When forming any business entity (LLC, S-Corp, or C-Corp), you'll encounter two main types of costs:
Every state charges a fee to file your formation documents (Articles of Organization for LLCs, Articles of Incorporation for corporations). These fees vary significantly by state and entity type and are paid directly to the state government.
Professional formation services charge fees for handling paperwork, ensuring compliance, and providing additional services like registered agent service and operating agreements.
Here's the exact filing fee for LLC formation in every state (as of 2025):
State | Filing Fee | Expedited Option | Processing Time |
|---|---|---|---|
| Lowest Cost States | |||
| • Kentucky | $40 | + $25 (2-day) | 5-7 business days |
| • Arkansas | $50 | + $25 (2-day) | 3-5 business days |
| • Colorado | $50 | + $50 (3-day) | 5-7 business days |
| • Iowa | $50 | + $50 (1-day) | 7-10 business days |
| • Mississippi | $50 | + $50 (3-day) | 5-7 business days |
| Popular States | |||
| • California | $70 | + $350-750 (24-hour) | 5-7 business days |
| • Texas | $300 | + $25 (2-day) | 3-5 business days |
| • Florida | $125 | + $400-800 (24-hour) | 2-3 business days |
| • New York | $200 | + $150 (2-day) | 7-10 business days |
| • Delaware | $90 | + $100 (24-hour) | 1-2 business days |
| • Wyoming | $100 | + $100 (24-hour) | 5-7 business days |
| Highest Cost States | |||
| • Massachusetts | $500 | + $100 (1-day) | 10-14 business days |
| • Tennessee | $300+ | + $100 (2-day) | 5-7 business days |
| • Illinois | $150 | + $100 (24-hour) | 5-7 business days |
Beyond the basic state filing fee, there are several other costs associated with forming and maintaining an LLC:
$0-500 per year (varies by state) - 45 states require annual reports
$99-199 per year (required in all states)
$50-500 per year (varies by city/county)
$0-800 per year (varies by state - CA, DE, TX, etc.)
$0-200 (free templates available, $49-99 for professional)
$0 (free from IRS)
$0-25 per month in fees
$300-2,000 per year (varies by industry)
$0-200 (for handling paperwork and compliance)
$200-500 (for complex businesses or legal review)
$300-800 (for bookkeeping and tax setup)
Here's what you can expect to pay in your first year of LLC ownership:
Cost Category | Low End | High End | Typical Range |
|---|---|---|---|
| State filing fee | $40 | $500 | $70-150 |
| Formation service | $0 | $200 | $0-100 |
| Registered agent (year 1) | $99 | $199 | $99-149 |
| Operating agreement | $0 | $99 | $0-49 |
| EIN application | $0 | $0 | $0 |
| Total First Year | $139 | $998 | $200-400 |
You can significantly reduce your LLC formation costs with these strategies:
If location flexibility exists, consider forming in a low-cost state like Kentucky ($40) or Arkansas ($50) rather than high-cost states like Massachusetts ($500).
You can save $100-200 by filing directly with the state rather than using a formation service. However, this requires more time and carries the risk of errors that could cost more to fix.
Many formation services offer packages that include registered agent service and operating agreements at a discount. Compare total costs rather than individual services.
Standard processing (5-10 days) is usually sufficient for most businesses. Only pay for expedited service if you have a specific deadline.
Professional operating agreements aren't always necessary for simple businesses. Quality free templates are available and can be customized for your needs.
Some states have unique fees or requirements that affect the total cost:
California requires an $800 minimum franchise tax payment within 3 months of formation, plus potential income-based fees. This makes California one of the most expensive states for ongoing LLC costs.
Texas requires filing a franchise tax report after formation, with fees based on your business's revenue and structure. Most small businesses pay the minimum $300 fee.
Delaware requires a $300 biennial report every two years, making it more expensive for long-term ownership despite the low initial filing fee.
Nevada has no state income tax or franchise tax, making it very cost-effective for ongoing operations despite the $425 initial filing fee.
Be aware of these often-overlooked expenses that can increase your total LLC costs:
$10-50 to reserve your business name before filing (optional but recommended)
$5-50 for official copies of your filed Articles of Organization
$200-1,000 in some states (like New York) for newspaper publication of formation
$100-500 per state if you do business in multiple states
$50-200 if you need to change your Articles of Organization later
Here's a detailed comparison of the costs and benefits of each approach:
Factor | DIY Filing | Professional Service |
|---|---|---|
| Upfront Cost | $50-500 (state fees only) | $150-700 (state + service fees) |
| Time Investment | 5-10 hours (research + filing) | 30 minutes (online form) |
| Error Risk | High (rejection possible) | Low (experienced filers) |
| Compliance Support | None | Included (reminders, guidance) |
| Additional Services | Pay separately | Often bundled (RA, OA, EIN) |
The state filing fees are always required and cannot be waived. However, you can minimize additional costs by filing yourself, using free templates for operating agreements, and applying for your EIN directly through the IRS (free).
Most states require annual reports with fees ranging from $0-500. Additionally, you'll need to maintain registered agent service ($99-199/year) and may have business license fees depending on your location and industry.
Most states do not refund filing fees if your application is rejected due to errors. However, you can usually resubmit without paying the fee again if you correct the issues within a certain timeframe (typically 30-60 days).
For most business owners, yes. Professional services save significant time, reduce error risk, and often include valuable add-ons like registered agent service and compliance support that you'd otherwise pay for separately.
Form your business (LLC, S-Corp, or C-Corp) completely free - pay only state filing fees with no service charges. Add professional registered agent service ($99/year) for compliance reminders, privacy protection, and expert support.
Learn about processing times and expedited options for faster LLC formation.
Get free operating agreement templates and learn when you need one for your LLC.