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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.
Need to save time? Hire a company to form your LLC:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)
(check out Northwest vs LegalZoom)
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||$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||$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||$70 (every 10 years)|
|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.
89 comments on “LLC Filing Fees by State”
Disclaimer: Nothing on this page shall be interpreted as legal or tax advice. Rules and regulations vary by location. They also change over time and are specific to your situation. Furthermore, this comment section is provided so people can share their thoughts and experience. Please consult a licensed professional if you have legal or tax questions.
i pay today $249 to have online one EIN in Georgia Atlanta… why i read here on this portal that is free??
Thank you so much for your article. I am planning to be a traveling artist, meaning I will be overlanding and selling my hand made artworks through my online store. Currently I reside in Arizona, but I plan to travel to different states and sell art online and may in some art galleries/fair in different states that I travel to. Where should my LLC be based on?.
Hi Matt, thank you for the advice you provide to people. I have a concern regarding the entity I want to form and where to form it. Long story short, I am the sole owner and have a tech product that I plan to sell online. I am based in Massachusetts, but I am considering raising capital in the future. All of the investors I have spoken to prefer Delaware Inc, so I am considering forming an LLC in Delaware initially or even going straight to a C-corp. However, I am not sure if I will make enough profit in the first year. What do you think I should do in this case? Thank you so much
Hi Matt – Thank you for sharing all this information..
Here is my scenario – I run a resort in Thailand and is registered as a Thai partnership since that is the only way Thailand allows a foreigner to operate a business (49% me and 51% my thai partner who gets no share of income and has not invested anything…just a legal formality) When I filed last year on my US return I filed a schedule C to report my income and expenses. I know have 2 individuals from the US that want to become partners with me in this venture. I was planning to create a US LLC in either WY or NM (low fees) that is doing business in Thailand. Nobody is working from the US or generating any US income.
I would then generate partnership returns each year reporting the income from the resort. Essentially the LLC would own the assets but operating as a thai partnership.
I am not required to pay Thai taxes as I dont generate enough income but do have my accountant filing an annual required balance sheet and I pay monthly SS taxes for my employees.
Am I on the right track here, or would it just be simpler to create a contract with these partners that they own X% ? If so..I dont know how I would have them report their income from the resort? “Other income” reported on a 1099 misc?
Im still leaning towards a WY or NM LLC doing business outside the US but if that is wrong I would greatly appreciate your advice.
Thank you… and If clicking on some affuliate link helps you in some way Id be glad to do so :)
I’m interested in getting a quote and finding out how soon I could form a corporation.
Hi Crystal, we don’t provide entity formation services at this time.
I am a US citizen, currently a resident of Tx, but I want to retire and move to Mexico as an expat.
I read a recommendation to set up a Wy LLC to hold my brokerage account for added protection and autonomy.
1) Since the LLC would not be doing any actual business would I still have to register it with my current state (Tx)?
2) Or should I wait to establish the LLC when I am a resident of Mexico?
If I read your information correctly, you said it makes sense to use any state’s LLC if you are not a US resident, but (3) is that true for a US citizen who is an Expat?
Hi Rob, in this scenario, I’d form an LLC in Wyoming and not register it as a Foreign LLC in Texas (regardless of when I retire to Mexico). This is because the foreign LLC registration isn’t going to be strictly enforced in Texas. And if it comes up, then I’d just foreign-qualify in Texas and later cancel that qualification (aka registration) once I move to MX.
I am interested to know if you offer some kind of guidance to start an LLC, contracts etc., advice and what would be the cost for this, thank you!
Thanks for your interest Alejandro, but at this time, we don’t have such a service. Thank you for your understanding.
Just wanted to leave a comment expressing my gratitude. This site is an excellent resource. Thank you to you and your team for putting this together.
Thanks you so much! We really appreciate your kind words :)
I want to make LLC of Virginia for Amazon whole sale FBA .can u tell me how much it wil cost . What is the total fee?
Actually I m not a resident of USA I want to make not residential USA llc
Hi Ghazal, you can find the fees here: Virginia LLC costs.
I formed an LLC company with the services based in New Mexico based on your information from https://www.llcuniversity.com/llc-filing-fees-by-state/
which is FALSE.
New Mexico requires all LLC to pay annual franchise tax fee of $50 and file corporate form NOT like it is mentioned on your page “$0 annual fee”. Even if there’s no activity or income in the state this franchise fee must be filed.
