Starting a business is an exciting endeavor, and one of the most popular ways to do so in 2026 is by forming a Limited Liability Company (LLC). An LLC provides numerous benefits, including liability protection, tax flexibility, and operational ease. However, before diving into the world of entrepreneurship, it’s essential to understand the costs involved in forming an LLC online or offline.
While the process may seem straightforward, the costs can vary depending on several factors, including the state in which you form your LLC, the services you choose to use, and additional legal requirements specific to your industry.
Here, we’ll walk you through everything you need to know about the costs involved in starting an LLC in 2026, so you can make informed decisions for your business.
Understanding LLC Formation Costs
Starting an LLC in 2026 involves several key steps, each of which comes with associated costs. These can be broadly categorized into mandatory costs, optional costs, and ongoing fees.
Mandatory Costs to Form an LLC
1. State Filing Fees
The primary mandatory cost when forming an LLC is the state filing fee for submitting your Articles of Organization (or Certificate of Formation). This document officially establishes your LLC with your state’s business authority (typically the Secretary of State). The fees can range dramatically depending on the state.
For example:
Average Cost Range: Most states charge between $50 to $200 for filing.
2. Registered Agent Fees
Every LLC needs a registered agent to receive legal documents on behalf of the company. You can either serve as your own registered agent or hire a professional service. Using a professional registered agent service typically costs between $100 and $300 annually. This service ensures your privacy and guarantees compliance with state regulations.
3. Publication Fees (In Some States)
In a few states, such as New York and Arizona, you must publish a notice of your LLC formation in local newspapers. This requirement can add high costs, with fees typically ranging from $25 to $500, depending on the publication rates in your area.
Optional Costs for LLC Formation
While some costs are mandatory, others depend on your specific needs. Here are a few optional expenses to consider:
1. Business Name Reservation
If you want to ensure your LLC’s name is reserved before you file your Articles of Organization, you can pay a small fee (typically between $15 to $75) to reserve the name for a set period. This is especially useful if you’re concerned that your business name might be taken before you file.
2. Fictitious Business Name (DBA) Registration
If you plan to operate under a name different from your LLC’s legal name (e.g., “Jones Cleaning Services” instead of “Jones Cleaning, LLC”), you’ll need to file a DBA (Doing Business As) or fictitious business name. This filing fee ranges between $10 to $150, depending on your state and local jurisdiction.
3. Expedited Processing
If you’re in a hurry to get your LLC up and running, most states offer expedited processing for an additional fee. This can range anywhere from $25 to $500, depending on how fast you want the process to be completed. Some states, like Delaware, offer near-instantaneous processing for a higher cost.
Additional Costs You May Encounter
1. Operating Agreement
Although not required by all states, it’s highly recommended that your LLC have an operating agreement, which outlines the roles, responsibilities, and share of profits for each LLC member. If you choose to hire an attorney or use a service like LegalZoom to help draft this document, the cost can range from $50 to $500, depending on the complexity of the agreement.
2. Business Licenses and Permits
If your business operates in a regulated industry (e.g., food service, healthcare, or real estate), you’ll need to obtain the necessary business licenses and permits. These costs vary depending on your industry and location, with general business licenses typically costing between $15 and $200.
For example:
- Tennessee requires an annual general business license fee of $15 for LLCs with income between $3,000 and $100,000.
- New York has various license and permit fees depending on the which type of business you operate, ranging from $50 to $1,000+.
Ongoing LLC Maintenance Costs
Once your LLC is formed, there are a few ongoing costs to consider to maintain your business in good standing:
1. Annual/Biennial Report Fees
Most states require LLCs to file annual or biennial reports, updating the state on the LLC’s name, address, and ownership structure. The cost for these reports varies by state, typically ranging from $15 to $300.
For example:
- California charges an annual $20 fee for the Statement of Information.
- Delaware charges a $300 annual franchise tax in addition to any other annual filing fees.
2. Franchise Taxes
Some states, like California, charge LLCs an annual franchise tax in addition to regular filing fees. This flat tax can be as high as $800 in California, regardless of your business’s revenue. Other states have a more flexible system that may base the franchise tax on the LLC’s income or the number of members.
How Much Does It Really Cost to Start an LLC in 2026?
Now that we’ve covered the basics of LLC formation costs, here’s a breakdown of what you can expect to pay on average:
- Basic Costs (State Filing, Registered Agent): $200 – $500
- Optional Costs (DBA, Name Reservation, LLC Operating Agreement): $100 – $600
- Ongoing Costs (Annual Report, Franchise Taxes): $100 – $1,000/year
In total, you can expect to pay anywhere from $300 to $1,200 for the initial formation of your LLC, with annual maintenance costs typically ranging between $100 and $1,000 per year. If you choose additional services or have a more complex business, your costs could exceed this range.
Are There Any Ways to Lower LLC Formation Costs?
Absolutely! Here are a few strategies to help keep costs down:
- DIY Formation: You can save money by filing your LLC formation documents directly with your state, avoiding service fees. However, this requires a keen understanding of the legal process.
- Use Online Services Wisely: Online LLC formation services offer affordable LLC formation packages that include all the necessary paperwork and expert guidance. Many also offer ongoing services like registered agent support and annual report filings for a reasonable fee.
- State-Specific Savings: Some states have lower filing fees or no franchise taxes. For example, forming an LLC in Montana can cost as little as $35 in filing fees, while Delaware is known for its favorable tax structure for LLCs.
Conclusion: Is Forming an LLC in 2026 Right for You?
The cost of forming an LLC in 2026 is highly dependent on where you’re located, the services you opt for, and your business’s specific needs. However, with the flexibility, liability protection, and tax benefits that come with an LLC, the investment is often well worth it.
By understanding the costs and planning accordingly, you can ensure that your LLC formation process goes smoothly and that your new business is set up for long-term success. Make sure to look out for the best LLC formation service online to streamline the process of forming an LLC online in 2026.
Are you ready to take the next step and form your LLC?
