The cost of creating and maintaining an LLC in the United States will vary depending on which state you decide to open your LLC in.
In this article, we will begin by explaining the different costs of creating an LLC, and then we will detail the actual prices of opening and maintaining an LLC according to each state. Let's get started!
Important
Some states have lower LLC costs than others. But that doesn't mean you should form an LLC in a cheaper state to avoid state fees or other expenses. Cost is just one more factor to take into account when opening an LLC, and it is not usually one of the most important. Discover here how to correctly choose the state for your LLC.
Procedures to open an LLC in the United States and its associated costs
Here we will analyze the different costs involved in each of the processes to be carried out when open your LLC in the United States. This will be a general snapshot, since we will then analyze the costs for each of the 50 states of the USA.
It is important that you know that there are several companies that are responsible for opening an LLC in the USA for you, in the state of your choice, taking care of all the paperwork and processes for a totally profitable cost. Of the 3 LLCs that I have opened, I have always worked with this type of company and I totally recommend it.
The filing fee
To legally form an LLC, you need to file the Articles of Organization (in some states called "Certificate of Formation", "Certificate of Organization") with the Secretary of State. These documents can be submitted online, on the state website, by mail, or in person by visiting your local state office.
Filing costs usually vary by state, ranging between $50 and $150. This filing fee is a one-time fee, which is paid when submitting the Articles of Organization.
Annual Report
Annual reports are documents that report the activity of the LLC as well as its basic legal information. This document may be required annually, every 2 years, or other periods, and there are also some states that do not require it at all. In addition, depending on each state, the value of sending the annual report will vary.
It is important to say that the annual report may have other names such as "Franchise Tax", "Annual Report", or synonyms.
What is the annual report for?
The annual report provides information about business operations to the state, providing proof that they are operating legally, and that the LLC is in compliance with regulations. It is a way to show the state that the business wants to continue operating. In addition, it allows you to update contact information with the company.
What happens if I forget to submit it?
If you do not file your annual report on the stipulated date, you may have toface fines from your LLC's state, or even have your LLC dissolved.
In which states there is no annual report?
States that do not require an annual report are Arizona, Missouri, New Mexico, Ohio and South Carolina.
Then, the states of Idaho, Minnesota, Mississippi and Texas require it, but its shipping is free.
Other possible additional costs
There are other possible additional costs depending on your situation and the state you choose:
- Publishing Costs: You may need to publish a notice of forming your LLC in a state-licensed newspaper. Publication costs vary depending on the state and the newspaper.
- Renewal of the registered agent: The registered agent is the one who receives the official papers from the state and is responsible for transmitting them to the LLC. This person must be over 18 years old and reside in the state where you open your LLC. There are many companies that offer registered agent services, and their cost is usually approximately $100 annually.
Total costs of opening and maintaining an LLC by state
| Status | Filing Fee | Documentation | state fee | Date | Expiration | Fine in case of delay |
|---|---|---|---|---|---|---|
| Alabama | $200 | Annual Report | $100 (may vary) | Annual | Extendable to 2 and a half months after training | State tax penalty |
| Alaska | $250 | Biannual Report | $100 | Biannual | January | $37.50 |
| Arizona | $50 (+ $299 post) | There is none | $0 | - | - | - |
| Arkansas | $45 online, $50 by mail | Annual Report | $150 | Annual | May 1 | $25 |
| California | $70 | Franchise Tax and Biannual Report | $800 + $20 | Annual (Tax) and Biennial (Report) | 3 months after the formation of the LLC (Tax) and anniversary date (Report) | $250 |
| Colorado | $50 | Annual Report | $10 | Annual | Last day of the anniversary month | $40, if it exceeds 3 months $100 |
| Connecticut | $120 | Annual Report | $80 | Annual | March 31 | - |
| Delaware | $90 | Annual Report | $300 | Annual | June 1 | $200 + 1.5% each extra month |
| Florida | $125 | Annual Report | $138.75 | Annual | May 1 | $400 |
| Georgia | $100 | Annual Report | $50 | Annual | April 1 | $25 |
| Hawaii | $50 | Annual Report | $15 | Annual | 3 months after the anniversary date | $10 |
| Idaho | $100 | Annual Report | $0 | Annual | Last day of the anniversary month | - |
| Illinois | $150 | Annual Report | $75 | Annual | First day of the anniversary month | $100 |
| Indiana | $95 online, $100 by mail | Annual Report (Business Entity Report) | $31 | Biannual | Last day of the anniversary month | - |
| Iowa | $50 | Biennial Report | $45 | Biannual | April 1 of every odd year | - |
| Kansas | $160 online, $165 by mail | Annual Report | $50 | Annual | 15th day of the fourth month after the close of the fiscal year | - |
| Kentucky | $40 | Annual Report | $15 | Annual | June 30 | - |
