Do I need a registered agent for my LLC?

Yes. Every LLC must have a registered agent in its state of formation — a person or company with a physical address who can receive legal documents. If you have a physical presence in the state, you can serve as your own agent. Otherwise, registered agent services typically cost $50-$300 per year.

Why do people form LLCs in Delaware or Wyoming?

Delaware is popular for investor-backed startups due to its flexible corporate law and experienced business courts. Wyoming is popular for its low costs, privacy protections (members not listed publicly), and no state income tax. However, if you operate in another state you will likely need to register as a foreign LLC there too, effectively paying fees in two states.

LLC Formation Cost Calculator 2025 | All 50 States Filing Fees

Q: How much does it cost to form an LLC?

LLC formation costs vary by state. State filing fees range from $35 (Montana) to $500 (Massachusetts). Total first-year costs including a registered agent run $175-$600 for most states. California is the most expensive due to its $800 minimum annual franchise tax.

Q: What is the cheapest state to form an LLC?

New Mexico and Montana have the lowest costs. New Mexico charges $50 to file with no annual report fee. Montana charges $35 to file with a $15 annual fee. However, if your business operates in a specific state, forming there is usually more practical than chasing the lowest filing fee.

Q: Is an EIN free for an LLC?

Yes. An Employer Identification Number is completely free from the IRS at irs.gov. Some formation services charge $50-$100 to apply for an EIN on your behalf — there is no need to pay, the application is straightforward and takes about 10 minutes.

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LLC Formation Cost Calculator

2025 state filing fees — all costs included

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Optional add-ons

Registered agent service (+$125/yr)Required if no physical presence. $50-$300/yr typical

Operating agreement (+$200, one-time)Strongly recommended for all LLCs — defines ownership rules

Local business license (+$75/yr)Required in most cities and counties — varies by location

Expedited filing (+$50, one-time)1-3 days instead of 2-4 weeks for state processing

LLC formation cost estimate

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State filing feeone-time, paid to state—

Annual report / franchise taxpaid to state every year—

Registered agent service$125/yr — required if no physical presence—

EIN (Employer ID Number)applied for free at irs.gov$0 Free

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Formation steps

📋 How to form an LLC — step by step

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Estimates based on 2025 state fee schedules. Annual fees and tax requirements can change. Always verify current fees at your state's Secretary of State website before filing. This tool does not constitute legal or tax advice.

What is an LLC?

A Limited Liability Company separates your personal assets from your business debts. Members are not personally liable for business obligations, unlike a sole proprietorship.

EIN is always free

An Employer Identification Number (EIN) is free from the IRS at irs.gov. Never pay a service to apply for one — it takes about 10 minutes online.

Operating agreement

Even single-member LLCs should have one. It documents ownership, how profits are split, and how the business is managed. Some states require it.

Foreign LLC registration

If you form in Wyoming but operate in California, you must also register as a foreign LLC in California — paying fees in both states.

LLC formation costs explained — complete guide (2025)

Forming an LLC requires paying a one-time state filing fee to your state's Secretary of State office. These range from $35 (Montana) to $500 (Massachusetts). Most states also charge an annual report fee or franchise tax to keep your LLC in good standing each year.

Beyond state fees, most LLC owners also need: a registered agent ($50–$300/yr) if they do not have a physical presence in the state; an operating agreement (free DIY or $100–$300 via a service); and an EIN from the IRS (always free). Local business licenses vary widely by city and county.

California stands out as the most expensive state due to its $800 minimum annual franchise tax — required even if the LLC earns no revenue in its first year (with some exceptions for LLCs formed after September 1). Wyoming and New Mexico are popular low-cost alternatives with no state income tax and no annual report fees respectively.

Should I form my LLC in Delaware or Wyoming?

Delaware and Wyoming are popular with online and remote businesses. Delaware offers flexible corporate law and experienced business courts. Wyoming offers strong privacy protections (members not listed publicly), no state income tax, and low fees. However, if your business physically operates in another state, you will need to register there as a foreign LLC too — paying fees in both states and effectively doubling your compliance burden.

LLC formation FAQs

How much does it cost to form an LLC?

State filing fees range from $35 (Montana) to $500 (Massachusetts). Most states charge $50–$200. Total first-year costs with a registered agent typically run $175–$600 for most states. California is the exception — its $800 annual minimum franchise tax makes it one of the most expensive states to maintain an LLC regardless of revenue.

What is the cheapest state to form an LLC?

New Mexico ($50 filing, no annual fee) and Montana ($35 filing, $15/yr) have the lowest total costs. With a registered agent, both come in around $175 for year one and $140/yr ongoing. However, if your business operates in another state, you will need to pay fees in both — making your home state often the most practical choice.

Do I need a registered agent?

Every LLC must have a registered agent in its state of formation — someone with a physical address who can receive official legal documents during business hours. If you have a physical address in the state, you can serve as your own agent for free. If not, registered agent services typically cost $50–$300 per year, with most reputable services around $100–$150.

Is an EIN free for an LLC?

Yes — completely free. You apply directly at irs.gov and receive your EIN immediately online. Formation services often charge $50–$100 to apply for an EIN on your behalf. This is unnecessary — the application is simple and takes about 10 minutes.

Can a single person form an LLC?

Yes. A single-member LLC is one of the most common business structures. It provides liability protection while being taxed as a sole proprietorship by default (pass-through taxation). Single-member LLCs should still have an operating agreement documenting how the business is owned and managed, even though most states do not legally require one for single-member LLCs.