How Much Does It Cost to Start an LLC? Real 2026 Numbers
State filing fees run $35 to $500, and most people pay $50 to $200. Everything above that is optional, upsold, or recurring, and we will tell you which is which.
Updated 2026-07-05· US figures
The short answer
Filing an LLC costs $35 to $500 in state fees, with most states charging $50 to $200. Add $0 to $300 per year for a registered agent and $0 to $400 if you use a formation service. Ongoing costs vary: California charges an $800 annual franchise tax regardless of income.
An LLC is the most common legal structure for new US businesses, and the formation industry has built a maze of upsells around what is fundamentally a one-page state filing. The real cost depends almost entirely on your state: Montana charges $35, Massachusetts charges $500, and most states sit between $50 and $200. Formation services like LegalZoom add $0 to $400 for work you can usually do yourself in under an hour. The bigger numbers are the recurring ones: annual report fees, registered agent renewals, and in California, an $800 per year franchise tax no matter what you earn. This page lays out every fee so you can file cheap and get back to the part that matters.
Where the money goes
| Item | Low | Typical | High |
|---|---|---|---|
| State filing fee (typical state)One-time fee paid to the secretary of state | $50 | $100 | $200 |
| State filing fee: MontanaCheapest in the country | $35 | $35 | $35 |
| State filing fee: MassachusettsMost expensive filing fee | $500 | $500 | $500 |
| California franchise tax (every year)Due even if the LLC earns nothing | $800 | $800 | $800 |
| Registered agent (per year)$0 if you act as your own agent at a physical address | $0 | $125 | $300 |
| Formation service (LegalZoom, ZenBusiness)$0 means filing directly with the state yourself | $0 | $150 | $400 |
| Operating agreementFree templates work for single-member LLCs; lawyers charge for multi-member | $0 | $0 | $1,000 |
| EIN from the IRSAlways free at irs.gov; anyone charging for it is reselling a free form | $0 | $0 | $0 |
| Annual report fee (per year, varies by state) | $0 | $50 | $300 |
The costs the sellers do not mention
Every pitch deck and broker pro forma for this business leaves the same lines out.
- Registered agent renewal pricing. Formation services often include year one free, then auto-renew at $199 to $300 per year. Set a reminder and switch or self-serve.
- New York publication requirement. New York LLCs must publish formation notices in two newspapers. In NYC this can run $1,000 or more; upstate it is a few hundred dollars.
- Compliance subscription upsells. Worry-free compliance packages at $199 to $300 per year mostly forward state reminders you can get for free.
- Franchise taxes beyond California. Delaware, Tennessee, Texas, and others levy annual taxes or fees that add up whether or not you have revenue.
What you will actually make
- Year-one profit
- $0 by itself
- Established
- Varies by business
- Net margin
- Not applicable
- Payback
- Not applicable
An LLC produces no income. It is a liability wrapper and a tax classification, nothing more. The honest math here is about the downside: if you form in California before validating your idea, you owe $800 a year for a business that may never make a sale. Most sole owners also gain little tax benefit from an LLC versus a sole proprietorship until profits are well into five figures. Spend your first dollars finding out if anyone will pay you, not on paperwork.
Verdict: It depends, because an LLC is paperwork, not a business
The LLC itself is a solved problem: most people should file directly with their state for $50 to $200 and skip the $400 service tier. The real question is timing. If you have paying customers or real liability exposure, form it now; the cost is trivial. If you are still validating an idea, do not let formation become productive procrastination, and do not start the California $800 clock early. Nobody ever failed because they formed their LLC in month three instead of month one.
Thinking about a specific version of this?
Numbers say whether the model works. They cannot say whether your version, in your town, against your competitors, will. Run it through Olune for a build-or-kill verdict on live demand signals, or model your own costs first.
Keep reading
LLC: common questions
Can I start an LLC for free?
No state files an LLC for free. The minimum is $35 in Montana, and most states charge $50 to $200. Formation services advertise free LLC filing, but that means their service fee is $0; you still pay the state fee, and the free tier usually funnels you toward paid registered agent renewals.
How much does an LLC cost per year after formation?
Between $0 and $800 or more depending on the state. Many states charge annual report fees of $20 to $300. California charges an $800 minimum franchise tax every year. Add $100 to $300 if you pay for a registered agent. Check your own state before assuming the LLC is a one-time cost.
Is LegalZoom worth it for an LLC?
For a standard single-member LLC, usually not. The state form asks for a name, an address, and an agent, and takes under an hour. Services earn their fee when you have multiple members, out-of-state complexity, or you simply will not do the paperwork otherwise. Do not pay extra for an EIN; the IRS issues those free.
Do I need an LLC before I make my first sale?
Legally, no. You can operate as a sole proprietor and form the LLC once revenue is real. The tradeoff is personal liability in the meantime, which matters a lot for physical services and very little for a landing page test. Many founders validate first, then form within the first few months of real sales.