If you are planning to start a business in the United States, one of the first and most important decisions you must make is choosing your business structure. A Limited Liability Company or LLC is one of the most popular business structures because it offers liability protection with flexible management options and favorable tax treatment.
Table of Contents
In this detailed and easy to read guide, we answer a question that every entrepreneur asks: How Much Does It Cost to Form an LLC in the US in 2026. We will walk you through all the mandatory and optional costs, differences by state, ongoing fees, and expert strategies to keep your expenses low while remaining compliant.
Understanding the full cost picture is essential before you file your LLC paperwork. This is especially true if you are budgeting for launch or planning funding. At Dewey & LeBoeuf LLP, we provide legal solutions across the world including the United States. We bring global expertise and deep regional insight to help business owners make the right choices and avoid common pitfalls.
In this article we cover:
- What an LLC is and why it is popular
- The core cost categories for forming an LLC
- State filing fees and where costs vary
- Optional services and professional fees
- Ongoing annual costs and compliance
- How to save money forming your LLC
- Frequently Asked Questions
By the time you finish reading, you will know exactly How Much Does It Cost to Form an LLC in the US in 2026 and be ready to take action.
What is an LLC and Why Choose It
A Limited Liability Company (LLC) is a legal business structure that protects the owners personal assets from business debts and liabilities. If the business faces a lawsuit or debt problems, the owners are usually not personally responsible. That protection makes an LLC a strong choice for small and medium sized companies, startups, consultants, freelancers and service providers.
LLCs also provide tax flexibility. By default, a single member LLC is treated as a disregarded entity and a multi member LLC as a partnership for tax purposes. You can also elect S Corporation status if it makes sense for your tax situation in 2026.
With that background, lets get into the costs.
Core Costs of Forming an LLC
To answer How Much Does It Cost to Form an LLC in the US in 2026, we must break down the costs into clear categories.
1. State Filing Fee
The single largest mandatory cost is the state filing fee to create your LLC. This fee goes to the Secretary of State or equivalent agency where you want to form your LLC. There is no national or federal fee for creating an LLC.
In 2026, filing fees still vary significantly by state. Some states charge under 100 and others more than 500. Below are examples (approximate):
- Delaware: 90 to 300 depending on filings
- California: 70 to 800 initial LLC fee
- Texas: 300
- Florida: 125
- New York: 200 plus publication requirement
- Colorado: 50
These fees change annually so you should check the exact amount before you file.
If you are asking How Much Does It Cost to Form an LLC in the US in 2026, the filing fee will be the foundation of the answer and the number one expense you cannot avoid.
2. Registered Agent Fee
Every LLC must have a Registered Agent with a physical address in the state of formation. This agent receives legal notices and official mail for the LLC.
You can serve as your own Registered Agent in many states if you have a physical address. If you hire a professional service, expect fees of 100 to 300 per year.
This is not required by law in all states, but most businesses prefer professional Registered Agent services for privacy and compliance.
3. Operating Agreement Preparation
An LLC Operating Agreement is a legal document that outlines ownership percentages, member roles, profit distribution, and management rules.
Not every state requires an Operating Agreement, but it is highly recommended in 2026. If you draft it yourself, there may be no cost beyond your time. If you use an attorney or a professional service, costs can range from 100 to 800 or more depending on complexity.
4. Publication Fees
Some states, like New York and Arizona, require new LLCs to publish notices in local newspapers. Publication requirements can cost from 40 to more than 2000 depending on location.
Not every state has this requirement, but if your business is in one that does, you must include this in your LLC cost planning.
5. Employer Identification Number (EIN)
Most LLCs need an Employer Identification Number (EIN) from the IRS. You can apply for an EIN directly with the IRS for free. Some formation services charge a fee to do this on your behalf.
This cost is optional only if you do it yourself, otherwise it adds 50 to 100 or more.
Optional Professional Fees
For many entrepreneurs, the basic question How Much Does It Cost to Form an LLC in the US in 2026 turns into “How much will I pay if I want professional help?”
Here are common professional fees:
Legal Service Fees
If you hire an attorney, expect rates from 500 to 2500 or more depending on complexity, state, and attorney reputation. Some law firms offer fixed packages for LLC formation.
