Ekur Logo
< All Post
3 Minutes Read

All You Need to Know About State Fees for Business Incorporation

This guide will help you understand the money side of things of LLC formation in any state

Starting your own business is a major step that involves many decisions, not the least of which is choosing the right business structure. For many entrepreneurs, forming a Limited Liability Company (LLC) is an attractive option. LLCs offer the liability protection of a corporation combined with the tax benefits and operational flexibility of a partnership or sole proprietorship.

However, forming an LLC comes with its own set of financial considerations, including various state fees for business Incorporation. This comprehensive guide aims to demystify these costs, providing an in-depth look at the different fees involved in LLC formation and maintenance, as well as tips for budgeting and planning for these expenses.

What’s the Deal with State Fees for LLC Formation?

State Filing Fees for LLC Formation

The first fee you’ll encounter when forming an LLC is the state filing fee. This one-time payment goes to your state’s Secretary of State office (or its equivalent) to process your LLC formation documents. The cost can range from as low as $50 in states like Arizona and Arkansas to as high as $500 in Massachusetts.

These fees are subject to change, so it’s always a good idea to check the most current rates with your state’s business filing office. For a quick reference, here’s a table showing the current LLC filing fees in each state as of 2021.

StateFiling Fee
Alabama$200
Alaska$250
Arizona$50
Arkansas$45
California$0
Colorado$50
Connecticut$120
Delaware$90
Florida$125
Georgia$100
Hawaii$50
Idaho$100
Illinois$150
Indiana$95
Iowa$50
Kansas$160
Kentucky$40
Louisiana$100
Maine$175
Maryland$100
Massachusetts$500
Michigan$50
Minnesota$50
Mississippi$50
Missouri$50
Montana$35
Nebraska$105
Nevada$425
New Hampshire$100
New Jersey$125
New Mexico$50
New York$200
North Carolina$125
North Dakota$135
Ohio$99
Oklahoma$100
Oregon$100
Pennsylvania$125
Rhode Island$150
South Carolina$110
South Dakota$150
Tennessee$300
Texas$300
Utah$70
Vermont$125
Virginia$100
Washington$200
Washington DC$99
West Virginia$100
Wisconsin$130
Wyoming$100

LLC Name Reservation Fees

Before you can officially form your LLC, you need to choose a unique name for your business. Once you’ve decided on a name, you can reserve it with your state’s Secretary of State office to ensure that no other business can take it while you’re in the process of forming your LLC. Name reservation fees vary by state, but they typically fall in the range of $10 to $100.

Publication Fees for LLC Formation

In some states, including Arizona, Nebraska, and New York, newly formed LLCs are required to announce their formation in a local newspaper. Known as publication fees, these costs can vary significantly depending on the newspaper’s ad rates and the length of time the announcement needs to run. Be sure to factor this into your budget if you’re forming an LLC in one of these states.

Getting Down to Business: Understanding Ongoing LLC Fees

Once your LLC is up and running, you’ll need to plan for a series of ongoing fees to keep your business in good standing with the state.

Annual Report Fees

Most states require LLCs to file an annual or biennial report detailing the company’s activities over the past year. These reports typically include information about the company’s finances, ownership, and business activities. Depending on the state, annual report filing fees cost up to $500.

Franchise Tax

Some states charge an annual “franchise tax,” also known as a “business privilege tax.” This fee is essentially a cost for the privilege of doing business in the state, and it’s typically based on the company’s income or assets. States with a franchise tax include Alabama, Arkansas, California, Connecticut, Delaware, the District of Columbia (D.C.), Rhode Island, Tennessee, Texas, and Vermont.

Registered Agent Fees

Every LLC is required to have a registered agent — a person or business entity that agrees to accept legal papers on the company’s behalf. While you can serve as your own registered agent, many businesses choose to hire a professional registered agent service. These services typically charge an annual fee, which can range from $100 to $300.

Expedited Processing Fees

If you’re in a hurry to get your LLC formed, some states offer expedited processing for an additional fee. This can be a valuable service if you need to form your LLC quickly but be ready to pay extra for the convenience.

