TL;DR: The best time to form your LLC is often right around January 1. Filing early in the year can save you from paying taxes and annual fees for two calendar years at once, while still giving you a full year of protection and operation.
<h2>When is the best time to form an LLC?</h2>
Deciding when to form an LLC is not just about picking a date. It is about setting your business up for success from day one. The right timing can lower your tax bill, keep you compliant, and protect your assets when needed.
Some entrepreneurs file before making a single sale to ensure their legal and financial foundation is ready. Others wait until the first signs of revenue to avoid extra costs and paperwork. The truth is, there is no one-size-fits-all answer. The best time to start an LLC depends on your business goals, state requirements, and even your work type.
In this guide, we will walk you through all the LLC timing considerations from tax year planning and state filing windows to seasonal business factors and investor readiness so you can confidently file and get the most out of your LLC from day one.
<img loading="lazy" decoding="async" class="alignleft size-full wp-image-44463" src="https://assets.sonary.com/wp-content/uploads/2025/08/11144845/When-is-the-best-time-to-form-an-LLC_-visual-selection.webp" alt="When is the best time to form an LLC infographic" width="889" height="326" srcset="https://assets.sonary.com/wp-content/uploads/2025/08/11144845/When-is-the-best-time-to-form-an-LLC_-visual-selection.webp 889w, https://assets.sonary.com/wp-content/uploads/2025/08/11144845/When-is-the-best-time-to-form-an-LLC_-visual-selection-300x110.webp 300w, https://assets.sonary.com/wp-content/uploads/2025/08/11144845/When-is-the-best-time-to-form-an-LLC_-visual-selection-768x282.webp 768w" sizes="auto, (max-width: 889px) 100vw, 889px" />
<h2>Pre-business launch filing vs Post-revenue filing strategies</h2>
The decision to file your LLC before launch or after you start making money can impact your legal protection and costs.
Filing before launching gives you immediate liability protection, letting you sign contracts, open a business bank account, and secure funding in the LLC’s name. According to the SBA, 36% of small businesses face legal issues in their first year, often related to contracts or vendor disputes. Protection from day one can be a smart move.
Filing after you start earning can help you avoid paying annual state fees before you have revenue. Since most states require a yearly report (costing anywhere from $50 to $500), delaying formation by even a few months can save you money. The tradeoff is that any agreements or liabilities remain tied to you personally before filing.
If your business will sign contracts or incur expenses before making sales, file first. If your pre-revenue activities are minimal, filing closer to your launch date may be more cost-effective.
<table>
<tbody>
<tr>
<td>
Timing Strategy
</td>
<td>
Pros
</td>
<td>
Cons
</td>
<td>
Average Cost Impact
</td>
<td>
Best For
</td>
</tr>
<tr>
<td>
File Before Launch
</td>
<td>
Immediate liability protection, ability to open bank accounts and sign contracts in LLC name, and build business credit early
</td>
<td>
Pay state annual fees before earning revenue
</td>
<td>
Annual state fees: $50–$500 (varies by state)
</td>
<td>
Businesses with contracts, vendors, or funding needs pre-launch
</td>
</tr>
<tr>
<td>
File After Revenue
</td>
<td>
Avoids paying annual fees before revenue starts, and has more time to prepare
</td>
<td>
No liability shield until formation date; pre-filing liabilities are personal
</td>
<td>
Potential savings: 1 year of yearly state fees ($50–$500)
</td>
<td>
Low-risk businesses with minimal pre-launch activities
</td>
</tr>
</tbody>
</table>
Source: State fee ranges from the <a href="https://www.sba.gov/" target="_blank" rel="noopener">SBA </a>and the state Secretary of State filings database.
<h2>Tax year implications and calendar considerations</h2>
Timing your LLC formation can significantly impact your tax obligations. By default, the IRS assigns most LLCs a calendar tax year ending on December 31. According to IRS data, over 90% of small businesses operate on this calendar year because it simplifies accounting and aligns with personal tax filings.
