{"id":5216,"date":"2021-09-20T09:39:34","date_gmt":"2021-09-20T14:39:34","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/how-much-does-it-cost-to-form-an-llc.html"},"modified":"2026-05-15T14:16:00","modified_gmt":"2026-05-15T19:16:00","slug":"how-much-does-it-cost-to-form-an-llc","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/how-much-does-it-cost-to-form-an-llc.html","title":{"rendered":"How To Accurately Plan for the Cost of an LLC Formation"},"content":{"rendered":"\n<div class=\"fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30  wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-section-main fl-page-articles fl-section-main fl-section-main-full-width\"><h1 class=\"fl-no-margin-top\">How To Accurately Plan for the Cost of an LLC Formation<\/h1>\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/amber-sheppard-esq\/\">Amber Sheppard, Esq.<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/catherine-hodder-esq\/\">Catherine Hodder, Esq.<\/a>\n                | Last updated\n        <time>\n                            May 15, 2026\n                    <\/time>\n    <\/div>\n\n            <div class=\"fl-gutenberg-byline-editorial-note fl-text-sm\">\n            <p>Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n        <\/div>\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n    <div class=\"fl-callout-text article-blockquote\">\n        <p>LLC formation costs are the initial costs for legally establishing a limited liability company. These costs typically range from $600 to $2,500 for your new small business. Business owners must prepare for all ongoing costs for their LLC business entity when planning their startup.<\/p>\n\n    <\/div>\n\n\n\n<div><p>Forming your <span data-term-id=\"54202272\">new business<\/span> as an LLC will protect you from <span data-term-id=\"54202315\">personal liability<\/span> and seizure of your <span data-term-id=\"54202284\">personal assets<\/span> if someone gets injured at your business or uses your product.<\/p>\n<p><a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=how-much-does-it-cost-to-form-an-llc-%20wct2509241849058vi8m&amp;auto-aff-llc\" target=\"_blank\" rel=\"noopener\">LLC<\/a> <span data-term-id=\"54202241\">business license<\/span> fees vary depending on where you form your LLC. This FindLaw article helps <span data-term-id=\"54202272\">new business<\/span> <span data-term-id=\"54202277\">entrepreneurs<\/span> plan for <span data-term-id=\"54202258\">startup<\/span> costs associated with their chosen <span data-term-id=\"54202271\">business structure<\/span>, from fees associated with filing requirements to premiums for <span data-term-id=\"54202268\">liability protection<\/span>.<\/p>\n<p><i><i><b>Form your LLC with confidence.\u00a0<a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=how-much-does-it-cost-to-form-an-llc--in-content\" rel=\"sponsored noopener\" data-cta=\"Biz LZ - LATL Callout\" data-cta-url=\"legalzoom.com\" target=\"_blank\">Our trusted partner LegalZoom has packages starting at $0 + filing fees.<\/a><\/b><\/i><\/i><\/p>\n<h2>Initial Articles of Organization <span data-term-id=\"54202238\">Filing Fee<\/span><\/h2>\n<p>The initial <span data-term-id=\"54202238\">filing fee<\/span> to establish an LLC\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/state-guide-forms-and-fees-for-business-formation.html\">varies from state to state<\/a>. The first step to take when making an <a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=how-much-does-it-cost-to-form-an-llc-%20wct250924184905pa0g1&amp;auto-aff-llc\" target=\"_blank\" rel=\"noopener\">LLC<\/a> official is to <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/forming-an-llc.html\"><span data-term-id=\"54202281\">file articles of organization<\/span> with the <span data-term-id=\"54202239\">Secretary of State<\/span><\/a>.