How Much Does It Really Cost to Start an LLC in Each State? (2025 Chart)

Forming an LLC in the U.S. involves varying costs depending on the state. Here’s a quick breakdown of the main expenses to consider:

• Initial Filing Fees: Range from $45 (Arkansas) to $500 (Massachusetts).
• Annual Fees: Vary by state, with some states like New Mexico having no annual fees, while others like Maryland charge $300 annually.
• Other Costs: Optional fees for services like name reservation, expedited processing, or hiring a registered agent.

Cost Highlights by State

• Lowest Filing Fee: Arkansas ($45)
• Highest Filing Fee: Massachusetts ($500)
• No Annual Fees: New Mexico, Ohio, and others
• Additional Costs: Registered agent services ($50–$300 annually), publication requirements (New York, up to $1,750), and business licenses (varies).

Quick Comparison

Key Takeaways

• Consider both initial and ongoing costs when choosing a state.
• States like New Mexico and Ohio are cost-effective for long-term savings.
• High-cost states like New York may be worth it for specific business needs.

For a detailed breakdown of costs and tips to save money, explore the full state-by-state analysis.

1. Montana LLC Costs

Setting up an LLC in Montana involves a one-time filing fee of $70 for the Articles of Organization. This fee is paid to the Montana Secretary of State to officially register your LLC.

For the most current fee information, check the Montana Secretary of State’s website.

2. Kentucky LLC Costs

To set up an LLC in Kentucky, you’ll need to file the Articles of Organization with the Secretary of State, which comes with a few associated fees. Here’s a quick breakdown of the primary costs:

• Initial Filing Fee
• Annual Report Fee
• Name Reservation Fee
• Certificate of Good Standing Fee
• Certified Copies of Articles of Organization

If you file online, the process is faster compared to paper submissions. Keep in mind, additional local licenses might be required depending on your business type, but the state-level registration fees remain consistent, even if your business operates in multiple locations.

Note: For the latest fee updates and detailed cost information, visit the Kentucky Secretary of State‘s Business Services website.

3. Arkansas LLC Costs

In Arkansas, filing the Articles of Organization online comes with a $45 fee. Be sure to confirm the latest fee details directly with the Arkansas Secretary of State’s Office.

4. Colorado LLC Costs

As of 2025, filing the Articles of Organization online in Colorado costs $50.

5. Michigan LLC Costs

To set up an LLC in Michigan, you’ll pay a $50 fee to file the Articles of Organization online with the Michigan Department of Licensing and Regulatory Affairs. If you’re in a rush, expedited processing is also an option for an additional fee.

Michigan doesn’t require newspaper publication for LLC formation. However, you might face extra costs for things like hiring a registered agent or obtaining necessary business licenses.

Next up: Check out LLC costs in Missouri as part of your state-by-state comparison.

6. Missouri LLC Costs

Filing the Articles of Organization in Missouri costs $50 if done online or by mail (mail submissions take longer to process).

Missouri keeps its formation fees simple, with no requirement to publish notices. However, you might encounter additional costs, such as:

• Registered Agent Service: Ranges from $100 to $300 per year
• Name Reservation (optional): $30
• Certificate of Good Standing: $10 per copy
• Operating Agreement (recommended): $200 to $500 if professionally drafted

For faster processing, Missouri offers these expedited options:

Next, check out our breakdown of New Mexico LLC costs.

7. New Mexico LLC Costs

Starting an LLC in New Mexico comes with a base filing fee of $50 and no annual report fees, making it a cost-effective option for business owners who want consistent expenses.

Processing Options

You can choose from the following processing speeds:

Optional Fees

Here are additional services you may need:

Ongoing Costs

• Registered Agent Service: $125-$300 annually if using a professional service
• Local Business Licenses: Costs vary depending on your city or county
• Operating Agreement: $0-$1,000, depending on whether you prepare it yourself or hire a professional

Payment Details

• Payments by check or money order should be made out to "NM PRC"
• Online filings require a credit card
• Expedited services need separate payments

Tips for Saving Money

• File online to avoid unnecessary fees
• Serve as your own registered agent if possible
• Stick with standard processing if you’re not in a rush
• Double-check local licensing requirements to avoid surprises

Taxes to Consider

• Gross Receipts Tax: Ranges from 5% to 9%
• Personal Income Tax: 1.7% to 5.9% for LLC members

Next, check out the Hawaii section for more cost details.

