How Much Does an LLC Cost? State Filing Fees (2026)
An LLC's main cost is a one-time state filing fee for its articles of organization, and that fee varies by state - there is no single national price. Verified examples range from $40 in Kentucky to $500 in Massachusetts (effective 2026). On top of the filing fee, most states charge an ongoing annual report or franchise fee, and you may pay for a registered agent. The EIN from the IRS is free.
Quick Answer
- Main cost
- One-time state filing fee for articles of organization - varies by state
- Verified low
- $40 - Kentucky (Articles of Organization)
- Verified high
- $500 - Massachusetts (Certificate of Organization)
- National fee?
- None - each state sets its own; do not rely on one flat number
- Ongoing cost
- Most states charge an annual/biennial report or franchise fee
- Registered agent
- Required; free if you serve yourself, or a paid annual service
- EIN cost
- $0 - the IRS never charges a fee for an EIN
What Determines the Cost of an LLC
The cost of an LLC is driven almost entirely by which state you form it in, because an LLC is, in the IRS's words, "a business structure allowed by state statute." Each state runs its own business filing office and sets its own fees, so the same LLC can cost four times as much to form in one state as in another. The U.S. Small Business Administration confirms that "ownership rules, liability, taxes, and filing requirements for each business structure can vary by state."
There is no federal LLC fee at all - the federal government's only role is issuing a free EIN - so the entire formation cost is set at the state level. A realistic budget for a new LLC has four parts: (1) the one-time state filing fee for the articles of organization; (2) recurring state compliance fees such as an annual report or franchise tax; (3) an optional registered agent fee; and (4) optional extras such as name reservation, expedited processing, or a business license. The federal EIN adds nothing - it is free. The sections below give verified figures for each, and flag where numbers vary so you never rely on a single national price.
State Filing Fees Vary - Verified Examples
The state filing fee is the unavoidable cost of forming an LLC, and it is the number that varies most. Because the fee is set by statute in each state, we only publish figures we have verified against the state's own filing office. The table below shows four verified examples that bracket the national range, from Kentucky at the low end to Massachusetts at the high end (fees effective 2026 - always reconfirm on the state site before filing).
| State | Formation document | Filing fee | Ongoing report | Source |
|---|---|---|---|---|
| Kentucky | Articles of Organization | $40 | $15 annual report | KY Secretary of State |
| Florida | Articles of Organization | $125 ($100 + $25 agent) | Annual report (Jan 1–May 1) | FL Sunbiz |
| Texas | Certificate of Formation (Form 205) | $300 | No annual filing fee* | TX Secretary of State |
| Massachusetts | Certificate of Organization | $500 | $500 annual report | MA Secretary of the Commonwealth |
Kentucky's fee schedule lists "Articles of Organization: $40.00" for a domestic LLC. Florida's Sunbiz instructions break the $125 total into a $100 filing fee plus a $25 registered-agent designation fee. The Texas Secretary of State fee schedule (Form 806) sets a $300 fee for a "Certificate of formation for a Texas entity," which includes the LLC Form 205. Massachusetts charges $500: "The fee for filing a certificate of … organization is five hundred dollar ($500.00)." *Texas has no separate annual report fee for LLCs, but it does have a franchise tax administered by the Comptroller - one reason to read each state's ongoing obligations, not just its filing fee. For step-by-step state guides, see how to form an LLC in Texas.
Ongoing Costs: Annual Reports and Franchise Fees
Ongoing state costs are the part new owners most often overlook, and they too vary by state. Most states require an LLC to file a periodic report - annual or biennial - to stay in good standing, and many charge a fee to do so. Kentucky's is modest at $15 per year; Massachusetts charges $500 per year, matching its high filing fee. Florida requires "an annual report to maintain an 'active' status," filed between January 1 and May 1 each year.
Some states also levy a franchise tax or minimum entity tax separate from the report. These charges can dwarf the one-time filing fee over the life of the business, so the "cost of an LLC" is really the filing fee plus years of compliance fees. Check your state's business filing office for its exact report schedule and any franchise or entity tax before you assume a low-fee state is cheapest overall. Missing a required report can trigger late penalties or administrative dissolution.
The distinction to hold onto is one-time versus recurring. The filing fee is paid once to form the LLC; the report and any franchise tax recur every year (or every two years in biennial-report states) for as long as the LLC exists. Two states with the same $100-range filing fee can differ by hundreds of dollars a year once ongoing obligations are counted. A state's headline formation fee is therefore a poor proxy for the true cost of keeping an LLC open, which is why our formation guide and the state-specific Texas guide flag ongoing duties alongside the initial filing.
Registered Agent Cost
A registered agent is required for every LLC, but it is not necessarily an added cost. The SBA explains that an LLC "will need a registered agent" who "receives official papers and legal documents on behalf of your company" and "must be located in the state where you register." You can generally serve as your own registered agent for free if you have a physical street address in the formation state and are available during business hours.
Owners pay for a commercial registered-agent service mainly for privacy (keeping a home address off the public record), for reliability, or because they are forming in a state where they do not live. Those services charge an annual fee, set by the provider, not the state. Note that a few states, such as Florida, fold a registered-agent designation fee into the initial filing ($25 in Florida). Learn the full role in our registered agent guide.
The EIN Is Free
An Employer Identification Number costs nothing. The IRS states on its Get an Employer Identification Number page: "Beware of websites that charge for an EIN. You never have to pay a fee for an EIN," and it issues the number "for free directly from the IRS in minutes." Many LLCs need an EIN - for employees, certain excise taxes, a business bank account, or a corporate/partnership tax election - but obtaining one should never appear as a line item in your LLC budget.
