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How Much Does an LLC Cost in 2026?

State filing fee: $40–$500. You can file yourself for just that fee. Online services add $39–$300. Calculate your total first-year and ongoing annual cost by state.

Updated Mar 2026Business$40–$500 filing
LLC Cost Calculator
Calculate your total first-year and annual cost by state and filing method
First-year total
⚠️  EIN (Employer Identification Number) is always free — apply directly at IRS.gov. Any service that charges for an EIN is just filing a free form on your behalf. Do it yourself in 5 minutes.

LLC Filing Fee by State (2026)

StateFiling FeeAnnual FeeNotes
California$70$800/yr franchise taxMost expensive ongoing cost
Texas$300$0 (no annual report)High upfront, no annual cost
Florida$125$138.75/yrPopular for business formation
New York$200 + $25 pub.$9/yrRequires newspaper publication ($500–$1,500)
Delaware$90$300/yrBusiness-friendly laws, popular for startups
Wyoming$100$60/yrNo state income tax, strong privacy
Kentucky$40$15/yrCheapest state overall
Massachusetts$500$500/yrMost expensive filing fee
How Costs Compare
21%
9%
14%
35%
California 5%
Texas 21%
Florida 9%
New York 14%
Delaware 6%
Wyoming 7%
Kentucky 3%
Massachusetts 35%

DIY vs Online Service vs Attorney

MethodService FeeTotal (avg state)Best For
DIY (file yourself)$0$50–$200Single-member, simple LLC
ZenBusiness / Northwest$0–$99$100–$350Want convenience, included registered agent
LegalZoom$79–$249$180–$500Brand recognition, attorney add-ons
Attorney$500–$1,500$600–$2,000Multi-member, complex ownership, liability

Pro Tips for Forming an LLC

File in your home state. Despite what you read online, filing in Delaware or Wyoming only makes sense for large companies or venture-funded startups. If you live and work in Texas, file in Texas. Filing in another state means you still need to register as a foreign LLC in your home state ($100–$300 extra) and file taxes in both states.
DIY is fine for single-member LLCs. Filing directly with your state’s Secretary of State website takes 15–30 minutes and costs only the filing fee. The forms are straightforward: your LLC name, address, registered agent, and member names. You do not need a service or a lawyer for a basic single-member LLC.
Get your EIN for free from the IRS. Apply at IRS.gov/EIN — it takes 5 minutes and is completely free. Any formation service that charges $50–$100 for an EIN is just filling out this free form on your behalf. Do it yourself and save.
You need an operating agreement even as a solo owner. Most states do not require you to file one, but banks often require it to open a business account, and it protects your personal liability shield. Free templates are available online for single-member LLCs. Multi-member LLCs should have an attorney draft one ($300–$1,000) to define ownership percentages, profit sharing, and exit procedures.
California’s $800 franchise tax is unavoidable. California charges a minimum $800/year franchise tax for all LLCs regardless of income. This is due even if your LLC makes $0. If you are just starting out and not sure the business will generate revenue, consider waiting to form the LLC until you have paying customers.
Consider S-Corp election once profits exceed $40K–$50K. An LLC taxed as an S-Corp can save 15.3% self-employment tax on profits above a reasonable salary. But S-Corps require payroll ($500–$2,000/year) and a separate tax return ($500–$1,500 CPA fee). The math only works when the tax savings exceed these extra costs.

First-Year vs Ongoing Annual Costs

First-year costs include the one-time filing fee plus any service fees, operating agreement, and initial business license. After year one, your ongoing costs are: annual report or franchise tax ($0–$800 depending on state), registered agent ($0–$125/year if using a service), and business license renewal ($0–$200). California is the most expensive state for ongoing costs at $800/year minimum. States like Ohio, Texas, and Missouri have no annual report fee, making them the cheapest for long-term maintenance.

Do You Actually Need an LLC?

An LLC provides personal liability protection (your personal assets are protected if the business is sued) and tax flexibility (choose to be taxed as a sole proprietor, partnership, S-Corp, or C-Corp). You probably need an LLC if: you have business contracts, you hire employees or contractors, you have significant business assets, or your business carries liability risk. You might not need one yet if: you are freelancing with low liability risk, your income is under $10,000/year, or you are just testing a business idea. You can always form the LLC later when the business is established.

Frequently Asked Questions

How much does it cost to start an LLC?▼
Just the state filing fee: $40–$500 depending on state. If you file yourself (DIY), that is your only cost plus a free EIN from the IRS. Using an online service adds $0–$250. Using an attorney adds $500–$1,500. Total first-year cost for most people: $100–$500 for DIY, $200–$600 with a service, or $600–$2,000 with an attorney.
What is the cheapest state to form an LLC?▼
Kentucky at $40 filing fee and $15/year annual report. Colorado, Arizona, Mississippi, and Arkansas are also under $50. But forming in a different state than where you live usually costs more overall because you need to register as a foreign LLC in your home state too. For most small business owners, your home state is the cheapest option.
Do I need a registered agent?▼
Every LLC must have a registered agent in the state of formation. You can be your own registered agent for free if you have a physical address in the state (not a PO Box) and are available during business hours. A registered agent service ($50–$125/year) keeps your home address off public records, accepts legal documents on your behalf, and ensures you never miss an important notice.
How long does it take to form an LLC?▼
Online filing: 1–5 business days in most states. Some states (like Texas and California) process in 1–2 days. Others (like New York) take 2–4 weeks. Expedited processing ($50–$100 extra) is available in most states for same-day or next-day approval. Mail filing takes 2–6 weeks. You can do business immediately after filing in most states.
LLC vs sole proprietorship — what is the difference?▼
A sole proprietorship has no liability protection — your personal assets (house, car, savings) are at risk if the business is sued. An LLC separates business and personal liability. A sole proprietorship costs $0 to start (no filing required). An LLC costs $40–$500. Both are taxed the same way by default (pass-through on your personal return). The LLC is worth the cost for the liability protection alone if your business has any risk of lawsuits, contracts, or debts.
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S-Corp CostCorporation CostBusiness LicenseDBA CostTrademark CostBusiness Insurance
📊 Data Sources
Filing fees from each state's Secretary of State website, verified March 2026. Service pricing from ZenBusiness, Northwest, and LegalZoom. Not legal or tax advice. Methodology.