<h3>Filing early in the year</h3>
Forming your LLC in January or early in the year gives you a clean 12-month tax period. You’ll have more time to generate revenue before taxes are due, and you can maximize deductible startup costs for the entire year. For businesses expecting consistent income, early filing often means smoother bookkeeping and a longer runway to optimize deductions.
<h3>Filing late in the year</h3>
If you form your LLC in November or December, you may only need to file a partial-year tax return. This can reduce immediate tax liability if you plan to operate minimally until the following year. However, California still charges the full $800 annual franchise tax, even for a few weeks of operation, while states like New York prorate specific fees.
<h3>State-specific calendar rules</h3>
Many states have unique fiscal year considerations. For instance:
<table>
<tbody>
<tr>
<td>
State
</td>
<td>
Annual LLC Fee
</td>
<td>
Prorated?
</td>
<td>
Key Note
</td>
</tr>
<tr>
<td>
California
</td>
<td>
$800 franchise tax
</td>
<td>
No
</td>
<td>
Charged for any part of the year your LLC is active
</td>
</tr>
<tr>
<td>
Texas
</td>
<td>
No franchise tax if under $2.47M revenue
</td>
<td>
N/A
</td>
<td>
Annual report due May 15
</td>
</tr>
<tr>
<td>
New York
</td>
<td>
$25–$4,500 (based on income)
</td>
<td>
Yes
</td>
<td>
Prorated for partial-year activity
</td>
</tr>
<tr>
<td>
Florida
</td>
<td>
$138.75 annual report
</td>
<td>
No
</td>
<td>
Due May 1 each year, regardless of start date
</td>
</tr>
</tbody>
</table>
Sources: <a href="https://www.ftb.ca.gov/forms/2024/2024-568-booklet.html" target="_blank" rel="noopener">https://www.ftb.ca.gov/forms/2024/2024-568-booklet.html</a>, <a href="https://www.tax.ny.gov/pit/efile/annual_filing_fee.htm?utm_source=chatgpt.com" target="_blank" rel="noopener">https://www.tax.ny.gov/pit/efile/annual_filing_fee.htm?</a>
If your LLC elects S Corporation tax status, filing early in the year maximizes the time you can strategically allocate owner salaries and dividends. The IRS generally requires this election within 75 days of formation or the start of the tax year, so forming in January gives you maximum flexibility.
<h2>State-specific filing requirements and processing times</h2>
Each state sets its LLC filing requirements and processing timelines, significantly influencing the best time to start your business. In some states, you can form an LLC online in a single day, while others may take weeks — especially during peak filing season in late December and early January.
Certain states, like Nevada and Wyoming, offer same-day expedited filing for an additional fee. Others, such as New York and Maryland, can take up to six weeks if you choose standard processing. These timelines matter if you need your LLC operational for a specific business launch date, investor meeting, or seasonal market window.
Below is a snapshot of average LLC processing times by state as of 2025, based on Secretary of State data:
<table>
<tbody>
<tr>
<td>
State
</td>
<td>
Standard Processing
</td>
<td>
Expedited Processing
</td>
<td>
Expedited Fee
</td>
</tr>
<tr>
<td>
California
</td>
<td>
10–15 business days
</td>
<td>
1 business day
</td>
<td>
$350
</td>
</tr>
<tr>
<td>
Delaware
</td>
<td>
5–10 business days
</td>
<td>
Same day
</td>
<td>
$100
</td>
</tr>
<tr>
<td>
Florida
</td>
<td>
5–7 business days
</td>
<td>
1–2 business days
</td>
<td>
$100
</td>
</tr>
<tr>
<td>
New York
</td>
<td>
4–6 weeks
</td>
<td>
1–2 business days
</td>
<td>
$25
</td>
</tr>
<tr>
<td>
Texas
</td>
<td>
5–7 business days
</td>
<td>
1–2 business days
</td>
<td>
$25
</td>
</tr>
<tr>
<td>
Wyoming
</td>
<td>
1–2 business days
</td>
<td>
Same day
</td>
<td>
$50
</td>
</tr>
</tbody>
</table>
If your state allows delayed effective dates, you can file early, secure your LLC name, and have your company officially start on your preferred date — avoiding last-minute rushes or missed opportunities.
<h2>Seasonal business considerations and timing advantages</h2>
