Quick Answer: LLC state filing fees range from $50–$500. Average first-year total costs (filing + registered agent + operating agreement) run $500–$1,500. Annual renewal fees vary from $0–$800+ depending on state.
How Much Does It Cost to Start an LLC?
| State | Filing Fee | Annual Fee | Notes |
|---|---|---|---|
| California | $70 | $800 min franchise tax | Highest ongoing cost |
| Delaware | $90 | $300 | Popular for investors and startups |
| Wyoming | $102 | $62 min | Strong privacy laws |
| Nevada | $425 | $350 | No state income tax |
| Florida | $125 | $138.75 | Common for small businesses |
| Texas | $300 | $0 (below $2.47M revenue) | No personal income tax |
| New York | $200 + publication ~$1,000-2,000 | $9 | Publication requirement adds cost |
| Illinois | $154 | $75 | Straightforward process |
| Colorado | $50 | $10 | Very low ongoing fees |
| Missouri | $50 | $0 | One of cheapest overall |
First-Year LLC Cost Breakdown
- State filing fee: $50–$500 (one-time)
- Registered agent service: $50–$150/year
- Operating agreement: $0 (DIY template) to $500 (attorney-drafted)
- EIN (Employer Identification Number): Free from IRS.gov
- Business bank account: $0–$15/month
- Business license (city/county): $25–$200 depending on location
Wyoming, Delaware, and Nevada: Are They Worth It?
These states are popular for asset protection and privacy. But if your business operates in another state, you'll need to foreign-qualify there anyway—paying both state's fees. For most small businesses, forming in your home state is simpler and often cheaper than shopping for "favorable" states.
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LLC vs Sole Proprietorship vs S-Corp
A sole proprietorship has no filing fee but offers no liability protection. An LLC protects personal assets for $50–$500 upfront. An S-Corp election on top of an LLC can reduce self-employment taxes once income exceeds ~$40,000/year but adds accounting complexity. Consult a CPA before electing S-Corp status.
What is the cheapest state to form an LLC?
Kentucky and Missouri have $50 filing fees. However, if you don't live or operate in those states, you'll still need to register as a foreign LLC in your home state, adding fees.
Do I need a lawyer to form an LLC?
No. Most LLC formations can be done directly through your state's secretary of state website. Using a formation service ($50–$300) or attorney ($500–$1,500) is optional but useful for complex multi-member LLCs.
What are annual LLC fees?
Most states charge annual report or renewal fees of $25–$500. California charges an $800 minimum franchise tax annually. Delaware charges $300/year. Check your state's requirements carefully.
What is a registered agent and do I need one?
A registered agent receives legal and official documents for your LLC. You can be your own (if you have a physical in-state address), or hire a service for $50–$150/year.
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