LLC Formation Cost Calculator 2026

LLC formation costs $50–$500 in state filing fees plus $50–$300/year for registered agent service. Most states charge $100–$150 to file. Formation services like Bizee charge $0 for the service (you pay the state fee) and include 1 year of registered agent for free.

Form your LLC in the state where you primarily do business — this avoids foreign qualification fees. If you have no physical location, Wyoming and New Mexico are popular for their low fees, strong privacy laws, and no state income tax. Delaware is preferred if you plan to raise venture capital.

Beyond formation: registered agent ($50–$300/year), annual report filing ($0–$500/year depending on state), and California's $800 minimum franchise tax. Add accounting/bookkeeping ($1,200–$6,000/year) and business insurance ($500–$2,000/year).

An LLC (Limited Liability Company) is a legal structure; an S-Corp is a tax election. Many LLCs elect S-Corp status once profit exceeds $40,000–$50,000/year to save on self-employment taxes. Without S-Corp election, LLC owners pay 15.3% self-employment tax on all profits. With S-Corp election, only the 'reasonable salary' portion is subject to self-employment tax. Consult a CPA before making the S-Corp election — it adds complexity and payroll requirements.

No — you can form an LLC yourself (DIY) by filing Articles of Organization directly with your Secretary of State for the filing fee only. However, an attorney or formation service can help ensure: proper operating agreement, correct state selection, registered agent setup, and EIN acquisition. Formation services like Bizee and ZenBusiness handle everything for $0–$79 (plus state fee). An attorney charges $500–$2,000 for LLC formation.

A registered agent is a person or company that receives legal documents (lawsuits, government notices) on behalf of your LLC during business hours. Every state requires LLCs to maintain a registered agent with a physical address in the state. You can serve as your own registered agent (using your home address, which becomes public record) or hire a service for $50–$300/year. Professional registered agent services keep your address private and ensure you never miss legal notices.

Lowest LLC filing fees: New Mexico ($50), Kentucky ($40), Iowa ($50), Hawaii ($50), Mississippi ($50). However, if you live and work in another state, you'll still need to 'foreign qualify' your out-of-state LLC, paying that state's fees too. The true cheapest option is forming in your home state. Wyoming ($100) and Delaware ($90) are popular for businesses with no physical location due to strong asset protection laws and low annual costs.

By default, a single-member LLC is taxed as a sole proprietorship (Schedule C) — all profits pass through to your personal return. A multi-member LLC is taxed as a partnership (Form 1065). LLCs can elect to be taxed as an S-Corp or C-Corp. The LLC itself pays no federal income tax (pass-through taxation). However, most states have an annual LLC fee or franchise tax ($0–$800+). California charges a $800/year minimum franchise tax regardless of revenue.

Both are legitimate — key differences: LegalZoom ($0–$299/year + state fee) has more upsells and higher prices; ZenBusiness ($0–$299/year + state fee) generally has better reviews for LLC formation. Alternatives: Northwest Registered Agent ($39/year) offers free formation plus registered agent for the first year. For simple single-state LLCs, DIY filing via your state's Secretary of State website is the cheapest option — you pay only the state filing fee ($50–$300).

Standard processing times vary by state: Delaware 1–2 weeks, Wyoming 3–5 days, California 3–5 days, Florida 1–5 days, Texas 2–3 weeks. Most states offer expedited filing for $25–$200 extra (same-day or 24-hour processing). Online formation services file same-day; your effective date is when the state processes it. Once approved, you receive articles of organization and can open a business bank account and apply for an EIN (free at irs.gov, instant online).

For most small business owners, yes. An LLC provides: (1) Personal liability protection — your personal assets are shielded if the business is sued, (2) Pass-through taxation — no corporate tax, profits flow to your personal return, (3) Credibility — clients and banks take LLC entities more seriously, (4) Flexibility — no board requirements, minimal formalities. Cost is low ($50–$500 state filing fee + $50–$300/year to maintain). Sole proprietors with minimal liability exposure may not need one, but the protection is generally worth the low cost.