How Much Does an LLC Cost by State
LLC filing fees can range from $35 to $3,000, depending on where you do your business. Here is a comprehensive list of LLC costs per state.
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There's no getting around the fact that you'll have to spend if you want to create an LLC. All states require an LLC filing fee, and most require an annual or biennial fee.
Unfortunately, beyond that is a longer list of expenses essential to starting an LLC. But after reading this article, you'll be more equipped to prepare a budget.
LLC Cost by State
While every state requires a filing fee to bring your business to life, the price tag can vary dramatically.
This table offers a quick glimpse into the initial investment you'll need in each state:
State | Domestic LLC Filing Fee | Foreign LLC Filing Fee | Annual or Biennial Report Fee |
---|---|---|---|
Alabama[1] | $200 | $150 | None |
Alaska[2] | $250 | $350 | $100 every two years |
Arizona[3] | $50 | $150 | None |
Arkansas | $45 (online) $50 (paper)[4] | $270 (online) $300 (paper)[5] | $150 each year[6] |
California[7] | $70 | $70 | $20 every two years |
Colorado[8] | $50 | $100 | $25 each year |
Connecticut[9] | $120 | $120 | $80 each year |
Delaware[10] | $110 | $200 | None ($300 annual tax)[11] |
District of Columbia[12] | $99 | $220 | $300 every two years |
Florida[13] | $125 | $125 | $138.75 each year |
Georgia[14] | $100 (online) $110 (paper) | $225 (online) $235 (paper) | $50 each year (online) $60 (paper) |
Hawaii[15] | $50 | $50[16] | $15 each year |
Idaho[17] | $100 | $100 | $0 each year |
Illinois[18] | $150 | $150 | $75 each year |
Indiana[19] | $95 | $105 | $31 every two years |
Iowa[20] | $50 | $100 | $30 every two years (online) $45 (paper) |
Kansas[21] | $160 (online) $165 (paper) | $165 | $100 every two years (online) $110 (paper)[22] |
Kentucky[23] | $40 | $90 | $15 each year |
Louisiana[24] | $100 | $150 | $30 each year |
Maine[25] | $175 | $250 | Domestic: $85 each year Foreign: $150 |
Maryland[26] | $100 | $100 | $300 each year |
Massachusetts[27] | $500 | $500 | $500 each year |
Michigan[28] | $50 | $50 | $25 - $75 each year |
Minnesota[29] | $155 (in person/online) $135 (paper) | $205 (in person/online) $185 (paper) | $0 each year |
Mississippi[30] | $50 | $250 | $250 each year (for foreign LLCs only) |
Missouri[31] | $50 (online) $105 (paper) | $105 (paper) | None |
Montana[32] | $35 | $70 | $20 each year |
Nebraska[33] | $100 (online) $110 (in-person) | $100 (online) $110 (in-person) | $25 every two years (online) $30 (paper)[34] |
Nevada[35] | $75 | $75 | $150 each year |
New Hampshire[36] | $100 | $100 | $100 each year |
New Jersey[37] | $125 | $125 | $75 each year |
New Mexico[38] | $50 | $100[39] | None |
New York[40] | $200 | $250 | $9 every two years |
North Carolina | $125[41] | $250[42] | $203 each year (online) $200 (paper)[43] |
North Dakota[44] | $135 | $135 | $50 each year |
Ohio[45] | $99 | $99 | None |
Oklahoma[46] | $100 | $300 | $25 each year |
Oregon[47] | $100 | $275 | $100 each year |
Pennsylvania[48] | $125 | $250 | $7 each year |
Rhode Island[49] | $150 | $150[50] | $50 each year |
South Carolina[51] | $110 | $110 | None |
South Dakota[52] | $150 (online) $165 (paper) | $750 (online) $765 (paper) | $50 each year |
Tennessee[53] | $300 - $3,000 | $300 - $3,000 | $300 - $3,000 each year[54] |
Texas[55] | $300 | $750 | None |
Utah[56] | $59 | $59 | $18 each year |
Vermont[57] | $125 | $125 | Domestic: $35 each year Foreign: $140 |
Virginia[58] | $100 | $100 | $0 each year[59] ($50 Annual Registration)[60] |
Washington[61][62] | $200 (online) $180 (paper) | $200 (online) $180 (paper) | $70 each year |
West Virginia[63] | $100 | $150 | $25 each year[64] |
Wisconsin[65] | $130 (online) $170 (paper) | $100+ | Domestic:$25 each year Foreign:$65 (online) $80 (paper) |
Wyoming[66] | $100 | $150 | At least $60 each year |
Unless otherwise specified, the fees above are applicable both for online and paper filings. Additionally, you may have to pay a convenience fee (if online) or administrative fee (if paper) on top of the LLC filing fee.
