How Much Does an LLC Cost?

An LLC costs roughly $40 to $500 in state filing fees plus optional registered-agent and compliance costs. Here's the full cost breakdown for year one and beyond.

An LLC costs roughly $40 to $500 in state filing fees, plus optional costs like a registered agent service and annual report fees. Most owners spend between $100 and $300 in year one, and ongoing costs are usually $50 to $300 per year after that.

The total cost to start an LLC is typically $40 to $500 in state filing fees, with most states charging between $50 and $200 for the initial filing. Beyond the filing fee, you may pay for a registered agent, annual reports, and optional formation services.

State Filing Fees: The Biggest Variable

The initial filing fee is the largest single cost and varies widely by state. Some states charge as little as $40, while others charge several hundred dollars. Fees change frequently, so confirm the current amount on your Secretary of State's website before you file. Online filing sometimes carries a small convenience fee on top of the base filing fee. The fee depends on the state where you form the LLC, not where you live, so some owners compare a few states before deciding where to file.

Registered Agent Costs

Every LLC needs a registered agent. If you serve as your own agent, the cost is $0. If you hire a commercial registered agent service, expect to pay roughly $50 to $300 per year. Many owners choose a service to keep their home address out of public records and to ensure someone is always available to receive legal documents. The service also forwards official mail, which is useful if you move frequently.

Ongoing Compliance Costs

Most states require an annual report or franchise tax, typically $50 to $300 per year. A few states, like California, charge a minimum annual franchise tax that is higher than the national average. These recurring costs are part of owning an LLC, so factor them into your budget beyond year one. Missing an annual filing can also trigger late fees, so mark the due date on your calendar. Some states require a biennial report instead of an annual one, so check your state's schedule.

Optional Costs: Formation Services and More

You can file yourself for just the state fee, or pay a formation service to handle the paperwork for you. Formation services typically charge $50 to $300 on top of the state fee. Other optional costs include an operating agreement template, a business bank account with monthly fees, and business licenses required by your city or industry. None of these are required to form the LLC itself, but most operating businesses will need at least a bank account and possibly a license.

Year-One Cost Example

• State filing fee: $40 to $500.
• Registered agent (optional): $50 to $300 per year.
• Annual report (first year, if due): $50 to $300.
• Operating agreement template: $0 to $100.

For most owners, the realistic year-one total lands between $100 and $500. To keep costs down, file directly with your state, act as your own registered agent, and skip paid templates. If you plan to hire employees or open a business bank account, budget for those costs as well. For the step-by-step process, see how to start an LLC, and for the paperwork details, review how to form an LLC. As of 2026, the cheapest fully compliant path in most states is filing online yourself and paying only the state fee.

Frequently Asked Questions

How much does it cost to start an LLC?

The state filing fee ranges from approximately $40 to $500, with most states charging $50 to $200. Optional costs include a registered agent service at $50 to $300 per year and annual report fees. Most owners spend $100 to $300 in year one.

How much does an LLC cost per year?

Ongoing costs are typically $50 to $300 per year, mostly from annual report fees or franchise taxes. Some states charge more, and a registered agent service adds $50 to $300 annually if you use one. Fees change frequently, so confirm current amounts with your state.

Is it cheaper to form an LLC yourself?

Yes. Filing directly with your state costs only the filing fee, typically $50 to $200. Formation services add $50 to $300 on top of the state fee for handling the paperwork. You can also save by serving as your own registered agent.

What is the most expensive part of an LLC?

The initial state filing fee is usually the largest one-time cost, ranging from $40 to $500 depending on the state. Ongoing annual report fees and franchise taxes are the main recurring costs. A few states have notably higher annual fees than the national average.