March 29, 2024

How Much Does an LLC Cost by State

Ad Disclosure: This article contains references to products from our partners. We may receive compensation if you apply or shop through links in our content. You help support CreditDonkey by using our links. (read more)

LLC filing fees can range from $35 to $3,000, depending on where you do your business. Here is a comprehensive list of LLC costs per state.

There's no getting around the fact that you'll have to spend if you want to create an LLC. All states require an LLC filing fee, and most require an annual or biennial fee.

Unfortunately, beyond that is a longer list of expenses essential to starting an LLC. But after reading this article, you'll be more equipped to prepare a budget.

What influenced your decision the most when choosing a state to form your LLC?

LLC Cost by State

While every state requires a filing fee to bring your business to life, the price tag can vary dramatically.

This table offers a quick glimpse into the initial investment you'll need in each state:

StateDomestic LLC Filing FeeForeign LLC Filing FeeAnnual or Biennial Report Fee
Alabama[1]$200$150None
Alaska[2]$250$350$100 every two years
Arizona[3]$50$150None
Arkansas$45 (online)
$50 (paper)[4]
$270 (online)
$300 (paper)[5]
$150 each year[6]
California[7]$70$70$20 every two years
Colorado[8]$50$100$10 each year
Connecticut[9]$120$120$80 each year
Delaware[10]$110$200None
($300 annual tax)[11]
District of Columbia[12]$99$220$300 every two years
Florida[13]$125$125$138.75 each year
Georgia[14]$100 (online)
$110 (paper)
$225 (online)
$235 (paper)
$50 each year (online) $60 (paper)
Hawaii[15]$50$50[16]$15 each year
Idaho[17]$100$100$0 each year
Illinois[18]$150$150$75 each year
Indiana[19]$95$105$31 every two years
Iowa[20]$50$100$30 every two years (online)
$45 (paper)
Kansas[21]$160 (online)
$165 (paper)
$165$100 every two years (online)
$110 (paper)[22]
Kentucky[23]$40$90$15 each year
Louisiana[24]$100 $150$30 each year
Maine[25]$175$250Domestic: $85 each year Foreign: $150
Maryland[26]$100$100$300 each year
Massachusetts[27]$500$500$500 each year
Michigan[28]$50$50$25 - $75 each year
Minnesota[29]$155 (in person/online) $135 (paper)$205 (in person/online) $185 (paper)$0 each year
Mississippi[30]$50$250$250 each year
(for foreign LLCs only)
Missouri[31]$50 (online) $105 (paper)$105 (paper)None
Montana[32]$35$70$20 each year
Nebraska[33]$100 (online)
$110 (in-person)
$100 (online)
$110 (in-person)
$25 every two years (online)
$30 (paper)[34]
Nevada[35]$75$75$150 each year
New Hampshire[36]$100$100$100 each year
New Jersey[37]$125$125$75 each year
New Mexico[38]$50$100[39]None
New York[40]$200$250$9 every two years
North Carolina$125[41]$250[42] $203 each year (online)
$200 (paper)[43]
North Dakota[44]$135$135$50 each year
Ohio[45]$99$99None
Oklahoma[46]$100$300$25 each year
Oregon[47]$100$275$100 each year
Pennsylvania[48]$125$250$7 each year
Rhode Island[49]$150$150[50]$50 each year
South Carolina[51]$110$110None
South Dakota[52]$150 (online)
$165 (paper)
$750 (online)
$765 (paper)
$50 each year
Tennessee[53]$300 - $3,000$300 - $3,000$300 - $3,000 each year[54]
Texas[55]$300$750None
Utah[56]$54$54$18 each year
Vermont[57]$125$125Domestic: $35 each year
Foreign: $140
Virginia[58]$100$100$0 each year[59]
($50 Annual Registration)[60]
Washington[61][62]$200 (online)
$180 (paper)
$200 (online)
$180 (paper)
$70 each year
West Virginia[63]$100$150$25 each year[64]
Wisconsin[65]$130 (online)
$170 (paper)
$100+Domestic:$25 each year
Foreign:$65 (online) $80 (paper)
Wyoming[66]$100$150At least $60 each year

Unless otherwise specified, the fees above are applicable both for online and paper filings. Additionally, you may have to pay a convenience fee (if online) or administrative fee (if paper) on top of the LLC filing fee.

