LLC Filing & Registration Cost Calculator

How Much Does It Cost to Form an LLC?

Starting a Limited Liability Company involves two categories of costs: one-time formation expenses** and **recurring annual maintenance fees. Understanding both is essential for accurate business planning.

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1. One-Time Formation Costs

Articles of Organization Filing Fee The core state government fee to officially create your LLC. This varies significantly:

| State | Filing Fee | Processing Time | |---|---|---| | Kentucky | $40 | 3–5 days | | Montana | $35 | 7–10 days | | Wyoming | $100 | 1–3 days | | Delaware | $90 | Same day (with fee) | | Florida | $125 | 3–5 days | | Texas | $300 | 5–7 days | | California | $70 | 5–10 days | | Massachusetts | $500 | 3–5 days |

Expedited Processing Most states offer faster processing for an additional fee—often $50–$200 for same-day or next-day formation.

Publication Requirement (Select States) New York requires publishing your LLC formation notice in two local newspapers for six consecutive weeks—this can cost $1,000–$2,000 depending on the county. Arizona has a similar publication requirement for ~$300–$600. No other states currently require this.

Registered Agent (Initial) Required in every state: a registered agent has a physical address in your state and accepts legal documents on behalf of your LLC. Options:

• Serve as your own agent (free, but requires being available during business hours at a listed address)
• Professional registered agent service: $50–$300/year

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2. Annual Recurring Costs

Annual Reports / Franchise Taxes

| State | Annual Cost | Notes | |---|---|---| | California | $800 minimum | $800 franchise tax; even with zero revenue | | Delaware | $300 | Flat annual report fee | | New York | $9 | Biennial (every 2 years) | | Florida | $138.75 | Annual report | | Wyoming | $60 minimum | 0.0002 × assets in Wyoming | | Texas | $0 | No franchise tax under $2.47M revenue | | Nevada | $200 | Annual list + state business license |

Operating Agreement Not legally required in most states, but strongly recommended. Defines ownership percentages, profit distribution, management structure, and exit procedures. A professionally drafted agreement: $300–$1,500 from an attorney, or $50–$100 from a legal document service.

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🏛️ Choosing the Right State: Home State vs "Formation State"

Many entrepreneurs wonder whether to form in a "business-friendly" state like Delaware or Wyoming even if they don't operate there. The key considerations:

Form in your home state if:

• You operate primarily in one state
• Your revenue is under $500,000/year
• You want to avoid paying both a foreign qualification fee AND your home state's fees

Delaware makes sense if:

• You plan to raise venture capital (investors often require Delaware C-corps, but LLCs are accepted)
• You want the Court of Chancery's well-established business law
• You have multiple investors or complex ownership structure

Wyoming LLC advantages:

• No state income tax
• Strong charging order protection (best asset protection)
• Low annual fee ($60 minimum)
• Anonymous ownership (no public member disclosure)

California trap:** If you form a Delaware LLC but operate in California, you must also **register as a foreign LLC in California and pay California's $800 minimum franchise tax anyway—you pay twice.

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💼 LLC vs S-Corp Tax Election

A single-member LLC is a disregarded entity** by default—profits flow through to your personal tax return and are subject to self-employment tax (15.3%). When annual net profit exceeds approximately **$40,000–$50,000, electing S-corp taxation (via Form 2553) can reduce SE tax by splitting income between a reasonable salary and distributions.

Estimated annual SE tax savings from S-corp election at $100,000 net profit:

• Without election: $14,130 SE tax (15.3% × 92.35%)
• With election (e.g., $60K salary / $40K distribution): ~$8,478 SE tax
• Annual saving: ~$5,652 (minus additional accounting costs of $500–$2,000/year)