How Much Does It Cost to Start an LLC in 2026?

The Short Answer: How Much Does It Cost To Start an LLC in 2026?

Most single-member LLCs, freelancers, and first-time founders spend between $200 and $1,500 in their first year. That total includes costs like a registered agent, an LLC formation service, first-year compliance, and state filing fees, which vary by state ($35 to $500).

The one-line decision rule for the best US state to start an LLC:

• You live outside the US and run an online business: New Mexico or Wyoming

• You are raising institutional capital: Delaware

• You live and operate in a specific US state: Form in that state

A Business.org survey of 700 small business owners found that more than half underestimated what they spent in their first year of business.

For many business owners, that mistake starts with focusing only on the LLC filing fee. It is the number people search for first, but it is not the full cost of forming and maintaining an LLC.

Depending on the state, you may also need to pay annual report fees, franchise taxes, registered agent fees, publication costs, or foreign LLC registration fees if you operate in a different state from the one where you formed your company.

Here is the full picture:

Figures sourced from 2026 state Secretary of State fee schedules and doola’s published pricing. The average LLC filing fee across all 50 states in 2026 is $132.

Before you file: Three costs this table does not show:

• California’s $800 minimum franchise tax is waived in your first taxable year under AB 85. Starting in Year 2, it applies regardless of revenue; even at $0.

• New York’s publication requirement adds $1,000 to $2,000 in Year 1 alone.

• And many registered agent services double their price from Year 1 to Year 2 when promotional rates expire. 

The sections below cover all of it.

Not sure where to start?  See exactly what is included in doola Starter

Total Cost Comparison: DIY vs. doola in 2026

DIY LLC vs formation service is not a comparison of free vs. paid. It is a comparison of two different ways to spend money, with different risk profiles and time costs attached.

US-formed domestic LLCs are currently exempt from BOI reporting as of March 2025. Foreign-owned entities may still have obligations. Full update in the compliance section below.

3 Things Worth Understanding Before You Decide

1. Why the DIY Range is Wide

CPA and professional service fees vary drastically. While the baseline state filing costs are low, adding professional management can easily transform a ~$385 first-year DIY stack into a $2,000+ operation.

2. doola Starter ($297)

Starter bundles everything a first-year LLC needs into one number. No upsells, no renewal surprises. It includes:

• State business filing

• Registered agent service

• Operating agreement template

• EIN (Employer Identification Number) acquisition

• Automated compliance reminders

3. doola Tax and Compliance ($1,999/year)

Tax+Compliance includes bookkeeping software and handles federal and state tax filing.

The alternative requires hiring an independent CPA at $400–$800 per tax filing, plus purchasing separate standalone bookkeeping software.

Cost Comparison: DIY vs. doola Starter

When you factor in hidden overhead, doola Starter is priced competitively against a traditional DIY stack, even before calculating the value of your own time.

The Bottom Line: If you have more time than capital, a meticulous DIY approach saves cash upfront. 

However, if you want to avoid administrative friction, missing state deadlines, or spending hours handling IRS paperwork, doola Starter delivers immediate value from day one.

Before choosing between DIY and a formation service, you need the actual state fee numbers, because the right choice partly depends on where you are filing.

LLC Filing Fees by State in 2026

The filing fee is a one-time cost. The annual report fee LLC or franchise tax is what you pay every year your LLC is active, and in several states that recurring number matters far more than the upfront one. 

The table below breaks down LLC filing fees by state, including formation costs, and annual fees to watch before you choose where to register your business.

One-Time Costs vs. Recurring Annual Costs: Know the Difference

This is the distinction that catches most first-time business owners off guard. They budget for formation and are genuinely surprised when Year 2 invoices arrive. 

The LLC annual report fee and registered agent annual fee do not go away. They come back every year your LLC is active.

What 3 Years Actually Look Like

Most people budget for formation. The bill that surprises them arrives in Year 2.

The Hidden Costs of Forming an LLC (What Most Guides Skip)

Formation services and state websites do not put these on their pricing pages.

Here they are anyway, with real dollar figures so you know what you are walking into before you commit to a state or a service.

