How Much Does It Cost to Form an LLC?
Forming an LLC costs between $35 and $500 in one-time state filing fees, depending on the state, plus optional costs like expedited processing or name reservation. Montana charges the lowest fee at $35; Massachusetts charges the highest at $500. An Employer Identification Number from the IRS is always free. After formation, most states charge an ongoing annual report or franchise tax fee, from $0 to $500 a year, to keep the LLC in good standing.
By LLC Register · Last reviewed October 1, 2026
Comprehensive Guide
State Filing Fees for Articles of Organization
Every state charges a one-time fee to file the document that creates your LLC, usually called Articles of Organization or a Certificate of Organization. As of late September 2026, that fee ranges from $35 in Montana to $500 in Massachusetts, according to each state's filing agency. Most states fall between $50 and $300. A few commonly formed states show the spread: California charges $70, Wyoming charges $100, New York charges $200, and Texas charges $300.
| State | Filing Fee | First-Year Ongoing Cost |
|---|---|---|
| Montana | $35 | $0 (if annual report filed by April 15) |
| California | $70 | $800 annual franchise tax (separate from the $20 Statement of Information fee) |
| Texas | $300 | $0 (Franchise Tax/Public Information Report, no tax due under the state's no-tax-due threshold for most small LLCs) |
| Massachusetts | $500 | $500 annual report fee |
Expedited and Add-On Fees
Some states let you pay extra to speed up processing. Montana, for example, charges $20 for 24-hour processing or $100 for 1-hour processing on top of its $35 base fee, according to the Montana Secretary of State. If you reserve your LLC name before filing, or order a certified copy of your filed documents, those are separate fees set by the state, usually $10 to $50.
A Registered Agent Is Required in Every State
Every state requires an LLC to name a registered agent with a physical street address in that state to receive legal notices and state mail. You can act as your own registered agent in most states if you have a street address there, or you can pay a company to do it for you. LLC Register's $99-a-year registered agent service includes LLC formation in year one and annual report filing, with state fees passed through at cost.
An EIN From the IRS Is Free
Per the IRS, you can get an Employer Identification Number directly from the agency for free, usually in minutes, through the online EIN application. Partnerships, multi-member LLCs, and any LLC that hires employees must get one. A single-member LLC with no employees and no excise tax liability can use the owner's Social Security number for federal income tax, though most still apply for an EIN to open a business bank account.
Costs After Formation
Filing the Articles of Organization is only the first cost. Most states require a periodic filing, commonly called an annual report, biennial statement, or franchise tax report, to keep the LLC in good standing. Fees run from $0 to $500 a year: Montana charges nothing if you file by April 15, New York charges $9 every two years for its Biennial Statement, and Massachusetts charges $500 a year, matching its formation fee. Six states, Arizona, Delaware, Missouri, New Mexico, Ohio, and South Carolina, don't require a periodic report at all, though Delaware still charges a flat $400 annual LLC tax in its place.
Some states also layer on a separate tax regardless of the report fee. California charges an $800 annual franchise tax to the Franchise Tax Board on top of its $20 Statement of Information fee, due every year the LLC exists, whether or not it does business.
A Typical First-Year Total
Add up the pieces and a first-year total usually includes: the state filing fee ($35 to $500), a registered agent ($99 a year if you use a service, $0 if you act as your own agent with a qualifying address), a free EIN, and, in some states, a franchise tax or LLC tax due in the same year you form. A DBA, if you want to operate under a different name than your LLC's legal name, is a separate, optional fee; see our guide on does an LLC need a DBA for state-by-state costs.
Practical Considerations
Don't Form in Another State to Save on the Filing Fee
A lower filing fee in another state rarely saves money once you account for foreign qualification. If you live and do business in one state but form your LLC in another, most states require you to register as a "foreign LLC" in your home state anyway, which means paying filing fees and maintaining a registered agent in both states. For most small business owners, forming in the state where you actually do business is the simpler, cheaper path.
Budget for the Recurring Costs, Not Just Formation
The one-time filing fee is often the smallest cost over the life of the LLC. A registered agent, annual report fees, and any franchise or LLC tax recur every year the business exists. Before you file, check your state's annual report fee and due date, since missing it can trigger late penalties or administrative dissolution, which then costs more to reverse than the original fee.
DIY Filing vs. a Formation Service
You can file the Articles of Organization yourself directly with your state's filing agency for exactly the state's fee, with no markup. A formation service adds convenience, document preparation, and a registered agent, usually bundled into one annual price. Compare what's included, not just the headline price: some services advertise a low first-year cost but charge separately for the registered agent, annual report reminders, or an operating agreement template in later years.
State Fees Are Separate From Any Service's Price
Whatever formation service or registered agent you use, the state filing fee is paid to the state, not to the service, and it doesn't change based on who files it for you. LLC Register passes state fees through at cost as part of its $99-a-year registered agent service, which also includes LLC formation in year one and annual report filing.
None of this is tax advice. If you're weighing how your LLC's formation state affects your taxes, or whether an LLC tax like Delaware's or California's applies to your situation, talk to a tax professional before you file.
Sources
The official sources used for this article.
IRS: Employer Identification Number | irs.gov/businesses/small-businesses-self-employed/employer-identification-number |
|---|---|
IRS: Single-member limited liability companies | irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-companies |
SBA: Choose a business structure | sba.gov/business-guide/launch-your-business/choose-business-structure |
Montana Secretary of State: Business filing fees | sosmt.gov/business/fees |
Massachusetts Secretary of the Commonwealth: Corporations Division fee schedule | sec.state.ma.us/divisions/corporations/download/Fee_Schedule.pdf |
California Franchise Tax Board: Limited liability company | ftb.ca.gov/file/business/types/limited-liability-company/index.html |
Delaware Division of Corporations: Alternative entity tax instructions | corp.delaware.gov/alt-entitytaxinstructions |
Created by: LLC RegisterLast reviewed October 1, 2026
Updated: October 1, 2026
Frequently Asked Questions
Which state has the lowest LLC filing fee?
Montana has the lowest LLC filing fee at $35, according to the Montana Secretary of State. However, forming in a state where you don't live or do business usually means also registering as a foreign LLC in your home state, which adds a second filing fee and a second registered agent requirement.
Does forming an LLC cost money every year?
In most states, yes. Most states require an annual or biennial report, with fees from $0 to $500 a year, plus any registered agent fee you pay. A handful of states, including Arizona, Missouri, New Mexico, Ohio, and South Carolina, don't charge a periodic report fee at all.
Is an EIN included in the LLC filing fee?
No, but it doesn't need to be, because an EIN is free either way. Per the IRS, you apply for an Employer Identification Number directly through the IRS website at no cost, separately from your state filing.
Why do formation services charge more than the state filing fee?
A formation service's price covers more than the state's fee: document preparation, a registered agent, and ongoing compliance reminders. The state filing fee itself is fixed by the state and doesn't change based on who submits it; look at what's bundled into a service's price before comparing it to the bare state fee.
Form your business with LLC Register
$99 a year for a registered agent, with LLC formation in year one and annual report filing included. State fees are passed through at cost.
