What Are the Costs of Forming an LLC in Each State - Guide
Starting an LLC can be costly, but it doesn't have to be.
We'll take you through the price of forming an LLC in each state and demonstrate how to do it to save money.
✏️ Important:
Some states have lower LLC costs than others, but choosing a cheaper state to avoid fees might not always be the best option. It could end up costing you more in the long run.
You could also end up conducting business illegally in your home state and having to register two LLCs: one as a Domestic LLC and one as a Foreign LLC.
Initial LLC Filing Fee
State laws mandate that all business owners pay a state filing fee when they submit the documents to establish an LLC.
In other words, this is a one-time fee required to file your LLC formation paperwork with the state where you are setting up your LLC.
Different states exist in the names of the paperwork required to form an LLC.
- Articles of Organization
- Certificate of Organization
- Certificate of Formation
- Annual Fee
- Annual Report
- Biennial Report
- Annual Franchise Tax
- and others
Continuing LLC Filing Fees (Annual and Biennial Reports)
Most states require that you pay an annual or biennial fee to keep your LLC compliant and in good standing.
The names for these recurring fees differ by state and may be referred to as:
- Annual Fee
- Annual Repor
- Biennial Report
- Annual Franchise Tax
and other similar terms
However, most states use the term Annual Report or Biennial Report to refer to the recurring fee.
Typically, there are late fees if you file your LLC Annual Report after the deadline. Most states will also dissolve your LLC if you fail to meet this requirement.
LLC Cost by State:
LLC filing fees can vary from $35 to $500. On average, the cost to form an LLC in the US is $132 as of 2024.
| State LLC | LLC Filing Fee | LLC Annual/Biennial Fee |
|---|---|---|
| Alabama LLC | $200 | $50 minimum (every year) |
| Alaska LLC | $250 | $100 (every 2 years) |
| Arizona LLC | $50 | $0 (no fee and no information report) |
| Arkansas LLC | $45 | $150 (every year) |
| California LLC | $70 | $800 (every year) + $20 (every 2 years) |
| Colorado LLC | $50 | $10 (every year) |
| Connecticut LLC | $120 | $80 (every year) |
| Delaware LLC | $90 | $300 (every year) |
| Florida LLC | $125 | $138.75 (every year) |
| Georgia LLC | $100 | $50 (every year) |
| Hawaii LLC | $50 | $15 (every year) |
| Idaho LLC | $100 | $0 (information report must be filed every year) |
| Illinois LLC | $150 | $75 (every year) |
| Indiana LLC | $95 | $31 (every 2 years) |
| Iowa LLC | $50 | $30 (every 2 years) |
| Kansas LLC | $160 | $50 (every year) |
| Kentucky LLC | $40 | $15 (every year) |
| Louisiana LLC | $100 | $35 (every year) |
| Maine LLC | $175 | $85 (every year) |
| Maryland LLC | $100 | $300 (every year) |
| Massachusetts LLC | $500 | $500 (every year) |
| Michigan LLC | $50 | $25 (every year) |
| Minnesota LLC | $155 | $0 (information report must be filed every year) |
| Mississippi LLC | $50 | $0 (information report must be filed every year) |
| Missouri LLC | $50 | $0 (information report must be filed every year) |
| Montana LLC | $70 | $20 (every year) |
| Nebraska LLC | $100 | $13 (every 2 years) |
| Nevada LLC | $425 | $350 (every year) |
| New Hampshire LLC | $100 | $100 (every year) |
| New Jersey LLC | $125 | $75 (every year) |
| New Mexico LLC | $50 | $0 (no fee and no information report) |
| New York LLC | $200 | $9 (every 2 years) |
| North Carolina LLC | $125 | $200 (every year) |
| North Dakota LLC | $135 | $50 (every year) |
| Ohio LLC | $99 | $0 (no fee and no information report) |
| Oklahoma LLC | $100 | $25 (every year) |
| Oregon LLC | $100 | $100 (every year) |
| Pennsylvania LLC | $125 | $70 (every year) |
| Rhode Island LLC | $150 | $50 (every year) |
| South Carolina LLC | $110 | $0 (no fee and no information report) |
| South Dakota LLC | $150 | $50 (every year) |
| Tennessee LLC | $300 | $300 minimum (every year) |
| Texas LLC | $300 | $0 (no fee and no information report) |
| Utah LLC | $70 | $20 (every year) |
| Vermont LLC | $125 | $35 (every year) |
| Virginia LLC | $100 | $50 (every year) |
| Washington LLC | $200 | $60 (every year) |
| Washington DC LLC | $200 | $300 (every 2 years) |
| West Virginia LLC | $100 | $25 (every year) |
| Wisconsin LLC | $130 | $25 (every year) |
| Wyoming LLC | $100 | $60 minimum (every year) |
LLC Cost FAQS
Do LLCs pay taxes?