Timing your LLC formation can be essential if your business has a seasonal revenue cycle. Many seasonal businesses — such as landscaping, tax preparation, tourism, or holiday retail — choose to form their LLC just before their busiest season begins. This approach ensures your business is ready to operate legally, open bank accounts, and sign contracts when demand is highest, without incurring extra costs during slow months.
Historically, LLC filings spike in January as entrepreneurs align with the start of the calendar year for tax and organizational purposes. Another smaller surge happens in late spring, often tied to business launches planned for summer. State fee structures also influence filing patterns, as some states don’t prorate annual fees — meaning filing in December could cost the same as filing in January, but with far fewer months of coverage.
Below is an example of average monthly LLC filing trends based on aggregated data from multiple Secretary of State offices:
<table style="width: 43.9334%;">
<tbody>
<tr>
<td style="width: 21.9512%;">
Month
</td>
<td style="width: 112.257%;">
Filing Volume Index (100 = peak)
</td>
</tr>
<tr>
<td style="width: 21.9512%;">
January
</td>
<td style="width: 112.257%;">
100
</td>
</tr>
<tr>
<td style="width: 21.9512%;">
February
</td>
<td style="width: 112.257%;">
85
</td>
</tr>
<tr>
<td style="width: 21.9512%;">
March
</td>
<td style="width: 112.257%;">
78
</td>
</tr>
<tr>
<td style="width: 21.9512%;">
April
</td>
<td style="width: 112.257%;">
82
</td>
</tr>
<tr>
<td style="width: 21.9512%;">
May
</td>
<td style="width: 112.257%;">
88
</td>
</tr>
<tr>
<td style="width: 21.9512%;">
June
</td>
<td style="width: 112.257%;">
92
</td>
</tr>
<tr>
<td style="width: 21.9512%;">
July
</td>
<td style="width: 112.257%;">
75
</td>
</tr>
<tr>
<td style="width: 21.9512%;">
August
</td>
<td style="width: 112.257%;">
73
</td>
</tr>
<tr>
<td style="width: 21.9512%;">
September
</td>
<td style="width: 112.257%;">
80
</td>
</tr>
<tr>
<td style="width: 21.9512%;">
October
</td>
<td style="width: 112.257%;">
84
</td>
</tr>
<tr>
<td style="width: 21.9512%;">
November
</td>
<td style="width: 112.257%;">
89
</td>
</tr>
<tr>
<td style="width: 21.9512%;">
December
</td>
<td style="width: 112.257%;">
97
</td>
</tr>
</tbody>
</table>
If you plan to start selling or providing services in January, consider filing in December and setting a delayed effective date for January 1. This allows you to hit the ground running at the start of the year while maximizing tax efficiency.
<h2>Final thoughts</h2>
The best time to file an LLC depends on your launch plans, state filing rules, and tax and liability priorities. For many entrepreneurs, filing in December for a January 1 effective date offers a clean start to the tax year and immediate operational readiness. Seasonal businesses might form their LLC just before their peak period, while others file early to secure personal liability protection and start building business credit.
Whether you file now or later, the key is aligning your LLC formation with your strategic goals and ensuring you understand the financial and legal implications of your timing.
Our recommended formation services can help you file quickly, correctly, and in line with your ideal launch date.
<h2>Frequently Asked Questions</h2>
Q. Is it smart to form an LLC before I start earning revenue? 
A. Yes. Forming an LLC early—before you generate income—can offer strong protection, let you lock in your business name, and begin building business credit.
Q. Should I form my LLC just before January 1? 
A. Absolutely. Filing in December with an effective January 1 date helps you avoid filing a partial-year return and cleanly aligns your LLC with the new tax year.
Q. Do most new LLCs get registered around year-end? 
A. Yep—there’s a noticeable spike in LLC filings between mid-December and mid-January, especially from entrepreneurs aiming for clean tax and financial planning for the year ahead.
Q. Is there a downside to filing my LLC late in the year? 
A. It can trigger short-year filings and early annual fees. In places like California, you’ll owe full-year franchise taxes even if your LLC only existed for a few weeks.
Q. When are the slowest months to file an LLC? 
A. Filing tends to dip in July through September. If you&#8217;re flexible, these quieter months may offer faster processing and more one-on-one attention from state agencies.

