LLC Formation Costs: Complete Breakdown

7 min read Updated Jan 15, 2025

Understanding the true cost of forming and maintaining an LLC helps you budget properly. Here's a complete breakdown of all the costs involved.

Cost Summary

The total cost to form and run an LLC includes:

What's Included with StartGlobal

  • LLC Formation Included
  • Registered Agent (first year) Included
  • Operating Agreement Included
  • EIN (Tax ID) Included

See our pricing page for complete details.

Note

StartGlobal bundles everything you need to form and maintain your LLC. Check our pricing page for current rates.

One-Time Formation Costs

When you form an LLC, there are several one-time costs to consider:

State Filing Fee

This is the fee paid to the state to file your Articles of Organization. The amount varies by state. StartGlobal includes state filing fees in our formation packages.

Operating Agreement

An Operating Agreement defines how your LLC will be run. StartGlobal provides a state-specific Operating Agreement as part of our formation service.

For most single-member LLCs, a quality template or formation service document is sufficient. Complex multi-member arrangements may warrant attorney review.

Publication Requirement (Some States)

A few states (like New York, Arizona, and Nebraska) require you to publish notice of your LLC formation in newspapers. This adds additional cost and time to the formation process.

Warning

New York's publication requirement adds significant cost. Consider forming in another state if you're not physically located there.

Ongoing Annual Costs

Annual Compliance Requirements

Most states require an annual filing to keep your LLC in good standing. The requirements and timing vary by state. StartGlobal's compliance service helps you stay on top of these requirements.

Registered Agent Service

A professional registered agent service is recommended for most businesses. StartGlobal includes registered agent service with our formation packages.

Business Licenses

Depending on your location and industry, you may need:

  • General business license: Required in many cities/counties
  • Professional licenses: Varies by profession
  • Industry permits: Food service, construction, etc.

Accounting and Tax Preparation

While not a state requirement, plan for bookkeeping and tax preparation services. StartGlobal offers accounting services to help manage your business finances.

Choosing the Right State

Formation costs vary significantly by state. Some states like Wyoming offer low formation and annual fees, while others like California have higher ongoing costs.

For a detailed guide on choosing the right state, see our How to Choose the Right State for Your LLC article.

StartGlobal can help you form in any US state. Visit our pricing page for current formation package details.

Hidden Costs to Watch

Be aware of costs that surprise many new LLC owners:

  • Foreign qualification: If you form in one state but do business in another, you may need to register in both states
  • Late fees: Missing annual compliance deadlines can result in penalties
  • Reinstatement fees: If your LLC gets dissolved for non-compliance, there are fees to reinstate
  • Certified copies: Official copies of your documents may be needed for banks or partners
  • Amendments: Changes to your LLC details require state filings
Tip

StartGlobal's compliance service helps you stay on top of deadlines and avoid late fees. We handle reminders and filings so you can focus on your business.

Frequently Asked Questions

Frequently Asked Questions

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