8. Hawaii LLC Costs

Starting a Hawaii LLC involves a filing cost of $51 ($50 state fee + $1 Archive Preservation Fee).

Filing and Processing Fees

Annual Maintenance Costs

Hawaii requires an annual report filing, with fees depending on how you submit:

• Online filing: $12.50
• Mail submission: $15.00

Required Licenses and Permits

Depending on your business type, you may need specific licenses or permits:

Tax Considerations

Hawaii LLCs are subject to various taxes:

• General Excise Tax (GET): 9% on gross revenue
• Corporate Income Tax: 4.4%–6.4%
• Personal Income Tax: 1.4%–11%

Money-Saving Tips

• File annual reports online to save $2.50.
• Use the Hawaii Business Express portal for faster and easier filings.
• Consider serving as your own registered agent to cut costs.
• Submit annual reports before March 31st to avoid a $25 late fee.

Professional Service Costs

If you prefer professional help, here are some optional services to consider:

• Operating Agreement preparation: $99–$299
• EIN registration assistance: $50–$100
• Business license research: $75–$150

Interestingly, 92% of Hawaii LLC filers use the Hawaii Business Express portal for submissions.

For basic first-year costs, expect to pay between $65 and $116. If you opt for professional services, costs can increase to $216–$366.

Proceed to Mississippi LLC costs.

9. Mississippi LLC Costs

Starting an LLC in Mississippi is relatively affordable, with a basic online filing fee of just $50 for domestic LLCs.

Filing and Processing Fees

Here’s a breakdown of the key filing costs:

Annual Maintenance Costs

Mississippi’s annual costs for LLCs vary depending on whether the LLC is domestic or foreign:

• Domestic LLCs: No annual report fee
• Foreign LLCs: $250 annual report fee
• Annual Report Due Date: April 15
• Late Filing Penalty: $25 (after a 30-day grace period)

Required Licenses and Permits

Mississippi requires business-specific licenses and permits depending on your industry and location. Typical costs include:

Tax Obligations

LLCs in Mississippi must account for several taxes:

• State Corporate Income Tax: 4.4%–5%
• Sales Tax: 7%
• Franchise Tax: $0.75 per $1,000 of capital over $100,000 (minimum $25)

Professional Service Fees

• Registered Agent Services: $100–$300 annually

To save money, many business attorneys recommend filing online to avoid the $15 mail fee. Bundling registered agent services with formation packages can also save $100–$150.

First-Year Cost Overview

Here’s a summary of typical first-year expenses:

With 89% of new LLC applications now filed online, most small businesses in Mississippi can expect first-year costs to range between $70 and $450. The lack of domestic annual report fees makes Mississippi one of the more budget-friendly states for forming an LLC.

10. California LLC Costs

Setting up an LLC in California involves required filing fees and recurring expenses for maintenance. Here’s what you need to know about these costs and how they align with services from Business Anywhere.

Business Anywhere simplifies the formation process without charging a service fee. However, you’ll still need to cover California’s mandatory filing fees and annual charges.

Make sure to familiarize yourself with California’s requirements and budget for these expenses accordingly.

11. Arizona LLC Costs

Filing the Articles of Organization with the Arizona Corporation Commission in Arizona costs $50 in 2025. Up next, we’ll take a look at the costs for a DC LLC.

12. DC LLC Costs

Setting up an LLC in Washington, DC comes with specific fees and requirements. The District’s Department of Consumer and Regulatory Affairs (DCRA) oversees the process.

To start, filing the Articles of Organization online costs $220. You’ll also need a Basic Business License (BBL), which ranges from $70 to $200, depending on the type of business. Additionally, DC LLCs must submit a biennial report every two years, which has a $300 filing fee. Filing on time is crucial to avoid penalties.

Here’s a quick look at the main costs:

These fees cover the basics of forming and maintaining a DC LLC. However, additional costs might come into play, such as fees for trade licenses, permits, or professional certifications required by the district.

If you’re looking for help with the process, services like Business Anywhere can simplify things. They offer assistance with document filing, registered agent services, compliance management, virtual mailboxes, and even online notarization.

