How Much Does It Cost to Form an LLC?
Last updated: July 1, 2026 by the How Much Does That Cost? editorial team. Estimates are informational - see our methodology.
Forming an LLC costs $35 to $500 in state filing fees alone, averaging $132 nationally, or around $224 once a typical first-year annual report fee is included. This guide covers cost estimation only and is not legal or financial advice; for guidance specific to your business, consult an attorney or accountant.
The state you form in is the single biggest driver of cost — Montana ($35), Kentucky ($40), and Arkansas ($45) are among the cheapest, while Massachusetts ($500), Nevada ($425), and Tennessee or Texas ($300) rank among the most expensive. Beyond the state fee, using an online formation service or attorney, adding a registered agent, and ongoing annual fees (averaging $91 per year, with 11 states charging none) all add to the total cost.
Quick Answer
Typical range: $100 – $500
Low end
$35
High end
$1,200+
Actual pricing varies by location, project size, materials, labor rates, and job complexity. Use the calculator below for an estimate tailored to your project.
It Cost to Form an LLC? Cost Calculator
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Cost Breakdown
How a typical project budget breaks down by category.
| Category | Estimated Cost |
|---|---|
| State filing fee | $35 – $500 |
| First-year annual report fee (if applicable) | $0 – $300 |
| Formation service or attorney fee | $0 – $400 |
| Registered agent (if used) | $0 – $300 |
What Affects the Cost
State of formation
State filing fees range from $35 in Montana to $500 in Massachusetts, making the state you register in the single largest factor in total cost.
How you file
Filing directly with the state yourself costs the least, an online formation service adds guided filing and basic compliance tools for a moderate fee, and an attorney costs the most but reviews your ownership structure and agreement. A similar DIY-versus-attorney cost tier applies to other personal legal documents, such as drafting a will.
Registered agent service
You can act as your own registered agent for free in most states, or pay a registered agent service $50 to $300 per year for privacy and to ensure legal documents are never missed.
Ongoing annual or biennial fees
Most states charge a recurring annual or biennial report fee, averaging $91 per year nationally; 11 states charge none, while a few charge as much as $800 per year. Beyond this state fee, most LLC owners also budget separately for ongoing tax preparation and bookkeeping services, which are business operating costs rather than formation costs.
Operating agreement
While not required in every state, a professionally drafted operating agreement adds cost but clarifies ownership, profit splits, and management terms among members.
Processing speed
Standard state processing is included in the base filing fee, but expedited or same-day processing typically carries an added fee.
DIY vs. Hiring a Professional
Doing it yourself
Filing directly with your state costs only the state filing fee ($35-$500) and works well for a straightforward single-member LLC, but leaves you responsible for correctly completing the paperwork and tracking ongoing compliance deadlines yourself.
Hiring a professional
An online formation service adds guided filing, registered agent options, and compliance reminders for a moderate added fee, while an attorney costs the most but tailors your operating agreement and ownership structure, which matters more for multi-member LLCs or businesses raising outside investment.
Bottom line: DIY filing is usually fine for a simple single-owner LLC, an online service is a good middle ground for most small businesses, and an attorney is worth the added cost for multi-member LLCs or more complex ownership arrangements.
Ways to Save
- Form your LLC in your home state rather than a state like Delaware or Nevada unless you have a specific legal reason to file elsewhere — out-of-state formation often adds registered agent and foreign qualification fees.
- Act as your own registered agent if you have a stable address in the state, rather than paying $50-$300 per year for a service.
- Apply for your EIN directly through the IRS website, which is completely free — avoid paying a formation service extra for something the IRS provides at no cost.
- File directly with your state's Secretary of State website instead of paying a formation service markup if you are comfortable handling the paperwork yourself.
- Check your state's specific annual report fee and deadline in advance so you avoid late fees or reinstatement costs.
- Skip expedited processing unless you have a genuine deadline — standard processing is included in the base filing fee.
How We Estimated This Cost
We model each calculator from public price ranges, labor data, material pricing, industry surveys, and the regional adjustment method explained in our methodology. Estimates are reviewed for consumer usefulness, then shown as ranges because local quotes, site conditions, materials, and timing can change the final price.
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Frequently Asked Questions
How much does it cost to form an LLC?
Forming an LLC costs $35 to $500 in state filing fees depending on where you file, averaging $132 nationally, or around $224 once a typical first-year annual report fee is included.
What is the cheapest state to form an LLC in?
Montana ($35), Kentucky ($40), and Arkansas ($45) have among the lowest LLC filing fees in the country, while Massachusetts ($500), Nevada ($425), and Tennessee and Texas ($300) are among the most expensive.
Do I have to pay an annual fee to keep my LLC active?
Most states charge a recurring annual or biennial report fee, averaging $91 per year, though 11 states charge no ongoing fee at all and a small number charge as much as $800 per year.
Is a registered agent required, and how much does it cost?
Most states require an LLC to have a registered agent, but you can serve as your own agent for free if you have a qualifying address. A registered agent service typically costs $50 to $300 per year.
Is getting an EIN for my LLC free?
Yes, the IRS issues an Employer Identification Number directly at no cost. Some formation services charge an added fee to handle the EIN application on your behalf, which is optional.