Key takeaways:
- Starting an LLC comes with many expenses: filing fees, annual reports, and other costs.
- The total cost of forming an LLC varies significantly by state because each state has its own 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 filing fee is only the starting point. Depending on where you form your business, you may also need to pay annual report fees, franchise taxes, registered agent fees, publication costs, and business license expenses.
The total cost to start an LLC depends on several factors, including your state, your filing method, and whether you handle the paperwork yourself or use a formation service. Some states keep ongoing costs low, while others add recurring fees and post-filing requirements that raise the total over time. That is why it is important to look beyond the one-time filing fee when planning your budget.
So, factoring these in, how much does it cost to start an LLC in 2026? This blog will break down the key costs during and after the filing, so you know what to expect.
Disclaimer: This article is for informational purposes only and should not be treated as financial advice. Please consult a professional for your specific use case.
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How much is it to start an LLC?
The cost to form and maintain an LLC includes both one-time startup costs and ongoing expenses. Most LLC owners pay an initial filing fee to submit their formation documents, then continue paying recurring fees to keep the business in good standing. Depending on the state, those ongoing costs may include annual reports, franchise taxes, or other compliance filings.
Other costs can also come up depending on how you set up and run your business. These may include DBA filings, registered agent services, business licenses, and operational expenses such as marketing and website setup.
Let’s look at each type of cost more closely.
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. In 2026, these fees still generally range from about $35 to $500, depending on the state and if you use third-party services. Massachusetts, for example, remains one of the most expensive states to form an LLC at $500.
- 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
Some states charge a separate annual tax on LLCs. California is one of the best-known examples. Its LLCs still face an $800 annual tax, including the first year. A temporary first‑year exemption existed for LLCs formed between 2021 and 2023, but that exemption has expired. This means many newly formed LLCs in 2026 should plan for that recurring cost. Massachusetts also remains costly, with an annual report fee of $500.
Texas does not charge a traditional annual report fee for LLCs, but it requires yearly franchise tax‑related filings. Most small LLCs owe no franchise tax because they fall below the no‑tax‑due threshold, but annual reports must still be filed to keep the LLC in good standing.
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 in their desired state, this adds to 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 post-filing requirements that increase the total cost of starting an LLC. New York is one of the clearest examples. Most New York LLCs must publish notice of formation in two newspapers for six consecutive weeks and then file a Certificate of Publication, which carries a $50 filing fee.
Meanwhile, the publication costs vary per county and newspaper, but they range from roughly $150 to over $1,500.
California also has a post-filing requirement. LLCs must file a Statement of Information, and that filing is separate from the annual LLC tax. Current 2026 guidance continues to treat the $20 Statement of Information fee and the $800 annual tax as separate obligations.
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
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How much does it cost to get an LLC by state in 2026?
The cost of an LLC varies significantly by state. Some states charge only a one-time filing fee, while others add annual fees, biennial reports, franchise taxes, or post-filing requirements that increase the total over time. That’s why it helps to compare both the formation fee and the ongoing cost when choosing where to form your LLC.
