ContractsCounsel Logo
Home Blog Cost of Forming an LLC

Jump to Section

ContractsCounsel has assisted 270 clients with llcs and maintains a network of 195 business lawyers available daily. These lawyers collectively have 21 reviews to help you choose the best lawyer for your needs.

The cost of forming an LLC covers state-imposed filing fees, which could range from $40 to $500, depending on the state you live in. These include various charges and expenses related to legally incorporating an LLC and complying with the laws set forth by the State or other governing authority under which it is organized. In this post, we’ll go over some common costs when forming an LLC as well as give tips on how to deal with money matters while starting a business.

Breaking Down the Cost of Forming an LLC

Please note that these prices are approximations only and that your actual costs may vary depending on your location, the nature of your LLC, and any additional services or requests you decide to make. Below are some customary price ranges for creating an LLC.

  • State Filing Fees: State filing fees for incorporating an LLC generally range from $40 up to $500 or even more. The exact amount will be determined by the state in which you form the LLC. Some states have lower rates, while others charge higher amounts. State-specific filing charges should be researched well.
  • Publication Requirements: Some states do not require publication. For example, in New York, new-formed limited liability companies (LLCs) are required to publish their Articles of Organization in a local newspaper. Publishing expenses will depend on locality and newspaper publication price.
  • Registered Agent Services: In many states, registered agents are individuals or organizations that can accept the service of processing papers and other official mail on behalf of the company. The yearly cost for registered agent service varies between $100 - 300.
  • Legal/Professional Services: Although it is possible to form an LLC without a lawyer’s help, some people opt either hire one to get proper guidance throughout the process as well as to ensure that they meet all requirements made by State laws
  • Charges to Reserve a Name: A person can reserve the name of their new company until the formation documents are processed. The fee for name reservation is usually $10 to $50 in many areas. This is meant to ensure that people get peace of mind knowing that their preferred name will still be available and secure while they prepare papers for forming an LLC.
  • Operating Agreement: While it is true that not all states require this document, an operating agreement should be considered necessary for an LLC. If you choose to have your operating agreement written by a lawyer, there may be additional costs involved.
  • Annual Report Fees: Many states ask that LLCs file annual reports or statements and pay filing fees based on them. Such payments are made once every year and can cost between ten dollars to several hundred.
  • Other Miscellaneous Costs: There are different additional charges imposed by each state, such as but not limited to business license fees, ongoing compliance fees, name reservation fees, etc. These charges may vary depending on the individual situation.

Components of the Cost of Maintaining an LLC

You must review state laws governing your registered LLC as the maintenance requirements specific to each state may differ in terms of their specifications as well as relevant penalties. The following are the costs associated with maintaining an LLC.

  • Yearly Reports or Statements: In some states, limited liability companies (LLCs) must submit yearly reports or statements. These record papers have the most up-to-date information about the LLC, such as its address, members, registered agent, and so on. The filing fee for this report varies by state, ranging from $10 to $300 or more. You need to find out what your state requires from you and how much it will cost you.
  • Franchise Taxes or Annual Fees: Franchise taxes are imposed by some states on LLCs. The amount of franchise tax paid by an LLC is usually determined by the income or asset value of the company in relation to a certain state’s laws. Therefore it is necessary to learn about specific regulations and charges applicable in your area.
  • Business Licenses & Permits: There might be different local, state, or federal business licenses and approvals required for certain activities that an LLC participates in. The costs associated with obtaining these licenses/permits vary greatly depending on where they are obtained as well as what industry they pertain to.
  • Legal & Accounting Services: Lawyers and accountants may perform contract work for many LLCs while also ensuring tax compliance with applicable laws. Moreover, they keep proper books of accounts where necessary; other businesses could lean on their knowledge of legal frameworks during negotiation processes with clients, which then leads to price changes for the above services based on how complex an organization's requirements are vis-a-vis its need for support.
  • Optional Professional Services: If you decide to hire professionals for tasks like yearly financial statements, tax returns, or ongoing legal advice, be prepared for extra charges. Prices quoted can vary greatly depending on the services required and the provider used.
  • Miscellaneous Expenses: Running an LLC may require some additional expenditures, such as notary fees associated with signing contracts between the business entity and external parties and amendment fees paid when making certain changes to articles of incorporation, among others that may come up depending on one’s situation and needs.
Meet some lawyers on our platform

Michael K.

101 projects on CC
CC verified
View Profile

Michael M.

609 projects on CC
CC verified
View Profile

Rene H.

