In a recent Bluevine survey, over a third of respondents (36.9%) said they worry about not having enough savings to cover startup costs, while nearly half (47.9%) listed economic uncertainty among their top three concerns for starting a business.
Choosing a company structure is a crucial decision, but unless you want to do business as a sole proprietorship or general partnership, there will be an upfront cost. If you’re choosing to register your business as a Limited Liability Company (LLC), that cost varies by state.
What you need to know
- The price to form and maintain your LLC depends on which state you register with.
- While some states have low initial filing fees, you’ll most likely also need to pay a first annual fee, a registered agent fee, and a legal fee to prepare an operating agreement.
- Including all fees and services, the upfront cost of forming an LLC can range from $300 to $1,000, depending on your state.
Upfront fees when forming an LLC
The first expense when forming an LLC is the initial filing fee. You pay this fee to your state’s Secretary of State’s office, and in exchange they’ll legally recognize your LLC as a legitimate business. Once filed, you’ll need to include “LLC” as a suffix to your business name on any legal or financial documents.
Most states require you to pay an annual fee upon registering your business, making it an upfront cost as well as an ongoing one. Annual fees to maintain your LLC also vary by state, and each state requires you to address your annual fees to a different body or bodies. You can find more information on your state’s business regulations on your state’s Secretary of State or Department of Commerce website.
Note that, in some states, LLC “annual fees” are actually due biennially (every two years).
2026 LLC fees by state
State LLC fees vary in cost, but also in the proportion of filing fees to annual fees: Your state may have a higher upfront initial filing fee and lower recurring annual fees, for example, or the opposite. Here’s what each state charges for you to establish and maintain your LLC:
| State | Initial filing fee | Annual/recurring fee | How often your annual fee is due |
|---|---|---|---|
| Alabama | $200 | $50 (minimum) | Annual |
| Alaska | $250 | $100 | Biennial |
| Arizona | $50 | $0 | – |
| California | $70 | $800 (minimum) | Annual |
| Colorado | $50 | $25 | Annual |
| Connecticut | $120 | $80 | Annual |
| District of Columbia | $99 | $300 | Annual |
| Florida | $125 | $138.75 | Annual |
| Georgia | $100 | $60 | – |
| Hawaii | $50 | $15 | Annual |
| Idaho | $100 | $0 | – |
| Illinois | $150 | $75 | Annual |
| Indiana | $95 | $30 | Biennial |
| Iowa | $50 | $30 | Annual |
| Kansas | $160 | $50 | Annual |
| Kentucky | $40 | $15 | Annual |
| Louisiana | $100 | $35 | Annual |
| Maine | $175 | $85 | Annual |
| Maryland | $100 | $300 | Annual |
| Massachusetts | $500 | $500 | Annual |
| Michigan | $50 | $25 | Annual |
| Minnesota | $155 | $0 | – |
| Mississippi | $50 | $0 | – |
| Missouri | $50 | $0 | – |
| Montana | $35 | $20 | Annual |
| Nebraska | $100 | $13 | Biennial |
| Nevada | $425 | $350 | Annual |
| New Hampshire | $100 | $100 | Annual |
| New Jersey | $125 | $75 | Annual |
| New Mexico | $50 | $0 | – |
| New York | $200 | $9 | Biennial |
| North Carolina | $125 | $200 | Annual |
| North Dakota | $135 | $50 | Annual |
| Ohio | $99 | $0 | – |
| Oklahoma | $100 | $25 | Annual |
| Oregon | $100 | $100 | Annual |
| Pennsylvania | $125 | $7 | Annual |
| Rhode Island | $150 | $50 | Annual |
| South Carolina | $110 | $0 | – |
| South Dakota | $150 | $50 | Annual |
| Tennessee | $300 | $300 (minimum) | Annual |
| Texas | $300 | $0 | – |
| Utah | $5 | $18 | Annual |
| Vermont | $155 | $45 | Annual |
| Virginia | $100 | $50 | Annual |
| Washington | $200 | $60 | Annual |
| West Virginia | $100 | $25 | Annual |
| Wisconsin | $130 | $25 | Annual |
| Wyoming | $100 | $60 (minimum) | Annual |
Registered agent service fees
In addition to paying an initial filing fee and (in most states) an annual fee, you’ll need to choose and pay a registered agent. A registered agent is a person or business who receives and responds to legal documents (tax notices, legal summons) on your LLC’s behalf. This is part of the limited liability aspect of forming an LLC, and it is mandatory in every U.S. state.
Registered agent service fees vary based on the number of services you choose to accept, the reputation of the company, and the state your business is registered with. (Your registered agent must be based in the state you registered your LLC with, even if you are physically in a different state.) In states like California and Florida, for example, you may pay $100–$300 per year, while in Mississippi or Wyoming you may pay only $50–$100 per year.
Some states will allow you to serve as your own registered agent for free. This may be an acceptable option if you’re willing to handle all legal communications yourself, but note that being your own registered agent requires your personal home or office address to become a public record associated with your business, meaning anyone can find your address by searching your business registration.
