How Much It Costs to Form an LLC in the United States (2026)

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Understanding the costs to form an LLC is essential before you start your business. LLC formation involves more than just a one-time filing fee. There are state fees, annual requirements, registered agent costs, and optional services that add up. Knowing these expenses upfront helps you budget effectively and avoid surprises.

State Filing Fees: The Main Cost

The most significant cost when starting an LLC is the state filing fee. This is the amount you pay to your state government to officially create the company. Filing fees differ widely between states.

Some states have relatively low fees, while others are higher. For example, states like Kentucky and Arkansas are often cheaper, while California and Massachusetts tend to be more expensive. No matter what state you choose, the filing fee is required before your LLC legally exists.

Registered Agent Fees

Every LLC must have a registered agent — a person or company responsible for receiving official mail and legal notices. You can act as your own registered agent in many states, but many business owners prefer to hire a professional service for privacy and convenience.

Professional registered agent services generally range from $50 to $300 per year, depending on the provider. Hiring a registered agent is optional but highly recommended for businesses that want flexibility and anonymity.

Annual Fees and Reports

Most states require LLCs to file an annual report or biennial report and pay a fee. This keeps your business active and compliant with state requirements.

Annual fees vary by state. Some states have minimal costs, while others charge more. These recurring fees are important to consider because they affect your long-term maintenance budget.

Publication Requirements

A few states require new LLCs to publish a notice in a local newspaper that the company was formed. This requirement is relatively rare, but where it exists, it can add significant unexpected costs.

Publication requirements are most common in states like New York and Arizona. Because they involve paying newspaper rates for several weeks, total costs can sometimes be several hundred dollars or more.

Operating Agreement Drafting

While not always required by law, having an Operating Agreement is highly recommended. This internal document outlines ownership, voting procedures, profit shares, and other important business rules.

You can draft an Operating Agreement yourself at no cost, use a template, or hire a professional. Legal fees for custom Operating Agreements vary but are often an additional business expense.

Trademark and Business Name Protection

If protecting your brand name is important, you may want to file a trademark application with the U.S. Patent and Trademark Office (USPTO). Trademark costs are separate from LLC formation costs and may include filing fees plus legal assistance if needed.

Trademark filings typically start at several hundred dollars, depending on the number of classes and whether you use an attorney.

Optional Services

Additional services can add to your LLC formation cost, such as:

• EIN registration (tax ID) if you choose professional help

• Business licenses and permits required for your industry

• Operating Agreement templates or attorney drafting

• Business bank account setup services

These optional services can add convenience but should be factored into your budget.

Budgeting for Your LLC

To estimate your total cost to start and maintain an LLC, include:

• State filing fee

• Registered agent cost

• Annual or biennial report fees

• Publishing requirement fees (if applicable)

• Trademark filing fees (if you choose)

• Optional professional services

Overall, a simple LLC can often be formed for a few hundred dollars, but total first-year costs may be higher depending on state requirements and additional services.

Final Takeaway on LLC Costs

Forming an LLC involves several predictable costs, but there is no one-size-fits-all number. State filing fees are the largest mandatory expense, while registration agents, reports, and publication rules vary by state.

Planning ahead, comparing costs across states, and choosing the services that best support your business structure will help you form your LLC efficiently and with confidence.

By Aaron Kra, JD, Founder and Editor-in-Chief of Boost Suite, is a recognized authority on LLC formation, registered agents, and small-business compliance.

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