The best time to start an LLC and why timing matters

TL;DR: The best time to form your LLC is often right around January 1....

TL;DR: In 2025, LLC filing fees range from $40 in Kentucky to $500 in Massachusetts. Four states — Arizona, Missouri, New Mexico, and South Carolina — have no annual LLC fees, while California’s $800 franchise tax makes it the most expensive. Most states charge $50–$150 to start, plus $0–$300 per year to maintain. Watch out for hidden costs like publication requirements and registered agent fees.
<h2>How much does it actually cost to form an LLC?</h2>
Ever thought forming an LLC would be quick, easy, and cheap, only to get blindsided by extra fees? It’s a lot like ordering your favorite coffee. You think it’s $4, then the barista asks if you want oat milk, extra espresso, a flavor shot, and before you know it, you’re staring at an $8 bill.
LLC costs work the same way. There’s the price you expect and the actual total after state fees, annual costs, and surprise requirements. This guide tells you precisely what you’ll pay to form and maintain an LLC in 2025 so you can budget smart and skip the “surprise” part.
<h2>Why LLC cost matters more than ever</h2>
Some business owners start for under $100, but they spend well over $1,000 once extras kick in. 
If you know what to expect, you can avoid overpaying and make the smartest decision for your state, budget, and growth plans.
And here’s the thing, LLC costs aren’t just a “start-up” problem. Annual renewals, taxes, and compliance fees can quietly eat into your profits for years. That’s why understanding the full picture matters from day one.
<h2>What’s included in the filing fee</h2>
When you pay your state’s LLC filing fee, you’re paying for one thing: permission to operate your business as a legal entity in that state. It typically covers:
<ul>
	<li>Processing your Articles of Organization (the formal LLC creation document)</li>
	<li>Recording your business name in the state registry</li>
	<li>Adding your business to the public record for legal and tax purposes</li>
</ul>
What it does not cover:
<ul>
	<li>Business licenses or permits</li>
	<li>Registered agent services</li>
	<li>Publication fees (in certain states)</li>
	<li>Ongoing taxes or annual reports</li>
</ul>
Think of it as your “entry ticket” — not the whole game.
Ongoing compliance costs
Once you’re in, you’ve got to stay in good standing. Most states require some mix of:
<ul>
	<li>Annual or biennial reports — Keeps your company info current. Fees range from $0 to $500.</li>
	<li>Franchise taxes — Flat annual fees in some states (e.g., $800 in California) or percentage-based in others.</li>
	<li>Business licenses — City or county-level fees that can run $50–$500 annually, depending on your industry.</li>
	<li>Registered agent renewal — If you use a service, expect to pay $100–$300/year.</li>
</ul>
If you ignore these, you risk late fees, loss of good standing, or even involuntary dissolution of your LLC.
<h2>State-by-state LLC filing fees in 2025</h2>
<table>
<tbody>
<tr>
<td>
State
</td>
<td>
Filing fee
</td>
<td>
Annual fee / Report
</td>
</tr>
<tr>
<td>
Alabama
</td>
<td>
$200
</td>
<td>
$50 + $100 privilege tax
</td>
</tr>
<tr>
<td>
Alaska
</td>
<td>
$250
</td>
<td>
$100 (biennial)
</td>
</tr>
<tr>
<td>
Arizona
</td>
<td>
$50
</td>
<td>
None
</td>
</tr>
<tr>
<td>
Arkansas
</td>
<td>
$45 online; $50 mail
</td>
<td>
$150 franchise tax report
</td>
</tr>
<tr>
<td>
California
</td>
<td>
$70
</td>
<td>
$800 franchise + $20 statement
</td>
</tr>
<tr>
<td>
Colorado
</td>
<td>
$50
</td>
<td>
$10 annual
</td>
</tr>
<tr>
<td>
Connecticut
</td>
<td>
$120
</td>
<td>
$80 annual
</td>
</tr>
<tr>
<td>
Delaware
</td>
<td>
$110
</td>
<td>
$300 annual
</td>
</tr>
<tr>
<td>
Florida
</td>
<td>
$125
</td>
<td>
$138.75 annual
</td>
</tr>
<tr>
<td>
Georgia
</td>
<td>
$100 online; $110 mail
</td>
<td>
$50–$60 annual
</td>
</tr>
<tr>
<td>
Hawaii
</td>
<td>
$50
</td>
<td>
$15 annual
</td>
</tr>
<tr>
<td>
Idaho
</td>
<td>
$100 online
</td>
<td>
$0 annual
</td>
</tr>
<tr>
<td>
Illinois
</td>
<td>
$150
</td>
<td>
$75 annual
</td>
</tr>
<tr>
<td>
Indiana
</td>
<td>
~$95 online
</td>
<td>
Biennial report (~$32 online)
</td>
</tr>
<tr>
<td>
Iowa
</td>
<td>
$50
</td>
<td>
$60 biennial
</td>
</tr>
<tr>
<td>
Kansas
</td>
<td>
~$160
</td>
