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The short answer: forming an LLC in the USA typically costs between $150 and $600 in the first year. That total is made up of three separate parts:
- Formation service fee — what you pay a company to prepare and file your paperwork (anywhere from $0 to $300+).
- State filing fee — what the state charges to register your LLC (roughly $50 to $500, depending on the state).
- Registered agent fee — required in every state, usually $0 to $300 per year.
For example, Registered Agents Inc charges a $100 service fee + the state filing fee, and includes one full year of registered agent service for free. So in a state like Wyoming, your first-year cost would be roughly $100 (service) + ~$100 (state filing) = around $200 — but always treat them as two separate numbers: the state fee goes to the government, not to the formation company.
In this guide: each cost component explained, a state-by-state table, the cheapest and most expensive states, the hidden ongoing costs most guides leave out, and tips specifically for non-US founders.
Table of Contents
- The 3 Parts of LLC Formation Cost
- 1. Formation Service Fee ($0–$300+)
- 2. State Filing Fee ($50–$500)
- 3. Registered Agent Fee ($0–$300/year)
- LLC Formation Cost by State: 10 Popular States
- The Cheapest States to Form an LLC
- The Most Expensive States (Avoid Unless You Operate There)
- Hidden and Ongoing Costs Most People Miss
- Your EIN Is Free — Don’t Pay for It
- How Non-US Residents Can Keep LLC Costs Low
- 5 Ways to Save Money on LLC Formation
- Frequently Asked Questions
- Conclusion
The 3 Parts of LLC Formation Cost
Almost every “how much does an LLC cost” quote you see online is really three different bills bundled into one number. Separating them is the only way to compare offers honestly.
1. Formation Service Fee ($0–$300+)
This is what you pay a formation company to prepare your Articles of Organization, file them with the state, and hand you the finished documents. The range is wide:
- $0 — some companies advertise “free” formation, but they make it back through upsells and higher registered agent renewals.
- $39–$100 — budget providers. Registered Agents Inc sits here at $100 + state fee, and bundles in a domain name, a basic website setup, and one year of free registered agent service.
- $150–$300+ — premium providers (LegalZoom and similar), often with attorney-backed extras most small LLCs don’t need.
Watch out: a low service fee can hide a high renewal — always check the year-two registered agent price before you compare offers.
See the $100 + state fee formation bundle at Registered Agents Inc
2. State Filing Fee ($50–$500)
This is the non-negotiable part. Every state charges its own filing fee to create your LLC, and it goes to the Secretary of State — no formation company can discount it or waive it.
As a rule of thumb in 2026:
- Most states charge $50–$150 to file Articles of Organization.
- A handful charge $200–$500 (Massachusetts, Illinois, and Nevada’s combined filing + license fees are the usual outliers).
- The fee is a one-time payment at formation; ongoing costs come separately as annual reports or franchise taxes.
Important: state fees change. Every number in this article is approximate — always confirm the current fee on your chosen state’s Secretary of State website before you file.
3. Registered Agent Fee ($0–$300/year)
Every state legally requires your LLC to have a registered agent — a person or company with a physical address in the state that receives lawsuits, tax notices, and official mail on your behalf.
Your options:
- Be your own agent ($0) — only possible if you live in the formation state and are comfortable putting your home address on public records. Not an option for non-US residents.
- Hire a service ($100–$300/year) — typical standalone pricing. Registered Agents Inc lists its standalone registered agent service at $200/year, which includes a business address, annual report filing reminders, and same-day document scans.
This is why “first year free registered agent” bundles matter: they don’t just save you $100–$200 in year one, they also solve the single biggest logistical problem for anyone forming from outside the state — or outside the country.
LLC Formation Cost by State: 10 Popular States
Here’s an approximate comparison of the most commonly chosen states. “Filing fee” is the one-time state charge; “annual cost” is what the state charges every year to keep the LLC active.
| State | Approx. Filing Fee | Approx. Annual State Cost | Notes |
|---|---|---|---|
| Wyoming | ~$100 | ~$60/yr | No state income tax; strong privacy |
| New Mexico | ~$50 | $0 | No annual report at all |
| Delaware | ~$110 | $300/yr franchise tax | Worth it mainly if raising VC |
| Florida | ~$125 | ~$139/yr | Popular for Latin America–facing businesses |
| Texas | ~$300 | $0 (franchise tax report; $0 under ~$2.5M revenue) | Higher filing, low ongoing |
| Colorado | ~$50 | ~$10/yr | One of the cheapest overall for residents |
| Arizona | ~$50 | $0 | No annual report |
| Nevada | ~$200 filing + ~$200 business license | ~$350/yr (list + license) | Expensive despite the reputation |
| New York | ~$200 | ~$9 every 2 yrs | Plus a newspaper publication requirement ($300–$2,000) |
| California | $70 | $800/yr franchise tax | Avoid unless you operate in California |
All fees are approximate and can change — verify on the Secretary of State website for the state you choose.
