How Much Does It Cost To Start An LLC? (2026)

State Filing Fees to Form an LLC

Your LLC isn’t official until you’ve filed your formation documents. Each state charges a filing fee to do this. Filing fees range from a low of $35 (Montana) to a high of $500 (Massachusetts).

Registered Agent Costs

What is a registered agent for LLCs? Your LLC’s registered agent is someone who will receive legal documents and lawsuits on behalf of your company.

An LLC owner may opt to serve as their company’s own registered agent. However, if you mishandle important paperwork, it can potentially lead to legal issues. Hiring a registered agent service may help avoid potential problems, but these services often cost between $119 and $249 per year.

Operating Agreement and EIN Costs

You may also need an operating agreement. But what is an LLC operating agreement? This document describes your company’s leadership structure and basic procedures for day-to-day operation. In many states, you don’t have to file this agreement, but you should keep it in your records.

An operating agreement can cost money if you hire a lawyer to help you draft one. Getting an employer identification number (EIN) is free, though, with the IRS online tool.

Business Name, DBA and License Fees

If you want your LLC to do business under a different company name, you may need to register for a “doing business as” (DBA). DBA fees are usually less than $150. Depending on your industry and location, you may also owe licensing fees at the state, county or city level.

Annual Report and Franchise Tax Fees

Many states charge an annual report fee and/or franchise taxes. Some charge nothing at all, and a significant portion charge less than $100. California’s fee is currently the highest at $800.

Total Cost to Start an LLC

Altogether, the cost to start an LLC in most states is around $500 to $1,000. However, in states with tighter regulations and higher franchise taxes like California, it can be more expensive.

Cheapest States to Form an LLC

If you have some freedom as to where you’re starting your LLC, it might be worth choosing an inexpensive state like one of these:

• Arizona: $50 formation fee, no annual report fee and no franchise tax
• Montana: $35 formation fee, $20 annual fee and no franchise tax
• Missouri: $50 formation fee, no annual report fee and no franchise tax

Don’t forget to consider long-term costs, like state income taxes and ongoing licensing fees, too.

The Correct Form Matters

Starting an LLC isn’t as complex as starting a corporation, but missteps during the formation process can still cost you. When you understand what forms to use, you may save yourself time, money and stress.