Conclusion

The costs may seem daunting initially, but they are a small price to pay for the legal protection and tax advantages an LLC offers. In the end, the cost of forming an LLC is just one of many factors to consider when starting a business. Other important considerations include the type of business you want to start, the market you’re entering, and your long-term business goals.

More Articles

The information on our website is for educational purposes only and should not be considered legal advice. Acceptance of our Terms of Service, Privacy Policy is required to use our website and services.

ย 

Subscribe to ekur's newsletter

Please enable JavaScript in your browser to complete this form.
Picture of Emilie David

Emilie David

Emilie, loves helping entrepreneurs kickstart their businesses in the US. Her writing is filled with practical tips, inspiring stories, When she's not busy helping others achieve their goals, Emilie loves to traveling and hiking.

Latest Articles

Frequently Asked Questions.

What does Ekur do?

We’re the go-to startup for startups. Our platform help founders around the world to start and manage a US company legally. We take care of every step of the process From incorporating in any state to handling taxes and everything in between, we’ve got you covered, an all-in-one OS for everything your business need in the US. Apply now in minutes for your dream startup seamlessly with us.

Do I need to be a US citizen to work with Ekur?

Absolutely not! Our team work with entrepreneurs around the world to assist them in incorporating their businesses. But don’t just take our word for it! Take a look at our review to discover the global feedback and testimonials about Ekur.

Does Ekur offer customer support?

Feel free to reach out with any questions you have about our product or the process of forming your company. You can contact us via email or live chat, and we’ll respond to you promptly!

How to get starting

You can start by applying here and fill all your company and personal information.

What information do you need from me to get started?

Start hassle-free, no documents are required. Just give us your company name, personal address, phone number, and email alongside a few additional information. When the time comes, a passport will be needed for setting up your bank account.

What is an LLC

A limited liability company (LLC) is a formal business structure recognized by state law. It provides legal separation between the business and its owner(s). A Single-Member LLC has one owner, while a Multi-Member LLC has multiple owners.
LLCs offer the advantages of both corporations (protection against personal liability) and partnerships (pass-through taxation). As the business is legally distinct, members are not personally responsible for the company’s debts and obligations.
Incorporating an LLC follows state laws, which may require specific documents like articles of organization or membership agreements to be filed with the authorities.

What is an EIN

An Employer Identification Number (EIN) is a crucial tax identification number for your organization. It’s necessary for conducting business in the US and often required by banks and institutions, including the IRS. Once you have your EIN, you can easily apply for business bank accounts and payment gateways

What is an ITIN?

While not always mandatory, an Individual Tax Identification Number (ITIN) can serve as an alternative to a Social Security Number (SSN) in certain situations. However, you will need an ITIN if you plan to apply for a PayPal account or specific bank accounts.

Guaranteed & Fast US business formation.

60-Day money back guarantee

If youโ€™re not satisfied for any reason, you don’t have to worry. We offer a full refund, minus state and third-party fees, within 60 days of purchase.

24/7 Customer support

Exceptional support from our dedicated teams, ready to assist you wherever you are. Get personalized, helpful answers to your inquiries from real humans.

No hidden fees

Our flat and transparent pricing is designed to cover everything your business needs. ensuring peace of mind without unexpected expenses.

Get Started With Ekur.

We simplify your company formation process to start strong from day one. Form your company the right way with Ekur’s expert setup assistance.

Subscribe for our newsletter

Get updates, features, guides, and success stories delivered to your inbox ๐Ÿš€

Please enable JavaScript in your browser to complete this form.

Company

About

FAQs

Become Partner

Services

Form an LLC

Form an C-corp

Obtain EIN

Obtain ITIN

Tax & Compliance

Free Resources

Blog

Create a PayPal Account

Create a Stripe Account

Open a US LLC & US bank Account as a non-US Resident

LLC vs. C-Corp

Founder’s Guide

Ekur and its logo are registered trademarks. We are a technology company, we do not provide formal legal advice. The information available on our website are only available for educational purposes and should not be seen as a form of legal guidance. Acceptance of our Terms of Service, Privacy Policy is required to use our website and services.

30 N Gould St Ste R
Sheridan, WY 82801 USA

Copyright © 2024 Ekur. All right reserved.