Forming an LLC is one of the cheapest legal moves a small business can make — but the price you pay depends almost entirely on a single decision: who does the paperwork. The state filing fee is fixed and unavoidable, ranging from $35 in Montana to $500 in Massachusetts, with a 2026 national average of about $132. Everything above that fee is optional, and it is where people either save a few hundred dollars or spend a few thousand without realizing they had a choice.
There are three ways to form an LLC, and each sits at a different price point. You can file directly with your state yourself (cheapest), use an online formation service like ZenBusiness, Bizee or Northwest (middle), or hire a business attorney (most expensive, and only sometimes necessary). This guide walks through what each path actually costs in 2026, what you are paying for, the recurring fees nobody mentions up front, and exactly when paying a lawyer is worth it. The calculator below totals it all for your specific state and chosen path.
Free LLC Formation Cost Calculator
Pick your state, choose how you want to file, and add any options to see your one-time and first-year LLC cost. This is a planning estimate using typical 2026 figures — confirm your exact state fee on your Secretary of State website.
Estimates use typical 2026 pricing: online services add ~$0–$300, lawyers ~$800 (range $500–$2,000), registered-agent services ~$125/yr, recurring annual report/franchise fees vary by state. The EIN from the IRS is always free.
The Three Ways to Form an LLC (and What Each Costs)
Every LLC formation comes down to one of these three routes. They produce the same legal entity — the difference is how much work you offload and how much you pay for it.
| Path | What you pay (besides state fee) | Best for | Total all-in (state fee included) |
|---|---|---|---|
| DIY — file with your state | $0 | Simple single-member LLCs, owners comfortable with forms | $35–$500 |
| Online formation service | $0–$300 + optional add-ons | First-timers who want it handled and reminders set | $35–$800 |
| Business attorney | $500–$2,000 | Multiple owners, investors, complex tax or liability needs | $535–$2,500 |
Notice that the spread between the cheapest and most expensive path can be more than $2,000 for the exact same registered entity. The state does not care which route you take — the certificate of formation looks identical. What you are really buying as you move up the price ladder is convenience, error-checking, and (with a lawyer) a custom operating agreement tailored to your ownership structure.
2026 LLC Filing Fees by State (Sample)
The one cost you cannot avoid is the state filing fee, paid once when you form the LLC. Below are representative 2026 fees across the range. The cheapest states cluster around $50; the most expensive is Massachusetts at $500. California's $70 filing fee is deceptively low because the state also imposes an $800 minimum annual franchise tax that dwarfs the formation cost.
| State | One-time filing fee | Recurring annual fee | Note |
|---|---|---|---|
| Montana | $35 | $20 | Lowest filing fee in the US |
| Kentucky | $40 | $15 | Low all-in cost |
| Arkansas | $45 | $150 franchise tax | Cheap to file |
| Arizona | $50 | $0 | No annual report fee |
| Colorado | $50 | $25 | Online filing only |
| Florida | $125 | $138.75 | Annual report due each May |
| New York | $200 | $9 (+ publication) | Costly newspaper publication requirement |
| Texas | $300 | $0 (franchise tax if >$2.47M) | No annual fee for most small LLCs |
| California | $70 | $800 franchise tax + $20 | Highest ongoing cost in the US |
| Massachusetts | $500 | $500 | Highest filing fee in the US |
If keeping costs low is your priority and you have flexibility on where to register (for example, an online business with no physical storefront), the home-state rule still usually wins: form in the state where you actually do business. Registering in a "cheap" state while operating elsewhere typically forces you to register as a foreign LLC in your home state anyway — paying two sets of fees instead of one.
What You're Actually Paying For
An LLC's total cost is a stack of line items, only one of which is mandatory. Knowing what each piece is — and whether it is free — is how you avoid overpaying:
- State filing fee ($35–$500, required). The one charge you must pay. It is the same whether you file yourself or someone files for you.
- Registered agent ($0–$300/yr). Every LLC needs one to receive legal mail. You can be your own agent for free if you have a physical address in the state and don't mind it being public; a service costs $50–$300 a year and keeps your address private.