This is a massive disinformation, expect a lawsuit.
Hi Don, first, I apologize for any confusion our website may have caused. Please let us know if there is anything we can do to help.
New Mexico LLCs don’t file an Annual Report or pay an annual fee fee to the New Mexico Secretary of State. However, depending on how the LLC is taxed federally and what activities it engages in in New Mexico, there may be certain tax filings with the New Mexico Taxation and Revenue Department. We recommend speaking with an accountant to make sure all necessary federal and state taxes are filed.
However, the majority of New Mexico LLCs don’t have to pay the $50 franchise tax or pay New Mexico corporate income tax. The New Mexico Taxation and Revenue Department honors the LLC’s federal tax classification with the IRS. Single-Member LLCs (taxed in their default status as a Disregarded Entity/Sole Proprietorship) and Multi-Member LLCs (taxed in their default status as a Partnership) don’t pay the $50 franchise tax or pay corporate income tax.
The $50 franchise tax and the New Mexico corporate income tax would apply to a Corporation or an LLC taxed as a C-Corporation and an LLC taxed as S-Corporation. I hope that helps :)
This information is INCORRECT.
Please provide the tax code rule in New Mexico tax code where you derive the fact New Mexico LLC do not have to pay franchise fee.
Example: Does Single member LLC registered in New Mexico, Disregarded Entity, NOT taxed as C/S corp and does not have any assets in New Mexico and does not do any business in New Mexico has to pay $50 franchise fee and file corporate income tax form (even if there’s no corporate income tax due, but only franchise fee) with this franchise tax fee AND register for New Mexico CRS id?
YES IT DOES
Hi Don, the franchise tax and corporate income tax originate out of the same act, the Corporate Income and Franchise Tax Act (Chapter 7, Article 2A of the New Mexico Statutes). The franchise tax and corporate income tax only apply to “corporations”, as defined in Section 7-2A.2, Definitions (G):
“‘corporation’ means corporations, joint stock companies, real estate trusts organized and operated under the Real Estate Trust Act [47-2-1 to 47-2-6 NMSA 1978], financial corporations and banks, other business associations and, for corporate income tax purposes, partnerships and limited liability companies taxed as corporations under the Internal Revenue Code.”
I highlighted the part about LLCs taxed as Corporations.
As per Section 7-2A-3, the franchise tax and corporate income tax are imposed on Corporations (and LLCs taxed as Corporations).
Please also see page 4 of the Corporate Income Tax Instructions (2020 CIT-1 Instructions for Tax Return). You will find the same information. Furthermore, at the bottom of page 4, you’ll find a helpful table. This shows what New Mexico filings are due based on an entity’s federal filings. A Single-Member LLC (not taxed as a Corporation) will file a PIT-1. A Multi-Member LLC (not taxed as a Corporation) will file a PTE. An LLC taxed as a C-Corp or S-Corp will file a CIT-1. Only entities that need to file a CIT-1 need to pay the franchise tax.
You can also speak with the Corporate Income Tax Department, New Mexico Tax and Revenue Department at 505-827-0825. There is a woman there who is very knowledgable. Her name is Julie. Please let me know if there is anything else I can help with.
Hi, I am a little confused. I live in Rhode Island and here it says the LLC is $150 to get and $50 per year. On a separate page for Rhode Island your site says the annual fee is $400 in Rhode Island. Can you explain which it is?
Hi Kristen, apologies for the confusion. They are both due. The $150 per year is the Rhode Island LLC Annual Report, filed with the Rhode Island Secretary of State.
The $400 (for the 2020 tax year) is the Annual Charge (aka Annual Fee) which is a part of the tax obligations filed with the Rhode Island Division of Taxation. Rhode Island Single-Member LLCs and Multi-Member LLCs (not taxed as a Corporation) need to file an annual tax return using Form RI-1065. As a part of that tax return is the Annual Charge. We have helpful links about this on the Rhode Island LLC Taxes page.
My son is on an online video team that has been instructed to form an LLC in case of earnings won from leagues. The five are from four different states (and one player from Canada). Can they form an LLC in any state? Is there one you would recommend for them? Two are from California and Connecticut, but I read on a different site that those are two of the worst states in which to start an LLC. Thanks for any suggestions.
