Last Updated on September 10, 2026 by Nasir Hanif
The answer to “how much does it cost to start an LLC?” depends mainly on your state. The filing fee is only the starting point. Annual reports, state taxes, publication rules, licenses, and professional services can increase what you pay during the first year.
Direct answer: To form a limited liability company in the U.S., the unavoidable cost is usually the state formation filing fee. Current examples run from $40 in Kentucky to $500 in Massachusetts. Your first-year total can rise with annual taxes, reports, publication, licenses, or a paid registered agent. An IRS EIN is free.
| Cost | What to Budget | Required? |
|---|---|---|
| State formation filing | Varies by state; verified examples range from $40 to $500 | Yes |
| EIN from the IRS | $0 | Free from the IRS |
| Registered agent service | $0 if you qualify to serve yourself; paid services often cost $100 to $300 yearly | Agent required; paid service optional |
| Annual or biennial filing | $0 to hundreds of dollars, depending on state | State-dependent |
| State business taxes | Varies widely | State-dependent |
| Publication | Newspaper cost plus state filing charges where required | Only in certain states |
| Attorney or formation service | Varies | Usually optional |
Paid registered agent companies commonly charge about $100 to $300 per year.
Table of Contents
How Much Does It Cost to Start an LLC in 2026?
There is no federal price for creating this type of business entity. You register through the state, so the government fee depends on where you form the company. For example, Kentucky charges $40 for Articles of Organization. Texas charges $300 for its Certificate of Formation. Massachusetts charges $500 for a Certificate of Organization. That means comparing only an advertised formation-service price can be misleading. A company advertising “$0 formation” may mean its own service fee is $0. You still have to pay the applicable government filing charge.
State filing fees
The formation filing is the basic mandatory expense. It creates your legal business entity with the appropriate state agency.
Here are several useful 2026 examples:
| State | Initial State Cost | Important Ongoing or Extra Cost |
|---|---|---|
| Kentucky | $40 | $15 annual report |
| California | $70 | $800 annual state tax, plus a $20 biennial Statement of Information |
| Florida | $125 | $138.75 annual report |
| New York | $200 | Publication requirement, $50 Certificate of Publication filing, and $9 biennial statement |
| Texas | $300 | Franchise tax rules apply; the 2026 no-tax-due threshold is $2.65 million |
| Massachusetts | $500 | $500 annual report |
Kentucky’s Secretary of State confirms its $40 formation fee and $15 annual report. California lists a $70 Articles of Organization fee, while the Franchise Tax Board requires an $800 annual tax for most qualifying companies. Florida charges $100 for the filing and a required $25 registered-agent designation fee, making the basic state total $125. Its annual report costs $138.75. Massachusetts sits at the high end of these examples. The state charges $500 for formation and another $500 for the annual report.
Mandatory Costs Beyond the Filing Fee
The filing fee may not be your only required expense.
Registered agent
A registered agent receives legal notices and official documents for the business. You may be able to act as your own agent if you meet your state’s requirements. Serving as your own agent can make this cost $0. A commercial service adds an annual expense but may be useful if you don’t want your address used for that role or can’t reliably receive documents during business hours.
State annual fees and taxes
Some states charge small maintenance fees. Others impose substantial annual costs. California is a useful warning for 2026 budgeting. Its temporary first-year $800 tax exemption applied to tax years beginning in 2021 through 2023. New entities formed now should not rely on that expired exemption. Texas takes a different approach. Its 2026 franchise tax no-tax-due threshold is $2.65 million in annualized total revenue. Businesses at or below that threshold generally owe no franchise tax, although information-reporting requirements still apply.
Publication requirements
New York can produce a much larger first-year bill than its $200 filing charge suggests. A newly formed company must generally publish notice once a week for six consecutive weeks in two newspapers designated by the county clerk. It must complete the requirement within 120 days. The state also charges $50 to file the Certificate of Publication. Newspaper prices vary by county. This is one reason your real startup budget should consider state-specific rules rather than the filing fee alone.
EIN
An Employer Identification Number does not need to add to your startup cost. According to the IRS, an EIN application costs $0, and the agency warns that you never have to pay a fee to obtain one. You may need an EIN for employees, banking, licenses, or certain federal tax filings.
Which Costs Are Optional?
Several expenses commonly appear during formation but aren’t government filing requirements in every situation.
You might pay for:
- A professional registered agent.
- An attorney to review formation documents.
- A business formation company.
- A custom operating agreement.
- Name reservation.
- Expedited state processing.
- A DBA or assumed business name.
- Certified copies or certificates of status.
Before paying an add-on fee, check whether you need the service. New York, for example, requires members to adopt a written operating agreement. That does not mean you have to buy an expensive template or legal package. For broader startup planning, Digestley also covers how to start a safety consulting business and maintains a broader collection of business guides and resources.
What Is the Cheapest Way to Form Your Company?
The lowest-cost route is usually to handle the basic filing yourself when your business situation is straightforward. Start by visiting your state’s official business filing website. Check the formation fee, annual reporting requirements, tax obligations, and registered-agent rules.
Then:
- Confirm your business name is available.
- File the formation document directly with your state.
- Act as your own registered agent if you qualify and want to.
- Apply for your EIN directly through the IRS.
- Pay only for licenses or permits that apply to your activity.
- Skip optional certificates and expedited processing unless you need them.
Professional advice can still be worth the cost when ownership is complicated, investors are involved, or you need specialized tax planning.
Should You Form in the Cheapest State?
Usually, choosing the state with the smallest filing fee isn’t the best strategy. If you live and operate your business in one state, forming elsewhere may force you to register as a foreign business in your home state. That can mean two sets of filings, registered-agent requirements, and compliance costs. Delaware and Wyoming may be useful for certain businesses, but their popularity does not make them automatically cheaper for every small-business owner. Your operating state, business model, ownership structure, taxes, and compliance needs should guide the choice. Once your business is running, Digestley’s guide to business tools and technology can help you think about the next stage of operations.
Plan for the First Year, Not Only the Filing Day
The state filing fee gives you only part of the answer. A better budget includes formation, annual compliance, taxes, registered-agent needs, permits, and any state-specific requirements. Check your Secretary of State and state tax agency before submitting paperwork because fees and rules can change. Then build a simple first-year budget before you file. That small step can prevent an inexpensive formation fee from turning into an unexpected compliance bill later.
Frequently Asked Questions
How much does it cost to start an LLC if I file everything myself?
You will normally pay at least your state’s required formation fee. Kentucky charges $40, while Massachusetts charges $500. Your state may also impose annual reports, franchise taxes, publication charges, or other mandatory expenses.
Is an EIN free for an LLC?
Yes. The IRS issues EINs directly at no charge. Avoid paying a third party simply to obtain the federal number unless you are intentionally purchasing a broader service.
Does an LLC have to pay a fee every year?
It depends on the state. Florida charges a $138.75 annual report, Massachusetts charges $500 for its annual report, and California generally imposes an $800 annual tax. Other states have lower or less frequent requirements.
Which state has a low formation fee?
Kentucky is one low-cost example at $40, plus a $15 annual report each year. A low filing fee alone should not decide where you register.
Do I need a lawyer to form an LLC?
Not necessarily. Many straightforward businesses can file directly with their state. Legal advice can be useful when you have multiple owners, complex agreements, investors, regulated services, or unusual tax issues.
Should I choose Delaware or Wyoming to save money?
Not automatically. If your business operates in another state, you may also need foreign registration there. Compare the total compliance cost before choosing a state based on reputation or filing fees alone.
