LLC Formation Cost: What to Expect in 2026

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State filing fees for an LLC run anywhere from $35 in Kentucky to $500 in Massachusetts, with most states landing somewhere in the $50 to $200 range, so where you form matters nearly as much as how. California is the outlier to watch, not for its filing fee but for the $800 annual franchise tax that follows every year the LLC exists, regardless of profit. Enter what your state actually charges and the calculator measures it against roughly three months of your budget rather than a single paycheck, since this is a cost you pay once to get started.

These key factors affect LLC formation affordability

State filing fees vary widely

Filing fees range from $35 to $50 in states like Kentucky and Arkansas up to $500 in Massachusetts and $520 in Illinois, with most states sitting somewhere in between at $100 to $200. That spread alone is often bigger than what a formation service charges to handle the paperwork, which is worth remembering before assuming a service saves you money rather than just adding to the bill.

Ongoing annual or biennial fees

Plenty of states don't stop at the initial filing fee. Many charge a recurring annual or biennial report fee that ranges from as little as $9 up to the $800 California charges every single year as a flat franchise tax, whether or not the LLC turned a profit. That recurring bill is easy to forget when you're focused on the one-time cost of forming the LLC, but it's the one that actually lands on your calendar year after year.

Registered agent and optional formation services

A commercial registered agent, useful if you don't have an in-state address or would rather not put your home address on public record, typically runs $100 to $300 a year through a service like Northwest Registered Agent or ZenBusiness. The EIN is the one thing people most often overpay for: it's free straight from the IRS website and takes about ten minutes, so there's little reason to pay a formation service an extra fee to get one on your behalf.

How to use your results

If your state's filing fee is lower than the $500 default, adjust the number - some states charge as little as $35-$50 while others charge $500 or more.
Since this is a one-time cost, weigh it against your total startup budget rather than a single month's income, since it's a foundational step you take once.
Budget separately for the recurring annual or biennial report fee your state charges, which isn't included in this one-time estimate.

Ways to make forming an LLC more affordable

File directly through your state's Secretary of State website instead of using a paid formation service, which can save $100-$300 in service fees.
Act as your own registered agent if your state allows it and you have a physical in-state address, avoiding the annual registered agent fee.
Get your own EIN directly from the IRS for free instead of paying a formation service to obtain one for you.
Check if your state offers a standard-speed free filing option, since some states only charge extra for expedited processing.

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