How Much Does It Cost to Form an LLC in 2026?
LLC formation costs $50–$800 with a $250 average. State filing fees, registered agent service, and operating agreement drafting account for most of the spend.
What’s included in LLC formation cost
The base cost is the state filing fee for the Articles of Organization. Optional add-ons that most filers include: a registered agent service, an operating agreement, an EIN (free from the IRS), and a business license if required by your city or county.
When you’ll pay more than average
The $250 average covers a typical solo LLC in a moderate-fee state with a registered agent service and a basic operating agreement. You’ll exceed it if you form in California (annual $800 franchise tax kicks in immediately), need expedited filing, draft a multi-member operating agreement with an attorney, or register in multiple states.
When you’ll pay less
Filing directly through the state’s website with no add-on services lands many LLC formations under $100. Acting as your own registered agent, using a free operating agreement template, and getting your EIN directly from the IRS keeps costs minimal.
This page is informational and is not legal or tax advice. Consult a licensed attorney or CPA for advice on your specific business situation.
Cost Factors
- State filing fee
- Filing fees vary widely by state. Kentucky is $40; California is $70 plus an $800 annual franchise tax; Massachusetts is $500; most states fall in the $100–$300 range.
- Registered agent service
- You can serve as your own registered agent for free if you have an in-state street address available during business hours. Commercial registered agent services run $50–$300/year.
- Operating agreement drafting
- DIY templates from reputable sources are free. Online services include one for $50–$150. An attorney-drafted operating agreement for a multi-member LLC runs $500–$2,500 depending on complexity.
- Expedited filing
- Standard processing takes 2–4 weeks in most states. Expedited processing (24–72 hours) adds $25–$150. Same-day processing where available adds $250–$1,000.
- Annual reports and franchise tax
- Most states require an annual or biennial report ($0–$300). California's $800 minimum franchise tax is the most notable recurring cost. Plan for $50–$300/year ongoing in most states.
Frequently Asked Questions
Do I need a lawyer to form an LLC?
No. Single-member LLCs and simple multi-member LLCs can be formed entirely DIY through the state's secretary of state website. Use an attorney when there are multiple members with complex equity, vesting, or buyout provisions.
What's the cheapest state to form an LLC in?
Kentucky ($40), Arkansas ($45), and Mississippi ($50) have the lowest filing fees. But form in the state where you actually do business — foreign-qualifying out-of-state LLCs in your home state usually negates the savings.
Do I need an EIN?
Almost always. Single-member LLCs without employees can technically use the owner's SSN, but most banks require an EIN to open a business account. EINs are free directly from the IRS website.
Last updated 2026-05-24.