LLC Formation Cost Comparison
Curious about how your dream state stacks up against the national average? The average LLC domestic filing fee across the US sits at $131.44.

Montana has the lowest domestic LLC filing fee at $35.[67] Meanwhile, Massachusetts demands a heftier chunk of change at a whopping $500.[68]

If you could form an LLC in another state, would you prioritize lower initial filing fees?

Domestic LLC Filing Fee

You must pay the domestic LLC filing fee if you want to start a limited liability company (LLC) in any state. It's a one-time expense paid to the state-level government.

Most states have a flat domestic LLC filing fee. This means all for-profit LLCs will pay the same fee regardless of the purpose of business. Or regardless of the number of members or managers.

Note that Tennessee doesn't have a flat domestic LLC filing fee. Its domestic LLC filing fee is $50 per member, with a minimum filing fee of $300. There's also a maximum filing fee of $3,000.[69]

Foreign LLC Filing Fee

If your LLC wants to do business in a different state, you need to register as a foreign LLC in that state—hence the foreign LLC filing fee. Unfortunately, foreign LLC fees are often pricier than domestic LLC fees.

Along with the filing fee, you'll also need to submit a document, typically called a Certificate of Authority. It contains essential information about your business, like your business name and original state.

Can I form an LLC in another state without having an existing LLC in my home state?
Yes. You can create an LLC in any state, and it doesn't have to be your home state. However, the state you create your LLC in will be known as your LLC's "home state" or "domestic state." It's where your LLC will be officially recognized and earn its legal status.

Annual or Biennial Report Filing Fee

An annual or biennial report typically includes updated information about your business. This includes your business address and the names of members and managers who joined the business the previous year.

Many states require LLCs to submit an annual report. Each has a specific deadline for when these reports and fees are due. Other states like California and New York only require an updated business report to be submitted every other year.

Non-submission of Annual or Biennial Report
If you fail to submit your annual or biennial report for your LLC, most states will impose late fees. These fees can accumulate over time. If the report is not filed for an extended period, the state could close your LLC.

Other LLC Fees to Consider

The LLC filing fee and annual or biennial report fee are just the tip of the iceberg. You must look at the other potential expenses to fully understand how much an LLC costs by state.

Some states let veterans form an LLC for free.
If you're a veteran planning to form an LLC, check if the state includes special provisions that waive or reduce LLC formation fees.

For example, in Texas, veterans who form an LLC between January 1, 2022, and December 31, 2025, are eligible for a fee waiver that covers the $300 filing fee and a five-year exemption from the state's franchise tax.[70]

Some states also offer other incentives for veteran-owned businesses, such as reduced fees for business licenses and tax incentives.

Business Permits and Licenses Fee

Like any registered business, LLCs often need various business permits and licenses. These typically come with associated fees.

Your LLC's business purpose will indicate the permits and licenses that it needs. For example, if you run a restaurant, you'll likely need a health permit, liquor license, and a food handler's license.

Additionally, city, county, and state governments each have their own set of required permits and licenses. Fees vary, but you should budget a few hundred dollars for them.

Check if your LLC needs an environmental permit.
If your business has a significant environmental impact, you might need environmental permits. Examples of activities that require environmental permits include emitting air pollutants and discharging wastewater.

Business Taxes

LLC members are considered self-employed and must pay self-employment taxes on their share of the profits. The current combined self-employment tax rate is 15.3%, with 12.4% going to Social Security and 2.9% to Medicare.[71]

Depending on the purpose and nature of your business, your LLC might be subject to more tax. For example, if your LLC has employees, it will need to pay payroll taxes.

Additionally, some states impose a franchise tax or business privilege tax on LLCs. This is not an income tax but rather for the privilege of being registered to do business in that state.

