• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Legal Templates

Legal Templates
  • Business Forms

    Business & Contracts

    All of our legal contracts and documents are drafted and regularly updated by licensed attorneys. Save your hard-earned money and time with Legal Templates.

    Top Business Forms

    Business Formation
    • Business Plan
    • LLC Operating Agreement
    • Articles of Incorporation
    • Corporate Bylaws
    • Buy-Sell Agreement
    Business Operations
    • Business Contract
    • Partnership Agreement
    • Non-Disclosure Agreement
    • Release of Liability
    • Letter of Intent
    Sales and Payments
    • Purchase Agreement
    • Sales Agreement
    • Invoice
    • Purchase Order
    • Business Purchase
    Employment and HR
    • Employment Contract
    • Employment Offer
    • Employment Verification
    • Freelance Contract
    • Non-Compete Agreement
    View All Business Forms
  • Real Estate Forms

    Real Estate

    All of our legal contracts and documents are drafted and regularly updated by licensed attorneys. Save your hard-earned money and time with Legal Templates.

    Top Real Estate Forms

    Landlords
    • Lease Agreement
    • Property Management
    • Eviction Notice
    • Late Rent Notice
    • Lease Termination
    Tenants
    • Room Rental
    • Sublease Agreement
    • Roommate Agreement
    • Notice to Vacate
    • Early Lease Termination
    Home Ownership
    • Real Estate Purchase Agreement
    • Mortgage Deed
    • Quitclaim Deed
    • Deed of Trust
    • Moving Checklist
    View all Real Estate Forms
  • Personal & Family Forms

    Personal and Family

    All of our legal contracts and documents are drafted and regularly updated by licensed attorneys. Save your hard-earned money and time with Legal Templates.

    Top Personal and Family Forms

    Estate Planning
    • Power of Attorney
    • Last Will & Testament
    • Living Will
    • Advance Directive
    • DNR Form
    Personal Finance
    • Bill of Sale
    • Loan Agreement
    • Purchase Agreement
    • Promissory Note
    • Sales Agreement
    Family Matters
    • Parenting Plan
    • Child Travel Consent
    • Divorce Agreement
    • Separation Agreement
    • Prenuptial Agreement
    Affidavits
    • General Affidavit
    • Gift Affidavit
    • Affidavit of Identity
    • Affidavit of Residence
    • Affidavit of Death
    View All Personal Forms
  • Support
    Resources
    • Business
    • Real Estate
    • Personal and Family
    • Financial
    • Estate Planning
    Support
    • About Us
    • Careers
    • Contact Us
    • All Legal Documents

    Monday - Friday | 9AM - 7PM EDT

    (855) 335-9779

  • Sign In
  • :email

Home Resources Business How Much Does an LLC Cost?

How Much Does an LLC Cost?

Josh Sainsbury

Published January 28, 2022 | Written by Josh Sainsbury

Limited Liability Companies (LLCs) are no longer just for large company owners with a global presence. Many small and medium business owners form an LLC because of the limited liability protection and tax incentives.

Starting up an LLC is not a daunting task, but you do need to form it correctly. And while it’s not free, you might be surprised at how little it can cost.

Where your business is and what service it provides will determine your costs. Expenses also depend on either hiring a registered agent or becoming the registered agent on behalf of your business.

You can find all the essential information about how much your LLC will cost to start and operate here, including how much you can expect to pay in each state.

Initial Fees To Form an LLC

Your first step to setting up an LLC is making sure you’re financially prepared to pay the initial fees. You’ll need to research all the city, county, and state requirements and fees you must fulfill to create an LLC operating agreement.

Filing Fee

Most state fees for filing articles of incorporation (also known as “certificate of incorporation” or “articles of organization”) are $100 up to $250. But some state fees are below and above this range. For example, Arkansas’s domestic online filing fee is $45 ($50 for paper filing), and the domestic filing fee is $500 (online or paper) in Massachusetts.

Foreign filing fees are generally the same as domestic ones, although many states charge slightly to significantly more.

Reserving an LLC name

You can expect another LLC cost if you elect to reserve a name. You can do this for one or two months in many states, with fees ranging from $10 to $50. Reserving a name is optional in all states except Alabama. While you don’t have to reserve a name before you file your articles of organization, remember that reserving a name ensures that someone else can’t use it before you file.

Business Licenses and Permits

The cost of business licenses and permits depends on the location where your business is registered. Some states have statewide business license requirements. While others don’t have this requirement, you may have to file for a business license with your city or county.

Depending on the type of LLC you’re starting, you may also need additional licensing or permits for restricted activities. This is typical with medical and legal businesses with far more requirements.

Fictitious Business Name Application

Whether you have to file a fictitious name statement depends on your business type and city, county, and state laws. But it’s necessary if you plan to sell products or services under a different name than the one registered as your LLC. The cost range of filing a fictitious name, also known as “doing business as (DBA),” is between $50 and $100, with some locations as little as $10 and others as much as $200.

Other Costs To Consider

You may incur other costs, such as publication fees, an annual franchise fee, and dissolution fees. But again, these vary from state to state.

Most states don’t require a franchise fee, but others do, such as California’s annual fee of $800. Additionally, Oklahoma has a yearly agent fee of $40, while other states don’t charge for this at all.

