How Much Does It Cost to Create an LLC? A Complete Breakdown for New Entrepreneurs

Dreaming of starting your own business but wondering how much it’ll cost to form a Limited Liability Company (LLC)? You’re not alone! Figuring out the price tag for creating an LLC can feel a bit like piecing together a puzzle, but don’t worry—I’ve got you covered.

In this article, I’ll break down exactly how much it costs to create an LLC, from state filing fees to optional expenses, so you can plan your budget and focus on building your dream business. Let’s get started!

The Big Question: How Much Does It Cost to Create an LLC?

The short answer: It depends.

The total cost of creating an LLC varies based on where you’re forming your business and whether you choose to hire professionals or DIY your paperwork. Here’s a quick overview of the most common costs:

1. State Filing Fees

Every LLC must file Articles of Organization (or a similar document) with their state to officially form the business. Filing fees vary from state to state.

💵 Cost Range: $40–$500

• Low-Cost States: Kentucky ($40)

• Mid-Range States: Florida ($125), Texas ($300)

• High-Cost States: Massachusetts ($500), California ($70 + $800 annual tax)

💡 Pro Tip: Check your state’s official website for the exact filing fee or use a service like NW Registered Agent to handle the process for you.

2. Registered Agent Fees

A registered agent is someone who receives legal documents and official correspondence on behalf of your LLC. While you can serve as your own registered agent, many entrepreneurs opt to hire a professional for convenience and privacy.

💵 Cost Range: $0–$300/year

• DIY Option: Free if you act as your own registered agent.

• Professional Services: $100–$300 annually.

💡 Why It’s Worth It: A professional service ensures you never miss an important document and keeps your personal address off public records.

3. Operating Agreement

An Operating Agreement outlines how your LLC will run. While not required in all states, it’s highly recommended—especially for multi-member LLCs.

💵 Cost Range: $0–$200

• DIY Option: Free, with templates available online.

• Professional Help: $50–$200 for a customized agreement.

💡 Pro Tip: Even if you’re a single-member LLC, having an Operating Agreement adds credibility to your business and protects your personal assets.

4. Employer Identification Number (EIN)

An EIN is like a Social Security number for your business. You’ll need it to open a business bank account, hire employees, and file taxes.

💵 Cost: Free!
Apply directly through the IRS website.

💡 Watch Out: Some services charge $50–$100 to get an EIN for you, but you can save money by doing it yourself.

5. Business Licenses and Permits

Depending on your business type and location, you may need additional licenses or permits to operate legally.

💵 Cost Range: $50–$500 or more

• Local business licenses

• State-specific permits

• Industry-specific certifications

💡 Pro Tip: Check with your city or county to ensure you’re covered. Some states even have online tools to help you identify what you’ll need.

6. Annual Fees and Reports

Once your LLC is up and running, you’ll likely need to file an Annual Report to stay in good standing with the state.

💵 Cost Range: $0–$800 annually

• Examples:

  • Florida: $138.75/year

  • California: $800/year franchise tax

  • Kentucky: $15/year

Optional Costs (But Totally Worth It) LLC Formation Services

Feeling overwhelmed? You can hire a professional service to handle the paperwork for you.

💵 Cost Range: $49–$500
These services often include:

• Filing your Articles of Organization

• Acting as your registered agent

• Drafting an Operating Agreement

💡 Pro Tip: Services like NW Registered Agent streamline the process so you can focus on your business.

Attorney or Accountant Fees

If your business has unique legal or financial needs, consulting with a professional is a wise investment.

💵 Cost Range: $150–$500/hour

Quick Cost Breakdown

Here’s a quick look at the estimated costs to form an LLC:

Is Creating an LLC Worth It?

Absolutely! Forming an LLC protects your personal assets and gives your business credibility. Plus, when you know the costs upfront, it’s easier to plan and budget for success.

Final Thoughts

Starting a business is an investment, and creating an LLC is one of the best steps you can take to protect that investment. Whether you handle the paperwork yourself or hire a professional service, understanding the costs involved will set you up for success.

💡 Ready to Start?
If you want to save time and ensure everything’s done right, check out NW Registered Agent. They’ll handle the heavy lifting so you can focus on building your dream business.

What’s your business idea? Let me know in the comments—I’d love to cheer you on!