Free tools to price and form an LLC in any state. Calculate state filing fees and first-year cost, compare LLC versus sole proprietor taxes, estimate what you owe, and follow the steps.
Everything you need to price and plan your LLC before you file.
State filing fees, annual fees and total first-year cost.
Price my state →Compare self-employment tax and the S-corp option.
Price my state →Estimate federal self-employment and income tax on profit.
Price my state →The 7 steps to form your LLC, in order.
Price my state →The paperwork is nearly identical everywhere: Articles of Organization (some states call it a Certificate of Formation or Organization), filed with the Secretary of State, plus whatever they charge you every year after. What differs is the number attached to each step, and it is not a small spread. Montana's filing fee is $35. Massachusetts charges $500 for the same document. Neither state is doing anything the other isn't; they just priced the filing differently, the way a DMV fee varies by state for the same laminated card.
The bigger trap is what happens after year one. A low filing fee can hide a expensive annual bill. California's one-time filing fee is a modest $70, but the state's annual franchise tax runs $800 and applies whether the LLC made a dollar or not. Nevada stacks a filing fee with recurring business-license and annual-list charges that add up to roughly $350 a year. Compare that to Texas, where the filing fee is $300 but there is no flat annual report fee at all, only a franchise tax that kicks in once revenue clears a threshold most new LLCs are nowhere near. Ohio charges no annual fee either. Florida lands in between, with a $125 filing cost and a flat $138.75 report due every year, less predictable than Ohio's zero but nowhere near California's $800. So the states that look expensive on the sign-up page are not always the ones that cost the most over three years, and the ones that look cheap up front can turn into the pricier choice by year two. Filing fee, annual or biennial fee, and franchise tax are three separate line items, and a state can be generous on one and brutal on another.
None of this means you get to shop for the cheapest state and file there instead of your own. If you are doing business in a state, that state typically wants you registered there (or registered as a foreign LLC there in addition to your home state), and skipping that step to save on a filing fee usually costs more later in penalties. The cost comparison matters most when you already have a choice, say you are deciding between forming in your home state versus incorporating somewhere else for a holding company, or you want to know what to budget before you file at all.
Forming an LLC is seven steps, roughly the same order in every state:
Two of those steps are where people hand money to someone for work they could do themselves. The registered agent is the big one: if you have a permanent street address in the state where you are forming, you can list yourself as your own agent for free. A registered agent service costs money mainly for privacy (it keeps your home address off the public filing) or convenience if you travel and cannot guarantee someone is at that address during business hours to accept service. The other is the EIN. The IRS issues it at no charge directly through irs.gov. Paying a formation company an add-on fee to "obtain" your EIN is paying for a form they fill out in the same ten minutes you could.
Authoritative sources to check the figures on this page: SBA on choosing a business structure, the IRS LLC guide for federal tax treatment, and the IRS EIN application.
An LLC is not a prerequisite for starting a business. You can invoice clients, sell a product, and pay taxes as a sole proprietor with no filing at all, reporting the income on your personal return. That is a reasonable place to stay if you are testing an idea, have little in the way of assets to protect, and are not carrying much liability risk day to day. The LLC earns its cost once there is something worth protecting: a contract that could go wrong, a client who could sue, equipment or a lease in the business's name, or a partner you want a formal agreement with before money gets involved.
The filing fee and the annual fee are the ongoing cost of that protection, so it is worth being honest about whether you need it yet or whether you are forming an LLC because it feels like the official way to be in business. If you already have paying clients, a service where something could go wrong, or a co-founder, the math usually favors filing. If it is a side project with no employees, no contracts, and nothing to lose, a sole proprietorship costs nothing and you can form the LLC later once the business justifies the fee.
State filing fees to form an LLC range from $50 to $500, depending on your state. Many states add annual report or franchise fees on top, ranging from $25 to several hundred dollars per year. If you use a formation service or attorney, add their fees to the state cost. The SBA (sba.gov) and your state's Secretary of State site list the exact figures.
In Texas, the state filing fee to form an LLC is $300, paid to the Texas Secretary of State. Texas charges no annual report fee for LLCs, but most LLCs with revenues above $2.47 million owe the Texas franchise tax. A registered agent service runs $50 to $150 per year if you hire one. Verify current fees at sos.texas.gov.
Form an LLC on your own by choosing a business name, filing Articles of Organization with your state's Secretary of State, and paying the filing fee. You should also write an operating agreement, get an EIN from the IRS (free at irs.gov), and open a separate business bank account. Some states require a registered agent. The SBA at sba.gov has state-by-state guidance, and an attorney is worth consulting if things get complicated.
Therapists are not required to form an LLC, but many do to keep personal assets separate from business debts and lawsuits. A PLLC (Professional Limited Liability Company) is the right structure in most states for licensed professionals. Requirements vary, and some states require licensing board approval. Talk to an attorney familiar with your state before forming any entity.