| Louisiana | $100 | Annual Report | $35 | Annual | Anniversary date | - |
| Maine | $175 | Annual Report | $85 | Annual | June 1 | $50 |
| Maryland | $100 | Annual Report, Personal Property, Tax Return (if you own properties in the state) | $309 | Annual | April 15 | - if no properties are present |
| Massachusetts | $500 | Annual Report | $520 | Annual | Anniversary date | - |
| Michigan | $50 | Annual Report (Annual Statement) | $25 | Annual | February 15 | - |
| Minnesota | $155 online, $135 by mail | Annual Report (Annual Renewal) | $0 | Annual | December 31 | - |
| Mississippi | $50 | Annual Report (Annual Renewal) | $0 | Annual | April 15 | - |
| Missouri | $50 (online), $105 (mail) | There is none | $0 | – | – | – |
| Montana | $70 | Annual Report | $20 | Annual | April 15 | $15 |
| Nebraska | $105 | Biennial Report | $13 | Biannual | April 1 of odd years | - |
| Nevada | $75 + $150 | Annual List of Managers or Managing Members and State Business License Renewal | $150 + $200 | Annual | Last day of the anniversary month | $75 + $100 |
| New Hampshire | $100 | Annual Report | $102 | Annual | April 1 | $50 |
| New Jersey | $125 | Annual Report | $78 | Annual | Last day of the anniversary month | - |
| New Mexico | $50 | There is none | $0 | - | - | - |
| New York | $200 + publication costs | Biannual Report | $9 | Biannual | Last day of the anniversary month | - |
| North Carolina | $125 | Annual Report | $202 | Annual | April 15 | - |
| North Dakota | $135 | Annual Report | $50 | Annual | November 15 | $50 |
| Ohio | $99 | There is none | $0 | - | - | - |
| Oklahoma | $100 | Annual Report | $25 | Annual | Anniversary date | - |
| Oregon | $100 | Annual Report | $100 | Annual | Anniversary date | - |
| Pennsylvania | $125 + publication costs | Decennial Report | $70 | 10 years | Last day of years ending in 1 | - |
| Rhode Island | $150 | Annual Report | $50 | Annual | November 1 | $25 each month late |
| South Carolina | $110 | None (Unless LLC treated as Corp) | $0 | - | - | - |
| South Dakota | $150 | Annual Report | $50 | Annual | Last day of the anniversary month | $50 |
| Tennessee | $300 (minimum) | Annual Report | $300 minimum ($50/member) | Annual | First day of the fourth month after the end of the LLC's fiscal year | - |
| Texas | $300 | Annual Report | $0 if benefits < $1,180,000 | Annual | May 15 | $50 + 5% interest on the installment + 5% additional interest if there is a delay > 30 days |
| Utah | $70 | Annual Report | $15 | Annual | Anniversary date | $10 |
| Vermont | $125 | Annual Report | $35 | Annual | 2 and a half months after the fiscal year | $25 |
| Virginia | $100 | Annual Report | $50 | Annual | Last day of the anniversary month | $25 |
| Washington | $200 | Annual Report | $60 | Annual | Last day of the anniversary month | $25 |
| West Virginia | $100 | Annual Report | $25 | Annual | June 30 | $100 |
| Wisconsin | $130 (online), $170 (mail) | Annual Report | $25 | Annual | Last day of the anniversary quarter | - |
| Wyoming | $100 (mail), $102 (online) | Annual Report | $62 | Annual | First day of the anniversary month | - |
Are you looking for more information about a particular state? Discover our complete guides.
Frequently Asked Questions about the cost of an LLC
What is an LLC?
An LLC, or Limited Liability Company, is a business structure that limits the liability of its members. This corporate veil works by separating the personal assets of the partners from those of the company, thus protecting them from any problem or lawsuit that the company may have.
LLCs can have one member or be single-person LLCs.
Is it expensive to open an LLC in the United States?
One of the main advantages of opening an LLC in the United States is it is relatively inexpensive compared to other countries. The cost of opening an LLC in the USA will depend on the state you choose, but registration costs start at $40.
What are the costs of an LLC in the United States?
The costs of an LLC in the United States are:
- The filing fee or registration cost
- The annual report or renewal of the LLC
- The renewal of the registered agent
The costs of LLCs vary according to each state, so for greater precision, find out about the costs of the state in which you want to register it.
What is the cheapest state to open an LLC in the United States?
Kentucky offers the lowest LLC registration fee of $40. Arkansas is close behind at $45, and the following states charge a $50 fee: Arizona, Colorado, Hawaii, Iowa, Michigan, Mississippi, Missouri and New Mexico.
Is it possible to register an LLC for free?
Although the cost of registering an LLC varies by state, there is a registration fee in all states. There is no possibility of opening an LLC for free in the United States.
In which state should I open my LLC if I want to save costs?
We do not recommend relying on price as the only factor in deciding to open an LLC. However, in the long term, it is advisable to open an LLC in states that do not have or do not charge the annual report and their registration fee is low, that is: New Mexico, Missouri, Mississippi or Arizona.
If you prioritize cost and anonymity, then opening an LLC in New Mexico is a great option.
Written by
Ignacio Navarro
Ignacio Navarro is a Certified Public Accountant, graduated in 2020 from the National University of Tucumán. Founder of Start Companies since 2023, he advises clients worldwide on forming LLCs in the United States and on proper tax filing. His expertise combines legal, tax, and practical knowledge, offering a comprehensive service that spans from company formation to bank account setup and sales platform integration.
