If you’ve been researching LLC formation, you’ve probably seen a dozen different prices, and it can get confusing.
We’re here to help simplify things so you have a full picture of what it costs to start and manage your LLC.
When forming your LLC, you can think of costs in two categories: One-Time Mandatory State Fees and Recurring Service Fees.
COST 1: THE ONE-TIME LLC FILING FEE
The state filing fee is the one cost no one can avoid.
The state LLC filing fee is mandatory across all states. To form an LLC, you file a document called the Articles of Organization (sometimes called a Certificate of Formation or Certificate of Organization depending on the state) with your state’s Secretary of State office. That filing comes with a one-time fee paid directly to the state.
The Range: Fees vary - from $35 in Montana to $500+ in Massachusetts.
The Average: Nationally, expect to pay around $132.
Two states that catch founders off guard
California requires all LLCs to pay a minimum $800 annual franchise tax regardless of revenue, even if the business earns nothing in year one.
New York requires LLCs to publish a notice of formation in two local newspapers, a state-mandated requirement that costs $200 to $2,000 depending on the county. These are not service fees. They are state law, and they apply to every LLC formed in those states.
COST 2: THE ONGOING COMPLIANCE FEE
Most states charge an annual fee to keep your LLC active. It’s not optional.
Forming your LLC is a one-time cost. Keeping it in good standing is an ongoing one. Most states require LLCs to file an annual or biennial report and pay a fee each cycle. Miss the deadline and you risk late penalties, loss of good standing, or administrative dissolution.
Annual report fees range from $0 in a handful of states to over $800 in California. The national average is $91 per year. Budget for this before you form, not after.
The due date varies by state. Some states tie it to your formation anniversary month. Others have a fixed calendar deadline. BizUp tracks due dates for you and reminds you before the deadline, not after you’ve missed it.
COST 3: YOUR REGISTERED AGENT
A mandatory requirement that gets treated like an optional add-on.
Every LLC is legally required to maintain a registered agent, a person or service that receives legal notices and state correspondence on your behalf. While you can opt to act as your own Registered Agent, many founders outsource this.
Read more about a Registered Agent - What It Is and Why It Matters
Unless you’re doing this yourself, you will want to budget for your annual Registered Agent fee.
With BizUpUSA, registered agent service is included free in your first year and renews at a flat $99 per year after.
WHAT LLC FORMATION ACTUALLY COSTS IN YEAR ONE
The number that matters.
When you add up what a properly formed LLC actually costs in year one - state filing fee, registered agent service, and an operating agreement - the full picture becomes clear. Below is the complete range of costs to plan for:
BIZUPUSA LLC PRICING
Three tiers. No guessing. No hidden fees.
Starter ($0 + state fees): LLC filing, name availability check, registered agent service free for year one.
Growth ($199 + state fees): Everything in Starter plus EIN filing, operating agreement, and compliance dashboard.
Complete ($299 + state fees): Everything in Growth plus business license report and priority processing. Registered agent renews at a flat $99/year after the first year on all plans.
QUICK ANSWERS
The questions founders ask most about LLC costs
How much does it cost to start an LLC?
The mandatory cost is the state filing fee, which ranges from $35 to $500 depending on your state. The national average is $132. A realistic first-year total — state fee, formation service, registered agent — runs $200 to $600 for most founders, with California and New York as outliers due to additional state-mandated requirements.
What is the cheapest state to form an LLC?
Montana has the lowest filing fee at $35. That said, forming in a low-fee state while operating in another typically requires registering as a foreign LLC in your home state — which adds fees, complexity, and ongoing compliance obligations that often exceed whatever you saved on the initial filing. For most founders, forming in the state where you actually do business is the right call.
What ongoing costs should I budget for?
The two recurring costs that apply to most LLCs are the annual report fee — national average $91 per year — and registered agent service. With BizUpUSA, registered agent renews at $99 per year after the first year. California’s $800 annual franchise tax is the most significant state-specific outlier and applies to all California LLCs regardless of revenue.
Why does the registered agent renewal fee matter so much?
Because it is a cost you pay every year for as long as your LLC exists. A difference of $100 per year in registered agent pricing adds up to $500 over five years and $1,000 over ten. It does not show up in the headline price — which is exactly why it is worth understanding before you commit.
THE BIZUPUSA ADVANTAGE
The price you see is the price you pay.
When you’re ready to make your business official, BizUpUSA helps you do it the right way. We make it easier for founders to:
- Form their LLC with confidence
- Get their EIN
- Designate a registered agent
- Stay on top of compliance requirements
- Keep important business documents organized
- Build on a stronger legal and operational foundation
BizUpUSA shows you the full cost before you start including the service fee, state fee, and what renews after year one. No pre-checked add-ons. Registered agent service renews at a flat $99 per year. The price you see is the price you pay.
See what your LLC will cost before you file. Starter plan: $0 + state fees. No surprises at checkout.
WHERE WE ARE NOW
BizUpUSA is live in 12 states and expanding.
We’re building state by state — with full 50-state coverage on the roadmap. Every state we add means more founders get access to transparent pricing, proactive compliance, and a platform that stays with them after the filing is done.
Sign up for our newsletter so you never miss an edition. Every week, we deliver straightforward, actionable steps to help you build smarter and scale with confidence.
See you next week.
— The BizUpUSA Team
SHARE