37 projects on CC
CC verified
View Profile

Steven S.

21 projects on CC
CC verified
View Profile

LLC Cost Benefits for Small Businesses

  • Limited liability companies (LLCs) can be a cheaper option for small business owners and entrepreneurs. While there might be costs involved in setting up an LLC, the overall amount is generally reasonable.
  • Setting up an LLC typically comes with lower initial investments compared to establishing corporations since they often have more complex legal requirements and administrative processes involved. Generally, when starting, attorney fee amounts would be lesser than what would have been spent if it were formed as a corporation, together with state filing fees plus any other related costs.
  • Maintenance of a typical corporation tends to attract higher expenses compared to those incurred by ordinary limited liability companies. Over time, however, one might save some cash because these organizations have relatively low administrative & compliance burdens.
  • Creating an LLC has its cost implications but remains one of the cheapest ways through which businesses can be registered due to its benefits, such as limited liability protection and flexible management structure, among others.

Key Terms for the Cost of Forming an LLC

  • Limited Liability Company (LLC): This popular form of enterprise combines the advantages provided by corporations with those offered by partnerships or sole proprietorships.
  • Maintaining Cost: The charges that come up when you want something kept in good working condition are called Maintenance Charges.
  • Filing Fees: These are expenses or dues paid for approving or reviewing any official papers required by law through regulatory bodies among other government agencies.
  • Operating Agreement: It provides basic regulations and standards for running any company as well as managing it effectively while reflecting on fundamental constitutive principles of such organization known as a limited liability company operating agreement template free download fillable PDF or word document.
  • Jurisdiction: The region where it was created plus operates dictates the specific laws and rules that every given LCC must obey.

Final Thoughts on the Cost of Forming an LLC

Entrepreneurs and business owners need to consider the cost of establishing a Limited Liability Company (LLC). Fees for state filing, publication requirements in some jurisdictions, professional and legal services, name reservation fees, and other unexpected expenses are the main causes of expenditure. Businesses must carry out adequate research to find out the exact costs being charged in their state or jurisdiction. However costly, it can be considered as an investment into the future prosperity and safety of your organization. To know how much it may cost you when forming an LLC, plan your finances properly by choosing the appropriate services required during the process. When you take time and analyze these costs well, it becomes easy for anyone to form an LLC with full confidence such that a successful commercial venture can be started afterward.

If you want free pricing proposals from vetted lawyers that are 60% less than typical law firms, Click here to get started. By comparing multiple proposals for free, you can save the time and stress of finding a quality lawyer for your business needs.

ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.

Meet some of our Lawyers

Steven S. on ContractsCounsel
View Steven
5.0 (19)
Member Since:
April 7, 2023

Steven S.

Free Consultation
New York; Florida
43 Yrs Experience
Licensed in FL, NY
New York Law School

Steven Stark has more than 35 years of experience in business and commercial law representing start-ups as well as large and small companies spanning a wide variety of industries. Steven has provided winning strategies, valuable advice, and highly effective counsel on legal issues in the areas of Business Entity Formation and Organization, Drafting Key Business Contracts, Trademark and Copyright Registration, Independent Contractor Relationships, and Website Compliance, including Terms and Privacy Policies. Steven has also served as General Counsel for companies providing software development, financial services, digital marketing, and eCommerce platforms. Steven’s tactical business and client focused approach to drafting contracts, polices and corporate documents results in favorable outcomes at a fraction of the typical legal cost to his clients. Steven received his Juris Doctor degree at New York Law School and his Bachelor of Business Administration degree at Hofstra University.

Matt B. on ContractsCounsel
View Matt
5.0 (7)
Member Since:
September 8, 2023

Matt B.

Free Consultation
Coral Gables, FLorida
24 Yrs Experience
Licensed in FL, NY
University of Miami School of Law (JD)

Matt practices law in the areas of commercial finance, contract law, business & corporate law, and residential and commercial real estate (with a particular emphasis on retail shopping centers and office buildings). He has extensive experience in negotiating and structuring complex commercial loan, asset acquisition, asset disposition, leasing and real estate transactions. Matt additionally works on various general matters for clients such as forming LLCs and corporations, preparing various LLC and corporation documents and drafting and reviewing various types of contracts and agreements for clients and providing advice regarding same. Matt provides clients with extensive and timely communication on their matters and ensures that his clients are well represented and highly satisfied with their legal representation and the work product provided. Matt offers all potential clients a free initial consultation to discuss their legal matters prior to engaging his firm to represent them. Prior to opening his law firm Matt worked for many years in the New York City office of a large international law firm where he counseled large multi-national businesses, financial institutions, investment groups and individuals on highly sophisticated business, financial and real estate transactions. Matt provides his clients with diligent legal representation on their matters with a very personal approach.

