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LLC Cost by State: All You Need to Know

A person holding a stack of money - Guide on Paying Yourself in an LLC

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Today, small businesses make up 99.9% of all American businesses, and around 35% of them are limited liability companies (LLCs), which makes it the most popular legal setup. So if you were interested in starting a business, going with the crowd can be smart.

However, you should prepare yourself for the possible expenses. Otherwise, your company can close its doors before it barely gets a start.

For example, it’ll cost money to form an LLC. And many people don’t know this, but the fees vary from state to state.

Are you now curious about the LLC cost by state? Then read on to learn everything you need to know.

 

The LLC Cost by State

As of 2023, you can expect the filing fees for LLC formation to range from as low as $35 to as high as $500. However, the average sits at around $130, so it probably won’t cost a huge fortune to create your small business.

For exact costs, take a look at the chart below.

 

State LLC Filing Fee
Alabama $200
Alaska $250
Arizona $50
Arkansas $45
California $70
Colorado $50
Connecticut $120
Delaware $90
Florida $125
Georgia $100
Hawaii $50
Idaho $100
Illinois $150
Indiana $95
Iowa $50
Kansas $160
Kentucky $40
Louisiana $100
Maine $175
Maryland $100
Massachusetts $500
Michigan $50
Minnesota $155
Mississippi $50
Missouri $50
Montana $35
Nebraska $100
Nevada $425
New Hampshire $100
New Jersey $125
New Mexico $50
New York $200
North Carolina $125
North Dakota $135
Ohio $99
Oklahoma $100
Oregon $100
Pennsylvania $125
Rhode Island $150
South Carolina $110
South Dakota $150
Tennessee $300
Texas $300
Utah $54
Vermont $125
Virginia $100
Washington, DC $99
West Virginia $100
Wisconsin $130
Wyoming $100

 

Other Factors to Consider

In many cases, it’s not as simple as paying a filing fee and that’s it. These are the other things you need to consider when forming an LLC.

Filing Online vs by Mail

The advent of the internet has made life a lot easier, as you don’t have to handwrite things, put documents in an envelope, put a stamp on it, then put it in a mailbox. All you have to do is type in a website, type out the necessary detail, then hit “submit”.

Not only is filing your LLC online more convenient, but it’s cheaper too. You’ll see an extra charge of anywhere between $10 to over $75 if you use snail mail. So make it easier and cheaper for yourself by forming your company digitally.

Annual/Biannual Fees

Most states require you to pay either an annual or biannual fee, which will keep your business compliant and in good standing. This means that while a state may have a $0 filing fee, it may have an annual fee of $800, which can be much more expensive than choosing a state that has an LLC filing fee of $50 but no annual or biannual fee.

Annual Franchise Tax

Some states charge an annual franchise tax, and it’s separate from federal income taxes (it’s a state-level tax). The specific requirements and rates will vary significantly from state to state, but the money can go toward funding government programs and services. In other cases, it’s solely considered a fee for the privilege of conducting business in that particular state.

set up llc
It’s important to file for your LLC right, first time. Thats why many people turn to the pros at Business Anywhere to help them out.

Report Requirements

To add even more to the layers of LLC formation, there are certain report requirements in each state. They may not always have associated fees, but they can be a pain to deal with.

The notable report requirements include the annual and information reports. The former will cost you money, and the latter will usually cost you time.

Another is the publication requirement; some states require LLCs to publish their LLC formation in the local newspapers (and also each county where your business has an office or other place of business), which can cost anywhere between several hundred to thousands of dollars. Fortunately, you only have to do this once.

LLC Formation Services

There are businesses like Business Anywhere that have LLC formation services. You can pay anything as low as $37 (plus state fees) up to around $500 (plus state fees), depending on which package you choose.

While this isn’t a necessary thing to do, it can be hugely beneficial to use LLC formation services. This takes all the tedious and complicated work out of your hands, plus it comes with other services, such as a virtual mailbox with a physical address, unlimited mail scans, and worldwide mail and package forwarding.

In the long run, this will save you time, and as a result, you’ll save money too.

 

The Best States to Form an LLC

It’s recommended that you form your LLC in your home state. Not only is it easier, but it’ll also be cheaper. However, there are some exceptions. 

For instance, if you’re a non-US resident, you won’t have a home state, so you’re freer to choose a state to your liking. Or if you operate your company solely in another state, picking that one would be more convenient too. And if you’re investing in real estate, the LLC should be located in the state where your investments are.

With that said, here are the top states to pick:

They all have their own pros and cons, so it’s up to you to do your due diligence before selecting the right state for your needs and budget.

Pick a Cost-Effective State for Your LLC

Now you know the LLC cost by state, as well as what other fees you should be aware of.

For most entrepreneurs, it’s optimal to choose your home state for LLC formation. It’ll be both simpler and cheaper.

However, if you fall into one of the exceptions, then it’s good to research your options and weigh the advantages and disadvantages before embarking on your small business journey.

If you’re ready to create your business but need expert help, then sign up with Business Anywhere now. We offer business registration, registered agent, online notary, and virtual mailbox services.

About Author

Picture of Rick Mak

Rick Mak

Rick Mak is a 30-year veteran businessman, having started, bought, and/or sold more than a dozen companies. He has bachelor's degrees in International Business, Finance, and Economics, with masters in both Entrepreneurship and International Law. He has spoken at hundreds of conferences around the world during his career on entrepreneurship, international tax law, asset protection, and company structure. Business Anywhere Editorial Guidelines

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