13. Ohio LLC Costs

Forming an LLC in Ohio is relatively affordable, with a $99 one-time filing fee and no annual report requirements. Here’s a quick breakdown of the primary costs involved:

One of the biggest advantages is the lack of annual report fees, which can save businesses money over time. However, keep in mind that businesses with gross receipts over $150,000 are subject to the Commercial Activity Tax (CAT). This tax starts at a $150 minimum and increases based on revenue, with rates ranging from 0.26% to 0.49%.

Additional Costs to Consider

Costs can vary depending on the city. For example, in Columbus, business licenses range from $25 to $200 annually, and trade name renewals cost $25 every five years.

To reduce costs when forming your LLC, consider these tips:

• File online to avoid the $26 surcharge for paper filings.
• Act as your own registered agent to save $50–$300 per year.
• Get your EIN for free directly through the IRS website.
• Skip the name reservation unless it’s crucial for your timeline.

Taxes and Processing Times

Ohio LLCs are subject to a 2.765% state income tax on pass-through earnings, a 5.75% state sales tax (where applicable), and employers must pay 2.7% unemployment insurance on the first $9,000 in wages.

Standard processing for LLC formation takes 2–3 weeks, but you can speed things up with expedited options: $100 for 2-day service or $300 for 1-hour service.

14. Georgia LLC Costs

Setting up an LLC in Georgia starts with paying the state filing fee for the Articles of Organization. Beyond this, you might encounter other expenses, such as annual registration fees and charges for administrative services. To ensure accuracy, always check the latest fee schedule on the Georgia Secretary of State’s website before moving forward.

Up next, let’s break down the costs associated with forming an LLC in Oregon.

15. Oregon LLC Costs

Setting up and maintaining an LLC in Oregon involves both initial and recurring expenses. The Articles of Organization filing fee is $100.

Here’s a breakdown of the required fees:

Certain industries may require additional permits. For example, food service businesses in Multnomah County may pay between $730 and $1,160.

"The total first-year cost for a typical Portland-based consulting LLC averages $375, excluding tax obligations and industry-specific permits", according to the Oregon Secretary of State’s business division.

Optional Services

• DBA Registration: $50 (valid for 2 years)
• Certificate of Good Standing: $10 per request
• Business Attorney Consultation: $800–$2,500 for complex cases

Taxes to Consider

• State Income Tax: 4.75% to 9.9% on pass-through earnings
• Federal Self-Employment Tax: 15.3%
• Local Taxes: May apply in metropolitan areas

Tips to Lower Costs

• File formation documents directly with the state.
• Use your own Oregon address to act as the registered agent.
• Set calendar reminders for annual report deadlines to avoid the $50 late fee.

For foreign LLCs, the registration fee is $275, compared to $100 for domestic LLCs. Processing takes 7–10 business days, with no expedited option available.

Next, take a look at New Hampshire LLC costs.

16. Idaho LLC Costs

To form an LLC in Idaho, you’ll need to file a Certificate of Organization. The associated fees can vary depending on state requirements and any additional local charges that may apply.

If you’re looking for assistance, Business Anywhere provides formation services across all 50 states with no service fees. For the most accurate and up-to-date information, check the current fee schedule directly on the Idaho Secretary of State’s website.

Next: New Hampshire LLC Costs.

17. New Hampshire LLC Costs

Starting an LLC in New Hampshire comes with straightforward fees and compliance requirements. The state filing fee is $100 for mail submissions or $102 for online filing via the Secretary of State’s website.

An annual report must be submitted by April 1 with a $100 fee. Missing the deadline results in a $50 late penalty. Standard LLC formation processing takes 5–7 business days, and expedited options are not available.

Jane Doe, a business attorney based in Manchester, NH, offers this advice:

"File your annual report by March 15 to avoid last-minute delays. Use the state’s free online filing system to save time and reduce errors."

Additional Costs to Consider

• Business Profits Tax: 7.5% on net income over $50,000
• Business Enterprise Tax: 0.55%, calculated based on enterprise value
• Local Business License Fees: $50–$400, depending on the municipality

One perk of forming an LLC in New Hampshire is the lack of publication requirements or mandatory name reservations, which helps keep costs low. However, if you need help drafting an operating agreement, legal services can range from $0–$500.

For ongoing compliance, registered agent services typically cost $50–$300 per year. Alternatively, you can serve as your own registered agent if you have a physical address in New Hampshire.

Next: Nebraska LLC Costs.