State | LLC filing fee | Annual/biennial fee | Notes |
|---|---|---|---|
Alabama | $200 | Minimum of $50 yearly | None |
Alaska | $250 | $100 every two years | None |
Arizona | $50 | None | No annual report |
Arkansas | $40 | $150 yearly | None |
California | $70 | $800 yearly | $20 Statement of Information every two years |
Colorado | $50 | $25 yearly | None |
Connecticut | $120 | $80 yearly | None |
Delaware | $110 | $300 yearly | None |
District of Columbia | $99 | $300 every two years | None |
Florida | $125 | $138.75 yearly | None |
Georgia | $100 | $50 yearly | None |
Hawaii | $50 | $15 yearly | None |
Idaho | $100 | None | Annual information report required |
Illinois | $150 | $75 yearly | None |
Indiana | $95 | $31 every two years | None |
Iowa | $50 | $30 every two years | None |
Kansas | $160 | $50 yearly | None |
Kentucky | $40 | $15 yearly | None |
Louisiana | $100 | $35 yearly | None |
Maine | $175 | $85 yearly | None |
Maryland | $100 | $300 yearly | None |
Massachusetts | $500 | $500 yearly | None |
Michigan | $50 | $25 yearly | None |
Minnesota | $155 | None | Yearly information report required |
Mississippi | $50 | None | Yearly information report required |
Missouri | $50 | None | No annual report |
Montana | $35 | $20 yearly | None |
Nebraska | $100 | $13 every two years | None |
Nevada | $425 | $350 yearly | None |
New Hampshire | $100 | $100 yearly | None |
New Jersey | $125 | $75 yearly | None |
New Mexico | $50 | None | No annual report |
New York | $200 | $9 every two years | Publication required; $50 Certificate of Publication filing fee; newspaper costs vary by county |
North Carolina | $125 | $200 yearly | None |
North Dakota | $135 | $50 yearly | None |
Ohio | $99 | None | No annual report |
Oklahoma | $100 | $25 yearly | None |
Oregon | $100 | $100 yearly | None |
Pennsylvania | $125 | $7 yearly | None |
Rhode Island | $110 | $50 yearly | None |
South Carolina | $110 | None | Unless taxed as an S corporation |
South Dakota | $150 | $55 yearly | None |
Tennessee | $300 | $300 yearly | None |
Texas | $300 | None | No flat annual fee; franchise tax and Public Information Report or Ownership Information Report may apply |
Utah | $59 | $18 yearly | None |
Vermont | $155 | $45 yearly | None |
Virginia | $100 | $50 yearly | None |
Washington | $200 | $60 yearly | None |
West Virginia | $100 | $25 yearly | None |
Wisconsin | $130 | $25 yearly | None |
Wyoming | $100 | Minimum of $60 yearly | None |
Note: Fees can change without prior notice. Always confirm current LLC filing and maintenance costs with your state filing office or tax agency
The cheapest states to start an LLC
These states are often considered among the cheapest places to start an LLC because they combine low filing fees with low or no recurring fees:
- Colorado: $50 filing fee and $25 yearly fee
- Kentucky: $40 filing fee and $15 yearly fee
- Mississippi: $50 filing fee and no annual fee, but a yearly information report is required
- Missouri: $50 filing fee and no annual fee or annual report
- Montana: $35 filing fee and $20 yearly fee
- New Mexico: $50 filing fee and no annual fee or annual report
This guide works well for first-time business owners, but remember: the cheapest state isn’t always the best state for your business. If you form in one state but primarily operate in another, you may need to register as a foreign LLC and incur additional costs later.
The most expensive states to start an LLC
These states are often among the most expensive places to start and maintain an LLC because of higher filing fees, recurring fees, or extra compliance requirements:
- California: California’s filing fee is lower than in some states, but its $800 annual LLC tax significantly increases the ongoing cost.
- Massachusetts: Massachusetts remains one of the costliest states because it charges $500 to form an LLC and $500 for the annual report.
- New York: Despite a moderate initial fee of $200 and a low annual fee of $9, New York can become expensive because most LLCs must meet the publication requirement, and the newspaper cost can vary widely by county.
- Nevada: Nevada is still commonly treated as a high-cost formation state because of its relatively high startup and recurring compliance costs, driven by a high initial filing fee of $425 and a significant annual fee of $350.
What is the best state to form an LLC?
The best state to form an LLC is usually the one where you actually plan to do business. While low-cost states may look appealing, forming in another state does not automatically save money if you still need to register and comply where you operate. That can mean paying more in filing fees, annual reports, and other compliance costs.
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.
Frequently asked questions
Colorado, Kentucky, Mississippi, Missouri, Montana, and New Mexico are the cheapest states to open an LLC.
But remember, although some states offer lower LLC costs, that 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 by using a free LLC formation service or by handling all the legal documents and paperwork 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. If you form an LLC in one state but operate in another, you typically must register as a foreign LLC. This doesn’t mean you pay double taxes, but you may need to pay two sets of filing fees, annual reports, and compliance costs.
It’s not possible to avoid LLC fees, since the initial filing fee is required 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, their profits and losses are reflected on their owners’ personal tax returns.
Additionally, the Internal Revenue Service (IRS) treats single-member LLCs as sole proprietorships for tax purposes. This means the owner reports all business income and expenses on their personal tax return using Schedule C.
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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.
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