How Much Does It Cost to Start an LLC? Every Fee Itemized

Imagine a couch marked down to a great price, then delivery, fabric protection, and a stand all show up at checkout. That sticker price didn’t tell you much.

Starting an LLC (limited liability company, a business structure that keeps your personal finances separate from your business debts) can work the same way.

Here, we’ll lay out every cost in one budget: state filing fees, name costs, paperwork, licenses, yearly upkeep, and optional help.

Then we’ll show you whether an LLC is worth paying for compared with staying a sole proprietor, the default setup with no separate business entity.

How Much Does It Cost to Start an LLC?

A limited liability company (LLC) costs real money, but in pieces you can plan for.

What you gain from an LLC

Here’s what you get:

• Personal asset protection. Your personal savings are generally shielded from business debts.
• Pass-through taxation. The business usually pays no income tax, so profit flows to your personal return.
• Flexible management. Fewer formalities than a corporation, and you choose how it’s run.
• Credibility with banks and investors. Lenders take a formed LLC more seriously.

So is an LLC really worth it? It depends less on fees than on what’s at risk. A sole proprietor skips state filing fees, but business debts can reach personal savings. Protection is what you’re paying for.

When it’s time to form an LLC

You’ll want one when:

• Launching or hiring employees. Once others work on your jobs, keep the business apart from you.
• Recruiting investors. Outside money needs a formal structure.
• Signing contracts. Some larger clients want a business name on contracts.
• Side hustle to full-time. A wedding photographer whose weekend bookings now pay rent forms an LLC so one bad event can’t reach their savings.

Set up your LLC step by step

1. Pick a name and appoint an agent. Choose an available name, plus a registered agent for legal papers.
2. File articles of organization. This state filing creates the LLC; fees vary by state.
3. Get an employer identification number (EIN) and licenses. The EIN is your federal tax ID. Cities and counties may also require a license.
4. Open a business bank account. Run client payments through it, not your personal account.
5. Update contracts and invoices to the LLC. Use the exact legal name on everything new.

Pass-through needs no election. Switching tax treatment later can add paperwork and payroll costs.

What Filing Your Articles Costs by State

Your state’s filing fee is the first real number in your LLC budget, and it’s the one you can’t skip. Here’s what to expect and where you’ll pay more or less.

Typical fees and the national average

Filing fees run from $35 to $800 depending on the state. According to MarketWatch’s LLC cost guide, most states charge $50 to $200, and the national average is around $123.

Since the fee varies by state, treat that average as a budgeting placeholder, not a promise.

If you’re asking how much it costs to register a business in Louisiana, we don’t have a verified figure to share here. Check the state’s business filing office for the current fee before you lock in your budget.

Fees in New York and the Carolinas

Three states show how far the number can move:

• New York: $200
• North Carolina: $125
• South Carolina: $110

The South Carolina Secretary of State’s downloadable forms list $110 to file Articles of Organization.

Filing is mandatory, and it’s a one-time cost. Consider a freelance illustrator in New York forming a solo LLC: the $200 fee is one clean line in her startup budget, and it won’t sneak up on her.

Which states are cheapest and priciest

Montana and Kentucky are among the cheapest places to form an LLC. MarketWatch’s ranking of the best states to form an LLC lists Montana at $35 and Kentucky at $40 for a domestic LLC.

New Mexico and Wyoming also run low, while California, Nevada, and Massachusetts sit at the expensive end, with Massachusetts reaching $500 in MarketWatch’s cost guide.

Don’t pick a state on the filing fee alone. Compare formation plus annual costs before you decide, because total cost tells the real story.

How your filing method changes the price

How you file changes the bill, not just where you file. Some states add a surcharge for online filing, and expedited tiers climb as the turnaround gets faster, up to same-day and 2-hour options. Speed costs extra. Certified copies carry their own fee too.

Say a writer has a signed contract waiting on the LLC’s approval. A rush tier may be worth it, since a delayed start can hold up the whole project.

Registering in other states you operate in

The rule is to register in each state where you operate. A foreign LLC is one formed in a different state and registered to do business in yours, and its fee can differ from your home-state fee.

MarketWatch’s ranking shows the domestic vs. foreign gap clearly: Montana charges $70 for a foreign LLC versus $35 domestic, and Kentucky charges $90 versus $40.

Picture a Kentucky photographer taking a long project in Montana. She budgets Montana’s $70 foreign fee, not the $40 domestic fee she paid at home.

Why prices vary from state to state

Each state sets its own rules, so each sets its own fee, and compliance and registered agent costs vary too. A registered agent is the designated contact who receives official mail for your LLC.

Single-member and multi-member LLCs pay the same filing fee, so adding a partner won’t change that line. Before you file anywhere, research that state’s requirements, because the fee is only the start.

Costs Tied to Your Business Name

Your name shows up on every invoice, so it pays to know what it costs before you file.

Check that your name is available

Start with the free business entity search in your state’s Secretary of State database.

A unique name is required, so a photographer who loves “Golden Hour Studio” should confirm it’s available before she builds a brand around it. Search before you spend a dime.

