How Much Does an LLC Cost in 2026?
Forming an LLC costs $35–$500 in state filing fees in 2026, with the national average sitting around $150. Most owners spend $100–$500 total in the first year when they file the paperwork themselves and hire a registered agent. The cheapest possible LLC runs $35 (Montana, DIY, serving as your own agent), while a New York LLC hit with the publication requirement — or a California LLC set up with attorney help — can top $2,000 in year one.
The state you file in matters more than anything else. Browse more legal service cost guides to compare with trademarks, wills, and other everyday legal costs.
LLC Cost at a Glance
| Cost | |
|---|---|
| Average state filing fee | ~$150 (one-time) |
| Typical first-year total (DIY) | $100–$500 |
| Low-end (Montana, DIY, own agent) | $35 |
| High-end (NY publication / CA + lawyer) | $2,000+ |
Filing fees are set by each Secretary of State and change by legislation; annual figures below reflect 2026 fee schedules.
LLC Filing Fees by State
This is the table that actually determines your budget. The filing fee (Articles of Organization) is a one-time charge — but the annual report or franchise tax column is what you pay every year the LLC exists, and in several states that recurring number matters far more than the upfront one.
| State | Filing fee (one-time) | Annual report / tax | Notes |
|---|---|---|---|
| Montana | $35 | $20/yr | Cheapest filing in the US |
| Kentucky | $40 | $15/yr | Low on both ends |
| Arkansas | $45 | $150/yr | Cheap to start, pricey to keep |
| New Mexico | $50 | $0 | No annual report; strong privacy |
| Arizona | $50 | $0 | No annual report |
| Colorado | $50 | $10/yr | Cheapest 3-year ownership overall |
| Missouri | $50 | $0 | No annual report |
| Ohio | $99 | $0 | No annual report |
| Wyoming | $100 | $60/yr | No income tax; owner names private |
| Florida | $125 | $138.75/yr | No income tax |
| Texas | $300 | $0* | *Franchise tax varies by revenue; most small LLCs owe $0 |
| New York | $200 | $9 biennial | Plus publication $300–$2,000 |
| Delaware | $110 | $400/yr | Raised from $300 for tax year 2026 |
| Nevada | $425† | $350/yr | †$75 articles + $200 business license + $150 initial list |
| California | $70 | $800/yr | Franchise tax due even at $0 revenue |
| Massachusetts | $500 | $500/yr | Priciest state to form and maintain |
The $50-and-under club
Montana ($35), Kentucky ($40), and the $50 group — New Mexico, Arizona, Colorado, Missouri — are the cheapest doors into LLC ownership. New Mexico and Arizona stand out further because they charge $0 in annual fees: once you file, the state never bills you again. Colorado pairs its $50 filing with a $10 annual report, making it the cheapest state for three-year total ownership at roughly $369 including a budget registered agent.
The trap: cheap filing, expensive upkeep
Arkansas looks like a bargain at $45 to file — then bills $150 every year. California is the extreme version: a modest $70 filing fee followed by an $800 annual franchise tax that applies even if your LLC earns nothing. Delaware’s reputation as “business-friendly” costs $400 a year in LLC tax (raised from $300 for tax year 2026) — worth it if you’re raising venture capital, a bad deal for a local service business. Always price three years of ownership, not just day one.
New York’s publication requirement
New York charges $200 to file — reasonable — then requires you to publish notice of formation in two newspapers for six weeks. In Manhattan that runs $1,500–$2,000; upstate it can be as low as $300. It is a one-time cost, but it routinely doubles or triples a New York LLC’s first-year budget, and it is the single most common surprise in LLC pricing.
Delaware, Nevada, Wyoming: when the hype is worth it
Wyoming ($100 filing, $60/yr, no income tax, owner names off the public record) is the default pick for online businesses and non-US founders with no fixed base. Delaware ($110 + $400/yr) only earns its premium if you’re raising venture capital and want the Court of Chancery. Nevada ($425 at formation, $350/yr) offers strong asset protection but is the priciest of the three to maintain — form there only if you actually operate there.
DIY vs. Formation Service vs. Lawyer
The state fee is unavoidable. Everything above it is a choice about how much hand-holding you buy.
| Approach | Service cost (excl. state fees) | What you get | Best for |
|---|---|---|---|
| DIY — file yourself | $0 | Your time (1–3 hours on the SoS website) | Repeat founders, simple single-member LLCs |
| Online formation service | $0–$400 + state fee | Filing handled, operating agreement template, often 1st-year registered agent | First-timers, non-residents |
| Business lawyer | $500–$2,000+ | Custom operating agreement, tax-election advice | Multi-member LLCs, complex ownership |
Filing yourself
Every Secretary of State accepts online filing, and the form is short: name, registered agent, address, organizer signature. Budget 15–30 minutes plus the state fee. The main risk is rejection for a name conflict or a missed field, which costs you a week — not money, since most states let you refile without paying twice.
Formation services
Bizee (formerly Incfile) offers a $0 + state-fee package that covers the filing and a free year of registered agent service — the genuine budget pick. Northwest Registered Agent charges around $39 + state fee with registered agent service at $125/yr after any promo period, and includes a free operating agreement. ZenBusiness runs $0–$199 + state fee, with registered agent renewals at $199/yr. LegalZoom sits at the premium end ($79–$349 + state fee, registered agent $249/yr) — you pay for brand and support, not for a different legal outcome.