Hi Sherry, congratulations. That sounds exciting! Where an LLC should be formed (or registered as a foreign LLC) comes down to where the LLC is “doing business”. This is likely a bit harder to define in your sons’s setup. Will the team be competing regularly in one primary location… or is anywhere necessary? Does one or a few Members do most of work on the business/team from home?
I recommend speaking to the Canadian parents. Typically, Canadians that own US LLC pay tax to the IRS and the Canada Revenue Agency (CRA).
You are correct about California and its rules regarding “doing business” (please see when is an LLC doing business in California).
From a federal tax standpoint, a Multi-Member LLC, by default, is taxed like a Partnership. The LLC will federally file a 1065 Return and issue K-1s to the Members. The Members then report their earning on their individual tax return.
I’m planning to start a telehealth business in another state different from where I reside. I do not have an LLC in the state that I live in. Please advise which state to register the business as an LLC.
Hi Ola, are you a licensed health practitioner? If so, what state license do you hold and in what state? You’ll want to get in touch with the state(s) Medical Board as “telemedicine” is a regulated industry which requires licensure.
Thank you for your prompt reply! I think I understand, so if I get paid for example $20 but my expenses are $30, the $30 I could claim back? . Basically I audit restaurants. :-) Would it be better to open a LLC as opposed to a contractor? I’m mostly out of pocket when doing the work. But you got to eat right :-)
Hi Suzie, it doesn’t matter how much you (or your LLC gets paid). If there is a legitimate business expense, then that expense can be written off. From a tax perspective, the LLC and Sole Proprietorship are the same. From a legal perspective, they are different. Please see: LLC vs Sole Proprietorship.
Hi there! I currently file my taxes via an accountant every year as a contractor. I was wondering if it would be more beneficial to open an LLC? My accountant says it would be the same as a contractor but would I gain more benefits? Just wondering if its worth applying. Its a part-time position where I audit. Sometimes my expenses are more than what I get paid for the job :-/ I enjoy doing it, just wondering how I can perhaps make it more beneficial.
Hi Suzie, from a tax perspective, operating as a Sole Proprietorship or an LLC is the same. Since, by default, a Single-Member LLC is taxed by the IRS like a Sole Proprietorship. So in both cases, you personally pay tax on the net income. And you can write off expenses related to the work. The benefit of the LLC is liability protection. Hope that helps.
I am starting a business selling children’s clothing from home in Illinois but I am going to be moving to Georgia in the coming months. Should I operate as a sole proprietorship until after I move to avoid paying the LLC fees twice or should I file for my LLC now?
Hi Jamia, in a situation like this, we recommend forming your LLC in the state you are moving to, since that is where you’ll be transacting business. Forming an LLC in Illinois, only to dissolve it a few months later, can be quite tedious and will cost extra.
Thank you Matt. THIS WEBSITE IS THE BEST
Thanks Alejandro! You’re very welcome :)
Amazing web! Thank you for your support!
I would like to ask about taxes, I have a LLC and as a non resident in The USA, without employees or real offices in the country. I hear that since 2017 now we must to fill some taxes forms like 5472, 1120 and im not sure if 1040 too. Do you know if it is true? And could you recommend some attorney to fill these forms in case we must to.
Thank you again
Hi Alejandro, yes, please see Form 5472 requirement for foreign-owned Single-Member LLC. The 1120 is just used as a “cover letter” for Form 5472. Whether or not you have to file Form 1040NR depends on the details (or you may not need to file). You’ll need to speak with an accountant who is familiar with US taxes for non-US residents. At this time, we don’t have a recommendation. Hope that helps :)
I want to open LLC but confused in Wyoming & New Mexico. Reason if I chose New Mexico I do not need to pay any state fee from next year but do I need to spend some charges for annual filing ?
If I open in Wyoming, I need to pay 50$ state fee from next year but No annual charges if I don’t earn or do business ?
Please email me and setup for me, thanks
Hi Kapilesh, no, that is incorrect. The fee to form an LLC in New Mexico is $50 and there is no Annual Report. The fee to form an LLC in Wyoming is $100 and the Annual Report is $60 per year. What state do you live in/do business in? Because if you live in a different state, you’ll need to register your Wyoming or New Mexico LLC as a foreign LLC in your home state.
