So, you’re ready to start your LLC—exciting times ahead. But before the logo, website, and first customer, there’s a practical question every founder asks: what’s the real cost to start an LLC?
Short answer: it depends. Long answer: it depends on where you form, how you file, and what level of support you choose. The good news? Once you understand the moving parts, the cost to start an LLC becomes predictable—and manageable. Let’s walk through it together, minus the jargon.
What Actually Drives the Cost to Start an LLC?
Think of your total as a bundle of a few simple items:
- State filing fee (one time to form your LLC)
- Annual/biennial reports (to keep the LLC active)
- Registered Agent (privacy + compliance)
- Operating Agreement (your internal rulebook)
- Business licenses/permits (depends on what you do and where)
- Optional extras (name reservation, publication requirements in a few states)
Each of these items has a clear price range. Add them up, and you’ve got your first year cost to start an LLC—and what to expect in later years.
State Filing Fees: Your First Expense
Every LLC begins with Articles of Organization filed with your state. Fees vary—sometimes a little, sometimes a lot.
- Budget friendly states: Kentucky, Arkansas, Mississippi → roughly $40–$60
- Mid range states: Florida, Colorado, Arizona → roughly $75–$150
- Premium states: Massachusetts, Tennessee, Nevada → roughly $300–$500+
Once the state approves your Articles, your LLC legally exists. Ribbon officially cut.
Ongoing Fees You Shouldn’t Ignore
Filing is step one. Keeping your company in good standing is step two.
- Annual/biennial reports: most states require a quick filing
- Renewal fees: typically $20–$300/year depending on state
- Miss the deadline? You can face late fees, loss of good standing, or even administrative dissolution.
Pro move: Put your report due date on your calendar the moment you form.
Registered Agent: Privacy and Peace of Mind
Every LLC must list a Registered Agent to receive official mail and legal notices.
- DIY (you at your home address): $0, but your address goes on public record.
- Professional Registered Agent service: typically $50–$150/year.
Worth it if you value privacy, move addresses, or form out of state.
Operating Agreement: Optional on Paper, Essential in Practice
Your Operating Agreement sets ownership, profit splits, voting rules, and what happens if someone leaves. Even single member LLCs benefit—it helps prove you treat the business as a separate entity.
- DIY: $0, but easy to miss important clauses.
- Service or attorney reviewed: $0–$200+ depending on complexity.
With BizFyle, a tailored Operating Agreement is included—no extra guessing.
Other Possible Costs (Situational)
Business licenses/permits: local and industry specific (varies widely)
- Name reservation (optional): ~$10–$30
- Publication requirements: a few states (e.g., parts of NY/Nebraska) still require you to publish notices in newspapers, which can add a few hundred dollars
- EIN (Tax ID): free directly from the IRS
Year One Snapshot: Typical Cost to Start an LLC
Item | Typical Range |
State Filing Fee | $40 – $500 |
Registered Agent | $50 – $150 / year |
Operating Agreement | $0 – $200 |
Annual/Biennial Report | $20 – $300 / year |
Business Licenses | Varies by locality |
Estimated Total (Year 1): about $100 to $700+, depending on state and setup.
Why Your State Choice Matters (Beyond the First Fee)
It’s tempting to chase the cheapest filing fee, but the smartest cost to start an LLC decision also considers privacy, ongoing fees, and how you actually operate.
Side by Side Example
State | Filing Fee | Annual Fee | Notable Perks | Best For |
Kentucky | ~$40 | ~$15 | Low entry cost, straightforward compliance | Local, budget-first founders |
Florida | ~$125 | ~$138 | Popular for local operations | Service businesses with in state presence |
Wyoming | ~$104 | ~$60 | No state income tax, strong privacy, simple | Online founders, non-residents, asset focus |
Nevada | ~$425+ | ~$350+ | Business-friendly but pricier ongoing | Specific Nevada-based operations |
If you run locally, forming in your home state avoids “foreign registration” (paying in two states). If you’re online or remote, states like Wyoming often balance cost, privacy, and simplicity well.
It all starts with a Name!
Enter your preferred LLC name, and our expert team will check its availability with the state.
DIY vs Service vs Attorney: Which Path Fits Your Budget?
Approach | Upfront Cost | Time & Effort | Pros | Cons |
DIY | State fees only | Highest | Cheapest cash outlay | Easy to miss details, slower if new |
Service | State + modest fee | Low–Medium | Fast, organized, includes templates | Small service fee |
Attorney | Highest | Low | Complex structures, custom language | Expensive for simple formations |
Most first-time founders choose a service to keep the cost to start an LLC reasonable while avoiding rookie mistakes.
Two Sample Budgets (So You Can Picture the Numbers)
Scenario A: Local service business (home state)
- State filing fee: $125
- Registered Agent (optional if you use your home address): $0–$120
- Operating Agreement (included with service): $0
- Annual report fee: $75
- Local permits: $50–$150
- Estimated Year One Total: $250–$470 (assuming you handle Registered Agent yourself)
Scenario B: Online founder (Wyoming)
- Wyoming filing: ~$104
- Registered Agent (recommended): ~$60–$120
- Operating Agreement (included with service): $0
- Annual fee/report: ~$60
- Licenses: $0–$100 (depends on activity)
- Estimated Year One Total: ~$224–$384
These are illustrations, not quotes—but they show how choices shift the cost to start an LLC.
FAQs:
LLC for First-Time Business Owners
What’s the cheapest state to form an LLC?
States like Kentucky, Mississippi, and Arkansas usually have the lowest filing fees (~$40–$60). But consider ongoing costs and where you actually operate before deciding.
What’s the most expensive state to form an LLC?
States like Massachusetts or Nevada often charge $300+ to file, with higher ongoing fees.
Can I form an LLC for free?
No. Every state charges a filing fee. You can file yourself to avoid service fees, but the state fee still applies.
What happens if I miss my annual report?
Late fees, loss of good standing, or administrative dissolution. Reinstatement costs more than filing on time.
Is a Registered Agent worth paying for?
For many founders, yes—especially for privacy, out of state formations, or if you don’t want legal mail at home.
Do I need an Operating Agreement if I’m the only owner?
Strongly recommended. It supports your limited liability by showing you treat the LLC as a separate entity.
What’s the total first year cost to start an LLC?
Commonly $100–$700+ depending on state, Registered Agent choice, and any local licensing.
With BizFyle, There Are No Surprises
We keep the cost to start an LLC transparent and the process clean:
- Clear pricing—no hidden fees
- Guidance on choosing the right state for your situation
- Tailored Operating Agreement included
- Optional Registered Agent service
- Compliance support so renewals aren’t a scramble
You focus on building. We keep the filings and deadlines tidy.
Final Word: Invest Smart, Grow Confident
Your LLC isn’t just paperwork—it’s a protective shell and a launchpad. When you understand the true cost to start an LLC—and plan for year one plus renewals—you remove surprises and move faster. File, stay compliant, keep records tight, and you’re ready to bank, hire, and scale with confidence.
Set up right, spend wisely, and keep it simple.
BizFyle can help you form, document, and maintain your LLC—without surprise costs or compliance headaches.