Seek professional help to navigate complex tax rules.
Consult with an accountant or tax lawyer to know more about the federal, state, and local taxes that your LLC needs to pay. Failure to pay taxes may result in penalties or dissolution.

LLC Formation Expedited Fee

An LLC formation expedited fee is an additional charge you can pay if you want the registration process to be completed faster than the standard processing time.

It varies by state, typically ranging from $50 to $1,000. The amount may depend on how quickly you want to receive your LLC's formation documents.

This could range from 48 hours to 1 hour processing time. The more you pay, the faster your LLC will be processed.

Expedited services for other business documents.
In some states, most of your LLC documents can be expedited for a fee. This includes the Certificate of Good Standing and Certificate of Correction. The cost depends on how quickly you need the documents to be processed.

LLC Registered Agent Fee

Most states require LLCs to have a registered agent. They act as an official point of contact and receive important legal documents. This includes summonses, subpoenas, and other legal paperwork.

To save money, you can be the LLC's registered agent. But this may raise some privacy concerns since your address will be publicly listed.

Alternatively, consider hiring a registered agent. It typically costs up to about $399 annually.

Do I need to get the person's consent before appointing them as a registered agent?
It depends. Some states require a written statement from the appointed agent confirming their willingness to serve in that role. Even if it's not required, it's always best to appoint someone who understands the full responsibility of receiving sensitive legal and tax documents.

LLC Operating Agreement Fee

An operating agreement is a legal document that details important rules for managing the LLC. It also defines the roles and responsibilities of the members or managers.

The costs associated with the operating agreement come in the drafting of the document. You can create an operating agreement for free. But it can cost around $1,000+ if you hire an attorney.

Why an Operating Agreement Matters
In most states, LLCs are member-managed by default. This means all members have equal voting rights. However, this can lead to a gridlock when making management decisions.

LLC Name Reservation Fee

There's usually no cost to naming your LLC. It should be included when you pay the LLC formation filing fee.

But if you're not ready to submit your Articles of Organization, you can reserve your desired business name first. Paying the state's LLC name reservation fee gives you time to prepare your LLC formation documents without worrying about losing the name.

Typically, a name reservation holds your chosen business name for a set period, often 60-180 days, depending on the state's rules. It may cost anywhere between $5 to $50.

Thoroughly check the state's naming regulations and check the name's availability first.
Don't forget to review the state's detailed list of naming regulations to prevent your Articles of Organization from getting rejected. Additionally, before paying a name reservation fee, check the availability of your desired name through the state's business name database.

LLC Fictitious Name Fee

A fictitious name allows your LLC to operate under a name different from its official registered name. Registering for one may cost anywhere between $10 to $70.

The cost of registering a fictitious name and the duration of its validity vary by state. You may have to pay the fee either to the Secretary of State or to the county register of deeds.

Fictitious Names for Foreign LLCs
If your foreign LLC's original name is unavailable in the state where you want to expand your business, you must file a Certificate of Assumed Name. The assumed name becomes your LLC's official business name only in that state.

LLC Publication Fee

Some states have a publication requirement, while others don't require it at all. Two distinct types of publication fees may be required depending on the state:

  • LLC Formation Publication Fee
    In some states like New York[72] and Arizona[73], you must publish a notice in a local newspaper after your LLC application.

    This notice typically includes the name of the LLC and its business address.

  • LLC Fictitious Name Publication Fee
    If you register a fictitious name for your LLC, some states require you to publish a notice in a local newspaper.

    This notice generally includes the fictitious name and the real name of the LLC that is using it.

The fees for these publications vary based on the newspaper's rates, notice length, and publication duration.

A single publication fee might apply to both, while others have separate fees for each process. It may cost around $200+.

LLC Certificate of Good Standing Fee

A certificate of good standing verifies that your LLC has met all its legal requirements, including filing annual reports, paying taxes, and maintaining a registered agent.

It also tells banks and investors that the LLC is legally compliant and active. This certificate may cost you upwards of $5.

What should I do if my LLC is in bad standing?
Pay any outstanding penalties and fees. You must also file any required annual or biennial report if it's late. Afterward, file an LLC Reinstatement Form along with the filing fee. The cost and process vary depending on state rules.