We don’t offer filing services, however, if you want to hire someone to form your LLC, we recommend using Northwest Registered Agent. Hope that helps :)
Current situation: I am an independent contractor for a company and receive a 1099. My tax adviser told me to look into forming an LLC as a ShareCorp. If I did form an LLC, would my contractor paychecks be able to qualify as income to the corp? And, I would be the owner of the LLC and an employee so I would be paid out of the corp as an employee? It just sounds shady, and I want to make sure I’m not doing anything illegal. Thanks so much!
Hi Rebecca, it would be helpful to read how are LLCs taxed first. That’ll make the rest of this reply make more sense. If you formed an LLC, payments made to that LLC (regardless of how the LLC is taxed) will just be treated as income. No taxes will be withheld, which is the same as your current arrangement, receiving payments as an independent contractor.
By default, a Single-Member LLC (1 owner) will be taxed like a Sole Proprietorship. There is no such thing as a ShareCorp. I imagine they meant an LLC taxed as an S-Corp. More specifically, that is an LLC that elects (by filing a form) not be to be taxed in the LLC’s default status (LLC taxed as Sole Proprietorship), but instead, for the LLC to be treated as an S-Corporation for taxes. While this isn’t shady, you’ll want your net income to be above a certain amount in order to offset the extra costs to managing an LLC taxed as an S-Corp. The “LLC taxed as an S-Corp” article will go into all those details. Overall, we don’t recommend doing anything with an LLC (regardless of the tax setup) until you have a good grasp on the basics. Check out the articles at the top of our LLC Learning Center. I think they will help a lot. Hope that helps!
I have a California LLC to manage my clients’ investments. I have clients in California, Texas, Missouri, and Louisiana. My questions are:
1. Do I need to register my California LLC in Texas, Missouri, and Louisiana as well?
2. Also, in the future, if I get clients in other states, would I have to keep registering my California LLC in all other states too?
3. Would investment management fee I earn be considered income originating from these various states? … and therefore, would I have to file my LLC forms and pay taxes in all these individual states? … Or because I work from California, I can consider all income to have originated from California and pay taxes only in California, obviously, in addition to federal taxes?
Hi Sinha, where an LLC needs to be formed (or registered as a foreign LLC) comes down to where it’s legally transacting business. There are different laws for each state. Also, “managing clients’ investments” could happen in a multitude of ways. It’s best practice to speak with attorneys in the those states to evaluate the business activity and see if it constitutes “doing business”. The last question is a tax question. You’ll need to speak with a qualified tax professional about that. It depends on how those states treat the income, where it’s “sourced”, and more. You may have to file and pay, you may just have to file (and apportion your income to California), or neither. Hope that helps and thanks for your understanding.
Thanks for all the info listed. I read all the other questions by people but none matched my situation. I live in Poland and will be doing online business in America. I am a citizen living abroad. Am I able to register in a cheaper state? Will not have an address though. I do have people living in New York and that’s where I used to reside before moving to Europe. So I can use someone else’s address. Will I be getting mail there? I want to conduct all my mail online. NY costs seem very cheap after the initial filing fee, so maybe to file there is worth it, but please tell me info regarding the mail. I don’t want someone else to have to be bothered with handling my business mail.
Hi Yana, there is a publication requirement for New York LLCs. Yes, in pretty much all states, you’ll be getting mail at the LLC’s address. Some Registered Agent companies will receive your mail and then scan it to you by email. Where to form an LLC comes down to where you’ll be legally transacting business. Since you’re not living in the states, it’s a bit gray. It’s also a good idea to think ahead. If you move back to the states, where would you go? It may be worth considering forming in that state. Your business may grow and maybe you decide to be taxed as an S-Corp. In that case, you’d need to run payroll. Payroll is filed at the federal, state, and local level. So if New York is where you’ll go back to, it’ll be easier to already have an LLC setup there for payroll. That’s just a hypothetical example though.
Great points Matt! Thank you so much for your professional opinion. I will go that route. I do eventually want to relocate back to NYC. The address where I will receive mail is someone I know and trust. So it’s a good start. Appreciate your time!!
You’re welcome Yana :) Glad it was helpful!
Hi Matt, thanks for the article!
I’m in Mass doing an online business that does business across the country. Does it matter which state I file in? Mass is very expensive! I wonder if I even have to have a physical address for an online business?
