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!

More on Getting Started

Yes, You Really Can Operate A Successful 1-Person Business!

Nowadays, it seems that no one needs to work with anyone else. You could start a successful 1-person business even if you don't have any employees. Just because you are the only person in your business, this doesn't mean that you can't make money or grow your business to generate more revenue and be more efficient. Thanks to online tools and services, starting a business has never been easier, mak

Why Doing Business With Family Is Powerful (and How To Do It Right)

Setting up a family business has always had a bad rap. Many often wonder, "why do people caution against doing business with family?" From little boundaries to lack of control and greater liabilities, it's a wise choice never to mix business and family. You wouldn't miss the lack of accountability that may result from running a company with your household. However, this is not to say that there ar