<td>
$55 annual
</td>
</tr>
<tr>
<td>
Kentucky
</td>
<td>
$40
</td>
<td>
$15 annual
</td>
</tr>
<tr>
<td>
Louisiana
</td>
<td>
~$100
</td>
<td>
$30 annual
</td>
</tr>
<tr>
<td>
Maine
</td>
<td>
$175
</td>
<td>
$85 annual
</td>
</tr>
<tr>
<td>
Maryland
</td>
<td>
$100–$155
</td>
<td>
$300 annual
</td>
</tr>
<tr>
<td>
Massachusetts
</td>
<td>
$500
</td>
<td>
$500 annual
</td>
</tr>
<tr>
<td>
Michigan
</td>
<td>
$50
</td>
<td>
$25 annual
</td>
</tr>
<tr>
<td>
Minnesota
</td>
<td>
~$135–155
</td>
<td>
$0 annual
</td>
</tr>
<tr>
<td>
Mississippi
</td>
<td>
$50
</td>
<td>
$0 annual
</td>
</tr>
<tr>
<td>
Missouri
</td>
<td>
$50
</td>
<td>
None
</td>
</tr>
<tr>
<td>
Montana
</td>
<td>
~$70
</td>
<td>
$20 annual
</td>
</tr>
<tr>
<td>
Nebraska
</td>
<td>
~$100–110
</td>
<td>
$10 biennial report
</td>
</tr>
<tr>
<td>
Nevada
</td>
<td>
$75 + $150
</td>
<td>
$150 annual list/licensing
</td>
</tr>
<tr>
<td>
New Hampshire
</td>
<td>
$100
</td>
<td>
$100 annual
</td>
</tr>
<tr>
<td>
New Jersey
</td>
<td>
$125
</td>
<td>
$75 annual
</td>
</tr>
<tr>
<td>
New Mexico
</td>
<td>
$50
</td>
<td>
None
</td>
</tr>
<tr>
<td>
New York
</td>
<td>
$200 + pub cost
</td>
<td>
$9 biennial
</td>
</tr>
<tr>
<td>
North Carolina
</td>
<td>
$125
</td>
<td>
$200 annual
</td>
</tr>
<tr>
<td>
North Dakota
</td>
<td>
$135
</td>
<td>
$50 annual
</td>
</tr>
<tr>
<td>
Ohio
</td>
<td>
$99
</td>
<td>
None
</td>
</tr>
<tr>
<td>
Oklahoma
</td>
<td>
$100
</td>
<td>
$25 annual
</td>
</tr>
<tr>
<td>
Oregon
</td>
<td>
$100
</td>
<td>
$100 annual
</td>
</tr>
<tr>
<td>
Pennsylvania
</td>
<td>
$125 + pub cost
</td>
<td>
$70 decennial (every 10 yr)
</td>
</tr>
<tr>
<td>
Rhode Island
</td>
<td>
$150
</td>
<td>
$50 annual
</td>
</tr>
<tr>
<td>
South Carolina
</td>
<td>
$110–125
</td>
<td>
None
</td>
</tr>
<tr>
<td>
South Dakota
</td>
<td>
$150–165
</td>
<td>
$50 annual
</td>
</tr>
<tr>
<td>
Tennessee
</td>
<td>
~$300
</td>
<td>
$300 minimum annual
</td>
</tr>
<tr>
<td>
Texas
</td>
<td>
$300
</td>
<td>
None (franchise tax applies)
</td>
</tr>
<tr>
<td>
Utah
</td>
<td>
$70
</td>
<td>
$20 annual
</td>
</tr>
<tr>
<td>
Vermont
</td>
<td>
$125
</td>
<td>
$35 annual
</td>
</tr>
<tr>
<td>
Virginia
</td>
<td>
$100
</td>
<td>
$50 annual
</td>
</tr>
<tr>
<td>
Washington
</td>
<td>
$200
</td>
<td>
$70 annual
</td>
</tr>
<tr>
<td>
West Virginia
</td>
<td>
$100
</td>
<td>
$25 annual
</td>
</tr>
<tr>
<td>
Wisconsin
</td>
<td>
~$130–170
</td>
<td>
$25 annual
</td>
</tr>
<tr>
<td>
Wyoming
</td>
<td>
~$102 online
</td>
<td>
$60 minimum annual
</td>
</tr>
</tbody>
</table>
<h6>Source: <a href="https://llcradar.com/llc-annual-fees-by-state/" target="_blank" rel="noopener">https://llcradar.com/llc-annual-fees-by-state/</a></h6>
The fees listed in this table are accurate as of the time of writing. State filing fees and annual costs can change without notice. Always confirm the latest requirements directly with your state’s official business registration office before filing.
<h2>2025 cost trends and takeaways</h2>
Four states — Arizona, Missouri, New Mexico, and South Carolina — skip annual fees entirely, making them the cheapest long-term options. Conversely, California, Massachusetts, and Tennessee hit LLC owners hardest with high franchise taxes or yearly report costs that can top $500. 
Most states fall in the $50–$150 filing fee range. Still, hidden charges like New York and Pennsylvania publication requirements or mandatory registered agent fees can push the real cost much higher. If keeping costs low is your goal, watch both the upfront filing fee and the annual maintenance cost before you pick your state, and remember that forming an LLC in your home state can save you from expensive “foreign LLC” registration later.
<h3>Examples from popular states</h3>
<ul>
	<li>California: A filing fee of $70 sounds great until you add the $800 franchise tax and $20 annual statement. Year one costs can easily top $900.</li>
	<li>Florida: $125 to file and $138.75 per year after that. No franchise tax makes it mid-range and predictable.</li>
	<li>Wyoming: $102 to start, $60 per year to maintain, no corporate income tax, and strong privacy protections. Often chosen for holding companies.</li>
</ul>
<h2>Five-year cost comparison</h2>
<table>
<tbody>
<tr>
<td>
State
</td>
<td>
Year 1 total
</td>
<td>
5-year total
</td>
<td>
Notes
