Are you thinking about forming an LLC? Do you want to know how much it will cost? This simple guide breaks down the registration fees and maintenance costs for forming an LLC in each state.
See our table below for a quick overview of LLC formation costs for each state. With a glance, you can determine the cost of forming and maintaining an LLC company in your state.
HOW MUCH DOES AN LLC COST?
Do you own your own business? Are you considering setting up an LLC? Well, you’ll need to know how much does it cost to form an LLC. The cost of registering an LLC varies from state to state but the main consideration will be the state filing fee.
The state filing fee varies greatly between states but will lie in the range of $40 to $500. For example, you can register your LLC in the state of Kentucky for just $40. While registering your company in Massachusetts will cost you $500.
The degree of variance is significant. We’ve put together a table that details the cost of setting up an LLC in all 50 states – see below. This way you can easily see how much LLC cost for each state.
WHERE SHOULD I FORM MY LLC?
We recommend that you form your LLC in the state you intend to do business. Not, the state that has the lowest fees.
Forming your LLC in a state other than the state you plan to do business can lead to additional costs and regulation headaches down the road. To avoid this hassle you should always form your LLC in the state you plan on doing business.
LLC FORMATION COSTS
The cost of forming an LLC varies from state to state. But the main fee involved in every state is the State Filing Fee. This fee is paid to have your company articles of organization filed with the Secretary of State.
This fee can be as little as $40 or as high as $500 depending on the state – see table below. In addition to the state filing fee, several other costs may apply depending on the state you choose to register your LLC.
The additional costs include business licensing permit fees, publication fees, fictitious name fees, and name reservation fees. Let’s take a look at each of these in more detail.
STATE FILING FEE
The state filing fee is the main fee you will encounter when registering an LLC with your state authority. This is the fee you must pay when you submit your company articles of authorization with the Secretary of State.
This is a mandatory procedure in all states in the US. When you form an LLC you will have to complete paperwork called Articles of Organisation. This captures all the details the state requires when putting your new LLC on to create a new company and place the records on file.
The state filing fee varies greatly between states and can be anything between $40 and $500. See the table below for the cost of the state filing fee in each state.
BUSINESS LICENSES & PERMIT FEES
A business license is a document issued by your local or state authority. It grants you permission to operate your business within that region.
There are different types of business licenses and the type you require will depend on the type of business you run and the area in which you are doing business.
Examples include a seller’s license and a local business operating license. A seller’s license permits you to sell your product in that area. A local business operating license grants you permission to conduct business in your region. For more information check out – LLC Business License Requirements.
• FEDERAL BUSINESS LICENSES
If your business is regulated by a federal agency you will need to apply for a federal license. Examples of industries covered that require a federal business license include Agriculture,
Broadcasting, Commercial Fisheries, Mining & Drilling, and Transport & Logistics.
The cost of a business license varies depending on the category your business operation falls into and the state in which you are applying for the license. But, you can expect to pay anywhere between $50 to $400 for most licenses.
Some states require that you publicly announce the formation of your LLC in a local newspaper. This is a requirement in the states of New York, Arizona, and Nebraska. The publication fee will vary between these states and is dictated by your local newspaper.
For example, in New York, all limited liability companies must publish a notice of formation in two local newspapers. This requirement applies to LLCs, LPs, LLPs, and PLLCs. And, the publication must be made for six consecutive weeks within 120 days of the formation of the company.
Once the publication is complete, you will need to get an Affidavit of Publication and submit it to the New York Corporations authority.
FICTITIOUS NAME FEES
Fictitious names are not a requirement for LLCs but you may want to establish one so you can create a brand and operate your company under an assumed name. If you choose to operate under a fictitious name you will have to have it filed with your local authority and this will incur a fee.
A fictitious name is often referred to as a DBA – “Doing Business As”. Filing a fictitious name allows the state authority to put a name on your newly formed LLC and match it to your name – the company’s owner.
