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LLC Cost by State: A to Z Costing (2024)

If you are starting an LLC, understand that LLC cost by state is variable. Forming an LLC is easy if you know your state’s costs and regulations.

It’s essential to estimate the cost and make a budget. There are initial costs, maintenance costs, and other costs to consider. Once you understand them, it will help you start an LLC quickly.

Without further ado, let’s find out the detailed costs of forming and running an LLC.

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The LLC cost by state ranges from $35 to $500. And the average cost to create an LLC is $132Let’s have a look at the list of LLC costs by state.

State Name

LLC Filing Fee

LLC Initial Report

Yearly or 2 Years Fee

Alabama

$200

$100 (yearly)

Arizona

$50

No fee

Alaska

$250

$100 (2 years)

Arkansas

$45

$150 (yearly)

California

$70

$20

$800 (yearly) + $20 (2 years)

Colorado

$50

$10 (yearly)

Connecticut

$120

$80 (yearly)

District of Columbia

$99

$300

Delaware

$90

$300 (yearly)

Florida

$125

$138.75 (yearly)

Georgia

$100

$50 (yearly)

Hawaii

$50

$15 (yearly)

Idaho

$100

No fee

Illinois

$150

$75 (yearly)

Indiana

$95

$31 (2 yearly)

Lowa

$50

$30 (2 yearly)

Kansas

$160

$50 (yearly)

Kentucky

$40

$15 (yearly)

Louisiana

$100

$35 (yearly)

Maine

$175

$85 (yearly)

Maryland

$100

$300 (yearly)

Massachusetts

$500

$500 (yearly)

Michigan

$50

$25 (yearly)

Minnesota

$155

No fee

Mississippi

$50

No fee

Missouri

$50

No fee

Montana

$70 / $35

$20 (yearly)

Nebraska

$105

$13 (2 yearly)

Nevada

$425

$325

$350 (yearly)

New Hampshire

$100

$100 (yearly)

New Jersey

$125

$75 (yearly)

New Mexico

$50

No fee

New York

$200

$9 (2 yearly)

North Carolina

$125

$200 (yearly)

North Dakota

$135

$50 (yearly)

Ohio

$99

No fee

Oklahoma

$100

$25 (yearly)

Oregon

$100

$100 (yearly)

Pennsylvania

$125

$70 (every 10 years)

Rhode Island

$150

$50 (yearly)

South Carolina

$110

No fee

South Dakota

$150

$50 (yearly)

Tennessee

$300

$300 (yearly)

Texas

$300

No fee

Utah

$54

$18 (yearly)

Vermont

$125

$35 (yearly)

Virginia

$100

$50 (yearly)

Washington

$200

$10

$60 (yearly)

West Virginia

$100

$25 (yearly)

Wisconsin

$130

$25 (yearly)

Wyoming

$100

$60 (yearly)

How Much Does an LLC Cost to Form?

Get ready to bear the expenses of launching and operating your next LLC. The costs are:

  • LLC startup costs
  • Maintenance costs and
  • Other costs

LLC Startup Costs

Get the paperwork ready and apply to the state secretary. It’s free if you DIY your application. But there are filing fees you must pay with the LLC paperwork.

Choosing an online formation service for basic filing may cost you $39–$79. In fact, hiring an attorney will cost you between $1,000 and $1,500 depending on the state. So, the cost to set up an LLC varies.

  • LLC Name Reservation

There is a fee to reserve your desired LLC name. Usually, the fees range between $10 and $140. But it varies by state. For example, in Alabama, it costs $10.

  • Filing Fees

There is a cost associated with processing and filing your LLC application. It’s called the filing fee. It includes articles about organizations and operating agreements in some states.

It’s a one-time cost for you. It ranges from $50 to $150. The lowest one is $40 in Kentucky.

  • Operating Agreement Cost

Another essential document for an LLC company is an operating agreement. You are required to spend between $0 and $200 to create an operating agreement.

It describes the internal relations between the members, the operating system, and the structure of the LLC. A few states in the USA require an operating agreement for building an LLC; for example, Delaware, California, Missouri, Maine, and New York.

You can use a free template or make it from scratch. Plus, you can hire an attorney to create one professionally.

  • Registered Agent Cost

You can hire agents to handle your LLC’s legal and financial documents. However, the agent’s address should be within the state.

Some companies provide registered agent services. It may cost between $50 and $300 annually. You can also hire an attorney. 

On second thought, you can also handle the documents yourself.

  • EIN Application Cost

The IRS designs Employee Identification Numbers (EINs) to help you file taxes. It helps hire employees, contract vendors, and open business bank accounts. Visit the IRS official website page to apply for an EIN easily. 

Some formation services well-compiled the application process on behalf of your LLC. The cost may vary but is limited to under 100 USD

  • Taxation Cost

LLC has flexibility in the manner in which it pays taxes. It has the advantage of being a pass-through tax entity. 

The debts and profits are transferred to the members’ accounts. So, the members pay the required taxes annually via personal tax returns.

The tax rate varies from state to state. It also depends on the accompanying type and its gains and losses. But yes, the taxation cost will appear if you are a member or founder of an LLC.

  • Compliance Services Cost

You can choose an online service agent to assist with compliance services. So, your LLC will remain organized and up-to-date with reports and taxes. 

But it’s a recurring cost. You may need to pay them annually or biannually.

6 Simple Steps to Register an LLC?

If you are thinking about how long it will take to get an LLC, look at the steps below to form an LLC by yourself quickly.

  • Step 1: Select Your State.
  • Step 2: Give your LLC a name (it costs $10 to $50).
  • Step 3: Select a registered agent (It costs between $99 and $300 annually).
  • Step 4: Submit the Articles of Incorporation (costs $40 to $500).
  • Step 5: Draft an Operating Agreement (the average cost of an operating agreement project is ($601.11).
  • Step 6: Get an EIN

Conclusion

LLC is famous for its unique features and advantages. It has some expenses to bear. But comparatively, it’s not as expensive as other business forms.

Hopefully, you get a clear idea of how the LLC cost by state varies. Now, you can set a budget and start an LLC. So, when are you taking the steps to form an LLC?

Frequently Asked Questions

Is there a less expensive way to start an LLC?

Yes! You can save money if you handle the formation documents yourself. Then, you don’t need to get a registered agent and use a free template to make an LLC operating agreement. Thus, you can save up to $400.

Can I set up an LLC for free?

No! The LLC must pay filing, maintenance, and other fees in every state to keep running. But you can minimize the cost. You can prepare the documents yourself or get an agent with lower fees.

How much will forming an LLC in my state cost?

The answer depends on the state you are in. The cost varies from state to state. An LLC costs between $50 and $520. Plus fees every year or every two years, ranging from $0 to $800.

What are the taxation costs of an LLC?

In some states, there are additional fees or taxes based on the type of business. It can be gross receipts taxes, business privilege taxes, or other industry-specific fees. So, it’s essential to research your state’s policies and tax regulations.

How much do I need to spend to get licenses and permits?

The cost varies depending on the type of business and location. Usually, it will cost between $20 and $100 to renew your licenses and permits.

Max Smith - LLC Formation

He is a seasoned entrepreneur and legal expert at LLC Formation Hub. With a stellar track record in both business and law, Max simplifies the complexities of LLCs. His practical insights, featured on LLC Formation Hub, empower entrepreneurs across the USA. Max merges business finesse with legal acuity to guide businesses toward success.


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