Updated October 14, 2026. Written for first-time owners.
Forming an LLC costs $35 to $500 in state filing fees, and about $100 is typical. Montana is the cheapest at $35 and Massachusetts the most expensive at $500. After that, most states charge a yearly or every-other-year report fee. A few charge much more: California has an $800 yearly LLC tax.
One-time costs
| Cost | How much | Required? |
|---|---|---|
| State filing fee | $35 to $500 (median about $100) | Yes |
| Newspaper publication (Arizona, Nebraska, New York only) | Varies by newspaper and county | Yes, in those states |
| EIN (federal tax ID) | $0 from the IRS | Needed for most LLCs |
| Operating agreement | $0 if you write your own | Required in a few states, smart everywhere |
| Formation service | Optional fee | No |
The IRS EIN application says you never have to pay for an EIN. You can write an operating agreement with our free operating agreement template.
Yearly costs
| Cost | How much | Required? |
|---|---|---|
| State annual or biennial report | $0 in 11 states; most others charge a fee | Yes, where the state requires a report |
| State LLC tax or franchise tax | $0 in most states; California $800 a year; Delaware $400 a year (2026) | Yes, where it applies |
| Registered agent service | A yearly fee if you use one | You need an agent; being your own is free |
| Local business license | Varies by city, county and trade | Depends on your work and location |
| Business insurance | Varies by work and risk | Not usually required by law, but often required by clients and landlords |
| Accountant or tax software | Varies | No, but helpful |
To see the exact fee, yearly fee and due date for your state, use our table of every state's LLC fees.
Watch for these surprises
- Paying twice. If you form in one state and work in another, you usually also register in your home state and pay its fees too. Our Delaware LLC cost breakdown shows how fast this adds up.
- Paid EIN sites. Some websites charge for an EIN. The IRS gives it free.
- Late fees. Missing a yearly report can bring late fees and, eventually, loss of good standing.
Want someone to file it for you?
ZenBusiness files the state paperwork. You still pay the state fee. Compare ZenBusiness LLC plans
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FAQ
What is the cheapest state to form an LLC?
Montana, at $35. Kentucky ($40) and Arkansas ($45) are next. The cheapest state to form in is usually the state where you actually do business, because forming elsewhere means paying two states.
Can I form an LLC for free?
No. Every state charges a filing fee. You can avoid other costs by filing yourself, being your own registered agent and getting your EIN free from the IRS.
How much does an LLC cost per year?
It depends on the state: $0 in 11 states, a report fee in most others, and more in states with an LLC tax, such as California’s $800.
Is the formation fee tax deductible?
Business startup and organization costs can generally be deducted, within IRS limits. Ask a tax pro how it applies to you.
Related LLC questions
- Every state's LLC fees
- How long does it take to get an LLC?
- What is a registered agent?
- Get your LLC set up
This page is general information, not legal or tax advice. Rules change and every business is different, so check with your state or a tax professional before you decide.
Last updated October 14, 2026 by StartBusinessByState.