How much does an LLC cost? The filing fee is only the first number
An LLC can be cheap to form and still expensive to keep alive. That is the part many founders miss. The state filing fee matters, but it is only one line item. You also need to think about registered agent costs, annual reports, franchise or annual taxes, publication rules in states like New York, and possible foreign qualification if you form in one state but operate in another.
The quick answer
The SBA says that in most cases, the total cost to register your business will be less than $300, but fees vary by state and business structure. That is a useful starting point, but it does not cover every state's ongoing compliance costs. In some states, the first-year setup can stay pretty modest. In others, the maintenance bill changes the real answer fast.
What the first-year number can look like
| State | Formation-related state costs | What often gets forgotten |
|---|---|---|
| Florida | $100 LLC filing fee + $25 registered agent fee | $138.75 annual report each year |
| California | $70 formation fee + $20 Statement of Information | $800 annual tax and possible extra LLC fee on higher income |
| Delaware | Formation filing plus optional $75 name reservation | $300 annual LLC tax due by June 1 |
| Wyoming | $100 Articles of Organization filing fee | Annual report fee of at least $60 |
| Nevada | $75 Articles + $150 initial list + $200 business license | The recurring annual list and business license costs |
| New York | $200 Articles of Organization | Publication costs plus $50 Certificate of Publication filing fee |
The cheapest number is not always the real number
If you only compare filing fees, you can talk yourself into the wrong state. Wyoming looks very cheap on the front end at $100. California looks moderate at $70. New York looks manageable at $200. But those numbers do not tell you what happens after the filing receipt shows up.
California's Franchise Tax Board says every LLC doing business or organized in California must pay an annual tax of $800. New York requires most LLCs to publish in two newspapers for six consecutive weeks and then file a Certificate of Publication with a $50 filing fee. Nevada stacks multiple charges at formation. Delaware hits you with a flat annual LLC tax. Those are not minor details. They are the real cost structure.
State-by-state cost reality
Florida: pretty direct
Florida is one of the easier states to understand. The Division of Corporations lists a $100 filing fee for a new Florida or foreign LLC and a required $25 registered agent fee, for a $125 total at formation. The same fee page lists a $138.75 annual report.
That is a fairly straightforward cost stack. It is not free, but it is predictable.
California: low filing fee, high annual tax
California's Secretary of State shows a $70 fee for Articles of Organization and a $20 Statement of Information due within 90 days of initial registration and every two years after that. Then the Franchise Tax Board adds the big number: every LLC doing business or organized in California must pay an $800 annual tax. If California income is high enough, the FTB also imposes an additional LLC fee ranging from $900 to $11,790.
So California is a perfect example of why the formation fee alone is a bad guide.
Delaware: annual tax changes the math
Delaware lets you reserve a name for 120 days for $75 if you want to, but that is optional. The more important number is the annual LLC tax. Delaware says LLCs do not file an annual report, but they do owe an annual tax of $300 due by June 1 each year.
That means Delaware may look simple, but it is not a no-maintenance state.
Wyoming: cheap, but not free after formation
Wyoming's Articles of Organization show a $100 filing fee. The state's annual report rules say the annual fee is $60 or two-tenths of one mill on the dollar of Wyoming assets, whichever is greater. So yes, Wyoming can stay low-cost for many businesses, but there is still a recurring compliance bill.
It is cheap compared with some states. It is not costless.
Nevada: the filing stack is the point
Nevada is where many founders underestimate the opening bill. The Nevada fee schedule lists $75 for Articles of Organization, $150 for the initial list of managers or members, and a $200 business license fee. That means the state-level setup total is already much higher than the headline Articles fee suggests.
If someone tells you Nevada costs $75 to start, they are leaving out the important part.
New York: publication is the wild card
New York charges $200 to file Articles of Organization. That part is clear. But New York also requires most LLCs to publish a formation notice in two newspapers for six consecutive weeks and then file a Certificate of Publication with a $50 fee. The Department of State makes clear that missing this within 120 days results in suspension of the LLC's authority to carry on, conduct, or transact business.
The newspaper cost is not fixed by the state, so this is the cost category that can swing the most depending on county.
Do not forget foreign qualification
The SBA says that if your LLC conducts business activities in more than one state, you might need to form in one state and file for foreign qualification in the others where your business is active. It also says foreign qualified businesses typically need to pay taxes and annual report fees in both their state of formation and the states where they are foreign qualified.
That means a cheap out-of-state LLC can become expensive if it creates a second layer of filings.
What about the EIN?
The EIN itself is free. The IRS says you can get an EIN directly from the IRS for free and that you should register the legal entity with your state before applying. So if a formation service charges for EIN help, that charge is for convenience, not for the EIN itself.
A better way to budget the LLC
- State formation fee
- Registered agent fee, if not serving yourself
- Initial or first post-formation filing, if the state requires one
- Annual report or biennial filing fees
- Annual franchise or LLC taxes
- Publication costs or foreign qualification, if applicable
My practical answer
How much an LLC costs depends on the state, but you should not answer the question with the formation fee alone. A Florida LLC can start simply. A California LLC gets expensive because of the $800 annual tax. A Nevada LLC opens with a bigger state bill than many people expect. A New York LLC can get hit by publication costs. A Delaware or Wyoming LLC can still be reasonable, but only if the state actually makes sense for where the business operates.
Bottom line
An LLC usually costs more than the headline filing fee. The real answer includes the formation charge, the annual maintenance fees, and any special rules your state adds. If you want the honest budget, price the whole first year and at least one normal later year before you choose where to form.
Sources
- U.S. Small Business Administration: Register your business
- IRS: Employer identification number
- Florida Division of Corporations: LLC Fees
- California Secretary of State: Limited Liability Companies (LLC) - California
- California Franchise Tax Board: Limited liability company
- Delaware Division of Corporations: How to Form a New Business Entity
- Delaware Division of Corporations: Annual Report and Tax Information
- Wyoming Secretary of State: LLC Articles of Organization
- Wyoming Secretary of State: Annual Report and License Tax Rules
- Nevada Secretary of State: Forms & Fees
- Nevada Secretary of State: Limited-Liability Company Fee Schedule
- New York Department of State: Articles of Organization for Domestic Limited Liability Company
- New York Department of State: Forming a Limited Liability Company in New York
- New York Department of State: Fee Schedules