<\/p>\n<p>You must pay the <span data-term-id=\"54202250\">state\u2019s <\/span><span data-term-id=\"54202238\">filing fee<\/span> to become a legal <span data-term-id=\"54202242\">business entity<\/span>. You will need to list:<\/p>\n<ul>\n<li>\n<p>Your <span data-term-id=\"54202260\">LLC name<\/span><\/p>\n<\/li>\n<\/ul>\n<ul>\n<li>\n<p><span data-term-id=\"54202306\">LLC owner<\/span> (if a single-member) name, address, phone number, and email<\/p>\n<\/li>\n<li>\n<p>Contact information for all members of a multi-member LLC<\/p>\n<\/li>\n<li>\n<p>The management structure of your LLC (<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/llc-member-vs--manager.html\">member-managed vs. manager-managed<\/a>) as set out by your <span data-term-id=\"54202259\">LLC <\/span><span data-term-id=\"54202240\">operating agreement<\/span><\/p>\n<\/li>\n<li>\n<p>Registered agent contact information<\/p>\n<\/li>\n<\/ul>\n<p>The\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/forming-an-llc.html\">average <span data-term-id=\"54202238\">filing fee<\/span>\u00a0<\/a>is around $100. If you hire an attorney to file it for you, then you will likely pay $500 for filing the articles of organization. Once the state approves it, you will receive a <span data-term-id=\"54202270\">certificate of formation<\/span>.<\/p>\n<p>However, the <span data-term-id=\"54202238\">filing fee<\/span> for the articles of organization is not the only factor that goes into the average cost of forming an <a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=how-much-does-it-cost-to-form-an-llc-%20wct2509241849050u75a&amp;auto-aff-llc\" target=\"_blank\" rel=\"noopener\">LLC<\/a>. Owners must also keep in mind the <span data-term-id=\"54202278\">ongoing costs<\/span> of carrying on business.<\/p>\n<h2><span data-term-id=\"54202303\">Registered Agent Fees<\/span><\/h2>\n<p>Once you\u2019ve chosen a <span data-term-id=\"54202249\">business name<\/span>, you can list yourself or an LLC member as\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/what-is-a-registered-agent-.html\">a registered agent<\/a>\u00a0for the LLC. Some <span data-term-id=\"54202314\">small <\/span><span data-term-id=\"54202262\">business<\/span><span data-term-id=\"54202314\"> owners<\/span> do this to save costs. Rather than pay a\u00a0<a href=\"https:\/\/www.findlaw.com\/legalblogs\/small-business\/should-your-registered-agent-be-a-third-party\/\">third party<\/a>\u00a0like a <span data-term-id=\"54202254\">registered agent service<\/span> or an attorney to be their agent, they choose to get served <span data-term-id=\"54202252\">legal documents<\/span>\u00a0themselves.<\/p>\n<p>A registered agent is responsible for accepting legal paperwork or certified demand letters for the business. If someone wishes to sue your LLC, they must send you a demand letter, often\u00a0by certified mail. Depending on your state, they must send it to the registered agent on file with the <span data-term-id=\"54202239\">Secretary of State<\/span> or the division of corporations. The same is true if they file a lawsuit against you. The sheriff must serve the registered agent with legal paperwork. This is called\u00a0<a href=\"https:\/\/dictionary.findlaw.com\/definition\/service-of-process.html\" target=\"_blank\" rel=\"noopener\"><span data-term-id=\"54202302\">service of process<\/span><\/a>.<\/p>\n<p>You may not\u00a0wish to be served legal paperwork at your home or business. In that case, you should secure a registered agent through a <span data-term-id=\"54202254\">registered agent service<\/span> for a fee. This fee is around\u00a0$125 a year, and it is paid\u00a0to the agent company. The registered agent will inform you of service or a letter.<\/p>\n<p>You can also hire your attorney who formed your LLC or\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/c-corp-vs--s-corp.html\">C Corporation\u00a0<\/a>(<span data-term-id=\"54202312\">C Corp<\/span>) to be your agent. Their fee will vary depending on their hourly rate or flat fee.