Forming a Limited Liability Company (LLC) is one of the most popular ways to start a business in the United States. It combines the personal liability protection of a corporation with the flexibility and simplicity of a sole proprietorship or partnership. But one common question every entrepreneur asks before forming an LLC is: How much does an LLC cost?
This comprehensive 2025 guide will break down the cost of forming and maintaining an LLC, including filing fees, annual fees by state, optional services, and hidden expenses. We will also compare costs across states and explore the best options for budget-conscious business owners.
LLC Annual Fees by State
Each state sets its own rules and fees for forming and maintaining an LLC. Below is a state-by-state breakdown of the initial filing fee and annual or biennial fees as of 2025:
| State | Filing Fee | Annual/Biennial Fee | Notes |
|---|---|---|---|
| California | $70 | $800/year | Plus $20 biennial Statement of Info |
| Texas | $300 | $0 | No annual fee, but franchise tax applies |
| Florida | $125 | $138.75/year | Annual report due by May 1 |
| New York | $200 | $9/biennial | Plus publication requirement |
| Arizona | $50 | $0 | No annual reports required |
| Wyoming | $100 | $60/year | Flat fee for most LLCs |
| Delaware | $110 | $300/year | Franchise tax instead of annual report |
| Nevada | $425 | $350/year | Includes business license renewal |
| Illinois | $150 | $75/year | Annual report due |
| Massachusetts | $500 | $500/year | Highest fee in the U.S. |
Note: Fees are subject to change. Always confirm with your state’s Secretary of State website.
What’s the LLC Filing Fee?
The LLC filing fee is a one-time payment made to the state when you submit your Articles of Organization. This fee legally establishes your LLC. Filing fees range widely across the U.S., from as low as $35 in Montana to $500 in Massachusetts.
Here are a few things to consider:
- Some states offer online filing at a lower cost than paper filings.
- Expedited processing may incur extra charges.
- If you hire an attorney or LLC service provider, this will be an additional cost.
On average, most entrepreneurs pay around $132 for the filing fee in 2025.
What’s the LLC Annual Fee?
After forming your LLC, most states require ongoing compliance fees to maintain your active status. This is often referred to as an annual report fee, franchise tax, or business license renewal.
Annual fees vary significantly:
- Free: Arizona, Missouri, New Mexico, and Ohio do not require annual fees.
- Low: Colorado ($10), Kentucky ($15), Hawaii ($15)
- Moderate: Florida ($138.75), Arkansas ($150)
- High: California ($800), Nevada ($350), Massachusetts ($500)
Annual fees ensure your business information is up to date and allow the state to track active businesses.
LLC Annual Fees (as of 2025):
Let’s look at a few standout examples:
- California: Despite a low $70 filing fee, it charges an $800 minimum franchise tax annually.
- Texas: Has no annual fee but requires franchise tax reports for businesses exceeding $1.23 million in annual revenue.
- Delaware: Charges a $300 franchise tax yearly, which makes it less ideal for small business owners.
- Wyoming: A favorite for digital entrepreneurs due to its low $60 annual fee and no state income tax.
LLC Annual Fees FAQs
Q1. What happens if I don’t pay the annual fee?
Your LLC could be administratively dissolved or fall out of good standing, leading to penalties, loss of legal protections, and complications in banking or contracts.
Q2. Can I change my LLC’s state to avoid high fees?
Yes, but it’s called domestication, and not every state allows it. Alternatively, you can form a new LLC in another state and dissolve the old one.
Q3. What’s the cheapest state to form an LLC?
Arizona and New Mexico are among the cheapest—both have $50 or lower filing fees and no annual report fees.
Q4. Why does California charge so much?
California uses its $800 franchise tax to fund public services. While costly, it’s unavoidable if you’re physically doing business in the state.
Q5. Can I get help with filing and annual compliance?
Yes. Services like Northwest Registered Agent, ZenBusiness, and LegalZoom help file and remind you of due dates.
334 Comments on “LLC Annual Fees by State”
“Wyoming is amazing. I run an eCommerce store and never had to worry about high state fees. Filing was simple, and I only pay $60/year.” – Mike D.
“California’s $800 fee is a killer for a side hustle. I relocated my business to Texas and now pay nothing annually.” – Sarah J.
These real user stories show how fees can affect long-term planning.
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About LLCU
LLCU (LLC University) is a free educational resource for entrepreneurs looking to form LLCs. From fee breakdowns to detailed tutorials, LLCU simplifies the legal side of starting your business.
Basics
- Filing Fee: One-time cost to form your LLC.
- Annual/Biennial Fee: Recurring fee to maintain good standing.
- Franchise Tax: Additional business tax in some states.
- Registered Agent: Required in every state; may be free or $100–$300/year.
Popular States
1. Wyoming
- Filing: $100
- Annual: $60
- No state income tax
2. Delaware
- Filing: $110
- Annual: $300 (franchise tax)
- Well-known for investor-friendly laws
3. Texas
- Filing: $300
- Annual: $0 (franchise tax if revenue > $1.23M)
4. Florida
- Filing: $125
- Annual: $138.75
- Business-friendly and affordable
5. Nevada
- Filing: $425
- Annual: $350
- High fees but no state income tax
LLC Services
| Service Provider | Cost (Starting) | Key Features |
| Northwest Registered Agent | $39 + state fee | Privacy-first, free registered agent |
| ZenBusiness | $0 + state fee | User-friendly, good for first-time owners |
| LegalZoom | $149 + state fee | Trusted brand, wide range of services |
| IncFile (Bizee) | $0 + state fee | Includes free year of registered agent |
| MyCompanyWorks | $79 + state fee | Great for compliance alerts and add-ons |
Conclusion
Understanding LLC costs is key to budgeting and maintaining compliance. While initial filing fees vary by state, the real long-term cost comes from annual or franchise fees. States like Wyoming, Arizona, and New Mexico offer the most affordable options for small businesses and online entrepreneurs. However, the right state for you depends on where you operate and your business goals.
If you’re just getting started, consider using an LLC service to simplify the process, keep you compliant, and avoid expensive mistakes. Whether you’re a freelancer, eCommerce store owner, or starting a new brand—this knowledge will help you build on a solid legal foundation.
Always consult your Secretary of State or a legal professional before making final decisions.