How much does an LLC actually cost?

The advertised price of an LLC is almost never the real price, in either direction: '$0 formation' offers exclude the state fee that always applies, and the scary quotes some services give include add-ons you may not need. Here's the actual cost structure.

The one unavoidable cost: your state's filing fee

Every state charges its own fee to file articles of organization, roughly $35 (Montana) to $500 (Massachusetts), with most states between $50 and $200. This fee goes to the state whether you file yourself or use any service, and no legitimate service can waive it.

Filing yourself with your Secretary of State costs exactly this fee and nothing more. That's always an option, and any honest provider will say so.

Optional costs: service fees and add-ons

Filing companies charge for preparing and filing the paperwork; ours is one flat fee, with the state fee shown separately at cost. What to watch elsewhere: 'free' formations that auto-enroll you in subscriptions, and bundles that hide the state fee split.

The common add-ons worth understanding: a registered agent (see below), an operating agreement (templates abound; complex ownership deserves a lawyer), and the federal tax ID most LLCs need for banking, which the IRS issues free.

The ongoing costs nobody budgets

LLCs cost money to keep alive: most states require an annual (or biennial) report with its own fee, commonly $20–$300, and some, like California, charge a flat franchise tax ($800/year) regardless of income. A registered agent service, if you use one, runs $100–$300 annually.

Missing the annual report is the expensive mistake: late fees, loss of good standing, and eventually administrative dissolution. Whatever you spend at formation, put your state's report deadline on a calendar the same day.