The state filing fee is the primary expense of incorporating a limited liability corporation (LLC). Depending on your state, this charge might be between $40 and $500.
There are two ways to set up your LLC:
You may set up your LLC by using a competent LLC creation provider (for an additional small fee).
You may also do it yourself by following our free Form an LLC tutorial.
How Much Does it Cost to Form an LLC?
The charge to submit your LLC’s articles of incorporation with the Secretary of State is the principal expense of incorporating an LLC. Depending on the state, this cost might vary from $40 to $500.
Other fees associated with LLCs may include:
Fees for business licences and permits
Fees for publication in Arizona, Nebraska, and New York
Fees for reserving an LLC name are optional (required in Alabama)
Fee for bogus name (also known as DBA name)
Fee for State Filing
The charge to form an LLC with the Secretary of State varies by state and ranges from $40 and $500.
Other LLC Fees and Costs
Permits and Licenses for Businesses
Depending on your industry and geographical region, your company may need federal, state, and municipal permits/licenses to operate lawfully. This is true regardless of whether you create an LLC or another sort of company structure.
Fees for Publication
Some states (Arizona, Nebraska, and New York) require new LLCs to publish a formation statement in a local newspaper.
Depending on your state’s regulations, publishing charges might range from $40 to $2000.
Fee for Name Reservation
If you’re founding an LLC in Alabama, you’ll additionally need to pay a cost of $10-$28 to reserve your LLC’s name. All other states have the option of reserving a name.
Fictitious Name Charge
For LLCs, a fictional name is not necessary. Following the formation of your LLC, you may choose to establish a fake name in order to build various brands under your primary LLC. A fictional name is often known as a DBA or “doing business as” name.
Where Should I Create My LLC?
Always incorporate your LLC in the state where you want to do business. Otherwise, you risk incurring extra charges and paperwork.
The cost of forming an LLC varies by state.
The table below shows the filing fees and any yearly charges for each state.
The Cost of Creating an LLC in Each State
State Setup Fees Ongoing Fees
Alabama Annual Privilege License ($200+)
Alaska $250 $200 Biennially
Arizona $50 plus publication requirement
There is no annual fee.
Arkansas $50-$150 per year
California $70 $20 Biennial Franchise Tax + Annual Franchise Tax
Colorado
$50 $10 each year
Connecticut
$120 $20 per year
Delaware’s annual franchise tax is $90.
The District of Columbia
$220/$300/year + Annual Franchise Tax
Florida $125 $138.75 Annually
Georgia $100 $50 yearly
Hawaii $50 $15 yearly
Idaho $100 No Yearly Fee
Illinois
$150, $250, or $300 each year
Indiana $95 $50 Biennially
Iowa
$50 – $30 – $45 yearly
Kansas
Annually, $160 $50 – $55
Kentucky
$40 – $15 – $30 each year + annual entity tax
Louisiana $100 $30 yearly
Maine $175 $85 yearly
Maryland
$100-$300 each year
Massachusetts $500 $500 Annually
Michigan
$50 $25 per year
Minnesota Annual Partnership Tax: $155
Mississippi $50 No Yearly Fee
Missouri No Annual Fee $50
Montana $70 $20 yearly
Nebraska
$100 plus the publishing fee
$10 – $13 per year
Nevada $75-$125 per year
State of New Hampshire
$100 + $100 Annual Enterprise Tax
State of New Jersey
$125 $50 Annually
No Annual Fee in New Mexico
New York $200 plus publishing fee
Annual Filing Fee + $9 Biennial Fee
North Carolina $125-$200 per year
North Dakota $135 $50 yearly
Ohio’s $99 Annual Commercial Activity Tax
Oklahoma $100 $25 yearly
Oregon $100 $100 Annually
No Annual Fee in Pennsylvania $125 + Publishing Requirement
Providence, Rhode Island
$150 $50 per year
South Carolina $110 No yearly fee
South Dakota $150 $50 yearly
Tennessee has a minimum annual franchise and excise tax of $300.