This is information becomes public record and allows people to understand who they are doing business with. The cost of a fictitious fee varies from one state to the next. See our table below for a state-by-state breakdown.
NAME RESERVATION FEES
If you are registering your LLC in Alabama you will have to pay a name registration fee. It’s a small fee and ranges from $10-$28. The name registration fee is optional in all other states so you can choose to avoid it you prefer.
LLC MAINTENANCE COSTS
Once you have your LLC registered and all your formation costs taken care of – you need to take a look at the costs of maintaining your LLC registration. The maintenance costs for an LLC vary from one state to another in the same way as the formation costs.
However, the two most common maintenance costs you will encounter are Annual Report Fees and Franchise Tax.
ANNUAL & BIENNIAL REPORTS
Most states require LLC companies to file an annual or biennial report. Annual reports are submitted every year and biennial reports must be filed every two years. The report captures an up-to-date snapshot of the important information the authorities need to know about your business.
An annual report for an LLC captures vital company details such as the name and address of company owners, the principal business address, your registered agent, and a list of authorized signatories. The cost associated with filing an annual report varies from state to state – see the table below.
Some states levy a yearly tax on LLCs called a franchise tax. This is usually a flat tax, but can also vary according to your LLC’s annual earnings in certain states. It is a tax your company pays for doing business in that state.
Paying a franchise tax gives your company the right to be chartered and operate in the state. Some companies are exempt from paying franchise tax. These include nonprofit organizations and limited liability corporations.
BUSINESS LICENSE COSTS
Business licenses are issued for a fixed period and need to be renewed when they expire. Therefore they are a recurring cost. Most licenses are valid for 1-3 years. To find out what licensing requirement you need to meet you should contact your local authority.
LLC FORMATION COMPANIES
Do you need help forming your LLC? You can engage the services of a professional LLC formation service to get your LLC registered. For a small fee, these companies ensure your LLC is formed quickly.
An LLC formation service company can help you get your LLC up and running quickly and give you the peace of mind that everything has been professionally taken care of. Check out our independent reviews of the BEST LLC FORMATION COMPANIES – click here.
HOW MUCH LLC COST BY STATE
LLC FORMATION COST
LLC MAINTENANCE COST
|Alabama||$200+||Annual License Required|
|Alaska||$250||$200 Bienniall Fee|
|Arizona||$50 + Publishing Requirement||No Maintenance Fees|
|Arkansas||$50||$150 Annual Franchise Tax|
|California||$70||$20 Biennial Fee + Annual Franchise Tax|
|Colorado||$50||$10 Annual Report|
|Connecticut||$120||$20 Annual Report|
|Delaware||$90||$300 Annual Business Tax|
|District of Columbia||$220||$300 Biennial Report|
|Florida||$125||$138.75 Annual Report|
|Georgia||$100||$50 Annual Registration|
|Hawaii||$50||$15 Annual Report|
|Idaho||$100||No Maintenance Fees|
|Illinois||$150||$75 Annual Report|
|Indiana||$95||$50 Biennial Report|
|Iowa||$50||$60 Biennial Report|
|Kansas||$160||$55 Annual Report|
|Kentucky||$40||$15 Annual Report + Annual Tax|
|Louisiana||$100||$30 Annual Report|
|Maine||$175||$85 Annual Report|
|Maryland||$100||$300 Annual Report|
|Massachusetts||$500||$500 Annual Report|
|Michigan||$50||$25 Annual Statement|
|Minnesota||$155||Annual Renewal Required|
|Mississippi||$50||No Maintenance Fees|
|Missouri||$50||No Maintenance Fees|
|Montana||$70||$20 Annual Report|
|Nebraska||$100 + Publishing Requirement||$10 Biennial Report|
|Nevada||$75||$150 Annual Report + $200 License Fee|
