Ever wondered how some people get their LLC up and running for less than $100, while others spend hundreds of dollars and hours of paperwork?
The cost of an LLC varies dramatically by state. You could pay anywhere from $40 to $500 just to file your articles of organization, plus annual report fees, registered agent costs, business licenses, and other ongoing costs that catch new business owners off guard.
We're breaking down exactly what you'll pay to start an LLC in 2025—including which states offer the lowest LLC filing fees and where surprise charges hide.
By the end of this guide, you'll know exactly what to budget for your new business entity and how to make smart choices that save money.
Here's what you need to know about LLC costs in 2025:
LLC filing fees vary wildly — from $40 in Kentucky to $520 in Massachusetts. The average initial filing fee is around $132.
Annual renewal fees aren't optional — Most states require yearly fees to keep your limited liability company active. Ignoring this requirement can get your LLC shut down.
Hidden costs add up — Registered agent fees, business license renewal fees, and professional help can push your total LLC startup costs much higher.
Four states charge zero ongoing fees — Arizona, Missouri, New Mexico, and Ohio don't charge annual LLC fees.
Professional guidance prevents mistakes — According to Richard Gora, Business Attorney, "Attorney fees for LLC formation typically range from $500 to $2,500, depending on your business complexity and state requirements."
A Limited Liability Company (LLC) is a business structure that creates a legal separation between personal and business assets, shielding individual owners from the company’s financial debts and obligations. Unlike a sole proprietorship, this separation means personal assets are generally protected if the business incurs debt or is sued—except in cases like fraud or personal guarantees.
Most new business owners operate on tight budgets, so every dollar spent on formation fees is a dollar not invested in growth. Understanding the true costs upfront—including the state filing fee and required documents like the operating agreement—prevents unexpected financial surprises.
LLC filing fees in 2025 generally range from $35 to $500, with the average cost to form an LLC in the US at $132. Here’s what new businesses can expect when filing articles of organization:
Low-cost states ($35–$70):
Montana: $35 (lowest filing fee; $20 annual report fee)
Kentucky: $40
Arkansas: $45 (online) – $50 (paper)
Arizona, Colorado, Hawaii, Iowa, Michigan, Mississippi, Missouri, New Mexico: $50
California: $70 (plus $800 annual franchise tax)
Mid-range states ($100–$200):
Wyoming: $100–$102
Florida: $125
High-cost states ($200–$500):
Delaware: $90 (filing) plus $300 annual franchise tax report
New York: $200 (filing fee; note that additional publication fees may apply)
Massachusetts: $500 (by mail), $520 (online)
Robert B. Kaplan, Attorney at Jeffer Mangels Butler & Mitchell LLP, explains: "State filing fees for forming an LLC typically vary between $40 and $500, depending on the state, and must be paid in addition to any legal or service provider fees."
State filing fees — Every state requires a filing fee to register your LLC by submitting articles of organization with the Secretary of State. In 2025, these fees range from $35 (Montana) to $500 (Massachusetts), with most states falling between $50 and $200.
Registered agent fees — Most states require your LLC to have a registered agent—someone who receives legal documents on behalf of the business. Professional registered agent services typically run $100-$300 annually.
Business name reservation — Some states allow you to reserve your business name before filing, usually costing between $10 and $50, but rates differ in some locations.
LLC operating agreement — Both single- and multi-member LLCs benefit from an operating agreement. Professional drafting typically costs $200-$500, while DIY templates are available at lower costs.
Business licenses and permits — Depending on business type and location, you may need city, county, state, or federal permits. Costs and requirements vary widely.
Publication requirements — As of 2025, New York, Arizona, and Nebraska require you to publish your LLC formation in a local newspaper. New York’s rule includes publication in two newspapers for six weeks; rates vary by region and publisher.
Expedited filing fee — Many states offer expedited processing for LLCs, usually ranging from $50 to $200 for faster approval.
Professional help — Fees for attorneys or LLC formation services range from $100 for basic filing assistance to over $2,500 for complex legal or tax setup.
These costs reflect the primary startup expenses to expect when forming an LLC in 2025.
Looking to minimize startup costs when you form an LLC? These states offer some of the lowest fees for 2025:
Kentucky: $40 to file articles of organization, plus a $15 annual report fee.