At Dewey & LeBoeuf LLP, we tailor LLC formation services to your specific business needs, ensuring compliance across jurisdictions and minimizing risk.
Formation Service Companies
Companies like LegalZoom, Incfile, and Rocket Lawyer offer LLC formation services. Prices vary based on package levels but can range from 0 with upsells to 500+ for premium packages.
These services help with filings, EIN, operating agreements, and other documents.
Ongoing Costs After Formation
Initial formation is only part of the cost picture. To accurately understand How Much Does It Cost to Form an LLC in the US in 2026, you must include first year and ongoing expenses.
Annual or Biennial Reports
Many states require LLCs to file annual or biennial reports. Fees range from 20 to 300+ depending on the state.
Franchise Tax
Some states like California impose an annual franchise tax or minimum tax on LLCs. California for example has a minimum 800 franchise tax each year.
Business Licenses and Permits
Depending on your industry and location, you may need business licenses. Fees vary widely.
Registered Agent Renewal
If you use a professional Registered Agent, that fee recurs annually.
Tax and Accounting Fees
LLCs may need accountants to handle tax filings, payroll, and compliance. This cost will depend on your business size but should be budgeted.
Real Cost Range in 2026
Now that we have outlined all categories, let’s answer the key question: How Much Does It Cost to Form an LLC in the US in 2026?
The real cost range depends on state and service choices:
Basic DIY Path
- State filing fee: 50 to 500
- Registered Agent (if DIY): 0
- EIN: Free
- Operating Agreement (template): Free
- Publication Fee (if required): 40 to 2000
Approximate: 50 to 2500+
Professional Help Path
- State filing fee: 50 to 500
- Registered Agent service: 100 to 300
- Attorney or service package: 300 to 2500+
- Publication Fee: 40 to 2000 (if required)
Approximate: 500 to 5000+
Typical Small Business
Most small businesses using a formation service and a registered agent will spend about 800 to 2000 in total first year costs.
By including ongoing expenses like annual reports, franchise tax, and accounting, total yearly costs can range from 300 to 2000+ depending on state and activities.
How to Save Money Forming Your LLC
Here are expert cost saving strategies:
- Compare state fees before choosing state of formation if you do not need a specific state
- Use free IRS EIN application
- Draft operating agreement with a good template
- Shop registered agent services
- Bundle services for discounts
- Work with an attorney for only high risk or complex situations
Remember, cutting corners on compliance will cost you more later.
Frequently Asked Questions
What is the cheapest state to form an LLC in 2026?
Some states have low filing fees and no franchise taxes. The cheapest varies each year. Always check current fee tables before filing.
Do I need a lawyer to form an LLC?
No, you can form an LLC yourself, but a lawyer can help avoid mistakes and ensure compliance, especially if you have multiple members or operate in multiple states.
Can I form an LLC online?
Yes. Most states allow online filings. You can also use formation services to streamline the process.
What is a Registered Agent and why is it needed?
A Registered Agent receives legal and tax documents on behalf of the LLC. Most states require one.
Are there federal fees to form an LLC?
No. LLC formation is handled at the state level. Only the IRS can issue an EIN, and that is free if you apply directly.
When do I have to pay annual fees?
Many states require annual or biennial reports with a fee. Deadlines vary by state.
Does an LLC pay federal taxes?
By default, LLCs are pass through entities for tax purposes. Your income may pass through to your personal tax return. You may elect corporate tax status if beneficial.
If I form an LLC in one state but operate in another, do I pay more?
Yes. If you operate in multiple states, you may need to register as a foreign LLC in each state and pay additional fees.
Conclusion
Understanding How Much Does It Cost to Form an LLC in the US in 2026 is critical for launching your business with confidence. The total cost can range from under 100 in the most basic DIY case to over 5000 with professional services and state fees.
At Dewey & LeBoeuf LLP, we help entrepreneurs and business owners worldwide make smart, compliant business formation choices that save money and reduce risk. If you want personalized guidance or legal support forming your LLC in the United States or other jurisdictions, contact us today.
Contact us for a consultation and let our expert team ensure your business formation is done right and cost effectively.
E-mail: info@deweyleboeuf.com
Phone: +971 58 690 9684
Address: 26B Street, Mirdif, Dubai, UAE