Fee to prepare your operating agreement
An operating agreement is an internal document that outlines how your LLC will function, including management, voting, and financial procedures. All LLCs should consider having an operating agreement, but multi-member LLCs especially benefit from them as a binding document for making business decisions and resolving member disputes.
Most states do not require an operating agreement to register an LLC, but most banking providers do require them if you wish to open a business bank account. You can prepare one yourself using a free template, or you may pay for a template or pay a lawyer or firm to draft and/or revise the agreement for you. Based on how much of this work you ask from your legal representative, this may cost $100 to over $1000.
Bluevine Tip
You don’t need to be a legally registered LLC to open a business bank account. Use your existing DBA, sole proprietorship, or SSN/EIN to open a no-monthly-fee business checking account today.
How to apply for an LLC
1. Choose your state and business name
Before filing, you’ll need to decide which state to form your LLC in and select a unique business name. Most entrepreneurs form their LLC where they’ll be doing their primary business—search your state’s Secretary of State database to confirm your desired business name is available. Your name typically must include the suffix, “LLC.”
2. Appoint a registered agent
Every LLC must have a registered agent with a physical address in the state of formation, even if your business is not physically located in that state. If you’re based in the state, you can serve as your own agent, appoint a trusted person, or hire a professional registered agent service. Professional services offer privacy protection and reliability that self-appointment can’t match. Research commercial registered agent providers and compare their annual fees and services before choosing.
3. Draft your operating agreement
Your operating agreement should clearly outline member roles and responsibilities, contribution amounts, profit and loss distribution, voting rights, and procedures for adding or removing members. While you can form an LLC without an operating agreement in many states, drafting one before or immediately after formation is highly advisable. It’s particularly important if you want to take on partners or raise funds in the future. An LLC can always be converted to a C-corp, so you can offer equity in exchange for financing.
4. File your Articles of Organization
This is the official step that creates your LLC. Submit your Articles of Organization (called a Certificate of Formation or Certificate of Organization in some states) along with the required filing fee to your state’s filing office. Online filing is usually the cheapest and most convenient option.
5. Apply for an EIN (if necessary)
Apply for your free Employer Identification Number through the IRS website. The online application is available Monday through Friday during business hours (plus additional non-business and weekend hours, if necessary), and you’ll receive your EIN immediately upon completion. You’ll need this number for small business tax planning, opening business bank accounts, and hiring employees.
6. Open a dedicated business bank account
This final step is arguably the most important for protecting your liability shield. If you form an LLC or other corporation for your business, it legally separates your personal and business finances. Mixing those will skew your performance metrics and could get you into hot water with the IRS. That’s something you want to avoid at all costs.
Another advantage of using a dedicated business bank account is that it will help you build business credit with the major credit bureaus: Dun & Bradstreet (D&B), Experian, and Equifax. You need to register with each of them to begin building credit.
Start growing your LLC with Bluevine
Understanding the costs of starting an LLC is the first step toward making informed decisions about your business structure. Including initial filing fees, annual fees, registered agent fees, and any fees for drafting an operating agreement, the full cost of forming and maintaining an LLC requires careful budgeting before you’ve even registered.
One of the main reasons entrepreneurs think to form an LLC is to separate personal assets from business liabilities. An easy and important way to help safeguard your liability is by separating your personal and business finances with a dedicated business bank account.
FAQs: LLC cost and formation
Are there states with no annual franchise tax for LLCs?
Yes, eight states charge no annual fees or franchise taxes for LLCs: Arizona, Idaho, Minnesota, Mississippi, Missouri, New Mexico, Ohio, and South Carolina. You may still need to file periodic reports or statements of information, so always verify current requirements with your state government’s filing office before registering.
What is the biggest hidden cost of an LLC?
The biggest hidden cost when forming an LLC are annual report fees, which usually need to be paid upfront in addition to your initial filing fee. These fees range from $0–$800 between states.
Do I need a business bank account for a single-member LLC?
While not legally mandated in most jurisdictions, maintaining a separate business bank account helps preserve your LLC’s liability protection by separating your personal and business finances.
How long does it take to get an LLC approved?
Processing times vary by state and filing method. Online filings are typically fastest, with many states offering same-day or next-business-day approval. Mail filings can take anywhere from one to four weeks, depending on your state government’s backlog.
Can I file Articles of Organization myself?
Yes, you can file your Articles of Organization directly with your state without using a professional formation service. This saves money while giving you complete control over the process, though you may wish to receive professional legal advice or revision.
Which is the cheapest state to start an LLC?
When combining initial filing fees and recurring annual costs, Montana, Kentucky, and Arizona consistently rank among the cheapest states for LLC formation. Montana offers the lowest initial fee at just $35 with only a $20 annual report. Kentucky charges $40 to file, with a $15 annual fee. Arizona charges a $50 filing fee with zero annual fees.
