The short answer: For most single-state LLCs, year one lands between roughly $400 and $1,200 before business licenses — that’s a typical range, not a guarantee. The spread comes from your state: Montana’s filing fee is $35, Massachusetts charges $520, California adds an $800/year franchise tax on top of everything. Below is every cost layer, with the math shown, so you can build your own number instead of trusting a headline.
This guide walks through what you’ll actually spend. If you want the raw 50-state fee list, that’s on the companion page: LLC Formation Cost by State.
Layer 1: The state filing fee — $35 to $520
This is the non-negotiable cost: the Articles of Organization (or Certificate of Organization) filed with your Secretary of State. As of October 2026, the range across 51 jurisdictions is $35 (Montana, the cheapest) to $520 (Massachusetts, the most expensive — that figure includes a $20 e-filing surcharge). The median filing fee is around $100. Common examples from our dataset:
| State | Filing fee | Annual report | Franchise tax |
|---|---|---|---|
| Texas | $300 | None | None |
| California | $70 | $20 (biennial) | $800/yr |
| Wyoming | $100 | $60/yr | None |
| Delaware | $110 | None (LLCs) | $300/yr |
| Montana | $35 | — | — |
| Massachusetts | $520 | — | — |
Notice the trap: the filing fee is the cheapest part of the story in states like California and Delaware. The ongoing taxes dwarf it. A $70 filing fee with an $800/year franchise tax is a very different proposition than a $300 filing fee with nothing after it.
Layer 2: Registered agent — $0 or $125–$249/year
Every state requires your LLC to have a registered agent — someone available at a physical address during business hours to receive legal documents. Two options:
- Be your own agent: $0. Legal in every state if you have a physical address there (not a P.O. box) and are reliably present during business hours. Downsides: your address goes on public record, and a process server can show up at your home.
- Hire a commercial service: $125–$249/year. Typical market pricing; $175/year is a reasonable midpoint for budgeting. You get privacy (their address on the public filing), compliance reminders, and someone actually at the desk.
For the worked examples below, we’ll use the $175 midpoint. If you act as your own agent, subtract it.
Layer 3: EIN — $0
Your Employer Identification Number comes from the IRS and is free. Apply directly at irs.gov; it takes minutes. Anyone charging $50–$100 to “get your EIN” is selling you a free government service wrapped in a checkout page. This is the single most common upsell in the formation industry.
Layer 4: Operating agreement — $0
An operating agreement defines how the LLC runs: ownership, profit splits, what happens if a member leaves. Even for a single-member LLC, get one — banks frequently want to see it when you open a business account, and it’s part of keeping the LLC’s liability veil intact (see LLC vs. Sole Proprietorship).
Cost: $0 with a reputable free template. Don’t pay a formation service $100+ for a “custom” operating agreement that’s a mail-merged template.
Layer 5: Business licenses and permits — $50–$400 typical (approximate)
This is the layer nobody quotes you, because it’s not a state LLC cost — it’s your city, county, and industry. A general business license, a food handler’s permit, a contractor’s license, a home-occupation permit: costs vary wildly. $50–$400 is a typical range for a basic local business license, but regulated industries (food, childcare, construction, alcohol) can run far higher.
This figure is approximate by nature — it depends on where you operate and what you do. Budget for it separately, and check your city and county clerk’s office before you file anything.
Layer 6: Publication — only in NY, AZ, NE, GA
A handful of states still require new LLCs to publish a formation notice in local newspapers:
- New York is the expensive one: $200–$2,000+ depending on county (NYC counties are the worst). This is not included in state fee totals — it’s paid to newspapers.
- Arizona, Nebraska, and Georgia have publication requirements too, generally much cheaper.
If you’re not in these states, this layer is $0. If you are in New York, get quotes from the county’s designated newspapers before budgeting — the range is real and wide.
Layer 7: Formation-service bundles — $0–$300+ (optional, and watch the trap)
Companies like LegalZoom, ZenBusiness, and Northwest Registered Agent will file for you, typically charging $0–$300+ on top of state fees. What you’re buying is convenience, not capability — the filing itself is a short online form.
The trap: auto-renew. Many bundles include a “free first year” of registered-agent service or compliance monitoring that converts to a paid subscription ($125–$300/year) in year two, billed to the card you put down. If you use a formation service, read the renewal terms and calendar the cancellation date. Plenty of owners pay for a second year of something they forgot they bought.
Honest assessment: if you can follow a government web form, you don’t need the bundle. If your time is worth more than the hassle, buy it — just know exactly what’s renewing and when.
Three worked year-one scenarios (full math)
Assumptions: commercial registered agent at the $175 midpoint, EIN free, operating agreement free, formation filed DIY (no bundle), before business licenses (Layer 5 varies too much to bake in).
Texas
- State filing fee: $300
- Annual report: $0 (none required)
- Franchise tax: $0 (none for LLCs at this scale)
- Registered agent: $175
- Year-one total: $300 + $175 = $475
Texas is the straightforward one: what you see is what you pay.