Montana: $35 to file (the lowest in the nation), with a $20 annual fee for the annual report.
Arkansas: $45 to file online or $50 by mail, with a $150 annual franchise tax.
Arizona, Missouri, New Mexico: Each charges $50 to file, and none require annual report fees, making them popular choices for long-term savings. Missouri and New Mexico have no recurring annual or franchise taxes, while Arizona has no annual reporting fee.
Mississippi: $50 to file, and there is no annual report fee.
Opting for the state with the lowest filing fees does not always equate to the best choice for your LLC. If you incorporate in a state different from where you actually conduct business, you'll need to register as a foreign LLC in your home state—meaning you'll pay filing fees and annual costs in both locations. This requirement for foreign qualification adds complexity and doubles your compliance burden. It is important to assess where your business will actually operate before making a final decision.
Our specialists can help identify the best state for your business model to ensure you save money while staying compliant.
Short answer: Almost always, yes.
Most states require LLCs to file an annual or biennial report and pay the necessary fees to remain compliant and maintain good standing. This is similar to renewing a professional license—failing to file can result in the loss of legal authority to operate.
LLC Annual reports typically confirm core business information such as the registered agent address and ownership details. These may be called “Annual Reports,” “Statements of Information,” or “Franchise Tax Returns,” depending on your state.
Here’s how renewal frequency is determined:
Most states: Require annual filings.
Some states: Require biennial (every two years) filings.
Pennsylvania: Now requires an annual report beginning in 2025; previously, only once every ten years.
Four states—Arizona, Missouri, New Mexico, and Ohio—do not require an annual or biennial report or fee. Mississippi and South Carolina require informational filings with no fee, except for certain tax statuses.
If you fail to pay your state's LLC annual fees on time, your LLC may lose its good standing and could eventually be dissolved by the state. This also impacts your ability to open a business bank account, secure financing, or operate legally.
We offer automated reminders and filing services—you'll never miss a deadline or risk losing your LLC's good standing.
Basic DIY Approach:
State filing fees: $35–$500, depending on state regulations.
Operating agreement: $0 when using free online templates.
Registered agent: $0 if you serve as your own agent.
Typical startup costs:
State filing fee: approximately $100 (national average)
Registered agent service: $100–$300 annually (typical is about $135/year)
Operating agreement template: $0–$50
Business name reservation: (if needed): $10–$50 (average $25)
Estimated total: $250–$350 for the first year, on average
Full-Service Formation:
State filing fee: Typically around $100.
LLC formation service: $150–$300, with registered agent often included.
EIN from IRS: Minimal fee (typically handled by the formation service as part of their package).
Estimated total: $250–$400 for the first year
Ongoing and Recurring Costs:
Annual report/renewal fees: $0–$800, depending on state requirements
Business license renewals: $50–$300, depending on jurisdiction and industry
Registered agent fees: $100-$300 annually
IRS tax filings and any required state taxes.
Special State Requirements:
California: $800 franchise tax assessed annually.
New York: $200–$1,500 required publication fee in local newspapers for new LLCs.
Delaware: $300 annual franchise tax for LLCs
Choosing a professional service for LLC formation can help avoid costly errors that sometimes occur with DIY approaches, where mistakes may require expensive legal intervention to correct. Professional formation ensures compliance and peace of mind.
Filing in the cheapest state isn't always smart. Here's what matters when you start an LLC:
Where you physically operate — If your business operates primarily in one state, forming there is usually the easiest choice. It lets you avoid the hassle and cost of registering as a foreign LLC in the state where you do business.
Tax considerations — Some states have no state income taxes (Wyoming, Nevada, Texas, Florida). Consider both how you'll pay taxes and any tax advantages certain states offer.
Privacy protection — States like Delaware, Nevada, and New Mexico keep LLC owners' personal information out of public records.
Legal environment — Delaware has business law-friendly courts specializing in corporate matters.
Compliance requirements — Simpler states make ongoing maintenance easier and help you operate legally.
Future growth — If you plan to hire employees or seek venture capital, Delaware offers advantages. For small businesses staying local, your home state usually makes more sense.
