LLC guide · Start here
What it costs to start and keep an LLC.
The state filing fee is only the first line. Here is everything that can show up in year one and every year after, so the budget holds no surprises.
6 minute read Reviewed
The short version
- State filing fees vary widely from state to state.
- The yearly costs often matter more than the first filing.
- An EIN costs nothing from the IRS.
- Late fees and reinstatement are the costs most worth avoiding.
Costs to form the LLC
What you may pay up front, depending on your state and choices:
- State filing fee for the articles of organization. It is set by each state and is the one cost every LLC pays. See your state's fee.
- Expedited processing, if you want it and your state offers it.
- Name reservation, if you want to hold a name before filing. Optional in most states.
- Publication, in the few states that require it. New York is the best-known example.
- Operating agreement: free to write yourself, or legal fees if an attorney drafts it.
- EIN: free directly from the IRS.
- Licenses and permits from your city, county, or state, which depend on your industry and location.
Costs every year
These keep the LLC active and in good standing:
- Annual or biennial report fees. Some states charge little or nothing; others charge more. Check your state.
- Franchise or privilege taxes in states that have them, sometimes owed even if the business earned nothing.
- Registered agent service, if you use one.
- License and permit renewals.
- Foreign registration fees and reports in every other state where you register.
- Bookkeeping, tax preparation, and business insurance.
The costs worth avoiding
Missed deadlines cost more than deadlines met. Late annual reports bring penalties, and an LLC that falls far enough behind can be administratively dissolved. Bringing it back means paying the overdue fees, penalties, and a reinstatement fee. See reinstating an LLC.
Ways to keep costs in line
- Form in the state where you operate, so you are not paying two states.
- Get your EIN directly from the IRS, or through someone who files it there for you.
- Put every report and renewal on a calendar the day you form.
- Ask a tax professional which formation costs you can deduct or amortize.
This guide is general information, not legal or tax advice. Rules differ by state and change over time, so check your state's official website or a licensed professional before you act. YaH Brands is not a law firm or an accounting firm.
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Keep reading
All LLC guides- Start here8 min read
How to start an LLC
The steps to form an LLC in any state: choose a state and name, appoint a registered agent, file, write an operating agreement, get an EIN, and handle what comes after.
Read the guide - Keep it running5 min read
Annual report
What an LLC annual report is, what it asks for, how often it is due, and what happens if you miss it, including late fees and administrative dissolution.
Read the guide - Set it up6 min read
Foreign vs. domestic LLC
What domestic and foreign LLCs are, when you need to register in another state, how foreign qualification works, and whether to form out of state.
Read the guide
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Common questions
Filing fees differ, but the cheapest state is usually the one you operate in. Forming elsewhere often means also registering and paying fees at home.
In most states, yes. Expect an annual or biennial report, and in some states a franchise or privilege tax.
Yes. The IRS does not charge for an EIN. Services that file it for you charge for their time, not for the number.