How much does it cost to start an LLC?
How much does it cost to start an LLC?
$35 – $500 filing fees only
$85 – $1,500 total cost (DIY)
$1,000 – $2,300 total cost (with an attorney)
Average cost to start an LLC
The cost to start an LLC ranges from $85 to $1,500 if you file everything yourself or $1,000 to $2,300 if you hire an attorney. LLC filing fees alone cost $35 to $500.
LLC costs also depend on the business type and location. The cost to create an LLC in California, Nevada, or Massachusetts is much higher than in states like Montana or Missouri.
| Expense | Average cost |
|---|---|
| Filing fees | $35 – $500 |
| Name reservation | $0 – $50 |
| Operating agreement | $0 – $300 |
| EIN application | $0 – $100 |
| DBA or FBN fees | $0 – $50 |
| Registered agent | $0 – $300 |
| Business license fee | $50 – $1,000 |
An LLC, or limited liability company, is a type of business that protects the owners’ personal bank accounts or assets if the company accrues significant debts.
To start an LLC, you need to file paperwork with the secretary of state and then apply for an employer identification number (EIN) from the IRS. Many of the following steps are either optional or free if you do it yourself.
LLC filing fees
LLC filing fees cost $35 to $500, depending on the state you’re filing in. This fee pays for the state to process your LLC application, also called the articles of organization. Some states include the operating agreement in this fee.
The filing fee varies widely, from $35 in Montana to $500 in Massachusetts, but most states charge between $50 to $100.
Name reservation
You can reserve your LLC’s name for $10 to $50 if you have a name in mind but aren’t ready to file yet. This ensures no one else can take your name before you’re ready to start your LLC. The time your state will hold your name depends on your location. Name reservation is optional.
When choosing a name for your LLC, check the U.S. Patent & Trademark Office's online database to confirm the name isn't already trademarked by someone else.
Operating agreement
An operating agreement costs up to $400 and is the contract that details LLC operations and relationships between members and the LLC. Only a few states require an operating agreement at formation. You can create this document yourself for free, use an online service, or have an attorney draft one for you.
EIN application
An employer identification number (EIN) costs up to $100. The EIN application is free on the IRS’s website, but some LLC formation services will complete the application on your behalf for a fee.
The IRS assigns an employer identification number to a company for use when paying federal taxes. The government requires EINs for all LLCs with more than one member or employee.
DBA fees
A DBA (“doing business as”) or FBN (“fictitious business name”) is a trade name or alias an LLC may use instead of their legal name. DBA or FBN fees are $10 to $50 if you choose to obtain one.
You may also choose to register for a trademark for an added fee if you want to control the usage of your DBA name.
To find specific cost information for DBAs in your area, check your secretary of state’s website or contact your state’s business registration office.
Registered agent
A registered agent acts on behalf of an LLC and accepts any financial and legal documents. You can be your LLC’s registered agent for free, or you can hire an online service or attorney for $50 to $300. The agent must have an address in the same state as the LLC.
Some companies or attorneys offer free registered agent services for the first year.
Business license
Business licenses cost anywhere from $50 to $1,000+, depending on the location. Even if your state doesn’t require LLCs to have a business license, your county probably will. Some companies will need to get multiple business licenses if they’re located in multiple counties.
You may also need a categorical license for specific services, such as a liquor license or food and beverage license. You will need to renew these licenses every 1 to 2 years.
LLC maintenance costs
Most states have an ongoing required fee for LLCs, generally paid every 1 or 2 years. Some states charge up to $800, but most charge around $50. This annual fee is known by different names in different locations:
Annual Fee
Annual Report
Biennial Report
Annual Franchise Tax
Forming an LLC with an attorney vs. online
Online companies like Northwest or LegalZoom charge $40 to $150 on top of your state’s filing fee to form your LLC for you.
The average lawyer charges $150 to $400 per hour, depending on their experience level and the difficulty of the case. Business lawyers often charge a flat fee of around $1,000 to $2,300 for setting up an LLC.
LLC filing fee by state
LLC filings fees cost $35 to $500, depending on the state. Most states also charge a recurring fee every 1 to 2 years. Some don’t charge a recurring fee but require an annual information report.
