How Much Does LLC Formation Cost?
Updated for 2026 — national average costs with state-by-state breakdowns
What Does LLC Formation Include?
Forming an LLC (Limited Liability Company) creates a legal business entity that protects your personal assets from business debts and lawsuits. The process involves filing articles of organization with your state and creating an operating agreement.
The national average cost for llc formation is $500 per filing. Most homeowners pay between $50 and $1,500, though costs can vary significantly based on your location, the scope of work, and other factors outlined below.
What Affects the Price?
State Fees
Cheapest: Kentucky ($40), Colorado ($50). Average: $100-$200. Most expensive: Massachusetts ($500), California ($70 + $800/year franchise tax)
Service
DIY: just state fees. Online service (ZenBusiness, LegalZoom): $0-$300 + state fees. Attorney: $500-$2,000 + state fees
Ongoing
Annual report: $0-$300/year. Registered agent: $100-$300/year. State franchise tax (if applicable): $50-$800+/year
Key Cost Factors
- ✓State filing fees
- ✓Registered agent service
- ✓Operating agreement preparation
- ✓EIN registration
- ✓Annual report fees
- ✓Attorney vs online service
💡 Tips to Save Money
- 1.File directly with your state's Secretary of State website — many states make it easy ($50-$500 filing fee only)
- 2.Skip the registered agent service initially if you can use your own address ($100-$300/year saved)
- 3.Get a free EIN from IRS.gov — never pay a service for this
- 4.LegalZoom and ZenBusiness cost $0-$300 + state fees but may add unnecessary upsells
📈 LLC Formation Cost Trends (2020–2024)
Prices have increased +17.9% over the last 5 years
| Year | National Avg | YoY Change |
|---|---|---|
| 2020 | $424 | — |
| 2021 | $442 | +4.2% |
| 2022 | $471 | +6.6% |
| 2023 | $484 | +2.8% |
| 2024 | $500 | +3.3% |
Based on national averages adjusted for annual inflation. Actual costs vary by location and project scope.
LLC Formation Cost by State
Costs vary significantly by state due to labor rates, cost of living, and local market conditions. Click any state for a detailed breakdown.
| State | Low | Average | High |
|---|---|---|---|
| Alabama | $41 | $410 | $1,230 |
| Alaska | $64 | $640 | $1,920 |
| Arizona | $48 | $475 | $1,425 |
| Arkansas | $40 | $400 | $1,200 |
| California | $68 | $675 | $2,025 |
| Colorado | $54 | $540 | $1,620 |
| Connecticut | $61 | $610 | $1,830 |
| Delaware | $53 | $525 | $1,575 |
| Florida | $49 | $490 | $1,470 |
| Georgia | $45 | $450 | $1,350 |
| Hawaii | $71 | $710 | $2,130 |
| Idaho | $46 | $460 | $1,380 |
| Illinois | $53 | $525 | $1,575 |
| Indiana | $44 | $440 | $1,320 |
| Iowa | $43 | $430 | $1,290 |
| Kansas | $43 | $425 | $1,275 |
| Kentucky | $42 | $420 | $1,260 |
| Louisiana | $44 | $435 | $1,305 |
| Maine | $51 | $510 | $1,530 |
| Maryland | $57 | $575 | $1,725 |
| Massachusetts | $65 | $650 | $1,950 |
| Michigan | $46 | $460 | $1,380 |
| Minnesota | $51 | $510 | $1,530 |
| Mississippi | $39 | $390 | $1,170 |
| Missouri | $44 | $435 | $1,305 |
| Montana | $48 | $475 | $1,425 |
| Nebraska | $44 | $440 | $1,320 |
| Nevada | $51 | $510 | $1,530 |
| New Hampshire | $56 | $560 | $1,680 |
| New Jersey | $63 | $625 | $1,875 |
| New Mexico | $45 | $450 | $1,350 |
| New York | $66 | $660 | $1,980 |
| North Carolina | $45 | $450 | $1,350 |
| North Dakota | $45 | $450 | $1,350 |
| Ohio | $45 | $450 | $1,350 |
| Oklahoma | $42 | $415 | $1,245 |
| Oregon | $55 | $550 | $1,650 |
| Pennsylvania | $51 | $510 | $1,530 |
| Rhode Island | $57 | $575 | $1,725 |
| South Carolina | $44 | $435 | $1,305 |
| South Dakota | $43 | $425 | $1,275 |
| Tennessee | $43 | $430 | $1,290 |
| Texas | $47 | $465 | $1,395 |
| Utah | $48 | $475 | $1,425 |
| Vermont | $54 | $540 | $1,620 |
| Virginia | $53 | $525 | $1,575 |
| Washington | $57 | $575 | $1,725 |
| West Virginia | $40 | $400 | $1,200 |
| Wisconsin | $47 | $470 | $1,410 |
| Wyoming | $46 | $460 | $1,380 |
Frequently Asked Questions
Do I need an LLC?
An LLC is recommended for any business with liability risk, employees, significant revenue, or when you want to separate personal and business finances. Sole proprietors have unlimited personal liability — an LLC protects your house, car, and savings from business lawsuits.
Which state should I form my LLC in?
For most small businesses, form in your home state. Delaware and Wyoming LLCs are popular for their business-friendly laws, but you'd still need to register as a foreign LLC in your home state (paying double fees). Multi-state or larger businesses may benefit from Delaware or Wyoming.
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