Complete Guide to LLCs

Starting an LLC? You're probably expecting a simple answer—maybe a single filing fee. That's not how this works.

Between state governments, service providers, and ongoing compliance requirements, you'll encounter dozens of potential expenses. Some you can't avoid. Others depend entirely on choices you make.

I've seen business owners launch LLCs for under $50 in Kentucky. I've also watched California entrepreneurs drop $3,000 in their first year. Geography matters. Your formation approach matters even more.

Let's break down every dollar you might spend, separating the unavoidable costs from the optional upgrades that might not deliver value.

State Filing Fees for LLC Formation

Every state's business filing office—usually the Secretary of State—charges you to process your Articles of Organization. This document legally creates your LLC.

Kentucky asks for just $40. Massachusetts demands $500. Most states fall somewhere between $75 and $200.

But here's where it gets tricky: California's $70 filing fee looks reasonable until you learn about the $800 yearly franchise tax that hits you regardless of whether you've made a single sale. New York charges $200 upfront, then requires newspaper publication of your formation notice—a bizarre requirement that'll cost you anywhere from $500 to $2,000 depending on which county you're in. Try forming in Manhattan versus a rural county. The price difference is staggering.

Want your paperwork processed faster? Most states offer expedited service. You'll ...