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Curious about how your dream state stacks up against the national average? The average LLC domestic filing fee across the US sits at $131.44.
Montana has the lowest domestic LLC filing fee at $35.[67] Meanwhile, Massachusetts demands a heftier chunk of change at a whopping $500.[68]
Domestic LLC Filing Fee
You must pay the domestic LLC filing fee if you want to start a limited liability company (LLC) in any state. It's a one-time expense paid to the state-level government.
Most states have a flat domestic LLC filing fee. This means all for-profit LLCs will pay the same fee regardless of the purpose of business. Or regardless of the number of members or managers.
Foreign LLC Filing Fee
If your LLC wants to do business in a different state, you need to register as a foreign LLC in that state—hence the foreign LLC filing fee. Unfortunately, foreign LLC fees are often pricier than domestic LLC fees.
Along with the filing fee, you'll also need to submit a document, typically called a Certificate of Authority. It contains essential information about your business, like your business name and original state.
Yes. You can create an LLC in any state, and it doesn't have to be your home state. However, the state you create your LLC in will be known as your LLC's "home state" or "domestic state." It's where your LLC will be officially recognized and earn its legal status.
Annual or Biennial Report Filing Fee
An annual or biennial report typically includes updated information about your business. This includes your business address and the names of members and managers who joined the business the previous year.
Many states require LLCs to submit an annual report. Each has a specific deadline for when these reports and fees are due. Other states like California and New York only require an updated business report to be submitted every other year.
If you fail to submit your annual or biennial report for your LLC, most states will impose late fees. These fees can accumulate over time. If the report is not filed for an extended period, the state could close your LLC.
Other LLC Fees to Consider
The LLC filing fee and annual or biennial report fee are just the tip of the iceberg. You must look at the other potential expenses to fully understand how much an LLC costs by state.
If you're a veteran planning to form an LLC, check if the state includes special provisions that waive or reduce LLC formation fees.
For example, in Texas, veterans who form an LLC between January 1, 2022, and December 31, 2025, are eligible for a fee waiver that covers the $300 filing fee and a five-year exemption from the state's franchise tax.[70]
Some states also offer other incentives for veteran-owned businesses, such as reduced fees for business licenses and tax incentives.
Business Permits and Licenses Fee
Like any registered business, LLCs often need various business permits and licenses. These typically come with associated fees.
Your LLC's business purpose will indicate the permits and licenses that it needs. For example, if you run a restaurant, you'll likely need a health permit, liquor license, and a food handler's license.
Additionally, city, county, and state governments each have their own set of required permits and licenses. Fees vary, but you should budget a few hundred dollars for them.
If your business has a significant environmental impact, you might need environmental permits. Examples of activities that require environmental permits include emitting air pollutants and discharging wastewater.
Business Taxes
LLC members are considered self-employed and must pay self-employment taxes on their share of the profits. The current combined self-employment tax rate is 15.3%, with 12.4% going to Social Security and 2.9% to Medicare.[71]
Depending on the purpose and nature of your business, your LLC might be subject to more tax. For example, if your LLC has employees, it will need to pay payroll taxes.
Additionally, some states impose a franchise tax or business privilege tax on LLCs. This is not an income tax but rather for the privilege of being registered to do business in that state.
Consult with an accountant or tax lawyer to know more about the federal, state, and local taxes that your LLC needs to pay. Failure to pay taxes may result in penalties or dissolution.
LLC Formation Expedited Fee
An LLC formation expedited fee is an additional charge you can pay if you want the registration process to be completed faster than the standard processing time.
It varies by state, typically ranging from $50 to $1,000. The amount may depend on how quickly you want to receive your LLC's formation documents.
This could range from 48 hours to 1 hour processing time. The more you pay, the faster your LLC will be processed.
In some states, most of your LLC documents can be expedited for a fee. This includes the Certificate of Good Standing and Certificate of Correction. The cost depends on how quickly you need the documents to be processed.
LLC Registered Agent Fee
Most states require LLCs to have a registered agent. They act as an official point of contact and receive important legal documents. This includes summonses, subpoenas, and other legal paperwork.