Paying to hold your name temporarily

A name reservation locks in your name while you finish the paperwork. Most states make it optional, and holds generally run 60 to 120 days. According to Texas’s Secretary of State instructions, an entity name “may be reserved for a period of 120 days.”

Alabama is the exception: its Domestic LLC Certificate of Formation form requires a Name Reservation Certificate attached to your filing. Fees run roughly $10 to $75, and EntityCheck’s state-by-state guide lists Arizona at $10 for 120 days.

Think of an illustrator with a launch client two months out. A reservation keeps her name locked while she finishes her contracts.

Fees to operate under a DBA name

Sometimes you want to trade under a name other than your legal or LLC name. That’s a DBA, short for “doing business as.” Fees vary by state and county, and some states don’t have a state DBA at all.

This is less about what the name costs and more about where you file it. A designer selling prints under a separate name should check her own state and county, not a friend’s number.

Registered Agent, Agreement, and Legal Costs

Three paperwork items show up in almost every LLC budget: a registered agent, an operating agreement, and an employer identification number (EIN). Here’s what each one costs and where we’d spend money first.

What a registered agent costs each year

A registered agent receives official mail and legal papers for your LLC, and it must have an in-state address. In most states, you’re required to have one.

Your options come down to two:

• Act as your own agent: costs nothing.
• Hire a service: about $100 to $300 a year.

Paying for an agent buys you privacy and reliability, not just a mailbox. Take an illustrator working from a spare room: acting as her own agent is free, but her home address goes on the paperwork.

A paid service keeps it off and makes sure legal mail gets handled.

Drafting your operating agreement on a budget

An operating agreement sets out how your LLC is run and who owns it. Free DIY templates make a sensible starting point for a studio of one.

Treat it as a tool you use, not a form you file and forget. Attorney drafting costs extra, and requirements differ by state, so check yours before you copy a template.

It’s recommended even when you’re the only owner (a single-member LLC), so don’t skip it.

Lawyer and tax advisor fees to expect

Hourly attorney rates vary, so ask for a quote first. Custom legal drafting is where costs climb, since a lawyer writing an agreement from scratch bills for every hour of it. Tax advice on how your LLC will be taxed is a separate expense.

Professional help raises cost, so decide which pieces you can handle yourself.

Consider a designer who writes her own agreement from a free template, then pays a lawyer to review it for a few hours. She keeps the bill small and gets a second set of eyes on the clauses that matter most.

Getting an EIN and what it costs

An EIN is a tax ID number for your business. The IRS issues it free, while paid services mark up the same step.

You’ll need your EIN to open a business bank account and to file your taxes. Get it early.

Licenses and Permits to Check For

Before you file, you’ll need to know which licenses and permits your studio actually needs. The answer depends on what you sell and where you work, so that’s where we’d start.

Which licenses apply to your business

A business license is local permission to operate, and the requirements depend on your industry and location. They can come from the state, the county, or the city, and a studio can owe all three.

A photographer in one city might need a city license that a writer in the next town doesn’t.

Costs vary widely, so check your city and county offices rather than a forum post. The startup fee is easy to see. It’s the renewal that people forget, so budget for it.

Newspaper notice rules in a few states

A few states, including New York, Arizona, and Nebraska, require new LLCs to publish a newspaper notice in a local paper. The cost varies by county, and you’ll also pay for the Certificate of Publication that proves the notice ran.

Consider a writer in New York who gets buried in her first client project and lets the deadline slide. Missing it risks suspension, which is a bigger problem than any fee. The deadline is the part that bites.

Fees for licensed professions and PLLCs

Regulated industries pay more. If your work falls under a state licensing board, expect board-specific licensing fees on top of standard costs.

A professional LLC (PLLC) is built for a licensed profession, and forming one can bring PLLC consent fees. Most illustrators and photographers won’t need one, but if your work is regulated, ask before you file.

Sales tax permits and what they cost

A sales tax license lets you collect tax on taxable sales, and retail license fees vary by state. Consider a photographer who sells prints at a weekend market. Once she’s selling physical goods, she may need one before her first sale.

Some states charge nothing at all. Check your state’s rules before you pay anyone for it.

Yearly Costs to Keep Your LLC Active

Forming your LLC is a one-time cost. Keeping it active is ongoing, so here’s what to budget each year.

How much to renew an LLC in Georgia?

According to a study on the disproportionate costs of forming LLCs, most states require an annual or biennial report, meaning a filing every year or every two years. Some charge nothing, and fees run from $0 to $800 by state.

For Georgia, we don’t have a verified renewal figure to share, so check the current annual fee with the state before you budget. Treat it as a recurring line item, not a one-time payment.

How franchise taxes and revenue fees vary

Some states add a franchise tax, a fee for the right to do business there, on top of the report. Some are flat, while others are revenue-based, rising with what your business brings in.

California, Delaware, and Texas show how much these rules vary, so check your own state’s schedule. New York’s fee is tiered by income, and some states add corporate license fees on top.

Picture a freelance photographer in New York. Her fee depends on her income, so she sets aside a little each month rather than facing a surprise bill.