Ongoing Costs of Running an LLC

You should anticipate ongoing costs once your LLC is set up. Although these costs may not be high, you must know what the fees are, when they’re due, and how to pay them correctly.

Business License Renewal Fees

Depending on your state or municipality, you may have to pay renewal fees if your LLC is required to have a business license. The amount to renew the license is often the same as the original filing fee, but some states may charge less for renewals.

Registered Agent Fees

A registered agent is either a person or an organization physically located in the same state as your LLC and is responsible for receiving and filing legal documents. Every state requires LLCs to name a registered agent. A member of the LLC can typically serve as the registered agent.

Not all states charge registered agent fees or charge for filing a change of registered agent. But the private individual or company you hire will indeed charge you for their services, usually between $100 to $300 per year.

Minimum LLC Taxes

How the IRS determines your tax rate is based on classifying your LLC. The classification depends on the number of members in your company. Therefore, the IRS will treat your LLC as a sole proprietorship (single-member LLC) or a partnership (multi-member LLC). LLC partners pay taxes according to their share of business under the partnership agreement.

You or your partners may decide to keep a certain portion of profits within the business, benefiting you to file a corporate tax, such as a C Corporation or an S Corporation.

C Corporate profits are taxed as corporate taxes, but then again as personal tax returns. But the flat tax rate for C Corp is 21%, which is lower than the top three individual income tax rates. Therefore, a C Corp tax filing is beneficial for LLC owners with higher incomes.

However, the S Corp tax rate avoids double taxation. Profits and losses are taxed as personal returns, which also reduce taxes for high-income business owners.

LLC Incorporation Fees 2022 – by State

Now that you have the initial cost information of starting and operating an LLC, you can research further to find detailed information based on the state where your business is located.

LLC Incorporation Fees 2022 – by State

LLC Incorporation Fees for Foreign Nationals

State Online Filing Fee Paper Filing Fee
Alabama 150 Same
Alaska 350 200
Arizona 150 Same
Arkansas $270 $300
California 70 Same
Colorado 100 Same
Connecticut 120 Same
Delaware 200 Same
Florida 125 Same
Georgia $225 $235
Hawaii 50 Same
Idaho $100 $120
Illinois 150 Same
Indiana 250 Same
Iowa 100 Same
Kansas 165 Same
Kentucky 90 Same
Lousiana 150 Same
Maine 250 Same
Maryland 100 Same
Massachusetts 500 Same
Michigan 50 Same
Minnesota 220 200
Mississippi 250 Same
Missouri - $105
Montana 70 Same
Nebraska $100 110
Nevada 75 150
New Hampshire 100 Same
New Jersey 200 Same
New Mexico 100 Same
New York 250 Same
North Carolina 125 Same
North Dakota 135 Same
Ohio 99 Same
Oklahoma 300 Same
Oregon 275 Same
Pennsylvania 250 Same
Rhode Island 150 Same
South Carolina 110 Same
South Dakota $750 $765
Tennessee 300 Same
Texas 750 $180
Utah 70 Same
Vermont 125 Same
Virginia 100 Same
Washington $200 $180
Washington DC $220 Same
West Virginia 150 Same
Wisconsin 100 Same
Wyoming 150 Same
Josh Sainsbury

Josh Sainsbury

Business Content Editor

Josh Sainsbury is a business content editor at LegalTemplates. His background in a variety of industries allows him to create legal content that’s accessible and understandable for all audiences.

Related Articles

  • What is an LLC? Advantages and Disadvantages Explained
  • How to Write a Business Plan – A Step-By-Step Guide
  • 7 Reasons Why a Business Plan is Important 
  • 7 Business Plan Mistakes to Avoid
  • Do I Need an EIN For My LLC?

In This Article

  • Initial Fees To Form an LLC
  • Ongoing Costs of Running an LLC
  • LLC Incorporation Fees 2022 - by State

Legal Documents

  • All Legal Forms
  • Business Forms
  • Real Estate Forms
  • Personal and Family Forms

Popular Forms

  • Lease Agreements
  • Power of Attorney Forms
  • Eviction Notice
  • Living Will
  • Non-Disclosure Agreement

Resources

  • Legal Resources
  • Business
  • Real Estate
  • Personal & Family
  • Estate Planning
  • Financial
  • Covid-19 Resources

Company

  • Pricing
  • About Us
  • Careers
  • Contact Us
  • Partner With Us
  • Legal Dictionary

Users

  • Account
  • Terms of Use
  • Privacy Policy
  • Do Not Sell My Personal Information
McAfee - Together is power.
Trustpilot
BBB Accredited Business

(855) 335-9779, Monday-Friday, 9AM - 7PM EDT

Facebook Twitter LinkedIn

Copyright 2022 Legal Templates LLC. Legal Templates LLC is not a lawyer, or a law firm and does not engage in the practice of law. Legal Templates cannot and does not provide legal advice or legal representation. All information, software and services provided on the site are for informational purposes and self-help only and are not intended to be a substitute for a lawyer or professional legal advice. Use of this site is subject to our Terms of Use.

Thank you for downloading one of our free legal templates!

Would you leave us a review?

We hope you've found what you need and are able to avoid the time, costs, and stress associated with dealing with a lawyer.

A review would mean the world to us (it only takes about 15 seconds).

Please check your download folder for MS Word or open tabs for PDF so you can access your FREE Legal Template Sample

Thanks again, and good luck!

Leave My Review