To save money, you can be the LLC's registered agent. But this may raise some privacy concerns since your address will be publicly listed.
Alternatively, consider hiring a registered agent. It typically costs up to about $399 annually.
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It depends. Some states require a written statement from the appointed agent confirming their willingness to serve in that role. Even if it's not required, it's always best to appoint someone who understands the full responsibility of receiving sensitive legal and tax documents.
LLC Operating Agreement Fee
An operating agreement is a legal document that details important rules for managing the LLC. It also defines the roles and responsibilities of the members or managers.
The costs associated with the operating agreement come in the drafting of the document. You can create an operating agreement for free. But it can cost around $1,000+ if you hire an attorney.
In most states, LLCs are member-managed by default. This means all members have equal voting rights. However, this can lead to a gridlock when making management decisions.
LLC Name Reservation Fee
There's usually no cost to naming your LLC. It should be included when you pay the LLC formation filing fee.
But if you're not ready to submit your Articles of Organization, you can reserve your desired business name first. Paying the state's LLC name reservation fee gives you time to prepare your LLC formation documents without worrying about losing the name.
Typically, a name reservation holds your chosen business name for a set period, often 60-180 days, depending on the state's rules. It may cost anywhere between $5 to $50.
Don't forget to review the state's detailed list of naming regulations to prevent your Articles of Organization from getting rejected. Additionally, before paying a name reservation fee, check the availability of your desired name through the state's business name database.
LLC Fictitious Name Fee
A fictitious name allows your LLC to operate under a name different from its official registered name. Registering for one may cost anywhere between $10 to $70.
The cost of registering a fictitious name and the duration of its validity vary by state. You may have to pay the fee either to the Secretary of State or to the county register of deeds.
If your foreign LLC's original name is unavailable in the state where you want to expand your business, you must file a Certificate of Assumed Name. The assumed name becomes your LLC's official business name only in that state.
LLC Publication Fee
Some states have a publication requirement, while others don't require it at all. Two distinct types of publication fees may be required depending on the state:
- LLC Formation Publication Fee
In some states like New York[72] and Arizona[73], you must publish a notice in a local newspaper after your LLC application.This notice typically includes the name of the LLC and its business address.
- LLC Fictitious Name Publication Fee
If you register a fictitious name for your LLC, some states require you to publish a notice in a local newspaper.This notice generally includes the fictitious name and the real name of the LLC that is using it.
The fees for these publications vary based on the newspaper's rates, notice length, and publication duration.
A single publication fee might apply to both, while others have separate fees for each process. It may cost around $200+.
LLC Certificate of Good Standing Fee
A certificate of good standing verifies that your LLC has met all its legal requirements, including filing annual reports, paying taxes, and maintaining a registered agent.
It also tells banks and investors that the LLC is legally compliant and active. This certificate may cost you upwards of $5.
Pay any outstanding penalties and fees. You must also file any required annual or biennial report if it's late. Afterward, file an LLC Reinstatement Form along with the filing fee. The cost and process vary depending on state rules.
LLC Certified Copy of Business Document Fee
Certified copies of business documents verify that your LLC is legitimate and that its details are accurate.
You may need them for circumstances like opening a business bank account or expanding your LLC in another state. It may cost you around $5+.
A Certificate of Good Standing focuses on your LLC's legal status, while Certified Copies provide the legal details and structure of your LLC.
If you need to prove that your LLC is compliant with state regulations, a Certificate of Good Standing is appropriate. If you need proof of your LLC's information (like the formation date and the members' names), then certified copies of business documents are needed.
LLC Certificate of Correction Fee
A certificate of correction is a document used to correct errors or inaccuracies in previously filed LLC documents. Filing a correction ensures that your LLC's official records with the state are accurate.
States typically charge a minimal administrative fee to process the correction. For example, in North Carolina, the correction fee is $10.[74] In Pennsylvania, it costs $70.[75]
LLC Certificate of Amendment Fee
You might need to pay the amendment fee when significant changes occur in your LLC. These changes include a new business name, new members, or any detail that affects the information in your original Articles of Organization.
A certificate of correction is for fixing mistakes in initial filings. Meanwhile, a certificate of amendment is for updating key details as the LLC evolves.
Business Website Domain Fee
A website domain provides a dedicated online space for your business. It's essential for marketing, customer engagement, and brand visibility in today's digital world.
Even if you're not planning to build a business website now, it's a good idea to buy the domain name at least. This prevents others from using your LLC's name as a web address.