Third-party services that advertise EIN "filing" or "registration" for a fee are reselling a free government process. See how to get an EIN for the free application steps, or the what is an EIN overview.
Optional Costs to Watch For
Beyond the required fees, several optional costs can raise your total. None is universal; budget for the ones your situation actually calls for:
- Name reservation - many states let you reserve a business name before filing for a small fee, useful if you are not ready to file.
- Expedited processing - states often offer faster review for an extra fee if you need the LLC approved quickly.
- Certified copies / certificate of good standing - banks or vendors sometimes require these, each carrying a small state fee.
- Business licenses and permits - separate from LLC formation and set by your city, county, or industry; see business licenses.
- Operating agreement - the document itself is free to write, though members sometimes pay for legal drafting; see operating agreement.
- Foreign qualification - if you operate in a state other than where you formed, you register (and pay) there too.
Foreign qualification deserves emphasis because it quietly doubles costs for owners who form in a "cheap" state while doing business at home. Operating in a second state generally means a second registration filing, a second registered agent, and a second annual report there - on top of the home-state obligations. For most small businesses, forming in the state where you actually operate is the lower total-cost choice, even if another state advertises a lower headline filing fee.
What to Budget for a New LLC
For a solo owner filing directly, the realistic first-year cost is the state filing fee plus any required annual report - often the entire bill if you serve as your own registered agent and get a free EIN. Using the verified anchors: a Kentucky LLC could cost about $40 to form plus $15 a year; a Massachusetts LLC costs $500 to form plus $500 a year. Most states land between those extremes, which is why quoting a single "average" figure is misleading - the honest answer is that it depends on your state.
Where does the money actually go? For a lean, do-it-yourself formation, the entire bill is the state's filing fee - because you file the articles yourself, serve as your own registered agent, and get the EIN free from the IRS. Owners who pay more are usually paying third parties: a formation service to handle the paperwork, a commercial registered agent for privacy, or an attorney to draft a custom operating agreement. None of those is required by the state; each is a choice that buys convenience or expertise, not a mandatory cost of having an LLC.
This page is general information, not legal or tax advice, and fees change. Confirm the current filing fee, report fee, and any franchise tax with your state's official business filing office before you budget or file.
How to Keep LLC Costs Down
The lowest-cost path is to file directly with your state's business filing office rather than through a paid middleman, act as your own registered agent if you qualify, and get your EIN free from the IRS. That reduces the cost to the state's filing fee plus any mandatory annual report - with no markup. Choosing a home state with low fees only helps if you actually operate there; forming in a "cheap" state while doing business elsewhere usually forces a second, paid foreign registration and a second registered agent, erasing the savings. Full steps are in how to form an LLC.
Related Guides
- How to form an LLC (step-by-step)
- What is an LLC?
- Articles of organization
- What is a registered agent?
- How to form an LLC in Texas
- Single-member LLC
- S corp vs LLC
- How to get an EIN · Business licenses · EIN (glossary)
Frequently Asked Questions
How much does it cost to start an LLC?
The main cost is a one-time state filing fee for the articles of organization, which varies by state. Verified examples range from $40 in Kentucky to $500 in Massachusetts. There is no single national fee, so check your own state.
Is there a national LLC filing fee?
No. LLCs are formed under state law, so each state sets its own fee. Kentucky charges $40 while Massachusetts charges $500. Any single flat national price is a generalization; confirm with your state.
How much does an EIN cost for an LLC?
Nothing. The IRS issues an EIN for free and says you never have to pay a fee for one. Sites that charge to obtain an EIN are reselling a free government service.
Are there ongoing costs to keep an LLC open?
Usually yes. Many states require a periodic report with a fee, and some charge a franchise tax. Kentucky's annual report is $15; Massachusetts charges $500. Amounts and due dates vary by state.
Do I have to pay for a registered agent?
Not necessarily. Every LLC needs one, but you can usually be your own for free with a physical address in the state. Commercial services charge an annual fee, mainly for privacy or out-of-state owners.
What is the cheapest way to form an LLC?
File directly with your state, serve as your own registered agent, and get your EIN free from the IRS. That limits the cost to the filing fee plus any required annual report, with no third-party charges.
Sources
- U.S. SBA - Register Your Business (articles of organization, registered agent requirement, state variation).
- U.S. SBA - Choose a Business Structure (fees and requirements vary by state).
- Kentucky Secretary of State - Business Filing Fees (Articles of Organization $40; annual report $15).
- Kentucky Secretary of State - Business Forms Library (LLC Articles of Organization form).
- Florida Division of Corporations (Sunbiz) - Florida LLC Instructions ($100 filing + $25 registered agent = $125; annual report Jan 1–May 1).
- Texas Secretary of State - Form 806, Fee Schedule ($300 certificate of formation, Forms 201/203/205/206).
- Texas Secretary of State - Business Organizations Code Forms (Form 205, Certificate of Formation - LLC).
- Massachusetts Secretary of the Commonwealth - Limited Liability Company Information ($500 certificate of organization; $500 annual report).
- Massachusetts Secretary of the Commonwealth - Corporations Division Fee Schedule (LLC filing fees).
- IRS - Get an Employer Identification Number ("You never have to pay a fee for an EIN").
- IRS - Employer Identification Number (when an LLC needs an EIN).
- IRS - Limited Liability Company (LLC) (LLC allowed by state statute; requirements vary by state).
LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. This page is information, not advice. Filing fees, report fees, and franchise taxes change and vary by state; verify current amounts with your state's business filing office before budgeting or filing.