Hi Jay, it comes down to where you’re transacting business. If you are living and running the business from Massachusetts, then you’re transacting business in Massachusetts. And yes, your LLC will need a physical address. States don’t really care if you’re business is online of offline. If you’re carrying out business activities in their state, then you’re doing business there. Hope that helps clarify it.
first off im 15 and interested in starting my own business (online) and am situated in NC and was wondering if a sole proprietorship or LLC would be best for me, and if i can start the business as a sole proprietorship and switch to an LLC later down the road to protect my current assets. And if its even legal to be a manager and organizer of an LLC as a minor (from what i have researched it is but there may be some complications)
Hi Maxwell, we have info on “converting” a Sole Proprietorship to an LLC here: change Sole Proprietorship to LLC. Regarding the part about being a minor, we’re not sure. Things vary by state statute. We recommend calling up a few attorneys. Avvo is a good source. Hope that helps.
I already filled out the LLC application for Illinois(today) and I think I might have did it wrong. When it asked for names is managers I put my husband name and the organizer as me. Does that mean I don’t have any power to make discussions? Do I need to list my name also? If so, how if I submitted it already?I apologize im just so confused.
Thanks in advance
Hi Ivy, we’re unable to tell what you were trying to accomplish. I recommend calling the Secretary of State and seeing if you can cancel the filing. Then check out Member-managed LLC vs Manager-managed LLC and what is an LLC Organizer. Hope that helps.
Kentucky also has a limited liability entity tax. Minimum $175.00 each year.
Do other states have a similar tax?
Hi JG, correct. We do mention that on our Kentucky LLC taxes page. Yes, many states have additional taxes beyond the LLC Annual Report; which is usually filed with the Secretary of State. Thanks.
-When I move to a new state and use your forms to file for an LLC there:
a) Will it be OK to just not pay the annual filing fee and let it expire, in order to avoid the filing expense to cancel it…or will I need to pay a fee to cancel my current LLC with my state (WA)?
b) Will I notify my registered agent, who doesn’t do anything anymore (his services were included in the large payment to create my LLC 10yrs ago).
c) Will I be able to continue using my current EIN # with my new LLC, or will I need to get a new one?
Hi Karen, to clarify, we don’t have “our forms”. We provide links to the official state forms. a) While you can do that, we instead recommend properly dissolving the LLC, filing a final return, and taking care of any related winding up activities. b) It’s probably a nice gesture to notify them. c) You’ll want to get a new EIN for your new LLC. Hope that helps.
Thanks for your recommendation. I checked & my state does not charge anything to dissolve the LLC, although they kind of do it themselves after 90 days. Like you said, though, it will be good to have it happen at the end of the year.
Also, it turns out I’ll save money when we move, as the new state has lower charges for Annual Reports. Luckily it’s easy and fast to get a new EIN over the Internet, too. Thanks again
Hi Karen, you’re welcome. Oh, that’s great news about the better-priced Annual Report! Yup, EIN is super fast. Just make sure your LLC is approved before getting its EIN. You’re welcome!
I live in NY but would prefer to get an LLC registered in AZ due to the fees ($50 ).
How can I get an LLC registered in AZ if I live in NY? Would a PObox address in AZ work?
Hi David, if you’re living in and doing business in New York, you’ll want to form an LLC in New York, not in Arizona. Please check out our best state for forming an LLC article. Hope that helps!
I’d like to start an LLC doing Live Event Production and consultation, particularly with music concerts, but also speaking engagements, corporate meetings, etc. I’ve been in the Trade for well over 20 years now and I’m ready branch out on my own.
The issue is, these events could be in multiple states throughout the year. Would I have to establish and pay fees for an LLC in every state I produce an event? The bulk of the Pre-pro work would be done in WA state. Most of the events right now would also be in WA State, but that may not always be the case. What do you think?
I plan on just employing myself for the time being. Anything else would be contracted out.
Hey Joe, I think setting up your LLC in Washington State is the correct route to take. With limited events taking place in other states, you likely don’t need to worry about Foreign LLC registrations. Hope that helps!
Hello Matt I’m starting a LLC plumbing business in Texas. My partner and I have came up with a name which is not taking in Texas but it is established in Florida how does that work?
Hi Berny, LLC names are registered and protected at the state level, so you won’t have a problem if your Texas LLC’s name is identical to the name of another LLC in another state. However, if you’re planning for your business to go national in the future, then you’ll want to consider getting your name/brand registered as a trademark at the federal level. Registration is done with the United States Patent and Trademark Office (USPTO). Hope that helps.
