LLC filing fees by state reportedly run from $40 in Kentucky to $500 in Massachusetts, according to Bizee. The state sets the fee. You don’t, and neither does a formation company. It also doesn’t change based on your business type or size.
“Free” in the formation world means no middleman fee. You’ll still pay the state. And the day-one fee is only part of the story, because many states add annual reports, franchise taxes, or other recurring charges. This guide shows you how to find your state’s real numbers and what to budget beyond day one.
Last updated: October 4, 2026
Key Takeaways
- The state filing fee is required. Kentucky’s is $40 and Massachusetts’ is $500, per Bizee.
- A cheap formation fee can hide expensive yearly costs, so compare several years, not one invoice.
- The IRS says an EIN is free when you apply online at IRS.gov. Never pay a third party for one.
- Louisiana’s Commercial Division fees increased on October 1, 2026. Check the state schedule for current amounts.
- Your state’s Secretary of State (or equivalent) is the only source you should trust for the final number.
What You Actually Pay For When You Form an LLC
An LLC (limited liability company) is a business structure registered with a state. You create one by filing a formation document, called articles of organization in most states. Some states use “certificate of formation” or “certificate of organization.”
Here’s the typical cost menu:
- State filing fee (required): Paid to the state when you file. This is the big upfront number.
- Registered agent (required, cost varies): A registered agent is the person or company designated to receive legal papers and official state mail for your LLC. You can usually serve as your own agent if you have a physical address in the state and are available during business hours. Paid agents are optional.
- EIN (free): An Employer Identification Number is your business’s federal tax ID. According to the IRS, applying online at IRS.gov costs nothing.
- Operating agreement (free to write): An internal document describing how your LLC is run. Most states don’t require you to file it, though requirements to have one vary, and New York is one state that requires a written agreement.
- Ongoing state costs (varies): Annual or biennial reports, franchise taxes, and similar fees.
Why LLC Filing Fees by State Don’t Tell the Whole Story
A state with a low filing fee can still be expensive once annual taxes are counted. Here’s what that looks like. Say you’re forming a one-person LLC and comparing two states. This is an illustration, not real state data. State A charges $50 to form and nothing a year. State B charges $50 to form and $800 a year.
Over five years, State A costs about $50 in state fees. State B costs about $4,050 ($50 plus five years of $800).
Same formation fee. Wildly different bills.
LLC Filing Fees by State: What the Sources Show
Fees vary by state, so here are the figures our sources support, plus pointers on where to confirm the rest.
| State | What the sources say |
|---|---|
| Kentucky | Lowest formation fee cited by Bizee: $40 |
| Massachusetts | Highest formation fee cited by Bizee: $500 |
| Colorado | Periodic report filing fee is $25, per BizReport’s guide (Sept. 2026). The report is filed online with the Secretary of State each year. |
| Louisiana | Fee schedule changed effective October 1, 2026 (see below) |
For other states, use your Secretary of State’s fee schedule rather than a rounded number from memory. If you can’t find a figure, treat it as unknown. Current formation and annual fees for California, Delaware, Texas, New York, Florida and Wyoming still need to be confirmed against each state’s own filing office.
Some states are known for ongoing charges worth checking. California, for example, has an annual minimum franchise tax for LLCs that is administered by the Franchise Tax Board rather than the Secretary of State. Check the current amount and any first-year exemption rules with the state before you budget.
Louisiana LLC Fees Changed October 1, 2026
If you’re forming in Louisiana, timing matters. According to the Louisiana Secretary of State’s Forms & Fee Schedule page, fees for the Commercial Division increased effective October 1, 2026, under Act 921 of the 2026 Regular Legislative Session.
That means any Louisiana fee you saw in an article or a formation company’s pricing table before October 1 may be out of date. The material we reviewed didn’t list the new dollar amounts. New Louisiana LLC formation and annual report fee amounts have not been confirmed. Check the schedule directly.