LLC Certified Copy of Business Document Fee

Certified copies of business documents verify that your LLC is legitimate and that its details are accurate.

You may need them for circumstances like opening a business bank account or expanding your LLC in another state. It may cost you around $5+.

Certificate of Good Standing vs. Certified Copy of Business Documents
A Certificate of Good Standing focuses on your LLC's legal status, while Certified Copies provide the legal details and structure of your LLC.

If you need to prove that your LLC is compliant with state regulations, a Certificate of Good Standing is appropriate. If you need proof of your LLC's information (like the formation date and the members' names), then certified copies of business documents are needed.

LLC Certificate of Correction Fee

A certificate of correction is a document used to correct errors or inaccuracies in previously filed LLC documents. Filing a correction ensures that your LLC's official records with the state are accurate.

States typically charge a minimal administrative fee to process the correction. For example, in North Carolina, the correction fee is $10.[74] In Pennsylvania, it costs $70.[75]

LLC Certificate of Amendment Fee

You might need to pay the amendment fee when significant changes occur in your LLC. These changes include a new business name, new members, or any detail that affects the information in your original Articles of Organization.

Certificate of Correction vs. Certificate of Amendment
A certificate of correction is for fixing mistakes in initial filings. Meanwhile, a certificate of amendment is for updating key details as the LLC evolves.

Business Website Domain Fee

A website domain provides a dedicated online space for your business. It's essential for marketing, customer engagement, and brand visibility in today's digital world.

Even if you're not planning to build a business website now, it's a good idea to buy the domain name at least. This prevents others from using your LLC's name as a web address.

Beware of website domain squatters.
Domain squatters often monitor newly registered LLC names. They purchase corresponding website domains and then resell them at significantly higher prices.

Business Insurance Premiums

Business insurance premiums are the annual or monthly fees for coverage against various risks.

While an LLC provides some legal protection to personal assets, business insurance covers expenses from unexpected events. This can include lawsuits, property damage, and employee injuries.

Additionally, most states require businesses with at least one employee to have workers' compensation insurance.

This ensures that employees receive financial compensation for medical expenses and lost wages if injured on the job, regardless of who was at fault.

Bottom Line

Bringing your entrepreneurial vision to life through an LLC demands a clear understanding of the financial commitments involved. Your key takeaways should include:

  • Every state has an LLC filing fee, ranging from $35 to $3,000.
  • Most states require annual or biennial reports that cost around $25 to $300.
  • There could be additional costs, like permits, licenses, and taxes, that you need to consider.

The cost of forming an LLC doesn't end with the LLC formation filing fee. You can save this guide for an overview of what to expect financially in any state.