Hiring a lawyer
A business attorney charges $500–$2,000+ to form an LLC, most of it in a customized operating agreement rather than the filing itself. Worth it when there are multiple members, outside investors, or unusual profit splits — the operating agreement is the document that prevents expensive disputes later. For a solo freelancer, it is overkill.
Registered agent options
Every state requires a registered agent with a physical in-state address, available during business hours to receive legal documents. Your options:
| Option | Annual cost |
|---|---|
| Serve as your own agent | $0 |
| Northwest Registered Agent | $125/yr |
| ZenBusiness (renewal) | $199/yr |
| LegalZoom | $249/yr |
Being your own agent is free but puts your home address on the public record and requires you to be reachable 9-to-5. Non-US founders must use a commercial agent — expect $100–$150/yr at the budget end.
LLC Cost Factors
Your state — the #1 driver
State choice swings the first-year total from $35 to $2,000+ and annual upkeep from $0 to $800. Form where you actually operate: registering out-of-state means filing as a foreign LLC back home, paying two sets of fees and wiping out any savings.
Registered agent
$0 if you serve as your own agent and qualify; $100–$300/yr for a commercial service. Watch renewal pricing — several providers discount year one, then jump.
Publication requirements
New York’s newspaper publication adds $300–$2,000 one-time. A handful of other states have limited publication rules, but New York is the one that moves budgets.
Expedited processing
Most states process standard filings in 1–4 weeks for the base fee. Need it faster? Expedited handling runs $50–$150 extra in most states, with same-day service up to $150 in places like Washington.
Business licenses
Separate from the LLC itself, cities and counties charge $50–$400/yr for a general business license. Regulated professions (contractors, food service, childcare) pay more for specialty permits.
Foreign qualification
Operating in a second state — an office, employees, or regular physical presence — requires foreign LLC registration there: another filing fee ($100–$500) plus that state’s annual reports. This is how “cheap state” strategies backfire.
Additional LLC Costs
| Item | Typical cost | Notes |
|---|---|---|
| EIN from the IRS | $0 | Free at irs.gov in ~5 minutes; never pay a service for this alone |
| Operating agreement | $0–$500 | Free templates work for single-member LLCs; attorney-drafted $200–$500 |
| Business licenses | $50–$400/yr | City/county dependent |
| DBA (“doing business as”) | $10–$100 | Only if operating under a name different from the LLC’s legal name |
| Name reservation | $10–$50 | Optional; holds your name 60–180 days while you prepare |
| Certified copies | $5–$30 each | Banks frequently ask for one when opening the business account |
| Publication (NY) | $300–$2,000 | One-time; varies wildly by county |
How to Save Money on Your LLC
- Form in your home state. The single biggest saver — no foreign LLC fees, no second registered agent, one annual report.
- File yourself. The Secretary of State’s online portal takes 15–30 minutes; the form is five fields, not a legal exam.
- Be your own registered agent if you have an in-state address and keep business hours — that is $100–$300/yr back in your pocket.
- Get the EIN free from the IRS. It takes five minutes at irs.gov; formation services upsell this relentlessly.
- Use a free operating agreement template for a single-member LLC — attorney drafting only pays off with partners or investors.
- Skip expedited processing unless a contract or bank deadline forces your hand; standard processing is free.
How We Compile Our Cost Data
Our LLC figures are cross-checked across multiple 2026 sources — state-by-state fee surveys and 2026 cost breakdowns verified against Secretary of State websites (September 2026), plus current registered-agent pricing from major formation services. State legislatures adjust fees; always confirm your state’s current schedule on its Secretary of State website before filing.
Forming the LLC is step one — protecting the name is step two. Once your LLC exists, see how much a trademark costs to lock down your brand. Spotted a fee that’s changed in your state? Contact us — reader reports keep our tables honest.
Frequently asked questions
How much does it cost to start an LLC in 2026?
**$35–$500** for the state filing fee, depending on your state. Most owners spend **$100–$500** total in the first year when they file themselves, including a registered agent. A formation service adds **$0–$400** on top of state fees; a business lawyer runs **$500–$2,000+**.
What is the cheapest state to form an LLC?
Montana, at **$35** to file with a **$20** annual report. For the lowest ongoing cost, New Mexico charges **$50** to file and **$0** in annual fees. But forming outside your home state usually means registering as a foreign LLC back home too — which doubles your fees and wipes out the savings.
Do I need a registered agent for my LLC?
Yes — every state requires one. You can serve as your own agent for **$0** if you have a physical in-state address and are available during business hours, or hire a commercial service for **$100–$300** per year. Non-residents and frequent travelers almost always need the commercial option.
How much does an LLC cost per year to maintain?
Anywhere from **$0** (New Mexico, Arizona, Ohio, Missouri) to **$800** (California's annual franchise tax). Most states land between **$20 and $200** per year for annual reports, plus **$0–$300** if you use a commercial registered agent.
Is it cheaper to use LegalZoom or file an LLC yourself?
Filing yourself costs only the state fee (**$35–$500**) and takes 15–30 minutes on your Secretary of State's website. Budget services like Bizee (**$0** + state fee) or Northwest (**~$39** + state fee) make sense for first-timers who want guidance; LegalZoom's **$79–$349** packages charge a premium for hand-holding.
Can I form an LLC for free?
No — every state charges a filing fee, with **$35** in Montana the absolute minimum. When a service advertises 'free LLC formation,' the $0 refers to their service charge only; the state fee is always passed through to you.
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