18. Nebraska LLC Costs

As of now, the costs for forming a Nebraska LLC in 2025 have not been officially confirmed. This includes filing fees, biennial report expenses, publication requirements, processing times, and tax rates. For the most accurate and up-to-date information, refer to Nebraska’s official resources.

Next up: Check out the details on Oklahoma LLC Costs.

19. Oklahoma LLC Costs

Forming an LLC in Oklahoma is straightforward and budget-friendly. The state keeps filing fees stable and ongoing costs low, making it an attractive option for business owners. Plus, the online filing system speeds up the process and helps reduce mistakes. For the most accurate and up-to-date information, check the fee schedule and requirements directly with the Oklahoma Secretary of State.

Next up: Check out the details on Louisiana LLC Costs.

sbb-itb-ba0a4be

20. Louisiana LLC Costs

Starting an LLC in Louisiana comes with specific fees. You can file your Articles of Organization online through the geauxBIZ portal for $100 or opt for a paper filing, which costs $125. To keep your LLC in good standing, you’ll also need to pay an annual report fee of $35.

Fee Breakdown:

For the latest fee details and filing requirements, visit the Louisiana Secretary of State’s website.

Proceed to Connecticut LLC Costs.

21. Connecticut LLC Costs

Starting an LLC in Connecticut involves both initial and recurring fees. As of 2025, filing the Articles of Organization online costs $120. Here’s a detailed look at the associated costs for forming a Connecticut LLC:

Fee Breakdown

Annual Compliance Costs

Connecticut LLCs must file an annual report by March 31, which costs $80. Missing the deadline results in a $50 penalty. Additionally, the $250 Business Entity Tax is due every two years on April 15 of even-numbered years.

Optional and Situational Fees

For those needing faster processing, Connecticut offers expedited options:

• 2-hour processing: $150
• 4-hour processing: $100
• 24-hour processing: $50

These expedited services are available alongside standard filing methods, offering flexibility for urgent needs. Keep in mind, a recent change under Public Act 24-89 (effective June 2024) introduced a $25 surcharge for paper filings, making online submissions a more budget-friendly choice.

Cost-Saving Opportunities

Here are a few ways to save on LLC costs in Connecticut:

• Veterans: Eligible for a 50% fee reduction through the CT Veterans Registry.
• Nonprofit LLCs: Exempt from the $250 Business Entity Tax.
• Online Filing: Avoids the $25 surcharge for paper submissions.

Total First-Year Costs

Expect first-year expenses to fall between $300 and $500, making Connecticut a moderately priced state for forming an LLC.

Proceed to Florida LLC Costs.

22. Florida LLC Costs

Florida LLCs come with various fees, including formation, annual, and optional service costs. Here’s a detailed look at the expenses you’ll encounter when forming and maintaining a Florida LLC in 2025.

Initial Formation Costs

Starting a Florida LLC costs $125, which includes:

• $100 for filing the Articles of Organization
• $25 for designating a registered agent

Fee Structure

Annual Compliance Requirements

Florida LLCs must file an annual report by May 1, with a fee of $138.75. Missing this deadline results in a $400 late penalty, and failure to file by the third Friday in September risks dissolution.

Registered Agent Fees

You can act as your own registered agent for free or hire professional services, which typically cost $50–$300 per year.

Additional Costs

Optional expenses include:

• Name reservation: $25
• Certified document copies: $30 each
• Operating agreement preparation: Up to $200
• Expedited processing: $100

These extras can add to your startup costs.

Cost-Saving Strategies

To save money, file your Articles of Organization directly on Sunbiz.org. Using free resources and templates provided by the state can also help cut down on expenses.

Reinstatement Costs

If your LLC is dissolved, reinstatement fees include:

• $100 filing fee
• Past-due annual report fees
• $400 late penalty for each missed deadline

Tax Advantages

Florida LLCs benefit from the absence of state income tax, which can mean substantial savings for business owners.

Total First-Year Investment

The minimum cost for your first year is $263.75. If you choose a professional registered agent, this could increase to around $563.75.

Proceed to North Carolina LLC Costs.

23. North Carolina LLC Costs

In North Carolina, starting an LLC in 2025 involves a $125 filing fee. This fee is paid to the Secretary of State when submitting the Articles of Organization.

24. New Jersey LLC Costs

Starting an LLC in New Jersey in 2025 comes with a state filing fee of $125. This is a one-time payment required for registering your business with the state. For comparison, you can check the costs of forming an LLC in North Dakota to see how fees differ by region.

