Forming a Limited Liability Company (LLC) is a crucial step for many entrepreneurs, but understanding the costs involved is essential. This guide breaks down the expenses associated with opening an LLC in each state, helping you budget effectively and make informed decisions. We’ll cover initial filing fees, ongoing costs like annual reports, and explore ways to save money on your LLC formation.
Initial LLC Filing Fees: Your First Investment
Every state requires a one-time fee to file the paperwork that officially creates your LLC. This fee compensates the state government for processing your formation documents. The specific name of these documents varies by state, but common titles include:
- Articles of Organization
- Certificate of Organization
- Certificate of Formation
Regardless of the name, this initial filing fee is a mandatory expense.
An example of Articles of Organization, which are used to form an LLC.
Ongoing LLC Filing Fees: Staying Compliant
Beyond the initial filing fee, most states also require LLCs to pay ongoing fees, typically annually or biennially. These fees, often called Annual Reports or Biennial Reports, ensure your LLC remains in good standing with the state. Failing to pay these fees can result in late penalties or even the dissolution of your LLC, so it’s crucial to stay on top of these requirements.
An example of an LLC Annual Report, which keeps your LLC in compliance.
LLC Costs by State (Updated for 2025)
LLC filing fees vary considerably depending on the state, ranging from as low as $35 to as high as $500. As of 2025, the average cost to form an LLC in the United States is approximately $132. Below is a detailed breakdown of LLC costs by state, including both initial filing fees and ongoing annual/biennial fees:
| State LLC | LLC Filing Fee | LLC Annual/Biennial Fee |
|---|---|---|
| Alabama LLC | $200 | $50 minimum (every year) |
| Alaska LLC | $250 | $100 (every 2 years) |
| Arizona LLC | $50 | $0 (no fee and no information report) |
| Arkansas LLC | $45 | $150 (every year) |
| California LLC | $70 | $800 (every year) + $20 (every 2 years) |
| Colorado LLC | $50 | $25 (every year) |
| Connecticut LLC | $120 | $80 (every year) |
| Delaware LLC | $110 | $300 (every year) |
| Florida LLC | $125 | $138.75 (every year) |
| Georgia LLC | $100 | $50 (every year) |
| Hawaii LLC | $50 | $15 (every year) |
| Idaho LLC | $100 | $0 (however, an information report must be filed every year) |
| Illinois LLC | $150 | $75 (every year) |
| Indiana LLC | $95 | $31 (every 2 years) |
| Iowa LLC | $50 | $30 (every 2 years) |
| Kansas LLC | $160 | $50 (every year) |
| Kentucky LLC | $40 | $15 (every year) |
| Louisiana LLC | $100 | $35 (every year) |
| Maine LLC | $175 | $85 (every year) |
| Maryland LLC | $100 | $300 (every year) |
| Massachusetts LLC | $500 | $500 (every year) |
| Michigan LLC | $50 | $25 (every year) |
| Minnesota LLC | $155 | $0 (however, an information report must be filed every year) |
| Mississippi LLC | $50 | $0 (however, an information report must be filed every year) |
| Missouri LLC | $50 | $0 (no fee and no information report) |
| Montana LLC | $35 | $20 (every year) |
| Nebraska LLC | $100 | $13 (every 2 years) |
| Nevada LLC | $425 | $350 (every year) |
| New Hampshire LLC | $100 | $100 (every year) |
| New Jersey LLC | $125 | $75 (every year) |
| New Mexico LLC | $50 | $0 (no fee and no information report) |
| New York LLC | $200 | $9 (every 2 years) |
| North Carolina LLC | $125 | $200 (every year) |
| North Dakota LLC | $135 | $50 (every year) |
| Ohio LLC | $99 | $0 (no fee and no information report) |
| Oklahoma LLC | $100 | $25 (every year) |
| Oregon LLC | $100 | $100 (every year) |
| Pennsylvania LLC | $125 | $7 (every year) |
| Rhode Island LLC | $150 | $50 (every year) |
| South Carolina LLC | $110 | $0 (no fee and no information report, unless LLC is taxed as an S-Corp) |
| South Dakota LLC | $150 | $50 (every year) |
| Tennessee LLC | $300 | $300 (every year) |
| Texas LLC | $300 | $0 for most LLCs (however a Public Information Report must be filed every year) |
| Utah LLC | $59 | $18 (every year) |
| Vermont LLC | $125 | $35 (every year) |
| Virginia LLC | $100 | $50 (every year) |
| Washington LLC | $200 | $60 (every year) |
| Washington DC LLC | $99 | $300 (every 2 years) |
| West Virginia LLC | $100 | $25 (every year) |
| Wisconsin LLC | $130 | $25 (every year) |
| Wyoming LLC | $100 | $60 minimum (every year) |
Frequently Asked Questions About LLC Costs
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Do LLCs pay taxes? No, generally LLCs have “pass-through taxation,” meaning the owners pay taxes on their individual income taxes.
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Do I have to pay LLC fees every year? Most states require annual fees to maintain good standing.
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Is it possible to set up an LLC for free? No, state filing fees are mandatory.
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How do you avoid LLC fees? You can’t avoid state fees, but you can save money by being your own Registered Agent and forming the LLC yourself.
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Which state is the cheapest to open an LLC? Montana has a low initial fee, but you should only form your LLC there if you live or do business there.
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What is the best LLC formation service? Consider Northwest Registered Agent or LegalZoom.
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What’s the cheapest way to start an LLC? File the formation documents yourself and be your own Registered Agent.
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Can I be my own Registered Agent? Yes, in most states if you meet the residency and address requirements.
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How long does it take to get an LLC approved? Approval times vary by state and filing method.
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How to start an LLC (step-by-step):
- Choose a name
- Choose a Registered Agent
- File Articles of Organization
- Create an Operating Agreement
- Get an EIN
- Open a business bank account
- Check licensing requirements
A visual guide outlining the steps to start an LLC.
Forming Your LLC: DIY vs. Professional Services
While the state filing fees are unavoidable, you can save money by forming your LLC yourself. Online LLC formation services like Northwest Registered Agent and LegalZoom offer assistance with the filing process, but they come at an additional cost. If you’re comfortable handling the paperwork yourself, you can save hundreds of dollars.
Conclusion: Planning Your LLC Budget
Understanding the costs associated with opening an LLC is critical for entrepreneurs. By researching the specific fees in your state and considering DIY formation options, you can create a realistic budget and set your business up for success. Remember to factor in both initial filing fees and ongoing annual/biennial report fees to maintain your LLC’s good standing.
