How Much Does It Cost to Start an LLC?
Starting an LLC costs $50-$500 in state filing fees plus optional costs for registered agents, operating agreements, and EIN registration. Total first-year costs range from $100-$1,500 depending on your state and needs.
LLC Formation Value Calculator
Fill in the details below for an accurate estimate
Why Knowing Your LLC Formation Value Matters
LLC formation is one of the most common business steps, but costs vary dramatically by state. Kentucky charges $40 while Massachusetts charges $500 for the same basic filing. Beyond the filing fee, understanding which additional costs are necessary vs. optional prevents you from overpaying for formation services that charge $200-$500 for things you can do yourself for free.
Key Factors That Affect LLC Formation Value
Understanding what drives the price of llc formation helps you get the most accurate valuation.
State Filing Fee
Ranges from $40 (Kentucky) to $500 (Massachusetts). Common fees: California $70, Texas $300, New York $200, Florida $125, Delaware $90. This is the only truly required cost. Some states also charge annual/biennial report fees.
Registered Agent
Required in all states. Self-designation: $0 (you can be your own in most states). Professional registered agent service: $100-$300/year. Provides a business address and accepts legal documents on your behalf. Recommended if you want privacy.
Operating Agreement
Not required in most states but strongly recommended. DIY (online template): $0-$50. Attorney-drafted: $500-$2,000. Formation services (LegalZoom, etc.): included in $79-$299 packages. A good operating agreement protects your personal assets.
EIN (Tax ID Number)
Free from the IRS (apply online at irs.gov). Some formation services charge $50-$100 for EIN registration as an add-on — this is unnecessary as IRS provides it free. Required if your LLC will have employees or multiple members.
Ongoing Annual Costs
Annual report/franchise fee: $0-$800/year (varies by state). California charges $800/year minimum franchise tax. Most states charge $0-$200. Registered agent renewal: $100-$300/year. Business license (city/county): $50-$400/year.
Tips for Valuing LLC Formation
Get the most accurate estimate by following these tips when evaluating your llc formation.
File directly with your state's Secretary of State website to avoid formation service fees
Get your EIN for free at irs.gov — don't pay a service to do it
An operating agreement is worth the time even if your state doesn't require one
Check your state's annual report and franchise tax requirements before forming
LLC Formation Market Insights
Online LLC formation services (LegalZoom, ZenBusiness, Northwest) have simplified the process and reduced legal costs. Most basic filings can be completed in 15-30 minutes online. The trend toward remote work and side businesses has dramatically increased LLC filings. Wyoming and Delaware remain popular for non-resident LLCs due to privacy and legal protections, but filing in your home state is sufficient for most small businesses.
Get Unlimited LLC Formation Valuations
Value items on the go with our mobile app. Available on iOS and Android.
LLC Formation Valuation FAQ
What is the cheapest state to form an LLC?
Kentucky ($40), Colorado ($50), Mississippi ($50), and Arizona ($50) have the lowest filing fees. However, if your business operates in another state, you'll need to register there too (foreign LLC), adding that state's fees. For most small businesses, forming in your home state is cheapest overall.
Can I form an LLC for free?
No state waives the filing fee, but you can minimize costs to just the filing fee ($40-$500). Be your own registered agent ($0), draft your own operating agreement (free templates available), and get your EIN free from the IRS. Total minimum cost: just the state filing fee.
Do I need a lawyer to form an LLC?
For a simple single-member LLC, no — online filing is straightforward. For multi-member LLCs, partnerships, or complex structures, an attorney-drafted operating agreement ($500-$2,000) is highly recommended to define member rights, profit sharing, and dispute resolution.
How long does it take to form an LLC?
Online filing: 5-10 business days in most states (some are same-day). Expedited processing: 1-3 business days (extra $50-$200). Mail filing: 2-4 weeks. Some states (Texas, California) take longer during busy periods.
What are the annual costs of an LLC?
Annual report/franchise fee: $0-$800 depending on state (California is $800/year, many states are $0-$100). Registered agent: $0-$300/year. Business license: $50-$400. Total annual maintenance: $50-$1,300 depending on state.