Cost of Forming an LLC in United States of America (USA)

Forming a limited liability company (LLC) in the United States typically costs $35 to $500 in state filing fees, depending on where you register. Many states charge around $50–$150, while some have higher fees or additional requirements. The median state filing fee is approximately $100, based on 2026 state-fee comparisons.

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Starting an LLC in the USA involves state filing fees and other possible business registration costs.
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Forming a limited liability company (LLC) in the United States typically costs $35 to $500 in state filing fees, depending on where you register. Many states charge around $50–$150, while some have higher fees or additional requirements. The median state filing fee is approximately $100, based on 2026 state-fee comparisons.


That is the basic government filing cost, not necessarily the total amount you will spend. Registered agent services, business licenses, publication requirements, and recurring state taxes or reports can increase the cost.



LLC Formation Costs by State in 2026

The following examples show how much selected states charge to file the initial LLC formation paperwork.


State Basic LLC filing fee
Montana $35
Kentucky $40
Arkansas $45
Arizona $50
Colorado $50
California $70
Florida $125
New York $200
Alaska $250
Texas $300
Massachusetts $500


Source: 2026 state filing-fee comparisons. Some states have additional mandatory charges, such as name reservations or publication requirements. Confirm the current fee with the relevant state filing office before submitting.


These are examples, not a complete list of all 50 states. The fee you pay depends on the state where you register your business.



Other Costs of Starting an LLC

The state filing fee is only one part of the startup budget. You may also need to pay for the following:



Expense Typical cost or requirement
Registered agent $0 if you serve as your own agent and qualify; paid services charge extra
EIN from the IRS Free when obtained directly from the IRS
Operating agreement $0 if prepared yourself; professional help costs extra
Business licenses and permits Varies by business activity and location
Name reservation Required in some states; fee varies
Newspaper publication Required in certain states, including New York, Arizona, and Nebraska
Formation service Optional; service fees vary
Annual or biennial reports Depends on the state


An LLC must have a registered agent in its state of formation. You can generally serve as your own registered agent if you meet the state's requirements, or hire a service to receive official legal and government documents.



Small Business Administration

An EIN, or Employer Identification Number, is available directly from the IRS at no charge. Avoid paying a third-party website simply to obtain one.



Annual LLC Fees and Taxes

Forming an LLC does not always end your state expenses. Some states require annual or biennial reports, while others impose franchise taxes or minimum annual taxes.


- California: LLCs generally owe an $800 annual tax, even if they have little or no business activity, subject to applicable exceptions.

- Arkansas: LLCs must file an annual franchise tax report with a $150 tax.

- Alaska: LLCs file a $100 biennial report.

- Colorado: The periodic report fee is $25 annually.

These recurring charges are separate from the initial formation fee.



Example: How Much Should You Budget to Form an LLC?

Suppose you form an LLC in a state with a $100 filing fee, serve as your own registered agent, and obtain your EIN directly from the IRS.


Your basic government formation cost would be:


Expense Amount
State LLC filing fee $100
Registered agent (self-managed) $0
EIN from IRS $0
Basic formation total $100


This is an illustrative example. It excludes optional formation services, licenses, publication costs, professional advice, and future state fees.



How to Find the Exact LLC Formation Cost

Before registering, check the Secretary of State or equivalent business filing agency in the state where you plan to operate.


The US Small Business Administration's business registration guide provides information on state registration, registered agents, and business requirements. You can also check the relevant state's official website for its latest filing fees and forms. these additional services. 


If your business operates in more than one state, you may need to register your LLC as a foreign LLC in additional states. This can mean extra filing fees and recurring compliance costs.



Frequently Asked Questions

What is the cheapest state to form an LLC?

Montana has one of the lowest basic filing fees, at approximately $35 in 2026. However, the cheapest state to register in is not necessarily the cheapest place to operate. You may still need to register and pay fees in the state where you actually conduct business.

Can I form an LLC for free?

Generally, no. States charge a filing fee to create an LLC. You can reduce additional expenses by filing directly with the state, serving as your own registered agent if eligible, and obtaining your EIN for free from the IRS.

Do I need a lawyer to form an LLC?

Most people can file the basic formation documents themselves without hiring a lawyer. However, legal or tax advice may be useful when an LLC has multiple owners, complicated ownership arrangements, or unusual business requirements.

How much does it cost to maintain an LLC each year?

It depends on the state. Some states have no regular annual report fee, while others charge recurring report fees or taxes. California, for example, generally imposes an $800 annual LLC tax.


Conclusion

The basic cost of forming an LLC in the USA ranges from approximately $35 to $500 in state filing fees in 2026, with many states charging around $50–$150. Budget for additional services, licenses, publication requirements, and recurring state fees before deciding where and how to register.


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