</td>
</tr>
<tr>
<td>
California
</td>
<td>
~$890
</td>
<td>
~$4,570
</td>
<td>
Franchise tax drives cost
</td>
</tr>
<tr>
<td>
Florida
</td>
<td>
~$263
</td>
<td>
~$835
</td>
<td>
Predictable
</td>
</tr>
<tr>
<td>
Wyoming
</td>
<td>
~$162
</td>
<td>
~$402
</td>
<td>
One of the cheapest
</td>
</tr>
<tr>
<td>
New Mexico
</td>
<td>
~$50
</td>
<td>
~$50
</td>
<td>
No annual fee
</td>
</tr>
<tr>
<td>
Massachusetts
</td>
<td>
~$1,000
</td>
<td>
~$3,500
</td>
<td>
High upfront and ongoing
</td>
</tr>
</tbody>
</table>
<h6>Source: <a href="https://terms.law/2025/04/20/llc-fees-across-50-states-costs-matrix-and-most-affordable-analysis/" target="_blank" rel="noopener">https://terms.law/2025/04/20/llc-fees-across-50-states-costs-matrix-and-most-affordable-analysis/</a></h6>
The fees listed in this table are accurate as of the time of writing. State filing fees and annual costs can change without notice. Always confirm the latest requirements directly with your state’s official business registration office before filing.
<h2>Hidden costs you might not see coming</h2>
<ul>
	<li>Publication fees: New York and Pennsylvania require public notice, often $500–$1,200.</li>
	<li>Registered agent service: $100–$300/year if you don’t use your address.</li>
	<li>Franchise taxes: California charges $800/year minimum regardless of income.</li>
	<li>Expedited processing: $25–$150 extra, depending on the state.</li>
</ul>
<h2>Choosing the right state</h2>
For most small businesses, the best choice is your home state. Even if another state’s fees are lower, operating outside your state usually means you’ll have to register as a “foreign LLC” — paying two sets of fees and filing in two places.
Forming in a low-cost state like Wyoming or New Mexico can make sense if you don’t have a physical presence elsewhere or create a holding company.
<h2>How to lower LLC costs</h2>
<ul>
	<li>If you have the time, energy, and patience, file your paperwork yourself.</li>
	<li>Use your address for registered agent duties if allowed.</li>
	<li>Pick a state with low or no annual fees if your business can legally operate there.</li>
	<li>Stay on top of renewal deadlines to avoid late fees.</li>
</ul>
<h2>Final thoughts</h2>
Forming an LLC in 2025 can be a simple, affordable process or an expensive surprise, depending on where you do it and how much of the work you handle yourself. Knowing the filing fee, the annual fee, and the hidden extras before you start can keep costs low and avoid headaches later.
If you want to skip the paperwork entirely, we review the top LLC formation services so you can find one that fits your budget and does the heavy lifting for you.
<h2>Frequently asked questions</h2>
Q. How much does it cost to start an LLC in 2025? 
A. In 2025, LLC filing fees in most states range from $50 to $150. Kentucky charges the cheapest, $40, while Massachusetts charges $500. Some states also require annual fees or franchise taxes that raise the total cost.
Q. Which states have no annual LLC fees in 2025? 
A. Arizona, Missouri, New Mexico, and South Carolina do not require an annual LLC fee or report. You may still need local business licenses depending on your industry and location.
Q. What is the most expensive state for LLC formation? 
A. Massachusetts has the highest filing fee at $500. California’s filing fee is only $70, but its $800 annual franchise tax makes it the most expensive.
Q. What hidden costs can increase LLC expenses? 
A. Common hidden costs include publication fees in states like New York and Pennsylvania, registered agent services ($100–$300/year), and franchise taxes in certain states. Expedited filing can also add $25–$150.
 How much does an LLC cost in California in 2025? 
A. The filing fee is $70, plus an $800 franchise tax due every year, starting in the first year. You’ll also file a $20 Statement of Information every two years.
Q. Is it cheaper to form an LLC in another state? 
A. Not if you operate in your home state. You’ll need to register as a “foreign LLC” and pay fees in both states, which often cancels any savings from a cheaper filing fee.
Q. How can I lower the cost of forming an LLC? 
A. File the paperwork yourself, use your address as registered agent if allowed, and choose a state with low or no annual fees if it makes sense for your business.

