Every article about LLC costs gives you the same answer: "It depends on your state." Which is technically true and completely unhelpful.
Here's what nobody tells you upfront: the state filing fee is the smallest part of what you'll actually spend. It's the recurring costs, the stuff you didn't know existed, and the "optional" services that aren't really optional — that's where your money goes.
I'm going to break down every dollar you'll spend, separated into what's mandatory, what's smart, and what's a waste of money. No vague ranges. No "consult a professional" cop-outs.
This is what you pay your state to officially create your LLC. You file your Articles of Organization (some states call it a Certificate of Formation), you pay the fee, and you exist as a business entity. That's it.
The range is wild. Kentucky charges $40. Massachusetts charges $500. Most states fall between $50 and $200.
Here are the cheapest and most expensive states:
Notice how Nevada looks cheap at $75 until you add the mandatory extras. That's a pattern you'll see a lot with LLC costs. The headline number is almost never the full story.
Every state requires your LLC to have a registered agent — a person or company designated to receive legal documents on your behalf. You have three options:
Be your own registered agent (free). Totally legal in most states. The catch: your home address goes on the public record, and you need to be available during business hours to receive documents. If you work from home and don't care about address privacy, this works fine.
Use a formation service's included agent. Most LLC formation companies (ZenBusiness, Bizee, LegalZoom) include a registered agent for the first year free or as part of their packages. This is the move for most people — you're already using the service, so you get the agent thrown in.
Hire a standalone agent. Companies like Northwest Registered Agent charge $125/year. You're paying for reliability, privacy, and a company that will actually be there when a process server shows up. Worth it if you need a specific state presence.
My honest take: if you're forming online through a service, use their included agent for year one. If you like them, renew. If not, switch. Don't overthink this one.
Some states require it (looking at you, New York). Most don't. But you should have one regardless — it's the document that says who owns what, who does what, and what happens if things go sideways.
Here's the thing: you don't need to pay anyone for this. There are solid free templates online, and most formation services include one. If you're a single-member LLC, your operating agreement can be two pages. Don't pay a lawyer $500 for something you can do yourself in 20 minutes.
Exception: if you have multiple members and real money involved, get a lawyer. That's one of the few times legal advice actually pays for itself.
Your Employer Identification Number is your LLC's Social Security number. You need it for a business bank account, to hire people, and for tax filing.
The IRS provides EINs for free. Takes about 5 minutes online at irs.gov. Instant approval.
Some formation companies charge $50-99 for "EIN filing service." They're literally filling out the same free form and charging you for it. Don't fall for this. Do it yourself.
This is the recurring cost that surprises people. Most states require your LLC to file an annual report — basically a check-in saying "yes, we still exist, here's our current info." The fees vary dramatically:
California's $800 annual franchise tax is the elephant in the room. It's due every year regardless of whether your LLC makes money. First-year LLCs used to get a pass, but not anymore. If you're a California resident, you can't avoid this — but it's worth knowing about before you file.
Your LLC formation creates a legal entity. It doesn't give you permission to actually do business. Depending on your city, county, and industry, you might need:
This varies so much by location that I can't give you exact numbers. Call your city clerk's office — they'll tell you exactly what you need in five minutes. Don't skip this step.
Business bank account. Some banks charge monthly maintenance fees for business accounts ($10-30/month). Others are free. Shop around. Online banks like Mercury, Relay, and Bluevine offer free business checking. Don't settle for a $15/month fee at your local bank if you don't need in-person banking.
Separate accounting/bookkeeping. You need to keep your personal and business finances separate. Period. If you commingle funds, you risk losing your liability protection — the whole reason you got an LLC. QuickBooks Self-Employed runs $15/month. Wave is free. At minimum, get a separate bank account and credit card.
Business insurance. Not legally required in most cases, but practically essential. General liability insurance runs $30-60/month for most small businesses. If you have employees, workers' comp is mandatory in most states.
Domain and website. $12/year for a domain. Hosting can be free (Cloudflare Pages, GitHub Pages) or $5-15/month. Not an LLC cost, exactly, but you'll need it.
Compliance monitoring. Missing your annual report deadline can mean late fees ($25-200) or administrative dissolution (your LLC gets canceled). Some formation services offer "compliance alerts" for $50-100/year. Or you can just put a reminder in your calendar for free.
Let's add it all up for a typical single-member LLC in a middle-of-the-road state:
| Expense | Year 1 | Annual After |
|---|---|---|
| State filing fee | $50-$150 | $0 |
| Registered agent | $0-$125 | $100-$300 |
| EIN | $0 | $0 |
| Operating agreement | $0 | $0 |
| Annual report | $0-$150 | $0-$150 |
| Business license | $25-$100 | $25-$100 |
| Business bank account | $0 | $0 (use free options) |
| Total | $75-$525 | $125-$550 |
For most people in most states, you're looking at $100-$300 in year one if you do everything yourself, and $100-$250/year after that. California residents, add $800.
You can file everything yourself directly with your state. It's not complicated — most states have online portals where you fill in your LLC name, address, registered agent, and pay the fee. Takes 15-30 minutes.
Formation services like ZenBusiness ($0 + state fees), Bizee ($0 + state fees), and LegalZoom ($0-$299 + state fees) handle the filing for you and bundle in extras like registered agent service, operating agreements, and compliance reminders.
When a formation service makes sense:
When DIY makes sense:
Either way works. There's no wrong answer here — just different tradeoffs between your time and money.
Filing in the "wrong" state to save money. Delaware and Wyoming get hyped as cheap LLC states. And they are — if your business operates there. If you live in California and form in Wyoming, you still owe California's $800 franchise tax PLUS Wyoming's fees. You're paying double. File where you do business unless you have a specific legal reason not to.
Paying for an EIN. Already said it, saying it again. Free from the IRS. Takes 5 minutes. Anyone charging you for this is taking advantage.
Skipping the operating agreement. It's free to make one. Without it, your state's default LLC rules apply — and those might not be what you want. Especially with multiple members.
Forgetting annual reports. Late fees add up, and some states will dissolve your LLC. Set a calendar reminder the day you file. Future you will thank present you.
Starting an LLC is not expensive. The filing fee is usually under $200, and the ongoing costs are manageable. The expensive part is not knowing what you're paying for and getting upsold on things you don't need.
Do your own EIN. Get a free operating agreement. Use a free business bank account. Pay attention to your annual report deadline. That's really all there is to it.
For state-specific costs and filing instructions, check our state-by-state guides — every state has different fees, timelines, and quirks worth knowing about.