How much does it cost to start an LLC?
State LLC Formation Costs
To establish a California LLC, you must file the articles of organization with the Secretary of State along with a filing fee of $90. LLC filing fees vary per state.
| State | LLC Filing Fees | Ongoing LLC Fees |
| Alabama | $180 | $100-$200 |
| Alaska | $250 | $150 |
| Arizona | $50 | $0 to $100 |
| Arkansas | $45 or $50 | $150 |
| California | $90 | $810 |
| Colorado | $50 | $10 |
| Connecticut | $120 | $270 |
| Delaware | $90 | $300 |
| District of Columbia (D.C.) | $220 | $300 |
| Florida | $263.75 | $138.75 |
| Georgia | $100 | $50 |
| Hawaii | $50 | $15 |
| Idaho | $100 | $0 |
| Illinois | $150 | $75 |
| Indiana | $50 | $32 |
| Iowa | $50 | $35 |
| Kansas | $165 | $50 |
| Kentucky | $40 | $15 |
| Louisiana | $100 | $30 |
| Maine | $175 | $85 |
| Maryland | $450 | $300 |
| Massachusetts | $500 | $500 |
| Michigan | $50 | $25 |
| Minnesota | $135 | $25-$45 |
| Mississippi | $50 | $25 |
| Missouri | $50 or $105 | $0 |
| Montana | $70 | $20 |
| Nebraska | $110 | $18 |
| Nevada | $75 | $350 |
| New Hampshire | $100 | $100 |
| New Jersey | $125 | $125 per LLC member + $50 |
| New Mexico | $50 | None |
| New York | $275 | $25 to $4,500 |
| North Carolina | $125 | $200 |
| North Dakota | $135 | $50 |
| Ohio | $99 | $0 |
| Oklahoma | $100 | $25 |
| Oregon | $100 | $100 |
| Pennsylvania | $125 | $0 |
| Rhode Island | $150 | $450 |
| South Carolina | $110 | $0 |
| South Dakota | $150 | $50 |
| Tennessee | $300-$3,000 | $300-$3,000 |
| Texas | $300 | $0 |
| Utah | $70 | $20 |
| Vermont | $125 | $35 |
| Virginia | $100 | $50 |
| Washington | $259 | $79 |
| West Virginia | $130 | $25 |
| Wisconsin | $130 | $25 |
| Wyoming | $100 | $50 |
Other Startup Costs
Cost to Reserve an LLC Name
If you aren’t quite ready to file the articles of organization but you have decided on the LLC’s name, you can reserve the name with the Secretary of State. In California, the name can be reserved for 60 days for a cost of $10. You should choose a unique name that is not too similar to any other LLC names recorde with the Secretary of State. The reservation of an LLC name is optional and not rquired if you are ready to file the articles immediately.
Fictitious Business Name Application Fees
You don’t have to operate your LLC under the legal name listed in your articles of organization. You can use a different name, called a fictitious business name, assumed name, or DBA (for “doing business as”). This is purely optional; you can stick with your original LLC name if you want.
To use a fictitious business name, you must file an application and pay a filing fee. In some states, you file a single state-wide application with one state agency, such as the Secretary of State. In other states, you must file an application at the county level in every county where you have a business office. In some states, you are required to publish your fictitious name in a legal newspaper. The total cost can be as little as $10 to $200 or more. The average cost is $50 to $100.
Business License Fees
Depending on where your business is located, it’s likely that you’ll need to obtain a business license for your LLC from your city or county government. Some states, such as Washington, have state-wide business licenses. Most states have local license requirements. The cost to obtain a business license is usually $50 to $100.
Ongoing Costs of Running an LLC
Once your LLC is up and running, you’ll have to pay ongoing fees to keep it in good stead with your state and local government. If you fail to pay these fees, your LLC could lose the legal right to do business in the state.
Minimum Annual LLC Taxes
Depending on your state, you may have to pay special minimum annual LLC taxes, sometimes called franchise taxes or fees. This is a tax you must pay regardless of how much your LLC earns. The state with the highest minimum annual tax for LLCs is California, which charges $800 per year. In most other states with such taxes, the minimum tax is $100 to $400.
Annual Report Fees
In most states, an LLC is required to make a filing every one or two years with the Secretary of State to keep the LLC’s contact information up-to-date. This filing is often called an annual (or biennial) report, periodic report, or statement of information. A filing fee must be paid along with the report or statement. The fee is usually $20 to $100.
Registered Agent Fees
Every LLC must have an agent for service of process in the state. This is an individual or business entity that agrees to accept legal papers on the LLC’s behalf if anyone sues the company. Your LLC cannot serve as its own agent to accept such papers—it must designate a third party.
Any adult individual (over age 18) can serve as your LLC’s registered agent so long as he or she lives in the state. You or any other owners of your LLC can serve as the registered agent. An employee, your lawyer, spouse or another relative, friend, or other trusted person can also serve as registered agent. However, many LLC owners prefer to hire a professional registered agent company. The annual fee these companies charge is usually $100 to $300. In return for paying the fee, you get the assurance that important papers sent to your LLC will be received and forwarded to you.
Business License Renewal Fees
Your LLC must periodically renew its local or state business license. You may have to renew it every year. The license renewal fees are usually $20 to $100.
Are LLCs Expensive to Start?
As explained above, the cost to start an LLC varies depending on where you form the business. While some states have higher fees, the LLC formation fees are typically lower than what you would pay to start a corporation. In addition, you might pay more if you hire a professional to start the business for you.
Establishing your LLC yourself is often the cheapest option, but completing all of the forms and filing them yourself can be complicated. Hiring a lawyer is another option, but will often cost you hundreds, if not thousands, of dollars.