1. BOI / FinCEN Filing: 2026 Status

As of March 2025, FinCEN exempted all US-formed domestic LLCs from BOI reporting. If your LLC was formed under US state law, you are not currently required to file. 

Foreign-owned entities formed under foreign law and registered in a US state may still have filing obligations. The rule is described as interim.

Monitor FinCEN.gov for updates if your LLC has foreign beneficial owners.

2. Registered Agent Renewal Pricing

Many services offer $0 to $49 in Year 1 as a promotional rate, then auto-renew at $150 to $299.

Read the renewal terms before you sign up. The Year 1 price and Year 2 price are often very different numbers. 

See a full registered agent cost breakdown by state.

3. California’s $800 Minimum Franchise Tax

California’s $800 minimum franchise tax is waived in your first taxable year under AB 85.

Starting in Year 2, it applies regardless of revenue; even at $0. There is no exemption for new businesses or slow periods.

If you are forming in California, build $800 into your budget before you file.

4. New York’s Publication Requirement

Every new New York LLC must publish a formation notice in two state-designated newspapers for six consecutive weeks within 120 days of forming.

In New York City, this costs $1,000 to $2,000 or more. In upstate counties, typically $200 to $500. Skipping it results in LLC suspension.

5. Bookkeeping and Tax Preparation Catch-Up

If you do not track finances from Day 1, reconstructing records at tax time costs $500 to $2,000 or more.

It is avoidable but remains one of the most common first-year surprises. Tax+Compliance includes bookkeeping software and handles federal and state tax filing.

6. Re-Filing Fees After Rejection

States reject Articles of Organization for name conflicts, missing information, and formatting errors.

When that happens, you pay the full state filing fee again and lose weeks of formation time.

6 Compliance Penalties That Cost More Than Your Entire Formation Fee

Most LLC cost guides cover formation. They skip what it costs when you miss a compliance obligation after forming. 

These are the real numbers. Most of these obligations apply only to foreign-owned LLCs. If your LLC is US-owned, the registered agent and annual report rows are the ones to watch.

💡 Did You Know?

Non-US residents who own a US LLC must file Form 5472 every single year, even at zero revenue.

Miss it and the IRS charges $25,000 per form, per year. No minimum revenue threshold. No exemption for inactive LLCs.

Note on FBAR: FBAR applies to US persons (citizens, green card holders, resident aliens) who have foreign financial accounts totaling more than $10,000 at any point during the year. It is separate from your tax return and filed directly with FinCEN. Non-willful penalties are up to $16,536 per annual report (per filing) per year. Willful violations can reach the greater of $165,353 or 50% of the account balance.

Need help staying compliant?  See what our Tax and Compliance package covers

Cost to Start an LLC as a Non-US Resident in 2026

Most formation guides skip LLC costs for non-US residents entirely. Non-US residents can absolutely form a US LLC. The process costs more and takes longer. Here is exactly what to expect.

In fact, the overall process is largely identical to that of a US resident. However, international entrepreneurs must navigate 3 meaningful differences in cost and process that can significantly impact their initial budget and timeline:

1. A Registered Agent Is Required: No Exceptions

Non-residents cannot use their own address as a registered agent because they do not have a qualifying US address in their formation state. A professional registered agent fee cost of $100 to $299 per year is mandatory.

2. Getting an EIN Takes Longer

US residents get an EIN instantly online through IRS.gov at no cost. Non-residents without a US Social Security Number must apply via IRS Form SS-4 by mail or fax: four to eight weeks. Using a service costs $0 to $150 and removes the complexity of navigating IRS fax procedures from abroad.

3. BOI Filing: What Non-Residents Need to Know

Domestic LLCs formed under US state law are currently exempt from BOI filing, even with foreign beneficial owners. If your entity was formed under foreign law and registered in a US state, you may still have filing obligations. 

Filing is free; it requires a valid passport number and country of issuance for each beneficial owner listed.

One distinction worth knowing: an EIN is your business tax ID. An ITIN is a personal tax ID for individuals without a Social Security Number. Some non-resident business owners need both, depending on how they plan to file US taxes personally.

Opening a US business bank account is one of the most common pain points for non-residents. Plus, traditional US banks are significantly harder to access without a physical US presence or SSN.

