How Much Does an LLC Cost?

Businesswoman browsing on computer and taking notes.

Starting and maintaining a limited liability company (LLC) is surprisingly affordable. There are many variables and optional expenses, but it’s possible to start an LLC in some states for less than $100.

Read our How Much Does it Cost to Start an LLC guide below for more details about the cost of starting and maintaining an LLC.

To learn more about the cost of starting an LLC in your state, visit our How to Form an LLC guide and choose your state. 

LLC Cost

The cost of starting an LLC largely depends on the state in which you conduct business and if you complete the process yourself or hire professional help. Here are some potential expenses you might encounter:

LLC Filing Fee

You will need to file your LLC’s Articles of Organization (sometimes called a Certificate of Formation or a Certificate of Organization) with the appropriate department in your state. This fee varies by state, ranging from $40 to more than $500, with an average cost of about $100 to $150.

LLC Operating Agreement

It’s strongly recommended that every LLC have an operating agreement. There’s no filing fee for operating agreements, and it’s possible to write one yourself or use a free template. However, you may prefer to have an attorney help you or to use a paid template or other professional services. Depending on your choice, the cost of creating an LLC operating agreement can range from nothing to more than $1,000.

Business Name Reservation

Only Alabama requires LLCs to reserve their business name before registering it and filing their Articles of Organization. However, a number of states offer this option if you have a name in mind and want to reserve it before you officially register your business. This cost varies state to state but generally is less than $50.

Registered Agent Fee

Your LLC will need to appoint a registered agent (also referred to as a statutory agent, resident agent, or agent for service of process in some states). You have the option of appointing a member of your LLC as its registered agent, which would be free in most states. If you prefer to appoint a professional service to handle this responsibility, that will typically cost between $50 and $300 per year. Some LLC formation services will include this service for free the first year.

LLC Formation Service

While it’s possible to complete all the paperwork to form an LLC yourself, you may want to hire professional help. LLC Formation services tend to cost anywhere from $40 to $350, depending on the company and the additional features included in the package.

LLC Notice of Formation: Publication

Three states — Arizona, Nebraska, and New York — require LLCs to publish a notice of their organization in a local newspaper. This can cost between $40 and $2,000, depending on your location.

The Cost of Maintaining an LLC

After you form your LLC, you may be responsible for paying several recurring costs on a regular basis. These include:

  • Annual/Biennial Report Preparation: Most states require LLCs to file a regular report to stay compliant. The frequency of this report varies by state, but it’s usually every one or two years. The fee typically ranges anywhere from $10 to $500.
  • Franchise Taxes: Some states require LLCs to pay an annual franchise tax. This could be based on a flat rate, on your company’s revenue, or on some other financial metric. Read more about LLC Taxes
  • Registered Agent Fee: If you decide to sign up for a professional registered agent service, the annual cost typically totals between $50 and $300.

Other Potential LLC Costs

You might encounter a handful of other potential expenses when forming an LLC, such as:

  • Expediting Fees: Some states offer expedited processing of your LLC’s Articles of Organization for an additional fee. While this may prove useful if you’re in a rush for some reason, expedited processing generally isn’t necessary.
  • Attorney Fees: Some business owners prefer to hire an attorney to help them with certain aspects of creating their LLC, including writing the operating agreement.
  • Certified Copy Fees: If you want a certified copy of your Articles of Organization or other documents you file with your state, most states offer these at a nominal cost.

LLC Formation Cost: FAQ

How much does starting an LLC cost?

The cost to start an LLC varies from state to state and can cost in total anywhere from $50 to $500. Using a formation service will add an additional fee between $40 and $350.

What are the state fees for an LLC?

Each state charges LLCs a fee to file their Articles of Organization. This fee ranges between $40 and more than $500, depending on the state. Some states also charge a regular reporting fee and an annual franchise tax.

Take a look at our state LLC fees map to learn more: Cost to Form an LLC

Do I need a lawyer to start an LLC?

A lawyer is not required to start an LLC, but some owners hire one to help them create their LLC’s operating agreement.

Hiring an LLC formation service can make the process easier.

Should I use an LLC formation service?

Using a professional formation service to start your LLC can help save you time and allow you to focus on other aspects of your business. Check out our guide to the best LLC formation services to learn about our favorites.

What is the best state to set up an LLC?

While the costs and regulations can differ from state to state, it’s generally best to form an LLC in the state in which it will conduct business.

Learn More Here: Best State to Form an LLC

Does an LLC need a registered agent?

Yes, you need a registered agent to form and maintain an LLC. You can either appoint someone from inside the company or pay for a registered agent service.

Is an EIN free?

Yes, an Employer Identification Number (EIN) is free.

Learn more here: How to Get an EIN Number