How much does it cost to start an LLC in 2026?
Get the real number before you file. Free calculator for all 50 states + DC, official government source links, cheapest and most expensive rankings, and clear guides on hidden costs and business structures.
Official state sources • Updated 2026 • Educational only
Typical filing fee range
$35 – $500
Varies widely by state
What is an LLC?
A Limited Liability Company (LLC) is a state-recognized business structure that separates your personal assets from the business’s debts and legal claims. It offers liability protection, flexible tax treatment, and a more professional image than a sole proprietorship, while remaining simpler than a corporation for most small businesses.
- ✓Limited personal liability (with important exceptions)
- ✓Flexible tax options (disregarded, partnership, or S-Corp election)
- ✓Relatively simple formation and ongoing formalities
- ✓Credibility with banks, clients, and partners
How much does an LLC really cost in 2026?
The state filing fee is only the starting point. Recurring annual reports, franchise taxes, registered agent fees, and occasional publication requirements can significantly change the total.
State filing fee
$35 – $500
Registered agent
$0 – $300/yr
Annual / franchise fees
$0 – $800+
Other possible costs
Publication, licenses
How to form an LLC (7 practical steps)
Forming an LLC is a state-level process. The exact forms and fees differ, but the sequence is similar everywhere.
- 1Choose your formation state (usually where you live or primarily operate).
- 2Pick a unique business name that meets state naming rules and check availability.
- 3Appoint a registered agent with a physical address in the formation state.
- 4File Articles of Organization (or Certificate of Formation) and pay the state fee.
- 5Create an operating agreement (strongly recommended even when not required).
- 6Apply for a free EIN from the IRS if needed.
- 7Open a business bank account and stay compliant with annual reports.
Read the full step-by-step formation guide → · How long does it take?
Cost tools & rankings
Calculators and data-backed rankings built from official state fee sources.
LLC Cost Calculator
Interactive 1 / 3 / 5 year cost estimates by state, with optional registered agent and official source links.
How Much Does It Cost to Start an LLC?
Complete 2026 breakdown: filing fees, annual reports, franchise taxes, and hidden extras.
LLC Costs by State
Full table of formation and recurring fees for all 50 states + DC, each linked to official government sources.
Cheapest States to Form an LLC
2026 ranking of the lowest formation fees and estimated multi-year state costs.
Most Expensive States
Highest formation fees, yearly costs, and 5-year totals — including California franchise tax impact.
Hidden Costs of Forming an LLC
Annual reports, franchise taxes, publication requirements, registered agent, and other extras beyond the filing fee.
Annual Report Requirements
Which states require annual or biennial reports, typical fees, and states with little or no recurring report fee.
How to Form an LLC
Clear step-by-step guide covering name, registered agent, Articles of Organization, EIN, and compliance.
Business structures & protection
Educational comparisons to help you understand the main options and the realistic limits of limited liability.
LLC vs Sole Proprietorship
Side-by-side comparison of liability, taxes, formalities, and when each structure may fit.
LLC vs Corporation
Formation, taxation, ownership flexibility, formalities, and investor considerations.
LLC vs S-Corp
Tax treatment differences, self-employment tax, and when an S-Corp election may make sense.
Single-Member vs Multi-Member LLC
Default tax treatment, operating agreements, and practical differences between one and multiple owners.
Does an LLC Protect Personal Assets?
How limited liability works, when courts may pierce the veil, and practical steps to strengthen protection.
Should you form an LLC?
An LLC is often a good fit when you want clearer separation between personal and business assets, plan to grow, hire, or work with clients who expect a formal entity. It is not always necessary for very small, low-risk activities.
- → Do you want liability protection beyond a sole proprietorship?
- → Are you earning meaningful revenue or taking on contracts?
- → Do you plan to hire employees or bring on partners later?
- → Will a formal entity help with banking, payments, or client trust?
Start with the cost calculator for your state, then review the formation guide and structure comparisons.
Frequently asked questions
How much does it cost to start an LLC?▼
State filing fees typically range from about $35 to $500. Additional costs can include annual reports, franchise taxes, registered agent service, and publication requirements in a few states. Use the free calculator for your state’s full estimate.
What is the cheapest state to form an LLC?▼
Several states have very low formation fees (often under $50–$100). However, the cheapest filing fee is not always the lowest long-term cost once annual reports and franchise taxes are included. Check the cheapest states ranking and the multi-year calculator.
How long does it take to form an LLC?▼
Online filings in many states are approved in a few business days; some offer same-day or next-day processing. Paper filings can take several weeks. Processing times vary by state and method.
Do I need a registered agent?▼
Yes. Every state requires a registered agent with a physical street address in that state to receive legal documents. You can often serve as your own agent if you have a qualifying address, or hire a commercial service.
Can I form an LLC for free?▼
The state filing fee is almost never $0. Some formation services advertise “free” formation but charge for registered agent or other add-ons, and you still pay the official state fee. True zero-cost formation is rare.
Is an LLC better than a sole proprietorship?▼
An LLC provides limited liability protection that a sole proprietorship does not. A sole proprietorship is simpler and usually cheaper to start, but the owner is generally personally liable for business debts and claims. The better choice depends on risk, growth plans, and tax situation.
What are the hidden costs of an LLC?▼
Beyond the initial filing fee, common extras include annual or biennial reports, franchise taxes, registered agent fees, name reservation, publication (in a few states), and local business licenses. The Hidden Costs guide covers these in detail.
Do I need an operating agreement?▼
Some states require one; most do not. Even when optional, a written operating agreement helps document ownership, management, and profit sharing and supports the separation between you and the company.
How we handle fees & sources
Official sources only
Every published state fee is linked to the relevant Secretary of State or equivalent government page. We do not invent numbers.
Verified status shown
Fees are marked with verification date and status. Unknown or unconfirmed fees are shown as “Not verified” — never as $0.
Educational, not advice
Content is for information only. Always confirm current fees and requirements on the official state site before filing.
Know the real cost. Form your LLC the right way.
Pick a state, see formation and recurring costs, and follow the official source link to confirm.