Texas Annual Fee: $300
Utah $70 $20 Annually
Vermont $125 $35 Annually
Virginia $100 $50 yearly
Washington $180-200 per year $60
West Virginia $100 $25 yearly
Wisconsin
$130 – $170 per year $25
Wyoming
$100 – $102
$50, or 0.02% of the assets’ worth Annually
Costs of Ongoing Maintenance
In several states, LLCs must pay ongoing maintenance charges and taxes, such as:
The Franchise Tax
Fees for Annual Reports
The Franchise Tax
LLCs are subject to an annual tax in several states (often called a franchise tax). In most states, this is a flat tax, but it may potentially fluctuate based on your LLC’s yearly revenues.
Annual and biennial reports
Most states require LLCs to file an annual or biannual report that contains changes to the LLC’s name, address, and ownership. The charge for filing a report varies by state.
How to Form an LLC Yourself
Creating an LLC on your own is simple. Our state-by-state LLC creation guidelines break the procedure down into five simple stages.
Five Fundamental Steps to Forming an LLC
Step 1: Give Your LLC a Name
Step 2: Select a Registered Agent.
Step 3: Submit the Articles of Incorporation.
Step 4 Create an Operating Agreement
Step 5: Obtain an EIN
Step 1: Give Your LLC a Name
When naming an LLC, you must select a name that:
Is it legal to use in your state?
Meets the naming requirements of your state
Is a web domain available?
Step 2: Select a Registered Agent.
In most states, LLCs must designate a registered agent. A registered agent is your LLC’s primary point of contact with the state. Most significantly, they are in charge of receiving service of process in the event that your company is sued.
A registered agent is required to:
You must be at least 18 years old.
Have a physical address in the state where the LLC is registered.
Available to receive process service during regular business hours
TIP: When you incorporate your LLC, several businesses give a complimentary year of registered agent service. Northwest costs $39 for LLC creation (plus state taxes) and gives a complimentary year of registered agent services.
Step 3: Submit the Articles of Incorporation.
The certificate of formation, also known as the certificate of organisation, is a document that is submitted with your state to incorporate an LLC.
The charge to file the articles of incorporation varies by state and ranges from $40 to $500.
Step 4 Create an Operating Agreement
What exactly is an operating agreement? An operating agreement is a legal document that outlines an LLC’s ownership and running processes.
Why are operating agreements necessary? A detailed operating agreement guarantees that all firm owners are on the same page and decreases the likelihood of future disagreement.
Step 5: Obtain an EIN
What exactly is an EIN? An EIN, or Employer Identification Number, is a nine-digit number assigned by the Internal Revenue Service (IRS) to a firm in order to identify it for tax reporting reasons. An EIN is effectively a company’s Social Security number (SSN).
Why do I need an EIN? An EIN is necessary for the following purposes:
To create a commercial bank account
In terms of federal and state taxation
to recruit workers
Hiring a Service Provider for an LLC
Should you go with a professional LLC creation firm? LLC service providers facilitate the process of forming your firm, but they are not essential.
$39 – $79 for the Basic LLC Formation Service Package
For a fraction of the expense of a company attorney, online firms such as Northwest Registered Agent ($39 + State Fee) and LegalZoom ($79 + State Fee) can handle the LLC filing procedure on your behalf.
LLC formation companies provide other services in addition to submitting your certificate of incorporation. LLC incorporation services will also include the following:
Make an operating agreement for your LLC.
Register with the IRS for your LLC’s Employee Identification Number (EIN).
Act as your registered agent for the first year, generally for free.
Operating Contract: $40-$99
An operating agreement is a governing document that details an LLC’s ownership and management structure.
Purchasing a bespoke operating agreement from an online formation provider is a simple method to guarantee your new LLC has a comprehensive and legally enforceable contract controlling it.
EIN registration is $60-$70.
Following the formation of your LLC, you’ll need to get an EIN (or Employer Identification Number), which is effectively a Social Security number for your corporation. If you don’t want to apply for your EIN via the IRS, you may outsource this work to your formation provider for a charge.
Registered Agent Service: 0 to 125 dollars per year
When you finish the certificate of formation, you must appoint a registered agent for your LLC.
A registered agent is a person or corporate organisation in charge of receiving and processing legal papers as well as serving process on your behalf.
For reasons of privacy, convenience, and discretion, many individuals opt to select a professional registered agent. $99 for Business License Research Service
If your LLC needs many federal, state, and municipal permissions or licences to function lawfully, you might think about employing a competent business licencing research agency.