How Much Does an LLC Cost?
Are you forming a business in 2022? You’ll likely need to form an LLC to get started. Let’s talk about how much that will cost you. There are a couple different fees you need to keep in mind when filing and maintaining good standing as an LLC, which can differ depending on the state you file in. We’ll include a table of how fees differ by state (as of 2022), so we’ll have you covered no matter where you are based.
Upfront Costs
The four main portions of your upfront costs will be your state filing, filing a fictitious business name application or DBA if desired, getting any necessary business licenses, and obtaining your legal documents. All-in-all, expect to pay anywhere from $150-$800 for the following:
State LLC Filing
To establish an LLC legally, you have to file a legal document which can go by many names depending on the state, but is the official document that makes your LLC legal in your state. Names for this document filing can go by articles of organization, certificate of formation, certificate of organization and a few others. Most of the time, the fee to file this document is somewhere between $50 to $100, although in Texas it’s $300 and Massachusetts is $500! So, it’s important to know what you’re getting into ahead of time.
State LLC Formation Costs
| State | LLC Filing Fees | Ongoing LLC Fees |
| Alabama | $180 | $100-$200 |
| Alaska | $250 | $150 |
| Arizona | $50 | $0 to $100 |
| Arkansas | $45 or $50 | $150 |
| California | $90 | $810 |
| Colorado | $50 | $10 |
| Connecticut | $120 | $270 |
| Delaware | $90 | $300 |
| District of Columbia (D.C.) | $220 | $300 |
| Florida | $263.75 | $138.75 |
| Georgia | $100 | $50 |
| Hawaii | $50 | $15 |
| Idaho | $100 | $0 |
| Illinois | $150 | $75 |
| Indiana | $50 | $32 |
| Iowa | $50 | $35 |
| Kansas | $165 | $50 |
| Kentucky | $40 | $15 |
| Louisiana | $100 | $30 |
| Maine | $175 | $85 |
| Maryland | $450 | $300 |
| Massachusetts | $500 | $500 |
| Michigan | $50 | $25 |
| Minnesota | $135 | $25-$45 |
| Mississippi | $50 | $25 |
| Missouri | $50 or $105 | $0 |
| Montana | $70 | $20 |
| Nebraska | $110 | $18 |
| Nevada | $75 | $350 |
| New Hampshire | $100 | $100 |
| New Jersey | $125 | $125 per LLC member + $50 |
| New Mexico | $50 | None |
| New York | $275 | $25 to $4,500 |
| North Carolina | $125 | $200 |
| North Dakota | $135 | $50 |
| Ohio | $99 | $0 |
| Oklahoma | $100 | $25 |
| Oregon | $100 | $100 |
| Pennsylvania | $125 | $0 |
| Rhode Island | $150 | $450 |
| South Carolina | $110 | $0 |
| South Dakota | $150 | $50 |
| Tennessee | $300-$3,000 | $300-$3,000 |
| Texas | $300 | $0 |
| Utah | $70 | $20 |
| Vermont | $125 | $35 |
| Virginia | $100 | $50 |
| Washington | $259 | $79 |
| West Virginia | $130 | $25 |
| Wisconsin | $130 | $25 |
| Wyoming | $100 | $50 |
(Optional) Reserving the Name of Your LLC
There are very specific rules in each state regarding how close the name of your business can legally be when compared to other registered businesses. You’ll have to request (either at the time of formation or as a name reservation) the name you want for your LLC. If the name is deemed too similar to an existing business, you’ll have to choose another business name that you like.
If you’re not ready to file your LLC, but want to reserve the name, the cost for reserving your LLC’s name is usually between $10 and $50. Reserving an LLC name in advance is purely optional and an extra step. You don't have to reserve a name before you file your LLC.
Filing a Fictitious Business Name Application or DBA
Many organizations have a legal name, but then they also have a name they’re allowed to refer to their business with. This alternate name is called a fictitious business name or DBA ("doing business as"). It’s completely optional to have a DBA and does add an extra fee on top of the usual filing fees.
To use a DBA, you have to file a specific application for that name as well and pay the fee. Depending on the state, you may only need to file with the Secretary Of State, whereas in others you have to file in every county you’d like to operate in. The average cost to file a DBA is between $50 and $100.
Obtaining a Business License
You’ll want to check with your city or county business license office to see if you need a business license. Some states have state-wide business licenses. It’s worth noting that the majority of counties and major cities have a local business license requirement. The cost of a business license is usually $50 to $100. BetterLegal provides a Permit and License Search service or $125.
Ongoing Costs of Running an LLC
After you set up your LLC, you will have to pay ongoing fees to keep it legally registered at the state and local levels. If you fail to pay, your LLC will lose its legal status in that state.
Minimum Annual LLC Taxes
Depending on your state, you may have to pay an additional annual tax, known as franchise taxes or fees, to maintain your LLC. If you live in California, for example, the minimum tax for an LLC is $800, which is the highest fee a state charges. Most other states with franchise taxes have a minimum of $100 to $400, but Texas for example is free unless you’re making over ~$1.2m per year.
Annual Report Fees
It is important that you keep your contact information up-to-date. In many states, you will need to file an annual (or biennial) report with the Secretary of State to ensure that your records are accurate. This filing is usually called an annual (or biennial) report or statement of information. This has its own annual fee that usually ranges between $20 to $100.
Registered Agent Fees
In most states, every limited liability company must have an agent for service of process. This is an individual or business entity that agrees to accept legal papers on the LLC's behalf if it is sued. It cannot serve as its own agent—it must designate a third party. Any adult over 18 can act as an LLC's registered agent as long as they live in the state.
That said, many LLC owners prefer to hire a professional registered agent company such as BetterLegal. In return for paying a small fee, you get the peace of mind that paperwork is filed correctly and any legal documents or correspondence will be forwarded your way immediately.
Business License Renewal Fees
Most of the time, your business license needs to be renewed every single year, again with a small fee. The majority of the time, that fee is between $20 to $100.
Choose BetterLegal
BetterLegal has made it easy for you to create an LLC! We offer all of the upfront services at a single, upfront cost of $299, plus your state’s unique filing fee. Let us handle all the boring paperwork and nuances of setting up your business so you can focus on what you do best – providing value to your customers!