25. North Dakota LLC Costs

To form an LLC in North Dakota, you’ll need to pay a one-time state filing fee of $135 when submitting your Articles of Organization to the North Dakota Secretary of State.

While the state keeps the process simple and the fees clear, there are other potential costs to consider. These might include services like a registered agent, drafting an operating agreement, obtaining business licenses, or hiring professional help. Planning for these additional expenses along with the state fee can help ensure everything runs smoothly.

Once you’ve reviewed North Dakota’s costs, you can compare them with Illinois to get a broader perspective on forming an LLC in the Midwest.

26. Illinois LLC Costs

Setting up an LLC in Illinois involves a straightforward fee structure. The initial cost to file your Articles of Organization is $150 – a reduction from the previous $500 fee in 2017. Additionally, there’s a $75 annual report fee, which is due before your LLC’s anniversary month. Filing late will incur a $100 penalty.

Illinois does not mandate a state-level business license, but local permits – like municipal licenses – can cost between $250 and $500 annually.

For registered agent services, you can either act as your own agent or hire a commercial service, which typically ranges from $125 to $400 per year.

Other costs include optional services like reserving a business name ($25 for 90 days), registering a DBA ($30 for 5 years), or obtaining a Certificate of Good Standing ($25).

If you’re planning to create a series LLC, expect a formation fee of about $400, compared to the $150 for a standard LLC.

Illinois offers a cost-effective approach to forming and maintaining an LLC, with reasonable fees and optional services to meet various needs.

Next, take a look at Maryland LLC Costs for further comparison.

27. Maryland LLC Costs

Starting an LLC in Maryland involves moderate costs. You can file the Articles of Organization by mail for $100 or online for $150.

Maryland LLCs are also required to file a Business Personal Property Tax Return, though fees apply only if the assessed value of the property exceeds $20,000.

Additional Costs

• Certified document copies: $20 per page
• Credit card processing fees: 3% on state payments

"Late filings incur a 0.001% penalty on assessed property value, plus an additional 2% monthly penalty on unpaid amounts. Administrative dissolution occurs after 60 days."

Processing Times

• Standard online processing: 16–18 days
• Expedited processing: 13–14 days (additional $79 fee)

Local Licensing

Maryland doesn’t require a statewide general business license, but local jurisdictions have their own fees:

• Home businesses: $50–$100
• Commercial operations: $150–$500
• Regulated industries: $1,000+
• Baltimore County: $76 (basic license)
• Montgomery County: $132 (basic license)

Next: Minnesota LLC Costs.

28. Minnesota LLC Costs

Forming an LLC in Minnesota is straightforward, thanks to its one-time filing fee and the absence of an annual registration fee. This setup helps simplify long-term financial planning, making the state appealing to new businesses.

However, additional expenses like registered agent fees or optional certificates might come up. Be sure to include these in your budget to avoid surprises.

Next: Delaware LLC Costs.

29. Delaware LLC Costs

Delaware is a popular choice for forming LLCs due to its business-friendly environment and reasonable fees. With Business Anywhere, you can form a Delaware LLC at no cost, and the package includes useful features like registered agent services, a virtual mailbox, and online notarization. Delaware’s fee structure is often considered affordable compared to other states, adding to its appeal for businesses.

Next: Kansas LLC Costs.

30. Kansas LLC Costs

Setting up an LLC in Kansas comes with straightforward fees, which can vary depending on how you file and any extra services you choose. The filing fee for forming an LLC differs between online submissions and paper filings. To get the most accurate and up-to-date information, check the Kansas Secretary of State website.

You might also encounter optional costs like reserving a business name, obtaining certificates of good standing, or getting certified copies of documents. Be sure to factor these into your budget to understand the overall expenses.

Filing online is typically more affordable and ensures timely submission. Keep in mind that processing times can vary, and expedited services are available for an extra charge.

For a more streamlined process, services like Business Anywhere offer comprehensive solutions, including registered agent services and compliance tracking.

Next: Maine LLC Costs.

31. Maine LLC Costs

Starting a Maine LLC involves an initial fee for filing the Certificate of Formation. Beyond this, you’ll need to budget for annual report filings and registered agent services. If you choose a professional registered agent, expect to pay an extra annual fee for their services.

