How Much Does It Cost to Form an LLC in 2025?
Forming a Limited Liability Company (LLC) is one of the most popular ways to structure a small business in the United States. The total cost depends heavily on your state of formation, whether you use a registered agent service, and whether you hire an attorney.
State Filing Fees
Every state requires you to file Articles of Organization (or Certificate of Organization) and pay a filing fee. This one-time fee ranges from $35 in Montana to $500 in Massachusetts. Most states charge between $50 and $200.
Annual / Renewal Fees
Most states require an annual report and fee to keep your LLC in good standing. These range from $0 (Arizona, Missouri, New Mexico) to $800 (California). Delaware charges $300/year for LLCs.
Hidden Costs to Watch For
- California Franchise Tax: $800 minimum per year, regardless of revenue
- New York Publication Requirement: New LLCs must publish formation notice in two newspapers โ can cost $500โ$2,000
- Foreign LLC Registration: If you form in Delaware but operate in California, you pay fees in both states
- Business Licenses: Most businesses need local/state business licenses ($25โ$500)
DIY vs. Using a Formation Service
You can form an LLC yourself by filing directly with the state secretary of state website. This saves money but requires you to understand the forms. Online formation services like ZenBusiness or Northwest charge $0โ$200 plus state fees. Attorneys charge $500โ$2,000 for simple LLCs.
Best States for LLC Formation
Wyoming and New Mexico are popular for small businesses due to low fees, no annual report fees, and strong privacy laws.Delaware is preferred by VC-backed startups. For most small businesses, forming in your home state is the most practical choice.