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

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 State
LLC Filing Cost: $200,
Ongoing Cost: $100 Annual Privilege Tax + $10 Annual Report

2. Alaska State
LLC Filing Cost: $250
Ongoing Cost: $100 Biennially

3. Arizona State
LLC Filing Cost: $50
Ongoing Cost: $0

4. Arkansas State
LLC Filing Cost: $45
Ongoing Cost: $150 Annually

5. California State
LLC Filing Cost: $70 (Free until June 2023)
Ongoing Cost: $20 Biennially + $800 Annual Franchise Tax

6. Colorado State
LLC Filing Cost: $50
Ongoing Cost: $10 Annually

7. Connecticut State
LLC Filing Cost: $120
Ongoing Cost: $80 Annually

8. Delaware State
LLC Filing Cost: $90
Ongoing Cost: $300 Annual Franchise Tax

9. Florida State
LLC Filing Cost: $125
Ongoing Cost: $138.75 Annually

10. Georgia State
LLC Filing Cost: $100
Ongoing Cost: $50 Annually

11. Hawaii State
LLC Filing Cost: $50
Ongoing Cost: $15 Annually

12. Idaho State
LLC Filing Cost: $100
Ongoing Cost: $0

13. Illinois State
LLC Filing Cost: $150
Ongoing Cost: $75 Annually

14. Indiana State
LLC Filing Cost: $95
Ongoing Cost: $30 Biennially

15. Iowa State
LLC Filing Cost: $50
Ongoing Cost: $45 Biennially

16. Kansas State
LLC Filing Cost: $160
Ongoing Cost: $50 Annually

17. Kentucky State
LLC Filing Cost: $40
Ongoing Cost: $15 Annually

18. Louisiana State
LLC Filing Cost: $100
Ongoing Cost: $35 Annually

19. Maine State
LLC Filing Cost: $175
Ongoing Cost: $85 Annually

20. Maryland State
LLC Filing Cost: $100
Ongoing Cost: $300 Annually

21. Massachusetts State
LLC Filing Cost: $500
Ongoing Cost: $500 Annually

22. Michigan State
LLC Filing Cost: $50
Ongoing Cost: $25 Annually

23. Minnesota State
LLC Filing Cost: $155
Ongoing Cost: $0

24. Mississippi State
LLC Filing Cost: $50
Ongoing Cost: $0

25. Missouri State
LLC Filing Cost: $50
Ongoing Cost: $0

26. Montana State
LLC Filing Cost: $35
Ongoing Cost: $20 Annually

27. Nebraska State
LLC Filing Cost: $105
Ongoing Cost: $10 Biennially

28. Nevada State
LLC Filing Cost: $425
Ongoing Cost: $350 Annually

29. New Hampshire State
LLC Filing Cost: $100
Ongoing Cost: $100 Annually

30. New Jersey State
LLC Filing Cost: $125
Ongoing Cost: $75 Annually

31. New Mexico State
LLC Filing Cost: $50
Ongoing Cost: $0

32. New York State
LLC Filing Cost: $200
Ongoing Cost: $9 Biennial

33. North Carolina State
LLC Filing Cost: $125
Ongoing Cost: $200 Annually

34. North Dakota State
LLC Filing Cost: $135
Ongoing Cost: $50 Annually

35. Ohio State
LLC Filing Cost: $99
Ongoing Cost: $0

36. Oklahoma State
LLC Filing Cost: $100
Ongoing Cost: $25 Annually

37. Oregon State
LLC Filing Cost: $100
Ongoing Cost: $100 Annually

38. Pennsylvania State
LLC Filing Cost: $125
Ongoing Cost: $70 Every 10 years

39. Rhode Island State
LLC Filing Cost: $150
Ongoing Cost: $50 Annually

40. South Carolina State
LLC Filing Cost: $110
Ongoing Cost: $0

41. South Dakota State
LLC Filing Cost: $150
Ongoing Cost: $50 Annually

42. Tennessee State
LLC Filing Cost: $300
Ongoing Cost: $300 Annual Franchise & Excise Tax

43. Texas State
LLC Filing Cost: $300
Ongoing Cost: $0

44. Utah State
LLC Filing Cost: $54
Ongoing Cost: $18 Annually

45. Vermont State
LLC Filing Cost: $125
Ongoing Cost: $35 Annually

46. Virginia State
LLC Filing Cost: $100
Ongoing Cost: $50 Annually

47. Washington State
LLC Filing Cost: $200
Ongoing Cost: $60 Annually

48. Washington D.C. State
LLC Filing Cost: $99
Ongoing Cost: $300 Biennially

49. West Virginia State
LLC Filing Cost: $100
Ongoing Cost: $25 Annually

50. Wisconsin State
LLC Filing Cost: $130
Ongoing Cost: $25 Annually

51. Wyoming State
LLC Filing Cost: $100
Ongoing 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 Residents

If 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 Business

If 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.