Domain squatters often monitor newly registered LLC names. They purchase corresponding website domains and then resell them at significantly higher prices.
Business Insurance Premiums
Business insurance premiums are the annual or monthly fees for coverage against various risks.
While an LLC provides some legal protection to personal assets, business insurance covers expenses from unexpected events. This can include lawsuits, property damage, and employee injuries.
Additionally, most states require businesses with at least one employee to have workers' compensation insurance.
This ensures that employees receive financial compensation for medical expenses and lost wages if injured on the job, regardless of who was at fault.
What the Experts Say
CreditDonkey asked a panel of industry experts to answer readers' most pressing questions. Here's what they said:
Bottom Line
Bringing your entrepreneurial vision to life through an LLC demands a clear understanding of the financial commitments involved. Your key takeaways should include:
- Every state has an LLC filing fee, ranging from $35 to $3,000.
- Most states require annual or biennial reports that cost around $25 to $300.
- There could be additional costs, like permits, licenses, and taxes, that you need to consider.
The cost of forming an LLC doesn't end with the LLC formation filing fee. You can save this guide for an overview of what to expect financially in any state.
References
- ^ Alabama Secretary of State. Fee Schedule, Retrieved 02/18/2024
- ^ State of Alaska. Forms by Entity Type, Retrieved 02/18/2024
- ^ Arizona Corporation Commission. Schedule of Fees Limited Liability Companies, Retrieved 02/18/2024
- ^ Arkansas Secretary of State. Domestic Limited Liability Company, Retrieved 02/18/2024
- ^ Arkansas Secretary of State. Foreign Limited Liability Company, Retrieved 02/18/2024
- ^ Arkansas Secretary of State. Franchise Tax / Annual Report Forms, Retrieved 02/18/2024
- ^ California Secretary of State. Business Entities Fee Schedule, Retrieved 02/18/2024
- ^ Colorado Secretary of State. Fee Schedule, Retrieved 08/05/2024
- ^ CT.GOV. Forms and Fees, Retrieved 02/18/2024
- ^ Delaware.gov. Corporate Fee Schedule, Retrieved 02/18/2024
- ^ Delaware.gov. LLC/LP/GP Franchise Tax Instructions, Retrieved 02/18/2024
- ^ DLCP. Corporations Division Fees - Limited Liability Company, Retrieved 02/18/2024
- ^ Florida Department of State. Limited Liability Company Fees, Retrieved 02/18/2024
- ^ Georgia Secretary of State. Corporations Division Filing Fees Schedule, Retrieved 02/18/2024
- ^ DCCA Hawaii. Domestic Limited Liability Company Fees, Retrieved 02/18/2024
- ^ DCCA Hawaii. Foreign Limited Liability Company Fees, Retrieved 02/18/2024
- ^ Idaho Secretary of State. Business Forms, Retrieved 02/18/2024
- ^ The Office of the Illinois Secretary of State. Limited Liability Company Publications/Forms, Retrieved 02/18/2024
- ^ Indiana Secretary of State Diego Morales. Fee Calculator, Retrieved 02/18/2024
- ^ Iowa Secretary of State. Business Entity Forms and Fees, Retrieved 02/18/2024
- ^ Kansas Secretary of State. Register a Business, Retrieved 02/18/2024
- ^ Kansas Secretary of State. Instructions for Filing an Information Report, Retrieved 03/07/2024
- ^ Office of the Kentucky Secretary of State. Business Filings Fees, Retrieved 02/18/2024
- ^ Louisiana Secretary of State. Get Forms & Fee Schedule, Retrieved 02/18/2024
- ^ Maine.gov. Limited Liability Companies, Retrieved 02/18/2024
- ^ Maryland.gov. Fee Schedule, Retrieved 02/18/2024
- ^ Massachusetts Secretary of State. Corporations Division Filing Fees, Retrieved 02/18/2024
- ^ Michigan Department of Licensing and Regulatory Affairs. Filing Fees, Retrieved 02/18/2024
- ^ Office of the Minnesota Secretary of State. Business Filing & Certification Fee Schedule, Retrieved 02/18/2024
- ^ Mississippi Secretary of State. Business Documents Filing Fees, Retrieved 02/18/2024
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- ^ Montana Secretary of State. Business Services Filing Fees, Retrieved 02/18/2024