Non-US business owners carry additional compliance obligations that most formation guides do not mention. Form 5472, FBAR (if applicable), and state annual filings each carry significant penalties if missed.

doola handles all of it, including EIN acquisition via Form SS-4, in a single package built specifically for international business owners.

DIY vs. Formation Service: Honest Trade-Offs in 2026

The state filing fee is not the cost to form LLC online yourself. The real DIY cost is in research time, error risk, compliance deadline tracking, and downstream CPA fees when something goes wrong.

Full DIY Cost Breakdown

• State filing fee: $35 to $500

• Registered agent: $100 to $299 per year

• Operating agreement template: $0 to $150

• EIN: Free

• BOI / FinCEN filing: Free (domestic LLCs currently exempt)

• Annual report (Year 1): $0 to $800+

• Professional fees (if errors occur): $200 to $1,000+

• Time cost: 8 to 20 hours in Year 1

• When DIY makes sense: If you have already formed an LLC before and know your state’s portal, the DIY route in Montana or New Mexico is hard to beat.

• When an LLC formation service pays for itself: First-time filers, non-residents, anyone forming in New York or California, and anyone who cannot afford to lose weeks to a rejected filing. doola Starter costs less than sourcing a registered agent and operating agreement separately in most states, and it removes compliance tracking burden entirely.

The Cheapest State to Form an LLC in 2026 (The Answer Is Not What You Think!)

Everyone searches for the state with the lowest filing fee. That is the wrong number to optimize for.

The cheapest state is the one with the lowest total annual cost: filing fee plus annual report plus registered agent. 

For example: A $35 filing fee in Montana with $299 in annual costs beats a $50 filing fee in New Mexico with $0 in annual costs, but only in Year 1. From Year 2 onward, New Mexico wins every time. 

If you live and operate your business in a single US state, skip to the decision rule at the bottom.

Here is the real math for the four states people ask about most:

What the numbers actually mean:

• New Mexico is the lowest-cost state in the US for online businesses with no physical US presence. No annual report. No recurring state fee. Just the $50 filing fee and your registered agent every year after that.

• Montana edges out New Mexico in Year 1 by $5 at the low end. From Year 2 onward, the $20 annual report flips the math. New Mexico is cheaper long-term.

• Wyoming costs more upfront but has stronger name recognition with US banks, better privacy protections, and a longer track record with non-resident business owners. If banking access matters to you, Wyoming is worth the extra $100 to $110 per year.

• California is not a choice, it is a requirement if you live or operate there. The $800 minimum franchise tax applies regardless of revenue, and forming elsewhere does not help you avoid it.

Still not sure which state to pick? The wrong state choice costs more than the formation fee to fix.

doola helps you get it right the first time, based on where you live, how you operate, and what Year 1 will actually cost.

Start Your LLC With doola Today

Most people spend more time researching than it takes to actually file. If you’ve read this far, you have everything you need to move.

doola Starter ($297/year + state fee): LLC filed in one to two business days. Includes registered agent service, EIN, US business address, operating agreement, and automated compliance reminders. Formation takes about an hour on your end. Everything else is handled.

doola Tax and Compliance ($1,999/year + state fee): Everything in Starter, plus federal and state tax filing, a 1:1 tax consultation, and bookkeeping software. Built for entrepreneurs who want formation and taxes handled in one place from Day 1, especially relevant if you are a non-US resident with Form 5472 obligations.

The decision is straightforward: if you want the formation handled, start with Starter. If you want taxes handled too, choose Tax+Compliance. 

Here is what founders who have been through it say:

“These guys have lightning speed efficiency. I booked a demo in the morning, made a decision and went with their formation plan in the afternoon — by next day, I had my LLC incorporated.”

— Ju, Trustpilot ★★★★★

“From company formation to sales tax registration, their team made the whole process simple and stress-free.”

— Faruk Hossain, Trustpilot ★★★★★

“I had an outstanding experience using doola to set up my LLC from abroad. The process was smooth, fully online, and well-explained at every step.”

— Alex Shatsky, Trustpilot ★★★★★

Rated 4.6 out of 5 across 2,000+ reviews on Trustpilot (as of June 2026).

Ready to form your LLC?  See all plans and what is included →

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