How Much Does It Cost to Start an LLC in 2026?
The short answer: state filing fees range from $35 (Montana) to around $500 (Massachusetts). The real cost is almost always higher once you add annual reports, franchise taxes, registered agent fees, and — in a few states — newspaper publication. This page breaks down every major cost so you can budget accurately before you file.
Whether you are comparing states, trying to understand “how much is an LLC in Texas,” or simply want a realistic first-year budget, the numbers below come from official state sources and are kept current for 2026.
Quick answer (2026)
- Formation fee range: $35 – $500 (median ~$100)
- Cheapest to form: Montana $35, Kentucky $40, Arkansas $45
- Most expensive to keep: California ($800 franchise tax every year)
- Often overlooked: Annual reports, publication (NY), registered agent, local licenses
1. State formation filing fee
This is the one-time fee you pay the Secretary of State (or equivalent agency) to file Articles of Organization or Certificate of Formation. It is the number most comparison tables lead with — and the one that often matters least over a five-year horizon.
Formation fees are set by each state and can change. Always verify the current amount on the official state website before filing. Our calculator and state pages link directly to those official sources.
Highest formation fees
- Massachusetts$500
- Nevada$425
- Tennessee$300
- Texas$300
- Alaska$250
2. Recurring state costs (the real long-term bill)
Most states require an annual or biennial report. Some also impose a franchise tax, privilege tax, or business entity tax. These recurring costs often matter more than the initial filing fee if you plan to keep the LLC for several years.
California is the clearest example: the formation fee is relatively low, but the $800 minimum annual franchise tax applies regardless of whether the LLC has income. Other states have modest report fees or none at all for many small LLCs.
See Annual Report Requirements by State and Hidden Costs of Forming an LLC for a clearer picture of ongoing obligations.
3. Costs people often forget
Registered agent
Required in every state. You can often serve as your own agent for $0 if you have a qualifying physical address in the formation state. Commercial registered agent services typically cost $50–$300 per year and can add privacy and reliability.
Publication requirements
A small number of states require new LLCs to publish a notice in a local newspaper. New York is the most expensive and well-known example. Arizona and Nebraska can also have publication rules. These are usually one-time costs but can add hundreds of dollars in the first year.
Local licenses, permits & EIN
City and county business licenses are separate from state formation. An Employer Identification Number (EIN) is free from the IRS. Be cautious of third-party sites that charge for the same free IRS filing. See how to get an EIN for free.
Name reservation & expedited processing
Some states let you reserve a name for a fee before filing. Expedited or same-day processing is also available in many states for an extra charge. These are optional but useful if timing matters.
4. How cost fits into the formation process
Knowing the cost is only useful if you also understand the steps. After you estimate your numbers with the calculator, the practical sequence is:
- Choose your formation state (usually where you live or primarily operate).
- Select and check a unique business name.
- Appoint a registered agent.
- File Articles of Organization / Certificate of Formation and pay the state fee.
- Create an operating agreement.
- Get a free EIN from the IRS if needed.
- Open a business bank account and stay compliant with annual reports.
Full step-by-step: How to form an LLC → · How long does it take?
5. DIY vs formation services — cost perspective
You can file directly with the state in most cases. Formation services handle the paperwork and often include a year of registered agent service. They charge their own fee on top of the official state filing fee. The state fee itself does not disappear.
If your situation is simple (single-member, home state, standard structure), DIY is usually cheaper. If you value convenience, privacy, or help with ongoing compliance, a reputable service can be worth the extra cost. Always separate the official state fee from the service fee when comparing options.
Frequently asked questions
How much does it cost to start an LLC in 2026?▼
State filing fees range from $35 in Montana to about $500 in Massachusetts. The median is roughly $100. Your total first-year cost is usually higher after annual reports, franchise taxes, registered agent fees, and any publication requirements.
What is the cheapest state to form an LLC?▼
Montana currently has one of the lowest official formation fees at $35. Several other states charge $40–$50. The cheapest states to keep an LLC long-term are often those with little or no annual report fee.
Why is California expensive for LLCs?▼
California charges a relatively low formation fee (around $70), but it imposes an $800 minimum annual franchise tax regardless of income. That makes it one of the most expensive states to maintain an LLC over time.
Do I need a registered agent?▼
Yes. Every state requires an LLC to maintain a registered agent with a physical address in that state. You can often serve as your own agent if you have a qualifying address, or you can hire a commercial service, typically $50–$300 per year.
Are there hidden costs beyond the filing fee?▼
Yes. Common extras include annual or biennial report fees, franchise or privilege taxes, newspaper publication in a few states (especially New York), registered agent fees, and local business licenses.
Is the EIN free?▼
Yes. You can obtain an Employer Identification Number (EIN) directly from the IRS at no charge. Some third-party services charge a fee for the same filing.
How much does an LLC cost in Texas?▼
Texas has a $300 formation filing fee and no state franchise tax for most small LLCs that file a No Tax Due report. Use the cost calculator for the latest verified numbers and any optional registered agent cost.
Can I form an LLC for free?▼
Almost never. The state filing fee is required. Some services advertise free formation but still require you to pay the official state fee and often charge for registered agent or other add-ons.
How much does it cost to maintain an LLC each year?▼
It varies widely. Some states have little or no annual report fee. Others charge $50–$300+ for annual reports, and a few (notably California) impose significant franchise taxes. Always check both formation and recurring costs for your state.
Does the cost include an operating agreement or EIN?▼
No. The state filing fee only covers creating the LLC with the state. An operating agreement is a separate internal document, and an EIN is obtained free from the IRS.
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Open LLC Cost CalculatorRelated guides
Educational resource only. Fees and requirements change. Always confirm current amounts and rules on the official state website before filing. This site is not affiliated with any government agency.