California
- State filing fee: $70
- Franchise tax: $800/year (due regardless of profit — yes, even if you lose money)
- Biennial report: $20 every two years — roughly $10/year amortized, but let’s count the first filing: $20
- Registered agent: $175
- Year-one total: $70 + $800 + $20 + $175 = $1,065
California’s $70 filing fee is marketing for the state; the $800 franchise tax is the actual price of admission. Note: California’s first-year franchise tax rules have changed over the years — verify current first-year treatment with the Franchise Tax Board before filing.
Wyoming
- State filing fee: $100
- Annual report: $60/year
- Franchise tax: $0
- Registered agent: $175
- Year-one total: $100 + $60 + $175 = $335
Wyoming is the budget pick among popular formation states — but remember, if you live and operate elsewhere, you’ll likely need to foreign-register in your home state too, which can erase the savings. See Best State to Form an LLC.
Year two and beyond: the costs that keep billing
Formation is a one-time event; maintenance is forever. Every year you keep the LLC alive, budget for:
- Annual/biennial reports: $0–$300+ depending on state (Wyoming: $60/yr; California: $20 every two years; Texas and Delaware LLCs: none).
- Franchise taxes: California $800/yr, Delaware $300/yr — due whether you profit or not.
- Registered agent: $125–$249/yr if commercial.
- Business license renewals: whatever your city/county charges annually.
Miss an annual report and most states charge late penalties; ignore them long enough and the state administratively dissolves your LLC — which also kills the liability protection you paid for. This is the unglamorous part of the LLC decision: it’s a subscription, not a purchase. Full state-by-state ongoing requirements: LLC Annual Report Requirements by State.
The honest total
Most single-state LLCs land between roughly $400 and $1,200 all-in for year one, before licenses — a typical range, not a guarantee. The low end is a cheap-filing state with self-agent and DIY filing (Wyoming at $335 with a commercial agent; less without). The high end is California ($1,065 before licenses) or New York (filing + publication can clear $2,000 in expensive counties). Massachusetts filers start at $520 before anything else.
The number that matters most isn’t the filing fee — it’s the recurring cost. A $70 filing fee with an $800/year franchise tax costs more by month 13 than a $300 filing fee with nothing after it. Run your own state’s numbers before you file.
Use the LLC Formation Cost Calculator to build your exact year-one number — filing fee, agent, franchise tax, and renewals for your state, with the math shown
Methodology
- Fee data: 51-jurisdiction dataset compiled October 2026. Figures used: TX ($300 filing, no annual report, no franchise tax); CA ($70 filing, $20 biennial report, $800/yr franchise tax); WY ($100 filing, $60/yr annual report, no franchise tax); DE ($110 filing, no LLC annual report, $300/yr franchise tax); MT ($35, cheapest); MA ($520 including $20 e-filing surcharge, most expensive). Filing-fee range $35–$520 and median ~$100 from the dataset. NY publication range $200–$2,000+ by county, excluded from state totals as noted.
- Registered agent range ($125–$249/yr): commercial-service market pricing; $175 used as a budgeting midpoint, not a quoted price. Self-agent option ($0) is legally available in all states subject to physical-address and availability requirements.
- EIN: free via IRS — verified; no fee exists. Operating agreement at $0 assumes a free template.
- License range ($50–$400): approximate by design; varies by city, county, and industry. Marked approximate in text.
- Formation-service bundles ($0–$300+): observed market pricing tier for filing packages excluding state fees; auto-renew behavior described from standard terms patterns.
- Scenario math (all verified): Texas $300 + $175 = $475. California $70 + $800 + $20 + $175 = $1,065. Wyoming $100 + $60 + $175 = $335. The $400–$1,200 typical year-one range is an editorial characterization of the dataset, qualified as typical-not-guaranteed; NY publication can push costs above it.
- California first-year franchise tax: historically the first-year exemption has changed; readers are told to verify current treatment with the Franchise Tax Board.
- Date-stamped: October 2026. Fees and tax rules change; verify with the Secretary of State (and Franchise Tax Board / Department of Revenue equivalents) before filing. This guide is general information, not legal or tax advice.
Frequently asked questions
What’s the absolute cheapest way to form an LLC? File in a low-fee state (Montana: $35 as of October 2026), get a free EIN from the IRS, act as your own registered agent, and use a free operating-agreement template. That puts you at the state filing fee plus nothing else — before licenses. But form in the state where you actually operate; see Best State to Form an LLC.
Do I really need a registered agent service? No — you can be your own agent for $0 if you have a physical in-state address and are available during business hours. The $125–$249/year commercial services buy privacy (their address on public records) and reliability. Budget the $175 midpoint unless you plan to self-serve.
Why is California so expensive if the filing fee is only $70? The $800/year franchise tax. It’s due every year regardless of profit, and it dwarfs the filing fee within months. Always price the recurring costs, not just the filing fee.
Can I deduct LLC formation costs on my taxes? Generally yes — startup costs (including filing fees) are typically deductible or amortizable as business expenses, subject to IRS limits and rules. The specifics depend on your situation, so confirm with a CPA; this isn’t tax advice.
What happens if I stop paying the annual report or franchise tax? Late penalties first, then administrative dissolution — the state kills your LLC. A dissolved LLC no longer provides liability protection, and reviving it usually costs back fees plus penalties. Treat the ongoing costs as a subscription you can’t skip: LLC Annual Report Requirements by State.