🏢 LLC Formation Cost Calculator

Get the real cost to form an LLC in your state — exact state filing fees plus ongoing annual costs.

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LLC Formation Cost Estimator

Uses real 2026 state filing fees. All calculations stay in your browser. · Updated August 2026

Private by design: your entries are calculated in this browser and are not sent to FreeLegalIQ.

One-Time Formation Cost

One-Time Formation Costs

One-Time Total

Estimated Annual Ongoing Costs

Annual Total (Ongoing)

Forming an LLC in 2026 typically costs $35–$500 in one-time state filing fees, with a national average of approximately $132. Montana is cheapest at $35; Massachusetts charges $500 to file plus $500/year in annual fees. Total first-year costs including registered agent service generally run $150–$800 in most states, and ongoing annual fees range from $0 to $800/year. Consulting a licensed business attorney is advisable for multi-member LLCs or any business where liability protection is mission-critical.

What's Included in LLC Formation?

Forming a legal LLC requires at minimum four things: (1) Filing Articles of Organization with your state Secretary of State — costs range from $35 (Montana) to $500 (Massachusetts) depending on state; (2) Designating a registered agent with a physical in-state address, available during business hours to receive legal documents; (3) Creating an Operating Agreement documenting ownership, management, and profit-sharing — required by law in California, Delaware, Maine, Missouri, Nebraska, and New York, and strongly advisable everywhere else; and (4) Obtaining a Federal EIN (Employer Identification Number) directly from IRS.gov — always free, despite numerous third-party services charging $50–$100 for what is a zero-cost task. A dedicated business bank account is also recommended to maintain proper separation between personal and business finances, as most banks require your Operating Agreement and EIN to open one. In New York, a mandatory publication requirement adds $1,000–$2,000 in local newspaper advertising fees — an often-overlooked cost that catches many new business owners off guard.

Best States to Form an LLC in 2026

For many small businesses operating in one state, forming there is the simplest starting point. Forming elsewhere may still require foreign registration, fees, reports, a registered agent, and taxes where the business actually operates. Delaware, Wyoming, and New Mexico have different filing, privacy, court, and maintenance features, but no state is universally “best.” Compare total obligations—not just the initial fee—and consult a licensed attorney or tax professional before choosing a state for a multistate or investment-backed business.

Frequently Asked Questions

LLC formation costs range from $35 (Montana) to $500+ (Massachusetts) just for the state filing fee. When you add a registered agent service ($100–$200/year), an operating agreement ($50–$300 for a template or $500–$1,500 for an attorney-drafted version), and the EIN (free from the IRS), total first-year costs typically run $300–$1,000 DIY or $800–$2,500 with attorney assistance.
For a simple single-member LLC, most people can DIY the formation using their state's Secretary of State website plus free or low-cost operating agreement templates. For multi-member LLCs, LLCs with complex ownership structures, or LLCs in regulated industries, an attorney-drafted operating agreement is worth the investment — it prevents costly disputes between members later. Many online formation services (LegalZoom, ZenBusiness, Incfile) offer middle-ground options for $150–$500.
A registered agent is a person or service with a physical address in your state who receives legal documents (lawsuits, government notices) on behalf of your LLC. Every LLC is legally required to have one. You can act as your own registered agent if you have a physical address in the state (not a P.O. box) and are available during business hours. Many business owners use a registered agent service ($100–$200/year) for privacy (keeps your home address off public records) and reliability.
California, Delaware, Maine, Missouri, Nebraska, and New York legally require operating agreements. All other states strongly recommend having one. Even for a single-member LLC, an operating agreement: establishes your LLC as separate from you personally (important for liability protection), documents your management structure, and is required by most banks to open a business account. Without one, your state's default LLC rules govern your business — which may not match your intentions.
Most states require an annual report (or biennial report) with a filing fee ranging from $0 (New Mexico, Arizona) to $800+ (California franchise tax). Registered agent service adds $100–$200/year. Business license renewals vary by city/county. Accounting and tax preparation for an LLC that elects S-Corp status costs $800–$2,000/year. California's $800 minimum franchise tax applies even if the LLC has no income, making it one of the most expensive states to maintain an LLC.

⚖️ When to Hire an Attorney for LLC Formation

A business attorney is worth the investment for LLC formation when: the LLC will have two or more members (a carefully drafted operating agreement is essential to prevent costly disputes); outside investors or equity is involved; your industry requires professional licensing (law, medicine, accounting, real estate brokerage) where a PLLC or PC structure may be required instead; you're operating across multiple states; the business owns significant real estate or intellectual property; or the operating agreement involves complex economic arrangements like preferred returns or different classes of membership interest. For a straightforward single-member LLC with no unusual features, online formation services or a direct state filing are generally sufficient.

Written by the FreeLegalIQ Editorial Team  ·  Last updated: August 2026

State filing fees sourced directly from state Secretary of State websites and state business formation portals. Annual report fees verified against official state government publications.

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