Real example: Marcus filed in Wyoming to save money but operated a retail store in Georgia. He still needed to register as a foreign LLC in Georgia, paying filing fees in both states plus double compliance work. He also couldn't open a business bank account or get a business credit card without proper registration.
We offer personalized consultations to analyze your business model, location, and goals for clear recommendations.
You can certainly file and manage your LLC paperwork on your own, but it’s worth considering the opportunity cost—both in time and risks—that self-filing may bring. DIY formation requires careful attention to state forms, deadlines, and registrations. Missing a step can cause delays, fines, or loss of legal protections.
MyLLC simplifies this process by handling core filings and registered agent services, which are essential for keeping your business in good standing with the state. Here’s how:
Efficient state filings: MyLLC electronically files your Articles of Organization and other required documents at the lowest rates and with fast turnaround.
Reliable registered agent service: MyLLC acts as your official agent to receive important legal and government documents, helping ensure you never miss critical correspondence.
Accurate document preparation: They prepare and file amendments, dissolutions, and certificates of good standing to keep your LLC compliant with state requirements.
Compliance management: In MyLLC’s scope, compliance means accurately filing required formation documents and maintaining a registered agent to receive legal notices. This does not include catchall license or tax management but covers key state filings to keep your LLC active and protected.
Peace of mind: By outsourcing these essential steps, you avoid costly mistakes, missed deadlines, and penalties that can arise when DIY filing is incomplete or delayed.
Flexible a la carte options: Buy only the services you need—no forced bundles—allowing you to control costs without sacrificing necessary support.
Choosing MyLLC means investing in trusted, affordable expertise and essential services that protect your LLC’s good standing and free you up from paperwork, letting you focus on building your business the right way. We also have extensive knowledge of different state LLC pricing and filing requirements and can quickly help you assess and compare startup and renewal costs for every state, ensuring you know exactly what to expect before you file.
Starting your LLC doesn't have to drain your bank account. With state filing fees from $40 to $500, annual costs from $0 to $800+, and hidden expenses everywhere, knowing what you're paying for matters.
The cheapest state isn't always the best state. And trying to save dollars by going DIY can backfire if you miss crucial steps.
Here's what matters: choosing the right state, understanding all costs upfront, and having support when needed. Whether launching a side hustle or building something big, your business structure should protect you and save money.
Ready to form your LLC the smart way? We've helped thousands of entrepreneurs navigate these decisions affordably and stress-free.
Kentucky charges $40 to file articles of organization, and Massachusetts charges $520, which is the highest in the nation. Most states levy a filing fee in the $50–$150 range, but some states may reach up to $200. Remember to consider additional costs like annual reports, registered agent services, and business licenses. For complete cost details, consult specific state guidelines.
Montana has the lowest filing fee at $35. For long-term savings, Arizona, Missouri, New Mexico, and Ohio do not require annual report fees, making ongoing costs zero in those states. Kentucky also offers one of the best cost combinations with a $40 filing fee and $15 annual maintenance fee.
In almost every state, yes—an annual or biennial fee and report are required regardless of your LLC's income or business activity. Missing this filing will result in dissolution in most states. Only four states—Arizona, Missouri, New Mexico, and Ohio—do not require ongoing annual LLC report fees.
You'll face late fees ($50-$200+). If you continue ignoring it, your LLC will be dissolved, meaning you lose liability protection, can't operate legally, and may face penalties. We offer automated reminders to ensure you never miss deadlines.
You'd need to dissolve your current LLC and form a new business entity elsewhere, or register as a foreign LLC while maintaining your original registration. If you form your LLC out of state but operate in your home state, you're supposed to register it as a foreign LLC, so you end up paying fees in both states. Choose the right state from the beginning.
We handle the complex parts—preparing and filing all LLC formation documents, providing registered agent services, ensuring compliance, offering automated reminders, and providing ongoing support. You get professional guidance and peace of mind for one affordable fee.
Don't let confusing paperwork, varying state rules, or renewal deadlines slow your business dreams.
Our specialists handle filings, keep your business compliant, and offer ongoing support for one simple fee. We've helped thousands of entrepreneurs launch their LLCs correctly the first time—saving them money, time, and stress.
Contact MyLLC today to discover just how easy (and affordable) launching your LLC can be with real experts in your corner.
Your business deserves a solid foundation. Let's build it together.