Here’s the part people always miss: a fee page can look current and still be wrong. The state’s own schedule is your source of truth.
How to Find Your State’s Real LLC Cost and File
- Find your state’s business filing office. It’s usually the Secretary of State, sometimes called the Department of State or Division of Corporations. Search “[your state] Secretary of State business filing.”
- Run a name search. Use the state’s business entity search to see whether your name is taken. Your name generally must include “LLC” or a similar designator and be distinguishable from existing names.
- Open the fee schedule. Look for the formation fee, any expedite options, and the annual or biennial report fee. Write down both numbers.
- Check for franchise taxes or minimum taxes. These may sit with a separate agency. Search your state’s department of revenue for “LLC annual tax.”
- Choose a registered agent. Serve as your own if you qualify under your state’s rules. Otherwise, a commercial agent is an optional paid extra.
- File your articles of organization through the state’s online portal (usually fastest) or by mail. Pay the filing fee directly to the state.
- Get your EIN. Apply free at IRS.gov once your LLC is approved.
- Write an operating agreement. Even where it isn’t filed or required, it documents ownership and decision-making. The SBA publishes free educational content that defines operating agreements and recommends that LLCs put them in writing.
- Open a business bank account using your approval documents and EIN.
- Calendar your annual report or tax due date right away.
For the bigger picture, see our 6-step incorporation walkthrough. If you’re still deciding whether an LLC fits, read Choosing the Right Business Structure.
Where Paid Formation Services Can Genuinely Help
You don’t need a formation company to file correctly. But paid services can save time in a few situations:
- You want a registered agent but don’t live in the state or can’t be available during business hours.
- You want someone to track annual report deadlines for you.
- You’re forming in a state with unusual filing requirements.
If you do compare services, our look at filing through Bizee shows what that process involves. Whatever you pick, the state fee is still the state fee.
What you can skip: rush add-ons unless you truly need speed, bundled operating agreement templates you can write yourself, and any service charging for your EIN.
Don’t Forget Ongoing LLC Costs After You File
Most states require some recurring filing to keep your LLC in good standing, and missing it can lead to penalties or administrative dissolution (the state ending your LLC’s legal status), depending on the state.
Examples vary widely. Colorado’s periodic report is $25 per BizReport’s guide, while other states charge far more or add franchise taxes. Add your state’s annual figure to a five-year budget. Our guide on tax implications of incorporating covers the federal side.
FAQ
What is the cheapest state to form an LLC?
According to Bizee, Kentucky has the lowest formation fee at $40. But cheapest to form isn’t always cheapest overall. Clear Money Guide stresses comparing five-year costs, including annual taxes.
Do I have to form an LLC in the state where I live?
Generally you form in the state where you do business, though some founders choose another state. Doing business in a state other than where you formed typically requires registering as a “foreign” LLC there, which adds fees, and rules vary by state.
Is the EIN really free?
Yes. The IRS offers the EIN application free at IRS.gov. Beware of sites that charge for the same form.
Can I form an LLC without paying any fees?
No. The state filing fee is unavoidable. What you can avoid is the extra service fee a formation company charges on top.
Why did my state’s fee change?
States update fee schedules through legislation. Louisiana’s Commercial Division fees increased effective October 1, 2026, under Act 921 of the 2026 Regular Legislative Session, according to the Louisiana Secretary of State. Always check the official fee schedule before filing.
Your Next Step
Pull up your state’s fee schedule, write down the formation fee and the annual fee, and multiply the annual one by five. Then read How to Incorporate Your Business for Free in 2026 to file without paying a formation service fee on top of the state fee. Before you submit anything, skim Common Mistakes to Avoid When Incorporating.
Disclaimer: The information in this article is for educational purposes only and does not constitute legal, tax, or financial advice. Business formation rules, fees, and deadlines vary by state and change often. Always consult a qualified attorney, CPA, or tax professional before making decisions about your business.
