How Much Does an LLC Cost? TX vs CA vs FL (2026)
Expect to pay between $35 and $500 to file an LLC, and most states charge $50–$200 — the national average is about $130 as of January 2026. But the filing fee is the smallest part of the bill: over five years, the same single-member LLC costs about $300 in Texas and roughly $4,130 in California, a difference of more than 13x. If you file yourself and act as your own registered agent, you can also avoid roughly $750 in service fees over five years.
How Much Does an LLC Cost Up Front in 2026?
The one-time state filing fee ranges from $35 in Montana to $500 in Massachusetts, and you pay it when you submit your Articles of Organization (called a Certificate of Formation in some states) to the Secretary of State. That is the only cost the state strictly requires at formation in most cases.
Your realistic first-year total depends on what you add. A pure DIY filer often pays only the state fee, while a typical startup budget that includes a registered agent service, operating agreement, and licenses runs $700–$1,000. Optional extras like name reservation ($15–$75) and a DBA ($10–$150, commonly around $25) add up quickly.
The filing fee is a one-time cost — it's the recurring annual fees that determine what your LLC really costs to own. All figures here are as of 2026 and subject to change, so verify the current fee on your Secretary of State's website before filing.
How Much Does an LLC Cost in Texas, California, Florida, Georgia, and Illinois?
Georgia and Texas tie for the cheapest of the five states compared here over five years (about $300 total each), while California is the most expensive by far because of its $800 annual franchise tax. Here is the five-year math for a small single-member LLC, assuming you serve as your own registered agent:
| State | Filing fee | Recurring fees | 5-year total (approx.) |
|---|---|---|---|
| Texas | $300 | $0 franchise tax for most small LLCs (report still required) | $300 |
| California | $70 | $800/yr franchise tax + $20 biennial Statement of Information | $4,130 ($70 + $800×5 + $20×3) |
| Florida | $125 | $138.75 annual report | $680 ($125 + $138.75×4) |
| Georgia | $100 | $50 annual registration | $300 ($100 + $50×4) |
| Illinois | $150 | $75 annual report | $450 ($150 + $75×4) |
California's $800 franchise tax is due every year regardless of income, which is why a cheap $70 filing turns into one of the most expensive LLCs in the country to maintain. Texas flips that pattern: the $300 filing fee stings, but most small LLCs owe $0 in franchise tax because their revenue falls below the no-tax-due threshold — confirm the current threshold with the Texas Comptroller.
Judge a state by its five-year total, not its filing fee — California costs more than 13 times what Texas does over five years despite a filing fee that's $230 cheaper.
What Hidden Recurring Costs Should You Budget For?
The three costs most first-time filers forget are the registered agent, annual report penalties, and local licenses. A registered agent service runs about $100–$300 per year, but you can legally serve as your own agent for $0 in every state if you have a physical in-state address and are available during business hours.
Late fees can dwarf the report itself: Florida charges a $400 penalty for missing its annual report deadline — nearly three times the $138.75 report fee. A general business license costs $15–$200 in most states, and New York adds a publication requirement: you must announce your LLC in two newspapers and pay $50 to file a Certificate of Publication (the equivalent affidavit costs $25 in Nebraska and is free in Arizona).
Common mistake: paying a third-party "EIN filing service" $50–$100 for something the IRS provides free. Your EIN (federal tax ID) takes about 10 minutes to get directly at irs.gov at no cost — any site charging for it is reselling a free government service.
Put your annual report deadline on your calendar the day your LLC is approved — the late penalty is often one of the most expensive LLC fees you'll ever pay.
π Check it now on IRS — Get an EIN freeDIY or Formation Service: What's the 5-Year Difference?
For a Georgia single-member LLC, DIY costs about $300 over five years versus roughly $1,050 with a "$0 + state fee" formation service — a $750 gap. Here's the itemized math:
- DIY route: $100 filing + $50 annual registration × 4 years + $0 EIN + $0 (self as registered agent) = $300.
- Formation-service route: $0 service fee + $100 state fee + $50 × 4 annual registrations + registered agent at $150/year × 5 years (a conservative mid-range rate) = $1,050.
Those "free" formation offers make their money on the registered agent renewal and upsells like operating agreement templates, compliance alerts, and EIN filing — all things you can do yourself. A lawyer ($500–$2,000) is worth it in specific cases: multi-member LLCs that need a custom operating agreement, businesses taking on investors, or licensed professions with special entity rules.
File directly on your Secretary of State's website (most states process online filings in days) and get your EIN free at irs.gov the same day. This one habit saves the entire $750 five-year service premium with about an hour of work.
DIY filing is genuinely fine for a simple single-member LLC — the forms ask for little more than your name, address, and registered agent.
How Can You Keep LLC Costs Down?
Most overpayment comes from four avoidable mistakes, and a short checklist prevents all of them:
- Verify the current filing fee on your state's official site before paying anyone.
- Calendar the annual/biennial report deadline immediately (Florida's $400 late fee is the cautionary tale).
- Decline add-ons you can do free: EIN, basic operating agreement, DBA you don't need.
- Keep your registered agent address current to avoid missed notices and reinstatement fees.
The biggest strategic mistake is forming in Delaware or Wyoming while operating elsewhere. You'd pay Delaware's $110 filing plus its $300 annual tax, and then still register as a foreign LLC in your home state — typically the same amount as a formation fee — doubling every recurring bill. For a small business, form where you actually operate.
Finally, if you shut down, dissolve formally rather than letting the LLC lapse. Ignoring annual reports triggers late penalties and administrative dissolution, which can cost more to fix than a clean dissolution filing. Note that some states — including Alabama, Arizona, Missouri, New Mexico, Ohio, and South Carolina — require no annual report at all, which simplifies ongoing costs.
An LLC's cheapest configuration is almost always: home state, DIY filing, self as registered agent, free EIN, and a calendared report deadline.
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Common Questions
What is the cheapest state to form an LLC in?
Montana has the lowest filing fee at $35 as of 2026. But the cheapest state overall is usually your home state — forming elsewhere means paying a foreign registration fee (typically equal to a formation fee) plus two sets of recurring costs.
Does an LLC cost money every month?
No. LLC fees are annual or biennial, not monthly. Spread out, a Georgia LLC averages about $5/month over five years, Florida about $11/month, and California about $69/month — almost entirely from its $800 annual franchise tax.
Can I deduct LLC formation costs on my taxes?
Formation and organizational costs are generally deductible or amortizable business expenses, and LLCs are pass-through entities, so profits are reported on your personal return. Confirm specifics with a tax professional — this is not financial advice.
Do I need a registered agent service, or can I be my own?
Every state lets you serve as your own registered agent for free if you have a physical in-state address and are available during business hours. A paid service ($100–$300/year) mainly buys privacy and coverage if you move or travel often.
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