How Much Does It Really Cost to Start an LLC?

Being aware of these expenses ahead of time can help you budget properly and avoid surprises. This guide breaks down the most common costs associated with starting an LLC, so you know exactly what to expect.

Common LLC Fees and Costs

Type of Fee	Typical Cost Range
LLC Filing Fees	$35–$500
Name Reservation Fee	$10–$50
Operating Agreement	$0–$600
DBA (Doing Business As) Fees	$10–$100
Registered Agent Fees	$0–$300
Business License Fees	$50–$1,000+
Annual Report Fees	$10–$800

Name Reservation Fee

One of the first steps in forming an LLC is choosing a business name. After selecting a name you like, you may choose to reserve it with your state until you're ready to officially register your LLC. This is often the first fee new business owners encounter.

Before reserving a name, you'll need to confirm that it's available and meets state requirements. Here's how to do that:

1. Check Name Availability in Your State

Visit your state's business filing website—usually the Secretary of State's site—and search for your desired name along with similar variations. This ensures your name isn't already in use or too similar to another registered business, which could lead to rejection.

2. Review Your State's LLC Naming Rules

Most states require your business name to include "Limited Liability Company," "LLC," or "L.L.C." Additionally, names that imply government affiliation or association with universities are typically prohibited. Since rules vary by state, it's essential to review your state's specific naming guidelines.

3. Search for Existing Trademarks

Even if a name is available at the state level, it may already be trademarked nationally. You can check the U.S. Patent and Trademark Office database to ensure the name is not protected at the federal level.

4. Check Domain Name Availability

If you plan to build an online presence, confirm that a matching domain name is available. Websites like GoDaddy can help with this. Using a ".com" or ".org" domain generally adds credibility to your business.

5. Perform a Google Search

Finally, do a general internet search to see if the name is already being used elsewhere in the U.S. or internationally. This step is especially important if your business will operate online or market nationally.

Once you've confirmed that your chosen name is available and compliant, you can submit a name reservation form with your state. The reservation fee is typically small but varies depending on where you're forming your LLC.

Cost to Register Your LLC With the State

To officially create your LLC, you'll need to file a document—usually called the Articles of Organization—with your state. This is done through the appropriate state agency, most commonly the Secretary of State's office.

When filing, you'll generally need to provide the following information:

• Your LLC's legal name
• The business's physical or mailing address
• The name and address of your registered agent
• The organizer's name and contact details

Because each state has different filing fees and potential additional charges, it's important to research your specific state's requirements. Reviewing your state's fee schedule will help you understand the total cost involved before submitting your application.

Business Licenses and Permits Costs

In addition to forming your LLC, you may be required to obtain certain licenses and permits to legally operate your business. These requirements can exist at the federal, state, and local levels, and each comes with its own fees.

At the federal level, licenses and permits are usually industry-specific. For example, businesses related to health, safety, or transportation may require federal approvals, including permits from agencies such as the Occupational Safety and Health Administration (OSHA).

At the state level, many businesses must obtain a general business license. If you sell taxable goods or services, you'll likely need a sales tax license—also known as a seller's permit.

The Small Business Administration provides helpful guidance on which licenses and permits may apply to your business.

Common licenses and permits include:

• Industry-specific licenses for professions such as construction, plumbing, electrical work, childcare, food service, alcohol sales, architecture, and finance
• Building and zoning permits
• DBA permits for operating under a name different from your LLC's legal name
• Health licenses and permits at federal, state, and local levels
• Fire safety permits
• Sign permits

Ensuring you have the correct licenses and permits is critical. Operating without them can result in significant fines, penalties, or even business closure. Always check with state and local authorities to confirm requirements and associated costs.

If the process feels overwhelming, consulting a business attorney can help ensure full compliance. Alternatively, you can use a professional service like MyCorporation to research licensing requirements and prepare the necessary paperwork.

Doing Business As (DBA) Name Costs

If you plan to operate your business under a name that differs from your LLC's official legal name, you'll need to register a "Doing Business As" (DBA) name, sometimes called a fictitious business name.

DBA registration is handled through a state or local agency, depending on your location. Fees vary by state and municipality, so it's important to check with the appropriate office.

Annual Report Fees

Most states require LLCs to file an annual report or periodic statement. This filing confirms your business's current information—such as address, ownership, and registered agent—and verifies that your company is still active.

Annual reports are usually filed online, and the associated fees are typically modest. However, costs vary by state, and failing to file on time can result in late fees or administrative dissolution of your LLC.