References

  1. ^ Alabama Secretary of State. Fee Schedule, Retrieved 02/18/2024
  2. ^ State of Alaska. Forms by Entity Type, Retrieved 02/18/2024
  3. ^ Arizona Corporation Commission. Schedule of Fees Limited Liability Companies, Retrieved 02/18/2024
  4. ^ Arkansas Secretary of State. Domestic Limited Liability Company, Retrieved 02/18/2024
  5. ^ Arkansas Secretary of State. Foreign Limited Liability Company, Retrieved 02/18/2024
  6. ^ Arkansas Secretary of State. Franchise Tax / Annual Report Forms, Retrieved 02/18/2024
  7. ^ California Secretary of State. Business Entities Fee Schedule, Retrieved 02/18/2024
  8. ^ Colorado Secretary of State. Business FAQs: Q2. Can anyone be a registered agent?, Retrieved 02/18/2024
  9. ^ CT.GOV. Forms and Fees, Retrieved 02/18/2024
  10. ^ Delaware.gov. Corporate Fee Schedule, Retrieved 02/18/2024
  11. ^ Delaware.gov. LLC/LP/GP Franchise Tax Instructions, Retrieved 02/18/2024
  12. ^ DLCP. Corporations Division Fees - Limited Liability Company, Retrieved 02/18/2024
  13. ^ Florida Department of State. Limited Liability Company Fees, Retrieved 02/18/2024
  14. ^ Georgia Secretary of State. Corporations Division Filing Fees Schedule, Retrieved 02/18/2024
  15. ^ DCCA Hawaii. Domestic Limited Liability Company Fees, Retrieved 02/18/2024
  16. ^ DCCA Hawaii. Foreign Limited Liability Company Fees, Retrieved 02/18/2024
  17. ^ Idaho Secretary of State. Business Forms, Retrieved 02/18/2024
  18. ^ The Office of the Illinois Secretary of State. Limited Liability Company Publications/Forms, Retrieved 02/18/2024
  19. ^ Indiana Secretary of State Diego Morales. Fee Calculator, Retrieved 02/18/2024
  20. ^ Iowa Secretary of State. Business Entity Forms and Fees, Retrieved 02/18/2024
  21. ^ Kansas Secretary of State. Register a Business, Retrieved 02/18/2024
  22. ^ Kansas Secretary of State. Instructions for Filing an Information Report, Retrieved 03/07/2024
  23. ^ Office of the Kentucky Secretary of State. Business Filings Fees, Retrieved 02/18/2024
  24. ^ Louisiana Secretary of State. Get Forms & Fee Schedule, Retrieved 02/18/2024
  25. ^ Maine.gov. Limited Liability Companies, Retrieved 02/18/2024
  26. ^ Maryland.gov. Fee Schedule, Retrieved 02/18/2024
  27. ^ Massachusetts Secretary of State. Corporations Division Filing Fees, Retrieved 02/18/2024
  28. ^ Michigan Department of Licensing and Regulatory Affairs. Filing Fees, Retrieved 02/18/2024
  29. ^ Office of the Minnesota Secretary of State. Business Filing & Certification Fee Schedule, Retrieved 02/18/2024
  30. ^ Mississippi Secretary of State. Business Documents Filing Fees, Retrieved 02/18/2024
  31. ^ Missouri Secretary of State. Schedule of Fees and Charges, Retrieved 02/18/2024
  32. ^ Montana Secretary of State. Business Services Filing Fees, Retrieved 02/18/2024
  33. ^ Nebraska Secretary of State. Forms and Fee Information, Retrieved 02/18/2024
  34. ^ Nebraska Legislature. Nebraska Revised Statute 21-192, Retrieved 02/18/2024
  35. ^ Nevada Secretary of State. Forms & Fees, Retrieved 02/18/2024
  36. ^ New Hampshire Secretary of State. Domestic and Foreign Limited Liability Company, Retrieved 02/18/2024
  37. ^ State of New Jersey Department of the Treasury. Registry Fee Schedules, Retrieved 02/18/2024
  38. ^ New Mexico Secretary of State. Domestic NM LLC, Retrieved 02/18/2024
  39. ^ New Mexico Secretary of State. Foreign Limited Liability Company, Retrieved 02/18/2024
  40. ^ New York Department of State. Fee Schedules, Retrieved 02/18/2024
  41. ^ North Carolina Department of the Secretary of State. Business Registration Fees - Limited Liability Companies, Retrieved 02/18/2024
  42. ^ North Carolina Department of the Secretary of State. Register a Foreign Business Requirements, Retrieved 02/18/2024
  43. ^ North Carolina Department of the Secretary of State. Annual Report Due Dates, Retrieved 02/18/2024
  44. ^ North Dakota Secretary of State. LLC Fees, Retrieved 02/18/2024
  45. ^ Ohio Secretary of State. Filing Forms & Fee Schedule, Retrieved 02/18/2024
  46. ^ Oklahoma Secretary of State. Business Forms, Retrieved 02/18/2024
  47. ^ Oregon Secretary of State. Business Registry Fee Schedule, Retrieved 02/18/2024
  48. ^ Pennsylvania Department of State. Fees and Payments, Retrieved 02/18/2024
  49. ^ Rhode Island Department of State. Costs & Fees, Retrieved 02/18/2024
  50. ^ Rhode Island Department of State. Foreign Business Costs & Fees, Retrieved 02/18/2024
  51. ^ South Carolina Secretary of State. Downloadable Paper Forms, Retrieved 02/18/2024
  52. ^ South Dakota Secretary of State. Filing Fees, Retrieved 02/18/2024
  53. ^ Tennessee Secretary of State. Business Forms & Fees, Retrieved 02/18/2024
  54. ^ Tennessee Secretary of State. FAQ: Limited Liability Companies, Retrieved 02/18/2024
  55. ^ Texas Secretary of State. Business Filings & Trademarks Fee Schedule, Retrieved 02/18/2024
  56. ^ Utah Division of Corporations & Commercial Code. Fee Schedule, Retrieved 02/18/2024
  57. ^ Vermont Secretary of State. Fees, Retrieved 02/18/2024
  58. ^ Virginia State Corporation Commission. Forms and Fees, Retrieved 02/18/2024
  59. ^ Virginia State Corporation Commission. Annual Reports: How much does it cost to file an Annual Report?, Retrieved 02/18/2024
  60. ^ Virginia State Corporation Commission. Annual Registration Fees, Retrieved 02/18/2024
  61. ^ Washington Secretary of State. Download Forms / Online Filing Instructions, Retrieved 02/18/2024
  62. ^ Washington Secretary of State. Limited Liability Companies (LLC), Online and Paper Registrations, Retrieved 02/18/2024
  63. ^ West Virginia Secretary of State. Fee Schedule for Services and Registration, Retrieved 02/18/2024
  64. ^ WV One Stop Business Portal. Annual Reporting, Retrieved 02/18/2024
  65. ^ State of Wisconsin Department of Financial Institutions. Corporation Fees: Limited Liability Company, Retrieved 02/18/2024
  66. ^ Wyoming Secretary of State. Business Division Filing Fee Schedule, Retrieved 02/18/2024
  67. ^ Montana Secretary of State. Business Services Filing Fees, Retrieved 01/09/2024
  68. ^ Secretary of the Commonwealth of Massachusetts. Limited Liability Company Information, Retrieved 01/09/2024
  69. ^ Tennessee Secretary of State. Business Forms & Fees, Retrieved 01/09/2024
  70. ^ Texas Secretary of State. Business Information for Veterans, Retrieved 01/20/2024
  71. ^ Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes), Retrieved 01/09/2024
  72. ^ New York State. Certificate of Publication for Domestic Limited Liability Company, Retrieved 01/09/2024
  73. ^ Arizona Corporation Commission. Articles of Organization, Retrieved 01/09/2024
  74. ^ North Carolina Secretary of State. North Carolina Secretary of State Fees, Retrieved 01/20/2024
  75. ^ Pennsylvania Department of State. Statement of Correction, Retrieved 01/20/2024

