What is The Average Cost to Set Up an LLC - The Complete Guide

The cost of filing an LLC differs from state to state. However, the average cost to set up an LLC is $132. This is a one-time filing fee that is required to start an LLC according to state laws. There may be other costs associated with setting up the LLC such as legal and accounting fees.Kentucky is the cheapest state to form an LLC, with a filing fee of $40. Whereas, Massachusetts is the most expensive state to form an LLC with a filing fee of $500.In some states, it is also required to publish notice of the formation of the LLC in a local newspaper (Arizona, Nebraska, and New York). A Registered Agent Service can help you determine the best course of action for your particular business. In addition to helping you with the formation of your LLC, an agent can also assist you with the filing of the necessary paperwork.

Cost to Set Up an LLC: State by state

LLC filing fees are not inclusive of the additional LLC fees such as LLC annual fees, Registered Agent fees, and any required business licenses or permits.1. Alabama StateLLC Filing Cost: $200,Ongoing Cost: $100 Annual Privilege Tax + $10 Annual Report2. Alaska StateLLC Filing Cost: $250Ongoing Cost: $100 Biennially3. Arizona StateLLC Filing Cost: $50Ongoing Cost: $04. Arkansas StateLLC Filing Cost: $45Ongoing Cost: $150 Annually5. California StateLLC Filing Cost: $70 (Free until June 2023)Ongoing Cost: $20 Biennially + $800 Annual Franchise Tax6. Colorado StateLLC Filing Cost: $50Ongoing Cost: $10 Annually7. Connecticut StateLLC Filing Cost: $120Ongoing Cost: $80 Annually8. Delaware StateLLC Filing Cost: $90Ongoing Cost: $300 Annual Franchise Tax9. Florida StateLLC Filing Cost: $125Ongoing Cost: $138.75 Annually10. Georgia StateLLC Filing Cost: $100Ongoing Cost: $50 Annually11. Hawaii StateLLC Filing Cost: $50Ongoing Cost: $15 Annually12. Idaho StateLLC Filing Cost: $100Ongoing Cost: $013. Illinois StateLLC Filing Cost: $150Ongoing Cost: $75 Annually14. Indiana StateLLC Filing Cost: $95Ongoing Cost: $30 Biennially15. Iowa StateLLC Filing Cost: $50Ongoing Cost: $45 Biennially16. Kansas StateLLC Filing Cost: $160Ongoing Cost: $50 Annually17. Kentucky StateLLC Filing Cost: $40Ongoing Cost: $15 Annually18. Louisiana StateLLC Filing Cost: $100Ongoing Cost: $35 Annually19. Maine StateLLC Filing Cost: $175Ongoing Cost: $85 Annually20. Maryland StateLLC Filing Cost: $100Ongoing Cost: $300 Annually21. Massachusetts StateLLC Filing Cost: $500Ongoing Cost: $500 Annually22. Michigan StateLLC Filing Cost: $50Ongoing Cost: $25 Annually23. Minnesota StateLLC Filing Cost: $155Ongoing Cost: $024. Mississippi StateLLC Filing Cost: $50Ongoing Cost: $025. Missouri StateLLC Filing Cost: $50Ongoing Cost: $026. Montana StateLLC Filing Cost: $35Ongoing Cost: $20 Annually27. Nebraska StateLLC Filing Cost: $105Ongoing Cost: $10 Biennially28. Nevada StateLLC Filing Cost: $425Ongoing Cost: $350 Annually29. New Hampshire StateLLC Filing Cost: $100Ongoing Cost: $100 Annually30. New Jersey StateLLC Filing Cost: $125Ongoing Cost: $75 Annually31. New Mexico StateLLC Filing Cost: $50Ongoing Cost: $032. New York StateLLC Filing Cost: $200Ongoing Cost: $9 Biennial33. North Carolina StateLLC Filing Cost: $125Ongoing Cost: $200 Annually34. North Dakota StateLLC Filing Cost: $135Ongoing Cost: $50 Annually35. Ohio StateLLC Filing Cost: $99Ongoing Cost: $036. Oklahoma StateLLC Filing Cost: $100Ongoing Cost: $25 Annually37. Oregon StateLLC Filing Cost: $100Ongoing Cost: $100 Annually38. Pennsylvania StateLLC Filing Cost: $125Ongoing Cost: $70 Every 10 years39. Rhode Island StateLLC Filing Cost: $150Ongoing Cost: $50 Annually40. South Carolina StateLLC Filing Cost: $110Ongoing Cost: $041. South Dakota StateLLC Filing Cost: $150Ongoing Cost: $50 Annually42. Tennessee StateLLC Filing Cost: $300Ongoing Cost: $300 Annual Franchise & Excise Tax43. Texas StateLLC Filing Cost: $300Ongoing Cost: $044. Utah StateLLC Filing Cost: $54Ongoing Cost: $18 Annually45. Vermont StateLLC Filing Cost: $125Ongoing Cost: $35 Annually46. Virginia StateLLC Filing Cost: $100Ongoing Cost: $50 Annually47. Washington StateLLC Filing Cost: $200Ongoing Cost: $60 Annually48. Washington D.C. StateLLC Filing Cost: $99Ongoing Cost: $300 Biennially49. West Virginia StateLLC Filing Cost: $100Ongoing Cost: $25 Annually50. Wisconsin StateLLC Filing Cost: $130Ongoing Cost: $25 Annually51. Wyoming StateLLC Filing Cost: $100Ongoing Cost: $60 Annually