Great website–thank you!
I have had a small business since 1993 and just used my name and the service provided as the business name to get my state tax number (ex: John Doe Transcription). I’ve always filed my federal taxes as a sole proprietor by filing everything through my personal taxes. Most years my income has been so low that I haven’t needed to file a state return.
I am now wanting to create an LLC that would be generic enough name-wise to put my long-term business under this umbrella plus add some new business activities. I am thinking of a name that generically covers all activities I foresee doing as a self-employed person. However, for each specific activity I foresee using a more targeted name that still fits under the overall LLC name I would like to house it all under.
QUESTION: Is it okay to use one name to create the LLC like an umbrella and then have sub activities that fall under that one LLC, all loosely related (i.e., health information services and advocacy)? These services specifically would be my historical business of medical transcription, plus now adding in forming and leading a health support group, and doing some advocacy in that realm too. QUESTION #2: I am a bit undecided if these new activitues will be a for-profit business or nonprofit. If I go nonprofit, do I still need an LLC to cover liability issues? (I realize if I go nonprofit with the new activities, the old business would need a separate LLC).
Thank you for your feedback. So glad I now understand how unwise it was to function as a sole proprietor all these years.
Hi Shirley, yes, you can create an LLC that does multiple different things. Also, the name of your LLC doesn’t have to specify the type of activities or the purpose of the LLC. For example, you could just call it The John Doe Group LLC or John Doe Consultants LLC. Or something else that doesn’t include your first and last name. It’s completely flexible. Non-profit is a completely different animal, since you’re talking about forming a Corporation and then getting Non-Profit exemption status from the IRS. It’s a much more complicated filing and it doesn’t sound like what you’re trying to do. However, you could look into a Low-Profit LLC (L3C), but it only exists in a handful of states. Hope that helps.
Thank you for this website. Great work.
I want buy real estate in Los Angles and I want to set up a LLC to do so, protecting it from potential creditors. As no business will be conducted under this LLC, I want this LLC to have the lowest filing fee, annual fees, and taxes (if any).
The following are three states with the lowest Filing and annual fees:
State Filing fee Annual fees
Arizona $ 50.00 0
Ohio $ 50.00 0
New Mexico $ 50.00 0
Can I set up the LLC in any of the above states and purchase property in CA under that LLC?
If yes, would it make a difference which one?
Any red flags I should be aware of?
I am starting a mink eye lash business, I will be selling it online. I am trying to figure out if getting the LLC is better or should I do the sole prop/DBA. Can you tell me if I should register as a LLC.
Hi Tiffany we have info on Sole Proprietorship vs LLC here: LLC vs Sole Proprietorship. Hope that helps!
I will be forming an LLC in Ohio. What will my total fees be?
Hey Steve, if you (or a friend or family member) will be your LLC Statutory Agent, then it’ll just be the $99 fee for the Ohio Articles of Organization. If you’re going to hire a Statutory Agent Company – also called a Commercial Statutory Agent or Commercial Registered Agent – then your fees will be a little higher. Hope that helps. Check out our Ohio LLC course for more details.
First thank you for all the information you have provided. I have a LLC and in a few weeks will have a non profit both are under the same name. I want to make money with my llc doing something totally differently my question should I change the name ? Two how can both work for me to make money and take in money ? Thanks
Hi Destiny, you’re very welcome! When you say “How can both work for me to make money and take in money?”, I’m not sure what you mean. It’s strange that the state allowed for an identical name. You might want to change the the name of your LLC just to keep sane. Things will get very confusing very quickly, and not only for you, but anyone else working with these businesses’ names.
This site is awesome — well done.
Question for you, if you don’t mind.
My family and I are starting an online clothing business together, and plan to form an LLC. Two of us live in *cough* expensive California, and the other two live in much more financially manageable Arizona. Looking at options, we’d like to form the LLC in Arizona where the website is being designed/managed as well as a lot of the business/logistics, because it seems like a state that is much more financially friendly to startups (and every dollar counts). However, the actual designing, working with manufacturers, and shipping of our products will most likely be taking place out of California. Do we have a choice in which state we go with? Do we have to form an LLC in California because that’s where products will go to/from? Or is Arizona a possibility?
Anything else we’re overlooking? Too bad no one in our family is a lawyer.
Thanks for the great info here.