- Operating agreement ($0–$2,000). Free templates work for simple single-member LLCs; multi-owner businesses benefit from a lawyer-drafted version that spells out ownership, profit splits and exit rules. This is the single biggest reason to involve an attorney.
- EIN ($0). Always free directly from the IRS. Any charge for "getting your EIN" is a marked-up convenience fee.
- Annual report / franchise fee ($0–$800/yr). Most states bill a recurring fee to keep the LLC active. California's $800 minimum franchise tax is the extreme; many states are under $100.
- Optional add-ons. Expedited filing, certified copies, business-license research and compliance services are all upsells you can usually skip at the start.
If you're forming a straightforward LLC yourself, these vetted references and supplies cover the parts an online service or lawyer would charge hundreds for. They're what we'd hand a first-time founder before they pay for setup.
As an Amazon Associate we earn from qualifying purchases. Links are affiliate links; the price you pay is unchanged. DIY tools suit simple, single-owner LLCs — use a licensed attorney for multi-owner, investor or high-liability situations.
How to Form an LLC for Less
Most owners can hold their LLC cost to little more than the state fee without taking on real risk:
- File directly with your state. Every Secretary of State accepts online formation. Doing it yourself skips the $0–$300 service markup entirely.
- Be your own registered agent. If you have a physical in-state address and don't mind it being public record, this saves $50–$300 every year.
- Get your EIN straight from the IRS. It's free and takes minutes online — never pay a third party for it.
- Use a template operating agreement for simple LLCs. A single-member LLC rarely needs a custom $500–$2,000 lawyer-drafted agreement.
- Skip the upsells at the start. Expedited processing, premium compliance packages and "business license reports" can wait until you actually need them.
- Bring in a lawyer only where it counts. Multiple owners, outside money, or unusual tax/liability needs justify the fee; a basic side business usually doesn't.
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LLC Cost FAQ
How much does it cost to form an LLC in 2026?
The only unavoidable cost is your state filing fee, $35 (Montana) to $500 (Massachusetts), averaging about $132. File yourself and you pay only that fee. An online service adds $0 to $300; a lawyer adds $500 to $2,000. So a simple single-member LLC can be $35 to $150 all-in, while a lawyer-built multi-owner LLC runs $1,000 to $2,500 plus the state fee.
What is the cheapest way to start an LLC?
File directly with your state's Secretary of State yourself and act as your own registered agent. That keeps your cost to just the state filing fee — as low as $35 to $50 in Montana, Kentucky, Arkansas and Arizona. You skip the $0 to $300 service markup and the $50 to $300 a year agent fee, at the cost of handling the operating agreement and compliance reminders yourself.
Do I need a lawyer to form an LLC?
Usually no. A simple single-member LLC is a fill-in-the-blanks state filing. A lawyer earns the $500 to $2,000 fee when you have multiple owners needing a real operating agreement, outside investors, special tax elections, professional-licensing rules, or significant liability exposure. In those cases the custom operating agreement is what you're paying for, not the filing.
What are the ongoing costs of an LLC?
Most states charge a recurring annual report or franchise fee of $0 to $500. California is the outlier with an $800 minimum annual franchise tax on top of its $70 filing fee. A registered-agent service adds $50 to $300 a year, and many owners pay for bookkeeping or tax prep. Budget for the annual state fee specifically — missing it is the most common way an LLC falls out of good standing.
Is an online LLC service like ZenBusiness or Bizee worth it?
For many first-timers, yes. These services file correctly, act as your registered agent, send compliance reminders, and often include an EIN and a basic operating-agreement template for about $0 to $300 plus the state fee. They're cheaper than a lawyer and less error-prone than going fully alone. Watch for upsells and recurring agent renewals — and remember you can do all of it yourself for free.
How much does an EIN cost?
Nothing. An Employer Identification Number is issued free by the IRS in minutes on the official IRS website. Be wary of any service charging a separate fee just to get an EIN — it's a marked-up add-on for something you can obtain yourself at no cost.