Worked example — Wyoming with Registered Agents Inc:
– Service fee: $100
– State filing fee: ~$100
– Registered agent year 1: $0 (included)
– Illustrative first-year total: ~$200 (service + state fee only)
Notice the pattern: the service fee is fixed, the state fee is what moves the total around.
The Cheapest States to Form an LLC
If your only goal is minimizing cost, two states stand clearly apart:
New Mexico — the absolute cheapest
- ~$50 filing fee, $0 annual report, $0 annual state fee. Nothing else in the country comes close on pure cost.
- Strong privacy: member names don’t appear in public records.
- The trade-off: it’s less well-known than Wyoming or Delaware, so some banks and partners may take slightly longer to recognize it. For a lean online business, that rarely matters.
Wyoming — the best value for most people
- ~$100 filing fee, ~$60/year annual report. Slightly more than New Mexico, but Wyoming’s LLC laws are the most battle-tested in the country, with excellent asset protection and privacy.
- No state income tax.
- The default choice for non-US founders, freelancers, agencies, and e-commerce sellers with no US physical presence.
Honorable mentions: Colorado (~$50 filing, ~$10/year) and Arizona (~$50 filing, no annual report) are extremely cheap — but they only make sense if you actually live or operate there. Forming “out of state” to chase a low fee usually backfires, because you’d then need to register as a foreign LLC in your home state too — paying twice.
The rule for chasing cheap states
Only form in a low-cost state like Wyoming or New Mexico if you have no meaningful physical presence in any US state. If you have an office, employees, or a warehouse somewhere, form where you operate — otherwise you’ll pay for two registrations.
The Most Expensive States (Avoid Unless You Operate There)
Some states are punishingly expensive for LLCs, and there’s almost never a reason for a remote or non-resident founder to choose them:
California — $800/year, every year
- Filing is only $70, which looks cheap — then the $800 minimum annual franchise tax hits, every single year, whether your LLC made money or not.
- Only form in California if you actually operate there. Non-residents should stay far away.
New York — the publication trap
- Filing is ~$200, but New York requires new LLCs to publish a notice of formation in two newspapers for six consecutive weeks. Depending on the county, that costs $300 to over $2,000 — often more than everything else combined.
Nevada — the reputation doesn’t match the price
- Nevada markets itself as a business haven, but a Nevada LLC costs roughly $425 in the first year (filing + initial list + business license) and ~$350 every year after.
- Wyoming offers equivalent privacy and stronger asset protection for a fraction of the ongoing cost.
Massachusetts and Illinois
- Filing fees of $500 (Massachusetts) and $150 (Illinois, plus a hefty annual report fee) make both poor choices for anyone who doesn’t physically operate there.
Bottom line: expensive states are expensive because of annual costs, not filing fees. When comparing states, always look at the 3-year total, not just day one.
Hidden and Ongoing Costs Most People Miss
The filing fee is just the entry ticket. Here’s what an LLC actually costs to keep running:
Annual reports / franchise taxes ($0–$800/year)
Nearly every state requires an annual (or biennial) report to keep your LLC in good standing. Costs range from $0 (New Mexico, Arizona) to $800 (California). Missing the deadline can trigger late fees or administrative dissolution — your LLC legally ceases to exist.
Business licenses and permits ($0–$500+/year)
Separate from the LLC itself. Depending on your industry and where your customers are, you may need city, county, or state business licenses. Online businesses usually need fewer, but check anyway.
Operating agreement ($0–$200)
Not filed with the state and not legally required everywhere, but banks and payment processors frequently ask for one. Many formation services include a template free; a lawyer-drafted version costs $100–$200+.
Bookkeeping and tax filing ($0–$1,000+/year)
- A simple spreadsheet works at the start; accounting software runs ~$15–$30/month as you grow.
- Foreign-owned single-member LLCs must file Form 5472 with a pro forma Form 1120 every year — an information return, not a tax bill, but the penalty for skipping it is a staggering $25,000.
Registered agent renewals ($100–$300/year)
Year one is often discounted or free. From year two onward, budget the full rate. Registered Agents Inc’s standalone registered agent service is listed at $200/year, so factor that into your long-term math when comparing “free formation” offers from competitors — a $0 formation fee with a $300/year agent renewal is more expensive by year two than a $100 formation with a fairly priced agent.
Your EIN Is Free — Don’t Pay for It
Your Employer Identification Number (EIN) is the tax ID the IRS issues to your LLC. You need it to open a US bank account, hire anyone, and file taxes.
