Filing an LLC: How much does it cost?
The one-time filing fee for an LLC differs per US state, with the national average at $132.00 USD as of 2020. Here is a list of the LLC filing fees per state including Washington, D.C.:
Massachusetts requires the most expensive LLC filing fee at $500.00 USD, while Kentucky has the cheapest at $40.00 USD. There are 10 US states charging only $100.00 USD and an additional eight (8) that have a filing fee of $50.00 USD.
Should I file an LLC in a different state to save money?
The short answer is no.
Doing so may actually cost you more in the long run. Some states, like California, require a foreign LLC registration for businesses that are operating in-state with an LLC elsewhere. This means paying two of everything: state filing fees and annual report fees. If you don’t have an address in the state where you’re filing, you would also have to maintain a registered agent (more on this later).
The good news is that there are few exceptions to this. The following should file their LLC where the money is made:
- Those legally doing business in a state other than their home state
- Those who own or lease a property in another state
Non-US citizens and residents are also advised to set up their LLC in the state they frequent, to minimize additional spending on travel.
Remember, however, that fees for an LLC do not stop after filing. There are still the annual fees and, in some cases, fees for your registered agents. A Registered Agent is required (except in New York and West Virginia) on an LLC filing form — this indicates the person or company that will receive the Service of Process in the event of any legal matters or court cases. If you have an address where your LLC will be filed, there won’t be a need to worry about paying for maintenance fees. If you don’t have any, however, Commercial Registered Agent fees may cost as much as $360.00 USD per year.