- ^ Nebraska Secretary of State. Forms and Fee Information, Retrieved 02/18/2024
- ^ Nebraska Legislature. Nebraska Revised Statute 21-192, Retrieved 02/18/2024
- ^ Nevada Secretary of State. Forms & Fees, Retrieved 02/18/2024
- ^ New Hampshire Secretary of State. Domestic and Foreign Limited Liability Company, Retrieved 02/18/2024
- ^ State of New Jersey Department of the Treasury. Registry Fee Schedules, Retrieved 02/18/2024
- ^ New Mexico Secretary of State. Domestic NM LLC, Retrieved 02/18/2024
- ^ New Mexico Secretary of State. Foreign Limited Liability Company, Retrieved 02/18/2024
- ^ New York Department of State. Fee Schedules, Retrieved 02/18/2024
- ^ North Carolina Department of the Secretary of State. Business Registration Fees - Limited Liability Companies, Retrieved 02/18/2024
- ^ North Carolina Department of the Secretary of State. Register a Foreign Business Requirements, Retrieved 02/18/2024
- ^ North Carolina Department of the Secretary of State. Annual Report Due Dates, Retrieved 02/18/2024
- ^ North Dakota Secretary of State. LLC Fees, Retrieved 02/18/2024
- ^ Ohio Secretary of State. Filing Forms & Fee Schedule, Retrieved 02/18/2024
- ^ Oklahoma Secretary of State. Business Forms, Retrieved 02/18/2024
- ^ Oregon Secretary of State. Business Registry Fee Schedule, Retrieved 02/18/2024
- ^ Pennsylvania Department of State. Fees and Payments, Retrieved 02/18/2024
- ^ Rhode Island Department of State. Costs & Fees, Retrieved 02/18/2024
- ^ Rhode Island Department of State. Foreign Business Costs & Fees, Retrieved 02/18/2024
- ^ South Carolina Secretary of State. Downloadable Paper Forms, Retrieved 02/18/2024
- ^ South Dakota Secretary of State. Filing Fees, Retrieved 02/18/2024
- ^ Tennessee Secretary of State. Business Forms & Fees, Retrieved 02/18/2024
- ^ Tennessee Secretary of State. FAQ: Limited Liability Companies, Retrieved 02/18/2024
- ^ Texas Secretary of State. Business Filings & Trademarks Fee Schedule, Retrieved 02/18/2024
- ^ Utah Division of Corporations & Commercial Code. Fee Schedule, Retrieved 08/21/2024
- ^ Vermont Secretary of State. Fees, Retrieved 02/18/2024
- ^ Virginia State Corporation Commission. Forms and Fees, Retrieved 02/18/2024
- ^ Virginia State Corporation Commission. Annual Reports: How much does it cost to file an Annual Report?, Retrieved 02/18/2024
- ^ Virginia State Corporation Commission. Annual Registration Fees, Retrieved 02/18/2024
- ^ Washington Secretary of State. Download Forms / Online Filing Instructions, Retrieved 02/18/2024
- ^ Washington Secretary of State. Limited Liability Companies (LLC), Online and Paper Registrations, Retrieved 02/18/2024
- ^ West Virginia Secretary of State. Fee Schedule for Services and Registration, Retrieved 02/18/2024
- ^ WV One Stop Business Portal. Annual Reporting, Retrieved 02/18/2024
- ^ State of Wisconsin Department of Financial Institutions. Corporation Fees: Limited Liability Company, Retrieved 02/18/2024
- ^ Wyoming Secretary of State. Business Division Filing Fee Schedule, Retrieved 02/18/2024
- ^ Montana Secretary of State. Business Services Filing Fees, Retrieved 01/09/2024
- ^ Secretary of the Commonwealth of Massachusetts. Limited Liability Company Information, Retrieved 01/09/2024
- ^ Tennessee Secretary of State. Business Forms & Fees, Retrieved 01/09/2024
- ^ Texas Secretary of State. Business Information for Veterans, Retrieved 01/20/2024
- ^ Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes), Retrieved 01/09/2024
- ^ New York State. Certificate of Publication for Domestic Limited Liability Company, Retrieved 01/09/2024
- ^ Arizona Corporation Commission. Articles of Organization, Retrieved 01/09/2024
- ^ North Carolina Secretary of State. North Carolina Secretary of State Fees, Retrieved 01/20/2024
- ^ Pennsylvania Department of State. Statement of Correction, Retrieved 01/20/2024
Nicole King is a research analyst at CreditDonkey, a business formation services comparison and reviews website. Write to Nicole King at nicole.king@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
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