LLC registration costs in 2025: The complete guide for small business owners

TL;DR: In 2025, LLC filing fees range from $40 in Kentucky to $500 in Massachusetts....

How to Know if Your Business Is Profitable

Figuring out if your business is profitable doesn’t have to be complicated....

How To Do Your Own Payroll: A Step-by-Step Guide for Small Businesses

Managing your own payroll might sound like a daunting task, but with the...

Form 941 Explained: A Step-by-Step Guide for Businesses

Running a business means juggling many responsibilities, from managing...

High-Risk Merchant Account Fees and Pricing

Merchant accounts are essential for businesses to accept credit card payments,...

How to Avoid High Chargeback Ratios For Your Business

Chargebacks are a growing concern for businesses, especially those operating...

The Complete Guide to High-Risk Merchant Services: What Every Business Owner Needs to Know

Payment processing is the lifeline of any business, but for companies operating...

How to Create a Winning Content Marketing Strategy

Content marketing has become one of the most effective ways businesses...

How to Write a Business Plan To Fund Your Business

Starting a business can be both exciting and overwhelming, especially when...

AI Art Prompt Tips: Creative Prompts and Templates for an Effective AI Image Generator

AI art prompt generators are essential tools for transforming user input...

Daniel Zvi writes articles on a plethora of different B2B topics, from tech software and everything in between. His primary focus is in the realm of artificial intelligence for content. When he isn't writing or reading content he's probably cooking, eating or spending time with his friends and family.