Hey Jolie, thanks for the nice comment! There is a chance that with part (or the bulk) of your operations in CA, you may need a CA registration (either a domestic LLC formed in CA or your AZ LLC registered to do business in CA as a Foreign LLC). In order to choose between the states, it’s best practice to pick the state where more “substantial” amounts of business are being done. Also, I recommend reading our article on what is doing business in California. You have two options: form an LLC in Arizona and then register your Arizona LLC as a Foreign LLC in California if/when needed, or just form a domestic California LLC from the start. Hope that helps a bit. Let me know if you have any followups.
Great — thank you! Maybe we’ll just find a way to move the whole business to Arizona, hahaha. Appreciate the helpful feedback!
You’re welcome Jolie! I agree, moving the business to Arizona will save you some dollars. And you can always expand to California if/when needed. Best wishes with the business!
My question is I want I start a LLC with my brother to earn extra income.
But, I typically will have to move every 1 to 2 years for work through out the US.
How would I go about doing this?
Second, would it just make more sense to file the LLC in my brothers home state since he will not move?
By the way, I live in Mass and my brother lives in NJ.
Hi Nurzat, unfortunately, constantly “moving” an LLC is a major pain. I’d recommend forming the LLC in your brother’s state. The good news is that NJ is far cheaper than a Massachusetts LLC :)
Hi Matt, Thanks for the great info. If I form an LLC in Michigan is it ok to open my bank account for that LLC in Buffalo NY? I,m from Ontario,Canada and Buffalo is closer to drive to in order to open up an account.
Hey Cameron, the only way to do this is via a “cross-branch opening”. You’re technically opening a Michigan bank account in NY, if you can find a branch office in both states that will facilitate this. Call a bank that’s in both states and ask them for how to coordinate it. If not, it’s better to make the drive to MI. Hope that helps :)
I am in Wisconsin. I am (or think I am) a member of an LLC. My business partner and I have had a falling out, and now I wish to withdraw from the LLC and the business all together. We did not make an operating agreement when forming the LLC. I am listed as an organizer on the Articles of Organization, but members of the LLC are not listed. The partner is the registered agent. There are no debts and I do not want any of the assets. I just want to walk away. The partner is refusing to sign paperwork to allow me to withdraw from the LLC.
What are my options to withdraw from the LLC without litigation?
Hi Emily, I’m not sure in this case. You’ll need to speak with a lawyer since it sounds like there is a verbal contract in place.
Do you have information to a LLC in Guam for real estate investing ?
At this time, we don’t have info on LLCs in Guam. It’s on our list though. However, the quick version is that you need to draft your own Articles of Organization and file it with the Guam Department of Revenue and Taxation. Please see here: Gov Guam Docs: Requirements for Registering a Limited Liability Company. Their LLC filing fee is $1,000. The easiest thing to do is to call their offices for more details on the Business License requirement, Annual Report, and any other requirements. Hope that helps.
Hi Matt, my question is – if I don’t have the actual location in place but already have an EIN number should, and I am planning to be a Sole Propriety LLC in the State of PA, should I apply for the LLC and business name now prior to finding my location? Do I have to also get a fictitious name for the business or just go with the company name when applying for the LLC? I am planning to be a sole propriety business.
Thank you for your advice and response in advance.
Hello Mrs. Morris, to correct a few things you said: First, you are forming an LLC that will be taxed by the IRS as a Sole Proprietorship. Be careful when you say “I am planning to be a sole proprietorship business”. This implies that you will not form a legal entity and you will be operating as yourself… which it does sound like that is what you are wanting. Regarding the EIN, the one you have currently is not “attached” to your LLC, since your LLC is not formed yet. That EIN is attached to you personally, so you would get a new EIN for your LLC (after your LLC is approved). And regarding the Fictitious Name, you are not required to file this, unless you want to operate your business under a different name than that of your LLC. Hope that helps.
Really good Videos Matt Thank you!.
I have a question about an LLC does an LLC have to pay Franchise Tax if an LLC makes anything over $0 Dollars (Example if it makes an amount of 500 dollars.)
Thanks Alberto! Which state would you be referring to? For the most part, LLCs need to file and pay a Franchise Tax (connected to an Annual Report requirement), regardless of income or activity. In some states, where the Franchise Tax is not “connected to” the LLC’s Annual Report (and instead it’s more an an actual tax) you’ll still need to file a return, but it can be “zeroed out”.