not a single, fixed price. It is a multifaceted investment that depends heavily on your state, filing choices, and long-term business goals.
After legally establishing your business, the next step is to secure its spot on the internet. At Network Solutions, we offer everything you need to build a solid online presence—from registering your LLC’s domain name to building a professional website to go along with it.
Frequently asked questions
Colorado, Kentucky, Mississippi, Missouri, Montana, and New Mexico are the cheapest states to open an LLC.
But remember: although certain states offer cheaper LLC costs, this doesn’t mean you should choose them to avoid other fees and save money.
In fact, doing so can lead to higher costs since you need to file as a foreign LLC on top of your domestic LLC, which doubles your annual fee expenses.
LLC startup costs are expenses needed to set up and launch a business. This includes state filing fees, registered agent costs, business licenses, professional services, and operational costs.
The total cost to start an LLC is influenced by a combination of one-time and recurring fees. These factors include the state’s filing fee, business licenses and permits, agent fees, and additional requirements (e.g., publication requirements)
Yes, most states require recurring fees to maintain an LLC in good standing. These include annual/biennial reports, state income taxes, franchise taxes, licenses, and permit renewals.
No, it’s not possible to start an LLC with no money because you need to pay the mandatory state filing fees. But you can lower your expenses using a free LLC formation service or handling all the legal documents and paperwork by yourself.
Some organizations, like the LLC university, also offer to pay the state filing fee for a few selected entrepreneurs through a giveaway.
Yes, foreign LLC costs are more expensive because you must pay double the registration fee and annual taxes (one for your home state and one for the new state). Depending on where you register, you might also have additional franchise taxes.
It’s not possible to avoid LLC fees because the initial filing fee itself is a requirement to establish an LLC. You can always try to reduce the expenses by acting as your own registered agent.
Yes, LLCs pay taxes, but not in the same sense as a C corporation. Since LLCs are considered “pass-through” entities, this means that the business’s profits and losses are reflected in its owners’ personal tax returns.
Additionally, the Internal Revenue Service (IRS) treats single-member LLCs that are taxed as sole proprietorships. This means the owner reports all business income and expenses on their personal tax return using Schedule C.