Where to Form an LLC

In order to save money, people usually consider forming an LLC in another state. However, forming an LLC outside your home state can end up costing you much more. For instance, if you reside and do your business in Massachusetts, but form your LLC in Texas, you will be required to register your Texas LLC in the state of Massachusetts. This is known as “Foreign LLC Registration”.You will have to pay two state filing fees, two state annual report fees, and maintain a registered agent in Texas. Unfortunately, you won't save any money on taxes as taxes are paid where the money is made, and you'll end up paying Massachusetts taxes.

Exceptions to this Rule

Non-US ResidentsIf you are a non-US resident and your LLC does not have a physical presence in the US, you can register your LLC in any state of your choice. If your LLC has a physical presence, then you should register your LLC in the state where you are carrying out your business.Principal Place of BusinessIf you carry out your business in a place other than your home state, then you can consider starting your LLC in the state of your principal place of your business (or you can foreign qualify your LLC there). For example, if you carry out your business in Florida, and reside in Ohio, you could either form your LLC in Florida. Or you can form your LLC in Florida and register it as a foreign LLC in Ohio (if you do business in Ohio).

US Residents with Online Business

If you completely carry out your business online and are going to work remotely, you should register your LLC in the state you reside. This is because you are "transacting business" in your home state by running the business from home and/or working on the business from your home state.

Registered Agent Fees

Unless you live in New York or West Virginia, you must list a Registered Agent on your LLC filing.A Registered Agent for an LLC is a person or company who accepts service of process (legal documents) in case your LLC is sued. A Registered Agent Service can charge between $99 and $360 per year.

Initial Requirements to file an LLC

The above-mentioned LLC fees are just the filing costs. A lot of states require initial filings after the LLC is formed. For example, California LLCs must file a Statement of Information within 90 days from the formation, whereas Alaska LLCs must obtain a State Business License after the formation of the LLC and before conducting the business.These are only a few examples. Despite the fact that not all states have Initial Filing Requirements, some do, so it's important to familiarize yourself with your state requirements. You can check with an attorney or contact the Secretary of State's office in the state where you're forming an LLC.​

Author's Bio

Matt Horwitz is the founder of LLC University, a website that teaches people how to form LLCs. Matt is the leading authority in LLC education and is featured in CNBC, Yahoo Finance, Entrepreneur Magazine, and the US Chamber of Commerce. Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. LLC University®, established in 2010, was the first company to create free LLC courses in all 50 states.