Forming an LLC can be expensive, but it doesn’t have to be.
We’ll break down how much it costs to start an LLC in every state, and walk you through how to form an LLC yourself to save money.
The table below shows LLC fees listed by state. And the table is updated for 2023.
Important: Certain states have lower LLC costs than other states. But that doesn’t mean you should form an LLC in a cheaper state to avoid state fees or other ongoing costs. It could actually end up costing you a lot more money.
You could also end up illegally doing business in your home state and having to file 2 LLCs (a Domestic LLC and a Foreign LLC).
If you haven’t seen our “best state” video yet, make sure to check it out: What’s the Best State to Form an LLC?
Initial LLC Filing Fee
State laws require all business owners to pay a state filing fee when they file the documents to form an LLC.
Said another way, this is a one-time fee paid to file your LLC formation documents with the state government where you start your LLC.
The name of the legal documents that form an LLC vary by state, and may be called:
- Articles of Organization
- Certificate of Organization
- Certificate of Formation
- Annual Fee
- Annual Report
- Biennial Report
- Annual Franchise Tax
- and more
That said, most states refer to the initial filing as the LLC Articles of Organization.
Ongoing LLC Filing Fees (Annual/Biennial Reports)
Most states also have an ongoing mandatory fee – usually paid every 1 or 2 years – which keeps your LLC in compliance and in good standing.
The names of these annual fees vary by state, and may be called:
- Annual Fee
- Annual Report
- Biennial Report
- Annual Franchise Tax
- and more
That said, most states refer to the annual fee as the Annual/Biennial Report.
There are generally late fees if you file your LLC Annual Report after the deadline. And most states will shut down your LLC if you ignore this requirement.
LLC Cost by State (as of 2023):
LLC filing fees range from $35 to $500. As of 2023, the average cost to form an LLC in the US is $132.
|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||$10 (every year)|
|Connecticut LLC||$120||$80 (every year)|
|Delaware LLC||$90||$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 (sorry, I said $90 in the video)||$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 No Tax Due Report and Public Information Report must be filed every year)|
|Utah LLC||$54||$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)|
LLC Cost FAQs
Do LLCs pay taxes?
Technically, no, LLCs don’t pay taxes to the state or federal government. This is because LLCs have what’s called “passthrough taxation”.
Pass-through taxation means that the tax-paying responsibility passes through the business structure (the LLC) to the business owner(s).
Then the business owner(s) then pay taxes on any business income generated by the LLC on their individual income taxes (Form 1040).
The only exception is for LLC owners who choose to have their LLC taxed as a C-Corporation.
However, this is rare.
Do I have to pay LLC fees every year?
That depends. A few states don’t require LLCs to pay annual LLC fees in order to keep your business entity in good standing.
However, most do. And if your state does require LLCs to pay fees each year, you must pay the annual fees. Otherwise the state can shut down your LLC – and you can lose your liability protection.
You may also have to pay fees at the state or local level, like business license renewal fees.
Is it possible to set up an LLC for free?
No. Every Limited Liability Company must pay the state filing fees and any associated ongoing costs (like an annual filing fee, franchise tax, or business license filing fees).
That said, you can learn how to form an LLC yourself with our free, step-by-step guides.
How do you avoid LLC fees?
Unfortunately, you can’t avoid most LLC fees. While state fees vary widely, all states require a filing fee to form an LLC.And most states require LLC owners to pay ongoing fees – like an annual fee to keep their LLC in good standing.
Additionally, many state and local laws require LLC owners to get a business license.
That said, you can save money on LLC-related fees by:
- being your own Registered Agent, and
- forming your LLC yourself – instead of paying for an LLC formation service to do it for you.
Which state is the cheapest to open an LLC?
The cheapest state to open an LLC is Montana.
That said, you should only open an LLC in Montana if you live in that state, or do business there.
While Montana may seem like a business friendly state due to their tax laws, those tax advantages only apply if you live there or do business there. Otherwise, you’ll have to register your LLC twice: once as a domestic LLC in Montana, and again as a foreign LLC where you live/do business.
That means you will also have to pay annual fees in both states. And you may have to pay for 2 Registered Agent Services. You may also need to pay for a business license at the state and local levels in both states.
The costs add up quickly and you end up spending more money on your business instead of saving money.
What is the best LLC formation service?
We’ve reviewed the top LLC formation services in the industry and think the best are:
- Northwest Registered Agent
- Our #1 recommendation for privacy
- Rocket Lawyer
To learn more about how these companies compare against each other, check out Best LLC Services.
Note: If you want to save money, you can start your LLC yourself using our free step-by-step guides.
What’s the cheapest way to start an LLC?
You can get an LLC cheaply by filing your formation documents yourself.
You’ll also save money by being your own Registered Agent, and using our free LLC Operating Agreement template.
By forming your LLC yourself, being your own Registered Agent, and using our Operating Agreement template, you can save over $400.
Can I be my own Registered Agent?
Yes, you can be your own Registered Agent in most states if you are a resident of the state with a physical street address, and want to save money by not hiring a Registered Agent service.
Check out Can I be my own Registered Agent for more details.
How long does it take to get an LLC approved?
How long it takes to an LLC depends on a few factors:
- Where you form a Limited Liability Company
- Whether you form an LLC online or by mail
- Whether you pay an expedited filing fee for faster processing
Check out our guide on how long does it take to get an LLC for state-specific approval times.
How to start an LLC (step-by-step):
Here are the steps to start an LLC:
- Choose an LLC name and make sure it’s available
- Choose who will be your Registered Agent
- File the LLC Articles of Organization
- Complete and sign an LLC Operating Agreement
- Get a Tax ID Number (EIN) from the IRS
- Open an LLC business bank account
- Check whether you need a business or sales tax license
We’ll walk you through it all, step-by-step.