Here’s what most guides bury: the EIN itself is completely free from the IRS.
- If you have a US Social Security Number, you can apply online in about 10 minutes.
- If you don’t (most non-residents), you file Form SS-4 by mail or fax, which takes 4–6 weeks.
Many formation companies charge $50–$100 to “obtain your EIN” — that’s a convenience fee for the errand, not for the number itself.
How Non-US Residents Can Keep LLC Costs Low
If you’re forming from outside the United States, your cost equation has one extra constraint: you cannot be your own registered agent, and you can’t walk into a bank branch. That makes your choice of state and formation service matter more, not less.
1. Pick Wyoming or New Mexico. Wyoming (~$100 filing, ~$60/year) is the best all-rounder: low cost, no state income tax, strong privacy, and universally recognized by banks and payment processors. New Mexico (~$50 filing, $0 annual) is the cheapest possible option if every dollar counts.
2. Use a formation bundle, not piecemeal services. Buying the filing, the registered agent, and the EIN service separately from three vendors almost always costs more than a bundle — and creates three support threads when something goes wrong. A single $100 + state fee bundle that includes a year of registered agent service covers your two biggest first-year costs in one payment.
3. Don’t pay for what the government gives free. Your EIN is free (see above). Your state’s fee schedule is public. If a quote doesn’t clearly separate the service fee from the state fee, that’s a red flag.
4. Budget for year two now. The cheapest first year means nothing if the renewal doubles — add up the service fee, state fee, year-2 agent cost, and annual state fee before you compare.
See the $100 + state fee formation bundle at Registered Agents Inc
5 Ways to Save Money on LLC Formation
- Form in New Mexico or Wyoming if you’re fully remote or non-resident — the lowest filing + annual cost combination in the country.
- Bundle the registered agent with formation. A free first year of registered agent service (a $100–$200 value) beats a “$0 formation fee” that renews at premium agent rates.
- Skip the upsells. Template operating agreements, “rush filing,” and compliance packages are usually unnecessary at the start.
- Get your EIN directly from the IRS if you have an SSN — it’s free and takes minutes online.
- File the annual report yourself. Most states let you file online in 10 minutes for just the state fee. Paying a service $100+ to click the same button is the easiest money to save in year two.
Frequently Asked Questions
What is the cheapest way to form an LLC in the USA?
The cheapest legitimate route is forming in New Mexico (~$50 state filing fee, $0 annual report) using an affordable formation service, or filing yourself and acting as your own registered agent if you live in the state. For non-residents, a $100 + state fee bundle with a free year of registered agent service in Wyoming or New Mexico is typically the lowest all-in first-year cost.
Can I form an LLC for free?
Not truly. The state filing fee ($50–$500) is mandatory and goes to the government — no company can waive it. “Free formation” offers cover only the service fee; you still pay the state fee, and usually face higher registered agent renewals later.
How much does it cost to maintain an LLC per year?
Ongoing costs are the annual report or franchise tax ($0–$800 depending on state) plus the registered agent ($100–$300/year). In Wyoming that’s roughly $60 + ~$200/year; in New Mexico it can be as low as just the registered agent fee; in California it’s $800 + agent, every year.
Do I need a registered agent if I form the LLC myself?
Yes — every state requires one, even if you file everything yourself. You can serve as your own agent for free if you live in the formation state and don’t mind your address being public. Non-US residents and anyone valuing privacy need a commercial registered agent.
Why is California so expensive for LLCs?
California charges an $800 minimum annual franchise tax on every LLC, regardless of income or activity. The $70 filing fee is misleading — it’s the yearly $800 that makes California the most expensive state to keep an LLC.
Is the state filing fee the same as the formation service fee?
No, and keeping them separate is the key to comparing offers. The state filing fee goes to the government to create your LLC. The formation service fee goes to the company doing the paperwork. A quote of “$100 + state fee” means $100 to the company plus whatever your state charges — always ask for both numbers.
Conclusion
Forming an LLC doesn’t have to be expensive — but it does have to be transparent. The founders who overpay are almost always the ones who looked only at the headline price instead of the three separate costs: service fee + state filing fee + registered agent.
For most US residents and non-US founders, the sweet spot is clear: form in Wyoming or New Mexico, keep the service fee around $100, and make sure a year of registered agent service is included so you’re not hit with a surprise renewal.
If you want the paperwork handled in one place — filing, domain, website setup, and a full year of registered agent service — see the $100 + state fee formation bundle at Registered Agents Inc. Just remember to confirm your state’s current filing fee on the Secretary of State website first, so you know exactly what your total will be before you click buy.