| State | Filing fee | Annual/biennial fee |
|---|---|---|
| Alabama | $200 | $50 every year |
| Alaska | $250 | $100 every 2 years |
| Arizona | $50 | $0 (no fee or report needed) |
| Arkansas | $45 | $150 every year |
| California | $70 | $800 every year + $20 every 2 years |
| Colorado | $50 | $10 every year |
| Connecticut | $120 | $80 every year |
| Delaware | $110 | $300 every year |
| Florida | $125 | $138.75 every year |
| Georgia | $100 | $50 every year |
| Hawaii | $50 | $15 every year |
| Idaho | $100 | $0 (annual report needed) |
| Illinois | $150 | $75 every year |
| Indiana | $95 | $31 every 2 years |
| Iowa | $50 | $30 every 2 years |
| Kansas | $160 | $50 every year |
| Kentucky | $40 | $15 every year |
| Louisiana | $100 | $35 every year |
| Maine | $175 | $85 every year |
| Maryland | $100 | $300 every year |
| Massachusetts | $500 | $500 every year |
| Michigan | $50 | $25 every year |
| Minnesota | $155 | $0 (annual report needed) |
| Mississippi | $50 | $0 (annual report needed) |
| Missouri | $50 | $0 (no fee or report needed) |
| Montana | $35 | $20 every year |
| Nebraska | $100 | $13 every 2 years |
| Nevada | $425 | $350 every year |
| New Hampshire | $100 | $100 every year |
| New Jersey | $125 | $75 every year |
| New Mexico | $50 | $0 (no fee or report needed) |
| New York | $200 | $9 every 2 years |
| North Carolina | $125 | $200 every year |
| North Dakota | $135 | $50 every year |
| Ohio | $99 | $0 (no fee or report needed) |
| Oklahoma | $100 | $25 every year |
| Oregon | $100 | $100 every year |
| Pennsylvania | $125 | $7 every year |
| Rhode Island | $150 | $50 every year |
| South Carolina | $110 | $0 (no fee or report needed unless the LLC is taxed as an S-Corp) |
| South Dakota | $150 | $50 every year |
| Tennessee | $300 | $300 every year |
| Texas | $300 | $0 (annual No Tax Due report and report needed) |
| Utah | $54 | $18 every year |
| Vermont | $125 | $35 every year |
| Virginia | $100 | $50 every year |
| Washington | $200 | $60 every year |
| Washington, D.C. | $99 | $300 every 2 years |
| West Virginia | $100 | $25 every year |
| Wisconsin | $130 | $25 every year |
| Wyoming | $100 | $60 every year |
LLC startup cost factors
The following factors also affect the cost to create an LLC:
DIY vs. legal services: Completing paperwork and filing everything yourself is the cheapest option but may cause undue stress, especially if you make any errors in your paperwork. Using an online service is an affordable alternative. Hiring a lawyer costs much more but gives you more peace of mind.
Fee type: Most online services charge a flat fee for starting an LLC. Some attorneys charge by the hour, while others charge flat fees.
Business type: Complex LLCs with a DBA or liquor, food, or casino licenses will cost more to start than a simpler business.
Taxes: While LLCs don’t directly pay federal taxes, the members and owners do. You can write off up to $5,000 of your startup costs, including attorney fees, office space, research, or equipment. Some states like Delaware and California also charge an LLC franchise tax.
Publication: Arizona, Nebraska, and New York require LLCs to pay around $40 to $1,200 to publish daily notices in one or more local newspapers. This period lasts for three consecutive weeks in Arizona and Nebraska and six weeks in New York. The actual cost varies by newspaper.
LLC startup FAQs
Do LLCs need to pay taxes?
LLC themselves don’t pay federal taxes, but the members and owners of the LLC do. Some states like Delaware and California also charge an LLC franchise tax. The amount of taxes you owe will depend on how much the business makes or loses and whether you write off any business expenses.
Do I need an LLC to start a business?
You don’t need an LLC to start a small business, which is usually categorized as sole proprietorship or a general partnership. These business types are easy to set up and maintain, but they don’t offer any protection in the event of serious debts or a bankruptcy.
An LLC protects personal assets like cars, houses, 401k accounts, and savings from being seized or garnished.
Why should I start an LLC?
You may want to start an LLC rather than a corporation because it is typically more affordable and has more liability protection since LLC profits are separate from individual assets. You can also claim any LLC expenses on your taxes.
What do you need to start an LLC?
To start an LLC, you’ll need to follow these steps:
Decide on a name for the LLC.
Choose who will be the registered agent.
File the LLC formation paperwork through the secretary of state and pay the filing fee.
Write an LLC operating agreement.
Apply for a federal EIN with the IRS.
Most of these steps only require basic information like your contact information, the address of the business, and the purpose of your LLC.
How long does it take to start an LLC?
Starting an LLC takes 7 to 10 days, depending on the state. Some issue same-day approval for online filings, while others may take several weeks if their departments are backed up. The approval process will almost always be faster online rather than through the mail.
Hiring an attorney to create an LLC
When looking for a business attorney near you, follow these steps:
Compare reviews and prices from lawyers on Lawful and Google.
Confirm their credentials and make sure they've passed the bar exam.
Choose an attorney who fits your budget and schedule.
Choose a lawyer who is conveniently located if possible.
Get a written estimate and contract before the casework starts.
Questions to ask a business attorney
Ask the following questions to find the best possible attorney:
How long have you been setting up LLCs?
Have you passed the bar? How long ago?
Do you give free consultations to prospective clients?
How long will it take you to set up my LLC?
Do you charge by the hour or a flat rate?
Will you give me a written estimate and contract?
We use our proprietary database of project costs, personally contact industry experts to compile up-to-date pricing and insights, and conduct in-depth research to ensure accuracy in all our guides.