Technically, no, LLCs don't pay taxes to the state or federal government. This is because LLCs have what's called "passthrough taxation".
Pass-through taxation means that the tax-paying responsibility passes through the business structure (the LLC) to the business owner(s). Then the business owner(s) pay taxes on any business income generated by the LLC on their income taxes (Form 1040).
The only exception is for LLC owners who choose to have their LLC taxed as a C-Corporation. However, this is rare.
Do I have to pay LLC fees every year?
That depends. A few states don't require LLCs to pay annual LLC fees to keep their business entity in good standing.
However, most do. If your state requires LLCs to pay fees each year, you must pay the annual fees; otherwise, the state can shut down your LLC and you could lose your liability protection.
You may also have to pay fees at the state or local level, like business license renewal fees
Is it possible to set up an LLC for free?
No. Every Limited Liability Company must pay the state filing fees and any associated ongoing costs (like an annual filing fee, franchise tax, or business license filing fees).
That said, you can learn how to form an LLC yourself with free, step-by-step guides.
How do you avoid LLC fees?
Unfortunately, you can't avoid most LLC fees. While state fees vary widely, all states require a filing fee to form an LLC. And most states require LLC owners to pay ongoing fees, like an annual fee to keep their LLC in good standing
.Additionally, many state and local laws require LLC owners to get a business license. That said, you can save money on LLC-related fees by:
- Being your own Registered Agent, and
- Forming your LLC yourself – instead of paying for an LLC formation service to do it for you.
Which state is the cheapest to open an LLC?
The cheapest state to open an LLC is Montana.
However, you should only open an LLC in Montana if you live in that state or do business there. While Montana may seem like a business-friendly state due to their tax laws, those advantages only apply if you live there or do business there. Otherwise, you’ll have to register your LLC twice: once as a domestic LLC in Montana, and again as a foreign LLC where you live/do business.
This means you will also have to pay annual fees in both states, and you may need to pay for two Registered Agent Services. Additionally, you might need to pay for a business license at the state and local levels in both states. The costs can add up quickly.
What is the best LLC formation service?
We've reviewed the top LLC formation services in the industry and think the best are:
- Northwest Registered Agent
- ZenBusiness
- MyCompanyWorks
- IncFile
- Rocket Lawyer
- LegalZoom
To learn more about how these companies compare against each other, check out Best LLC Services.
Note: If you want to save money, you can start your LLC yourself using free step-by-step guides.
What's the cheapest way to start an LLC?
You can get an LLC cheaply by filing your formation documents. You'll also save money by being your own Registered Agent and using a free LLC Operating Agreement template.
By forming your LLC yourself, being your Registered Agent, and using our Operating Agreement template, you can save over $400.
Can I be my Registered Agent?
Yes, you can be your Registered Agent in most states if you are a state resident with a physical street address and want to save money by not hiring a Registered Agent service.
Check out Can I be my own Registered Agent for more details.
How long does it take to get an LLC approved?
How long it takes to get an LLC approved depends on a few factors:
- Where you form a Limited Liability Company
- Whether you form an LLC online or by mail
- Whether you pay an expedited filing fee for faster processing
Check out our guide on how long it takes to get an LLC for state-specific approval times.
How to start an LLC (step-by-step)?
To start an LLC, follow these steps:
- Choose an LLC name and make sure it's available
- Choose who will be your Registered Agent
- File the LLC Articles of Organization
- Complete and sign an LLC Operating Agreement
- Get a Tax ID Number (EIN) from the IRS
- Open an LLC business bank account
- Check whether you need a business or sales tax license