"Business Anywhere offers company formation services starting at $0."

These costs reflect Maine’s straightforward compliance process.

Next: New York LLC Costs.

32. New York LLC Costs

Forming an LLC in New York comes with some specific requirements that affect the overall cost. Beyond the $200 fee for filing the Articles of Organization, New York mandates a publication requirement. This means you must publish a notice of your LLC’s formation in two newspapers (one daily and one weekly) for six consecutive weeks in the county where your LLC is located.

Here’s a breakdown of publication costs by county:

¹ Total Formation Cost Range = Filing Fee ($200) + Certificate of Publication Fee ($50) + Publication Cost

After completing the publication, you’ll need to file a Certificate of Publication for $50. While New York doesn’t require annual reports, you must submit a biennial statement, which costs $9. Keep in mind additional expenses like registered agent fees ($100–$300 per year) and business license fees, which vary. State income taxes range from 4% to 10.9%.

If you’re looking to save on publication costs, using an upstate registered agent address can lower these expenses by 60–80%, as long as it aligns with state regulations.

It’s worth noting that publication costs in New York are increasing by about 5% annually due to inflation. To avoid suspension of your LLC, make sure to file the Certificate of Publication within 120 days.

33. Alabama LLC Costs

To set up an LLC in Alabama, you’ll need to pay a one-time filing fee of $200 for the Articles of Organization.

Check out the next section on Alaska LLC Costs for a side-by-side comparison.

34. Alaska LLC Costs

Starting an Alaska LLC involves a one-time fee of $250 for filing the Articles of Organization, a cost that has remained steady since 2020. Additionally, Alaska requires a biennial report, which comes with a $100 fee every two years. Here’s a breakdown of the fees:

Thanks to House Bill 123 (2023), LLCs in non-regulated industries no longer need to pay the state business license fee, saving $50 annually.

Expert Tips to Save Money

Anchorage business attorney Sarah Mitchell shares practical advice:

"Skip name reservation unless testing multiple LLC ideas – the $25 fee adds up. File biennial reports early to avoid $37.50 late penalties."

Payment Options

The Alaska Division of Corporations provides several payment methods to accommodate businesses:

• Credit/debit cards (Visa/Mastercard) with a 2.3% convenience fee
• Checks or money orders
• Cash payments at offices in Juneau, Anchorage, or Fairbanks

This variety ensures businesses across the state can handle payments conveniently.

Real-World Example: Arctic Tours LLC

To illustrate, Arctic Tours LLC in Fairbanks faced these first-year costs:

• $250 for the Articles of Organization
• $100 for the biennial report
• $75 for a local business license

This brought their total first-year expenses to $425.

Alaska’s LLC Costs Compared to Other States

Alaska ranks #15 nationally for LLC formation affordability. Its costs fall between states like Colorado, which charges just $50 for filing, and Massachusetts, where the filing fee is a hefty $500. For a deeper comparison, check out the next section on Nevada LLC Costs.

35. Nevada LLC Costs

Nevada is known for its business-friendly approach and straightforward LLC formation process. While you’ll still need to cover state filing and renewal fees, the total cost depends on the services you choose. Here’s a quick look at what makes Nevada stand out in LLC formation.

For instance, BusinessAnywhere provides LLC formation services at no upfront cost, helping you cut down on initial expenses and streamline the process. To ensure accuracy, always check the latest requirements and fees with Nevada’s official regulatory agencies.

36. Massachusetts LLC Costs

Forming an LLC in Massachusetts in 2025 comes with specific fees and compliance steps. These include a base filing fee, annual reporting fees, certificate fees, and optional costs like reserving a business name.

Here are some key points to keep in mind:

• Processing options: Standard processing is available, but you can choose expedited services for an additional fee.
• Local fees: If your business operates in multiple locations, you may need to account for local registration and permit fees.
• Registered agent: You’re required to have a registered agent with a physical address in Massachusetts.
• Optional name reservation: If you want to reserve your LLC’s name in advance, there’s an extra fee.
• Document certification: Certification of documents also comes with added costs.

Massachusetts’ fee structure covers both the initial filing of the Certificate of Organization with the Secretary of the Commonwealth and ongoing compliance, such as annual reporting requirements.

For a smoother process, services like BusinessAnywhere can help simplify these steps. Always check the Secretary of the Commonwealth’s office for the most up-to-date fees and guidelines.