<\/p>\n<h2><span data-term-id=\"54202286\">Annual Report<\/span><span data-term-id=\"54202286\"> Fee<\/span><\/h2>\n<p>Each year or every other year your LLC must <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-laws-and-regulations\/annual-report-filing.html\">file an <span data-term-id=\"54202246\">annual report<\/span><\/a> or <span data-term-id=\"54202256\">biennial report<\/span>. This is important to keep your LLC in <span data-term-id=\"54202255\">good standing<\/span>. Some states require your report to be due on the anniversary of your LLC filing, while others have a set date every year. An <span data-term-id=\"54202298\">LLC\u2019s\u00a0<\/span><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-finances\/user-friendly-annual-report-questionnaire.html\"><span data-term-id=\"54202246\">annual report<\/span><\/a>\u00a0must accurately report a checklist\u00a0that may include:<\/p>\n<ul>\n<li>\n<p>Your business activities (NAICS code)<\/p>\n<\/li>\n<li>\n<p>Your current members and manager(s)<\/p>\n<\/li>\n<li>\n<p>Your registered agent<\/p>\n<\/li>\n<li>\n<p>Your principal place of business address<\/p>\n<\/li>\n<\/ul>\n<p>Like a <span data-term-id=\"54202238\">filing fee<\/span>, <span data-term-id=\"54202246\">annual reporting<\/span> fees must be paid to the state.\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/state-guide-forms-and-fees-for-business-formation.html\"><span data-term-id=\"54202246\">Annual reporting<\/span> fees vary from state to state<\/a>. Some states, like <span data-term-id=\"54202305\">Mississippi<\/span>, do not charge a <span data-term-id=\"54202238\">filing fee<\/span> for an <span data-term-id=\"54202246\">annual report<\/span>, whereas others, like Louisiana, charge $35.<\/p>\n<h2>Other <span data-term-id=\"54202267\">LLC Costs<\/span><\/h2>\n<p>In <span data-term-id=\"54202276\">different states<\/span>, there may be other costs. For example, <span data-term-id=\"54202265\">Arizona<\/span>, <span data-term-id=\"54202263\">New York<\/span>, and <span data-term-id=\"54202290\">Nebraska<\/span> require a <span data-term-id=\"54202289\">new LLC<\/span> to publish notice of their <span data-term-id=\"54202285\">business formation<\/span> to be advertised in a newspaper.<\/p>\n<p>You will want to obtain a taxpayer ID number, called an <span data-term-id=\"54202275\">Employer Identification Number<\/span> (EIN), under the name of your <span data-term-id=\"54202289\">new LLC<\/span>.<\/p>\n<p>And you may need to create an <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/what-is-an-llc-operating-agreement.html\"><span data-term-id=\"54202240\">operating agreement<\/span><\/a>, if your state requires it Currently <span data-term-id=\"54202292\">California<\/span>, Delaware, Maine, <span data-term-id=\"54202304\">Missouri<\/span>, and <span data-term-id=\"54202263\">New York<\/span> require <span data-term-id=\"54202259\">LLC <\/span><span data-term-id=\"54202240\">operating agreements<\/span>. Even if your state does not require it, it is a useful document to organize and govern your LLC. An attorney can draft an <span data-term-id=\"54202240\">operating agreement<\/span> or you can create your own with an <span data-term-id=\"54202295\">operating agreement<\/span><span data-term-id=\"54202295\"> template<\/span>.<\/p>\n<h2>Paying LLC Taxes<\/h2>\n<p>The <span data-term-id=\"54202313\">type of <\/span><span data-term-id=\"54202242\">business<\/span><span data-term-id=\"54202242\"> entity<\/span> determines the payment of taxes. The <span data-term-id=\"54202245\">IRS<\/span> classifies <span data-term-id=\"54202243\">limited liability companies<\/span> as &#8220;<span data-term-id=\"54202288\">pass-through<\/span>&#8221; entities for <span data-term-id=\"54202283\">tax purposes<\/span>. In a\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/filing-llc-taxes.html\"><span data-term-id=\"54202288\">pass-through<\/span> entity<\/a>, the profits from the company <span data-term-id=\"54202288\">pass through<\/span> the company and go to the individual LLC members. You won\u2019t run into the double taxation issue certain corporations have to deal with.<\/p>\n<p>The <span data-term-id=\"54202245\">IRS<\/span> requires LLC members to pay a\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/filing-llc-taxes.html\">self-employment tax<\/a>\u00a0if the member is an active participant in the business. A self-employment tax is a tax for\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-taxes\/self-employment-tax.html\">self-employed<\/a>\u00a0people. LLC members\u2019 profit distributions are income for the individual LLC members.