Starting a Limited Liability Company (LLC) costs a decent chunk of money, but the exact amount depends on where you live, what industry you’re in, and how much cash you need to become operational. LLCs with low-overhead business models might only cost a few hundred dollars to form, while LLCs with employees or technical niches could cost four or five figures just to get up and running.
Whether you’re still in the research stage or already budgeting for your LLC, we can help. Keep reading for a side-by-side comparison of LLC filing fees across states, a list of other business formation expenses to expect, and advice for mapping out your startup costs.
LLC filing fees and annual fees
Every state charges its own fee to file LLC articles of organization. Some states also impose different fees for online filing versus paper filing, while others have separate fees for domestic LLCs and foreign LLCs (entities initially registered in another state). The national average is around $130 for a filing fee, but fees range from $35 to $500 depending on the state.
Many states—though not all—also charge an annual reporting fee to maintain the LLC. Nebraska’s is just $13, while California’s (which the state calls a franchise tax) is $800. Along with the fees, states require you to submit an annual report (or in some states, a biennial report).
Here’s what each state charges*:
LLC filing fees by state
State | One-time filing fee | Annual reporting fee |
$200 | $50 | |
$250 | $100 | |
$50 | None | |
$45 | $150 | |
$70 | $800 | |
$50 | $25 | |
$120 | $80 | |
$110 | $400 | |
$125 | $138.75 | |
$100 | $60 | |
$50 | $15 | |
$120 | None | |
$150 | $75 | |
$95 | $30 | |
$50 | $30 | |
$85 | $50 | |
$40 | $15 | |
$125 | $35 | |
$175 | $85 | |
$150 | $300 | |
$500 | $500 | |
$50 | $25 | |
$155 | None | |
$50 | None | |
$50 | None | |
$35 (plus $50 per member) | $20 | |
$100 | $25 | |
$75 | $350 | |
$100 | $100 | |
$100 | $75 | |
$50 | None | |
$200 | $9 | |
$125 | $200 | |
$135 | $50 | |
$99 | None | |
$100 | $25 | |
$100 | $100 | |
$125 | $7 | |
$150 | $50 | |
$125 | None | |
$150 | $55 | |
$300 | $300 | |
$300 | None | |
$59 | $18 | |
$155 | $45 | |
$100 | $50 | |
$180 | $70 | |
$100 | $25 | |
$130 | $25 | |
$100 | $60 |
*As of October 2026
LLC costs beyond the state filing fees
LLC fees are a guaranteed business expense, but every other cost depends on your location, industry, business model, personal bandwidth, and business experience.
Here are some you might encounter:
1. Registered agent service
A registered agent is the designated recipient of all the LLC’s legal or compliance-related documents.
You can appoint yourself (or one of your fellow LLC members) as your business’s registered agent, or hire a registered agent service. The registered agent service will serve as the point of contact between your business and any tax or government authorities, passing along lawsuits, garnishment notices, and information about maintaining your LLC.
Other than saving you time, one benefit of hiring a registered agent service is the privacy it provides. When you form an LLC, your registered business information becomes public, so if you work from home—and give the state your home address when filing—anyone can find it when they search your business.
These services typically charge an annual registered agent fee, between $100 and $500 a year.
2. Operating agreement assistance
An operating agreement is the document that outlines your business’s ownership, management, and profit-sharing structures. You can write an operating agreement yourself or hire help if you need support with formatting and legal language.
Some people use LLC formation platforms like LegalZoom or ZenBusiness. Some of these providers bundle the cost of an operating agreement into their subscription price, while others help you draft an operating agreement for an additional fee. LLC formation service costs are usually between $150 and $300 a year.
Another, more expensive option is to consult a business attorney. Depending on whether you hire someone to review your operating agreement or draft it from scratch, it could cost you several hundred dollars or north of $1,000.
3. DBA registration
A DBA, which stands for “doing business as,” is a company name that’s different from your official LLC name. When you have a business name that differs from the one you filed in your articles of organization, you’ll need to register it with your city or county clerk’s office and pay a local DBA filing fee. Most fees are between $15 and $150.
4. Business licenses and permits
Lots of small business owners need business licenses and permits to run their operations. Some states require you to get a business license to charge sales tax, work in heavily regulated industries like construction, or offer certain professional or occupational services (like accounting or plumbing).
It’s not just states, either—counties and cities often require business licenses too. Depending on which services you offer, which types of products you sell, and where you’re located, you might need a building permit, operating license, zoning and land use permit, or a health license.
Business license fees vary widely. On the lower end, local business licenses can cost between $25 and $100. But some states and counties charge upwards of $500 for certain state-board licenses and county health department permits.
Check your Secretary of State and local county clerk’s websites to see which business licenses you’re responsible for. In general, though, it’s a good idea to budget a couple thousand dollars for permits and licenses, just to cover your bases.
5. Workers’ compensation insurance
If you plan to hire employees, you’ll likely have to register for workers’ compensation insurance. Some states require you to obtain insurance the moment you hire one employee, while other states only require insurance once you meet a certain threshold of employees. Texas is the only state that doesn’t mandate workers’ compensation insurance at all.
The cost of workers’ compensation insurance varies hugely, depending on your total payroll and job classification codes, which are set by the National Council on Compensation Insurance (NCCI). Low-risk, in-office jobs command smaller monthly premiums compared to jobs that require outdoor work or involve heavy machinery.
6. State unemployment insurance
Every state has its own unemployment insurance (SUI) program employers are obligated to contribute to. You’ll have to register with your state’s department of labor or workforce agency to start paying quarterly SUI taxes. In most states, employers pay 100% of the tax, versus splitting it with employees.
Here’s a state-by-state breakdown of SUI tax rates.
7. Payroll and HR software
To save time and minimize errors, most business owners nix spreadsheets and run payroll using a small business payroll software. Along with automating payroll and streamlining tax filing, some payroll platforms also track PTO, facilitate employee onboarding, and administer benefits.
Depending on the provider and size of your workforce, payroll software can cost anywhere from $20 a month to several hundred dollars a month. Gusto’s Simple Plan, which includes unlimited payroll runs, starts at $49/month, plus $6/month per employee.
What to consider when you create an LLC budget
When you’re building your LLC budget, there are two golden rules:
Be as precise as possible: You need to know exact numbers, not general ranges. Confirm your state’s filing fees, find out the current cost of a business license in your city, and request quotes from workers’ compensation insurance providers.
Pad the budget for unforeseen expenses: Add an extra 20-30% of your total budget to account for emergencies, last-minute expenses, and surprises.
When you’re totaling up your costs, you’ll need to factor in:
LLC filing fees
LLC annual fees
Payroll and HR platform subscription
Equipment and technology
Rent and utilities
Payroll
Taxes and insurance
Marketing and advertising spend
Inventory
Supplies and materials
Consulting
Frequently Asked Questions
What's the cheapest state to form an LLC in?
Montana is the cheapest state to form an LLC in, with a $35 fee to file articles of organization (also called a certificate of formation) and a $20 annual reporting fee.
Are there hidden or annual LLC costs I should budget for?
Most states charge an annual reporting fee alongside the one-time filing fee—anywhere from $7 to $800. But other costs come into play, too. Think: business licenses and permits, payroll software, tech subscriptions, and workers’ compensation insurance.
Is an LLC worth the cost for a small side business?
Whether or not an LLC is worth the cost depends entirely on your business structure and location. If you have low overhead and enough savings to cover formation and basic startup costs, filing an LLC might feel super affordable. Still, even if you have more expensive overhead, the personal liability protection an LLC provides might be well worth the startup costs.