Cost Comparison by State

When choosing where to form your LLC in 2025, it’s important to look at both initial and ongoing costs, as they can differ significantly across states. Here’s what to keep in mind:

• Initial filing fees can range from very low to quite high, depending on the state.
• Annual maintenance costs, like annual report fees or franchise taxes, can have a big impact on your total expenses. A state with a low filing fee might have higher yearly costs, so consider both upfront and recurring fees.
• Additional expenses – such as publication requirements, name reservation fees, or registered agent services – can add up over time.
• Cost-saving options vary by state. For example, some states offer discounts for online filings or waive certain annual requirements.
• Local tax policies and other regional factors can also influence the overall cost structure.

Keep in mind, the state with the lowest filing fee isn’t always the most affordable choice in the long run. A thorough comparison of both initial and recurring costs will give you a better sense of the overall financial impact for your business.

This breakdown highlights the varying fee structures across states. Be sure to continue to the Summary and Next Steps section for more guidance on selecting the best state for your LLC. Carefully review these costs to find the state that aligns with your business’s long-term financial goals.

Summary and Next Steps

This summary highlights key points from our state comparisons, helping you make informed decisions about your LLC formation.

Key Factors to Consider

Look at Total Costs
Don’t just focus on filing fees. Include annual fees, registered agent costs, and other state-specific obligations. A state with low filing fees might have higher ongoing expenses.

Match Your Business Model to the State
Your business type plays a big role in choosing the right state:

• Physical presence: Register your LLC in the state where most of your operations will take place.
• Online business: Choose states with lower ongoing costs and fewer maintenance requirements.
• Remote team: Focus on states with efficient digital filing systems and lower annual fees.

Simplify Administration
Consider using tools or platforms that help manage compliance, automate reminders, and reduce administrative headaches.

Next Steps for LLC Formation

To move forward with your LLC formation, follow these steps:

1. Calculate First-Year Costs
   Account for:
   • State filing fees
   • Registered agent services
   • Any publication requirements
   • Name reservation fees, if needed
2. Prepare Formation Documents
   Gather essential details like your business name, registered agent, and address. Plan for compliance tasks and deadlines.

FAQs

What should I think about when deciding which state to form my LLC in?

When choosing a state to form your LLC, it’s important to consider several factors that can impact your business. State filing fees and ongoing costs, such as annual report fees, vary widely and can influence your decision. Additionally, think about the tax implications in each state, including income tax and franchise tax requirements.

If your business will primarily operate in one state, it’s often simpler and more cost-effective to form your LLC there. However, some entrepreneurs choose states like Delaware, Nevada, or Wyoming due to their business-friendly policies. Carefully weigh these factors against your specific needs to make the best choice for your LLC.

What are some ways to reduce the costs of starting and maintaining an LLC?

While forming and maintaining an LLC comes with certain costs, there are a few strategies to help minimize expenses:

• Choose a state with lower fees: State filing fees and annual report costs vary widely. Researching your options can help you select a state that aligns with your budget.
• File the paperwork yourself: If you’re comfortable with the process, you can save money by handling the filing on your own instead of hiring a professional service.
• Opt for online filings: Many states offer discounted fees for filing LLC paperwork online instead of mailing physical forms.
• Stay on top of deadlines: Avoid late fees by submitting annual reports and other required documents on time.

By planning ahead and understanding the costs involved, you can make informed decisions and keep your LLC expenses manageable.

How do publication requirements, like those in New York, impact the cost of starting an LLC?

In some states, such as New York, LLCs are required to meet publication requirements, which can significantly increase the cost of forming your business. For example, in New York, LLCs must publish notices about their formation in two local newspapers for six consecutive weeks, as mandated by state law. The cost of this requirement varies widely depending on the county where the LLC is registered, with fees ranging from a few hundred dollars to over $1,000 in some areas.

If you’re planning to form an LLC in a state with publication requirements, it’s important to factor these additional expenses into your budget. These costs are separate from standard filing fees and can make forming an LLC in certain states more expensive than others.

Related posts

• How to Start an LLC in Ohio: Everything You Need to Know
• How to Start an LLC in New Jersey: Avoid Common Filing Mistakes
• Best State to Form an LLC in 2025: Full Breakdown of Costs, Taxes, and Privacy
• How to Move Your LLC to Another State (Without Screwing It Up)