|New Hampshire||$100||$100 Annual Report + Enterprise Tax|
|New Jersey||$125||$50 Annual Report|
|New Mexico||$50||No Maintenance Fees|
|New York||$200 + Publishing Requirement||$9 Biennial + Annual LLC Fee|
|North Carolina||$125||$200 Annual Report|
|North Dakota||$135||$50 Annual Report|
|Ohio||$99||No Maintenance Fees|
|Oklahoma||$100||$25 Annual Certificate|
|Oregon||$100||$100 Annual Renewal Fee|
|Pennsylvania||$125 + Publishing Requirement||$70 Every 10 Years|
|Rhode Island||$150||$50 Annual Report|
|South Carolina||$110||No Maintenance Fees|
|South Dakota||$150||$50 Annual Report|
|Tennessee||$300 Minimum||$300 Annual Report + Franchise Tax|
|Texas||$300||Annual Tax (Variable)|
|Utah||$70||$20 Annual Renewal|
|Vermont||$125||$35 Annual Report|
|Virginia||$100||$50 Annual Registration|
|Washington||$180 – $200||$60 Annual Report|
|West Virginia||$100||$25 Annual Report|
|Wisconsin||$130 – $170||$25 Annual Report|
|Wyoming||$100 – $102||$50 or 0.02% Value of Assets|
HOW TO FORM AN LLC
Forming an LLC is easy – if you know what you’re doing. If you are new to the process you can hire a company to help you get your LLC set up. Or, you can follow our 10 step guide to set it up yourself. For more information check out our simple DIY guide to forming an LLC – How to Start an LLC Business.
HOW MUCH LLC COST FAQ
How Much Does an LLC Cost in California?
It costs $70 to register your LLC in the state of California. You will then have to pay a biennial fee of $20 to file an up-to-date report with the Californian Secretary of State. There is also an annual tax of $800 that is applied to all LLCs that do business in the state. And, if your LLC earns over $250,000 per annum the tax is higher.
How Much Does an LLC Cost in Texas?
It costs $300 to file your Certificate of Formation with the Texas Secretary of State. You will have to file an annual report. There is no charge for filing the annual report unless it is submitted late. In this case, you will have to pay $50. Texas applies a franchise tax to LLCs. The amount of tax varies depending on the size of the company.
Do You Have to Pay an Annual Fee for an LLC?
Yes, in most states you have to pay an annual fee to maintain your LLC with the state authority. While the fees vary from one state to the next, in general, you will have to pay an annual report fee and franchise tax. See the table above for details of annual fees for each state.
What Is an LLC Company?
An LLC (Limited Liability Company) is a business structure in the U.S. that offers protection to its owners from the debts of the company. This means the personal assets of the owners are protected in most cases from any debts incurred by the company. For more information see our full guide to WHAT IS A LLC COMPANY – click here.
- HOW TO REGISTER AN LLC IN TEXAS – click here
- TEXAS LLC OPERATING AGREEMENT – click here
- HOW TO REGISTER AN LLC IN CALIFORNIA – click here
- ADVANTAGES & DISADVANTAGES OF LLC – click here
- HOW TO START AN LLC IN FLORIDA – click here
- WHAT IS AN LLC REGISTERED AGENT? – click here
- PROS & CONS OF AN LLC FILING SERVICE – click here
- PROS & CONS OF A REGISTERED AGENT SERVICE – click here
OTHER BUSINESS STRUCTURES
- LLC vs SOLE PROPRIETORSHIP – click here
- LLC vs PARTNERSHIP – click here
- LLC vs S CORP – click here
- LLC vs C CORP – click here
ABOUT THE AUTHOR
Erik is a 30-year industry veteran with a wealth of experience in cross-functional areas ranging from business consulting to business education. He has worked in the private sector where he has advised start-up enterprises on early formation, capital acquisition, and tax issues.
While he specializes in business formation he has also held roles in several academic institutions where he teaches organizational decision-making, business strategy, and operations management. Erik is a graduate of the McCombs School of Business at the University of Texas at Austin.