Nicole King is a research analyst at CreditDonkey, a business formation services comparison and reviews website. Write to Nicole King at nicole.king@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.


How Much Does It Cost to Form an LLC?

Forming an LLC can be the next step for your business. But how much will it cost? Read on to learn about the different LLC formation fees.
Stay informed with free money-saving tips, deals, and reviews from CreditDonkey.

About CreditDonkey
CreditDonkey is a business formation services comparison website. We publish data-driven analysis to help you save money & make savvy decisions.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed on this page are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

†Advertiser Disclosure: Many of the offers that appear on this site are from companies from which CreditDonkey receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). CreditDonkey does not include all companies or all offers that may be available in the marketplace.

*See the card issuer's online application for details about terms and conditions. Reasonable efforts are made to maintain accurate information. However, all information is presented without warranty. When you click on the "Apply Now" button you can review the terms and conditions on the card issuer's website.

CreditDonkey does not know your individual circumstances and provides information for general educational purposes only. CreditDonkey is not a substitute for, and should not be used as, professional legal, credit or financial advice. You should consult your own professional advisors for such advice.

About Us | Reviews | Deals | Tips | Privacy | Do Not Sell My Info | Terms | Contact Us
(888) 483-4925 | 680 East Colorado Blvd, 2nd Floor | Pasadena, CA 91101
© 2024 CreditDonkey Inc. All Rights Reserved.