Michael B. on ContractsCounsel
View Michael
4.8 (14)
Member Since:
October 30, 2020

Michael B.

Free Consultation
14 Yrs Experience
Licensed in IL, MN, WI
University of the Pacific

Michael has extensive experience advising companies from start-ups to established publicly-traded companies . He has represented businesses in a wide array of fields IT consulting, software solutions, web design/ development, financial services, SaaS, data storage, and others. Areas of expertise include contract drafting and negotiation, terms of use, business structuring and funding, company and employee policies, general transactional issues as well as licensing and regulatory compliance. His prior experience before entering private practice includes negotiating sales contracts for a Fortune 500 healthcare company, as well as regulatory compliance contracts for a publicly traded dental manufacturer. Mr. Brennan firmly believes that every business deserves a lawyer that is both responsive and dependable, and he strives to provide that type of service to every client.

Orin K. on ContractsCounsel
View Orin
5.0 (3)
Member Since:
October 24, 2021

Orin K.

Free Consultation
New York
20 Yrs Experience
Licensed in NY
New York Law School

I'm an employment lawyer. I counsel and represent employees in all professions, from hourly workers to doctors and executives, and all in between. I also counsel and represent employers in many aspects of employment law.

Reuben O. on ContractsCounsel
View Reuben
Member Since:
October 21, 2021

Reuben O.

Senior Managing Attorney
Free Consultation
15 Yrs Experience
Licensed in ID, WA
The University of Iowa

As an entrepreneur at heart, I enjoy working with business owners and executives on a variety of corporate matters, including mergers and acquisitions, corporate financing, corporate governance, public and private securities offerings, privacy regulation and early-stage corporate matters including formation. As a lawyer and business professional, I understand the value of providing personal service and focused legal answers to clients navigating a rapidly changing regulatory environment. Whether in Aerospace, Consumer Goods, or Technology, I find great success in work collaboratively with clients to strategical structure their business or implementing strategic growth-oriented financing opportunities.

Thaddeus W. on ContractsCounsel
View Thaddeus
Member Since:
October 22, 2021

Thaddeus W.

Free Consultation
Los Angeles, Ventura County, New York City
27 Yrs Experience
Licensed in CA, NY
University of Notre Dame Law School

Experienced legal counsel to entrepreneurs, small businesses, and investors. Advising clients starting, buying, selling, operating, financing, and investing in businesses // U.S. Army Veteran // Ironman Triathlete, Marathoner, Open Water Swimmer, USAT Triathlon Coach // Lover of Dogs, Cribbage, Craft Beer, Bourbon, and Cigars

Nichole C. on ContractsCounsel
View Nichole
Member Since:
October 22, 2021

Nichole C.

Free Consultation
18 Yrs Experience
Licensed in KY
University of Louisville, Brandeis School of Law

Licensed attorney in KY and Federally JD, 2006 University of Louisville MBA, 2006 University of Louisville BS, 2001 Berea College Licensed Title Agent Arbitrator and Certified Mediator Business Consultant Adjunct Professor, Law and Business

Find the best lawyer for your project

Browse Lawyers Now

Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.

View Trustpilot Review

Need to form an LLC?

Create a free project posting
Clients Rate Lawyers 4.9 Stars
based on 11,522 reviews
See All Business Lawyers
See All Cost of Forming an LLC Lawyers

Contracts Counsel was incredibly helpful and easy to use. I submitted a project for a lawyer's help within a day I had received over 6 proposals from qualified lawyers. I submitted a bid that works best for my business and we went forward with the project.

View Trustpilot Review

I never knew how difficult it was to obtain representation or a lawyer, and ContractsCounsel was EXACTLY the type of service I was hoping for when I was in a pinch. Working with their service was efficient, effective and made me feel in control. Thank you so much and should I ever need attorney services down the road, I'll certainly be a repeat customer.

View Trustpilot Review

I got 5 bids within 24h of posting my project. I choose the person who provided the most detailed and relevant intro letter, highlighting their experience relevant to my project. I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations.

View Trustpilot Review

Need to form an LLC?

Create a free project posting
Clients Rate Lawyers 4.9 Stars
based on 11,522 reviews

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call

Find lawyers and attorneys by city