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LLC Cost by State

LLC Cost by State: Everything You Need To Know​

Knowing the overall LLC cost by state is essential for your LLC’s success. An LLC (Limited Liability Company) is always a financial puzzle for entrepreneurs. Whether you are new or have been in business for a while, the cost will impact your business planning.  

Each state has its own rules, system, and fees. You will need to break down the costs and see what’s involved in starting and running an LLC.

So, are you ready to explore the cost of the LLC? Let’s go!

How Much Does An LLC Cost?

There are various types of costs that occur when you operate an LLC. It includes startup costs, maintenance costs, and additional costs. Read below to learn about the costs in detail.

Cost to Start an LLC

The LLC startup cost is almost the same in every state. Let’s look at some basic costing steps in starting an LLC.

Reserving an LLC Name

Did you like the name? Then reserve it to choose it later. It’s a chance to legally reserve your name. 

Normally, it will cost $10-$140. If you don’t reverse the name, you may lose it. In that case, someone else may already use it for their LLC. 

Filing Fees

The basic cost to set up an LLC is the state filing fee. It varies from state to state. 

The cheapest one is $40 in Kentucky. On the contrary, the highest one is $500 in Massachusetts. Usually, $50 to $100 is the average filling fees. 

With the state filing fee, you may submit the article of organization.

Registered Agent

One of the costs of starting an LLC is the registered agent’s fee. Between $0 and $300 is the average fee to hire a registered agent. It may go up or down in various states. 

Hiring a registered agent when forming an LLC is a great decision. The agent is an expert in handling the legal documents to maintain your LLC

An agent provides its address in public documents instead of yours. Moreover, you can also be a registered agent if you meet the criteria.

Operating Agreement

The average cost is between $0 and $200 for an operating agreement. It’s not compulsory to form in every state. 

But it’s a good idea to form it. It describes the internal relations among members. So it’s helpful to avoid any future conflicts.

EIN Application

An EIN service may cost you $0 to $99. It is the charge of the service provider. The EIN is free!

You can go to the IRS official website and apply for an EIN without charge. 

EIN is necessary if your LLC has more than one member and employee. Yet, if you are a single LLC owner, then there’s no need for an EIN.

Maintenance Cost

You must maintain your LLC well if you want to run it smoothly. There are some maintenance costs. You may see some of the major costs below.

Taxes

LLC does not pay tax on itself. It has a pass-through tax entitlement. So, it transfers the profit or loss to the member account. 

Members pay personal tax returns. The tax rate is based on your business type, how much your LLC makes in a year, and state laws.

Business Licensure

You may need to apply and get licenses for your LLC. The cost is not fixed. It varies state by state and according to your business specifications. In general, it may cost you $50

You may need to acquire a license for every county where your LLC runs a business. That means a license for the state. 

You also need to renew it annually. For example, you need a food and beverage license if you have an a bar or restaurant.

Annual Reports

Every state has an annual fee. You can also call it franchise tax or report filing tax. Some states also allow biennial reports. Whatever the name is, you must file the fees by the deadline. 

It may cost between $0 and $800. For example, the franchise fee in Delaware is $300, and California’s is $800. Also, the reporting fee is $100 on average in various states. 

If you’re late, you may incur extra costs. Besides the fines, there is the result of dissolution. So your business will suffer a lot.

Compliance Services

If you hire an online service provider, then it will cost you extra. The cost is dependent on the offerings. 

For example, ZenBusines provides $0+ state fees to form your LLC. You can choose from many. Get the most affordable one to save money.

Additional LLC Costs

After covering the startup and maintenance costs, you may incur additional expenses for your LLC. The most common additional expenses are described below.

DBA

DBA stands for ‘Doing Business As.’ It’s a separate name from your legal LLC name. You can use it for a marketing strategy or to create a brand. 

It may cost you between $10 and $100 on average. You can have a trademark registration to secure your desired DBA name. 

But it will cost you more. You pay separate fees at both the federal and state levels. Renewal and notary fees also occur for a DBA.

Publishing

Another extra expense for an LLC is the publication cost. There are 3 states where you must publish information about your LLC formation. They are New York, Arizona, and Nebraska. 

Each state has different fees to pay. In this publication, you will submit your article of the organization in the local newspaper. It may cost you between $40 and $2000.

How Much Does an LLC Cost by State?

You must pay the LLC filing fees to form the LLC. But the cost is not fixed. Each state has its fees to pay. Look at the table below to determine your LLC cost by state: 

State Name LLC Filing Fee LLC Initial Report Annual or biennial Fees
Alabama
$200
$100 (annually)
Alabama
$200
$100 (annually)
Alaska
$250
$0
$100 (biennially)
Arkansas
$45
$150 (annually)
California
$70
$20
$800 (annually) + $20 (biennially)
Colorado
$50
$10 (annually)
Connecticut
$120
$80 (annually)
District of Columbia
$99
$300
Delaware
$90
$300 (annually)
Florida
$125
$138.75 (annually)
Georgia
$100
$50 (annually)
Hawaii
$50
$15 (annually)
Idaho
$100
No fee
Illinois
$150
$75 (annually)
Indiana
$95
$31 (biennially)
Iowa
$50
$30 (annually)
Kansas
$160
$50 (biennially)
Kentucky
$40
$15 (annually)
Louisiana
$100
$35 (annually)
Maine
$175
$85 (annually)
Maryland
$100
$300 (annually)
Massachusetts
$500
$500 (biennially)
Michigan
$50
$25 (annually)
Minnesota
$155
No fee
Mississippi
$50
No fee
Missouri
$50
No fee
Montana
$70 / $35
$20 (annually)
Nebraska
$105
$13 (biennially)
Nevada
$425
$325
$350 (annually)
New Hampshire
$100
$100 (annually)
New Jersey
$125
$75 (annually)
New Mexico
$50
No fee
New York
$200
$9 (biennially)
North Carolina
$125
$200 (annually)
North Dakota
$135
$50 (annually)
Ohio
$99
No fee
Oklahoma
$100
$25 (annually)
Oregon
$100
$100 (annually)
Pennsylvania
$125
$70 (every 10 years)
Rhode Island
$150
$50 (annually)
South Carolina
$110
No fee
South Dakota
$150
$50 (annually)
Tennessee
$300
$300 (annually)
Texas
$300
No fee
Utah
$54
$18 (annually)
Vermont
$125
$35 (annually)
Virginia
$100
$50 (annually)
Washington
$200
$10
$60 (annually)
West Virginia
$100
$25 (annually)
Wisconsin
$130
$25 (annually)
Wyoming
$100
$60 (annually)

Overall Costs to Form and Maintain an LLC

Calculating the overall cost before forming an LLC is a wise idea. Firstly, get full information about your specific state law. Then, contact the online service providers and registered agents

So, you will get an image of what your LLC costs. The overall cost is not fixed. It depends on your business location, business type, the service providers charge, and more. 

Final Thoughts

Hopefully, you understood that LLC cost by state vary. You won’t know about the costs and rules if you don’t contact your state officials. 

It will make you suffer while forming and running an LLC. So, start an LLC only after knowing the costs it entails.

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