<\/p>\n<p>Unlike when a person works for a company and has taxes withheld from each paycheck,\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/filing-llc-taxes.html\">the <span data-term-id=\"54202245\">IRS<\/span> does not withhold taxes from profit distributions in an LLC<\/a>. Therefore, LLC members must claim the income from profit distributions when they file their individual <span data-term-id=\"54202274\">income taxes<\/span>.<\/p>\n<p>Status as a <span data-term-id=\"54202288\">pass-through<\/span> entity is one of the leading tax benefits of forming an LLC. Because the LLC members claim profits from the LLC on their individual <span data-term-id=\"54202274\">income taxes<\/span>, the business itself does not pay corporate taxes.<\/p>\n<h2>Professional Expenses<\/h2>\n<p>When running an LLC and keeping track of state laws, you may need to hire professionals in their fields to help you.\u00a0A certified public accountant (CPA) can help you set up payroll, including your salary, file tax returns, and follow tax laws for you. A CPA is helpful if your LLC was formed to allow you to be a\u00a0<a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/franchising.html\">franchise company<\/a>.\u00a0<\/p>\n<p><span data-term-id=\"54202247\">Franchise taxes<\/span> can be complicated. Some CPAs are on retainer for $350 a month, but most fees depend on the size of your LLC and business needs.<\/p>\n<p>A\u00a0<a href=\"https:\/\/lawyers.findlaw.com\/business-commercial-law\/?fli=dtca\" target=\"_blank\" rel=\"noopener\">business attorney<\/a>\u00a0can help form your LLC, advise on employment law, and answer any human resources questions that come up. You can expect to pay an attorney a flat fee for forming your legal entity ($600 to $2,000, depending on what you need) or a monthly retainer. Some attorneys charge by the hour, others charge a flat fee. An attorney can help you save money in the long run by avoiding mistakes and getting you up and running smoothly.<\/p>\n<p>You may also need to hire a social media manager, who can cost between $400 and $4,500 a month.\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/questionnaire-marketing-strategy.html\">Marketing strategies<\/a>\u00a0may require an advertising budget for online marketing, such as paid Google Ads (pay-per-click, or PPC) or sponsored social media ads.<\/p>\n<h2>Name Registration Fees<\/h2>\n<p>Once you form your LLC, you should consider protecting your\u00a0<a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/intellectual-property-law.html\">intellectual property<\/a>. This includes registering your trade name with your state. This registration averages around\u00a0$100. It also includes filing a\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/intellectual-property\/trademark-protection-faq.html\">trademark registration\u00a0<\/a>with the United States Patent and Trademark Office (USPTO), which starts at $250 per classification.<\/p>\n<p>If you ever decide to use a name other than what you registered your LLC as, you will have to pay another fee with your state. You will file a\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/dba-registration.html\">doing business as (<span data-term-id=\"54202248\">DBA<\/span>) or assumed name<\/a>\u00a0certificate. The fee varies by state law. You can expect to pay anywhere from $25 to $75.\u00a0<\/p>\n<h3>A Business Lawyer Can Help You<\/h3>\n<p>A <span data-term-id=\"54202258\">startup<\/span> LLC can benefit from having a consultation with a\u00a0<a href=\"https:\/\/lawyers.findlaw.com\/business-commercial-law\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">business lawyer<\/a>\u00a0before\u00a0<span data-term-id=\"54202253\">LLC formation<\/span>. Consults can be free or up to $500. This will allow you to understand all costs associated with forming your <span data-term-id=\"54202272\">new business<\/span> so you can budget for it.<\/p><\/div>\n\n\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g 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