What happens if you miss a filing

Missed filings can bring:

• Fines for the late report
• Administrative dissolution, meaning the state formally shuts down your LLC
• Loss of good standing, the status showing your LLC is current on its filings

Think of a freelance designer who lands a contract with a larger company, only to learn she needs proof of good standing and her last report is overdue. The deal waits while she sorts it out. Set reminders for every deadline the day you register.

Insurance you should budget for

Insurance belongs in this budget too. General liability insurance is a monthly cost, so get a quote for your type of work. Workers’ compensation covers on-the-job injuries, and it’s worth checking once you bring on help.

It also protects your personal assets if a claim comes in.

Check client insurance requirements before you sign. An illustrator whose agency client wants proof of coverage before kickoff can reply in one email if she’s already insured. If not, the project may slip.

Doing It Yourself or Paying for Help

Forming your limited liability company (LLC) can go three ways: yourself, through an online service, or with a lawyer. We’ll compare what each one costs in money and time.

Filing it yourself for just state fees

Filing on your own means paying only the state’s fees. Consider a freelance illustrator who spends one quiet weekend reading the state’s forms and keeps the money a service would have charged.

The catch is research time, since you have to learn each form before you file it. You’ll handle three steps:

1. File articles of organization to create your LLC.
2. Draft an operating agreement, the internal rules for running the business.
3. Apply for an Employer Identification Number (EIN), your business tax ID.

After that, you’ll track ongoing filings yourself. The fee is low, but the time isn’t.

Online services and their add-on charges

Online services handle the paperwork for you, with packages at various prices. Many include dashboards and deadline alerts that remind you when filings are due.

Expect upsells on agent services, including a registered agent, the person or company that receives legal papers for your LLC. State fees are often excluded from the package price.

Picture a photographer who grabs a bargain bundle, then finds the state fee and an agent add-on waiting at checkout. Compare the total, not the sticker price.

What a lawyer charges to form one

A lawyer offers the most hands-on help and the highest bill. Attorneys bill by the hour, and total costs can climb into the thousands of dollars.

Before you sign, clarify scope: ask whether the fee covers the articles, the operating agreement, and follow-up filings, and whether the state fee is passed through to you. Get that in writing.

To find one, ask other freelancers for a referral or look for a business attorney who works with small service businesses.

Total Cost to Start an LLC

The state filing fee is only the starting line. Here’s how to budget the whole thing, including the extras that catch solo creatives off guard.

Can you form an LLC in Texas for free?

No. You can’t form an LLC in Texas for free, because a limited liability company (LLC) requires a state filing fee. That fee is the floor, not the total.

• Add-ons raise the total. Rush processing and professional help both add to the bill.
• Cheapest path: file yourself and pay only the state fee and any required extras.
• Professional path: a lawyer or formation service handles the filing, and their fees sit on top of the state’s.

Costs people often forget to budget

• Publication. Some states require a notice of formation to be published in a newspaper, and that bill is easy to miss. Check before you file.
• Expedite fees. Need your paperwork faster? Expedited processing costs extra.
• Insurance. It’s often overlooked, but liability coverage can protect you if a client says your work caused them a loss.

Set aside a small buffer for surprises. Think of a freelance illustrator who budgets only the state fee, then gets a publication bill and a rush charge in the same month.

With a cushion, that’s an annoyance instead of a crisis. Surprises belong in the budget.

Simple ways to keep costs down

1. Research state costs. Look up the official fee schedule before you build your budget.
2. Choose your name early. Run an availability check before filing, since a taken or changed name means redoing paperwork.
3. Write your own operating agreement. An operating agreement is your LLC’s internal rulebook. Adapt a template yourself rather than paying for a custom one.
4. Avoid missed deadlines. Late reports can bring penalties. A freelance photographer who calendars her state report never pays one during a busy shoot season.

Which startup costs you can deduct

Many startup costs can lower your tax bill. Filing fees and registered agent fees (the service that receives legal papers for your business) are generally deductible, and so are many legal and license costs tied to starting up.

Tax rules depend on your situation, so consult a tax professional before you claim anything.

Think of a copywriter who keeps every filing receipt in one folder, so tax time becomes a quick sort instead of a scramble. Keep every receipt.

Once you see every cost in one place, the LLC decision gets a lot less murky. The state fees and yearly upkeep are predictable line items you can plan for, and the add-ons are only worth buying if they solve a real problem in your studio.

Weigh that budget against your income, your risk, and how you actually work. The right structure is the one you can afford to keep running, year after year.

References

1. Form 501 — Instructions for Application for Reservation or Renewal of Reservation of an Entity Name — sos.state.tx.us
2. Downloadable Paper Forms - Business Entities Online — businessfilings.sc.gov
3. Domestic LLC Certificate of Formation form — sos.alabama.gov
4. The Disproportionate Costs of Forming LLCs VS. Corporations: The Impact on Small Firm Liability Protection — libjournals.mtsu.edu (2009)
5. How Much Does It Cost to Start an LLC? — marketwatch.com (2026)
6. How to Claim a Business Name in Any State — entitycheck.org (2026)
7. The Best States to Form an LLC in 2026 — marketwatch.com (2025)