Budget & fees
How much does a US LLC really cost?
Forming an LLC often costs between $50 and $500 in state fees upfront. But the real budget is annual: registered agent, annual report or state tax, and — for a non-resident — the mandatory tax accounting (Forms 5472 and 1120). In practice, plan for several hundred dollars per year to stay compliant. The exact figure depends mostly on the state you choose and your situation.
An LLC's cost is read in two stages
Most comparisons quote a single number: the filing fee. That's misleading. The real cost of an LLC breaks down into two blocks: the one-time formation costs and the recurring annual costs — the latter often exceeding formation itself over the company's lifetime.
1. Formation costs (one time)
- State filing fee — the tax paid to the state to register the LLC. It varies widely: New Mexico is among the lowest (about $50, with no annual report), Wyoming around $100, Delaware around $90. According to NerdWallet, filing fees range from roughly $35 to $500 depending on the state (NerdWallet, "How Much Does an LLC Cost?").
- EIN number — the company's tax ID. It is free and obtained directly from the IRS; beware of sites that charge for it (IRS, "Get an Employer Identification Number").
- Setup / advisory fee — if you use a provider for the filing, registered agent and EIN, expect a setup package. It's optional, but it avoids formation mistakes.
2. Recurring costs (every year)
- Registered agent — required in almost every state: a local address that receives official documents. Without a US address, a paid service is needed, generally around $50 to $300/year.
- Annual report or state tax — highly variable. New Mexico requires no annual report; Wyoming requires an annual report (minimum around $60); Delaware charges a flat $300 annual tax for LLCs (Delaware Division of Corporations; Wyoming Secretary of State).
- BOI report (FinCEN) — filing the beneficial ownership information report is free. Note: the scope of this obligation changed in 2025; check the current state of the rule before assuming whether it applies to you (FinCEN, "Beneficial Ownership Information").
- Tax accounting (non-residents) — the most underestimated line. A foreign-owned single-member LLC generally must file Forms 5472 and 1120 with the IRS every year. Missing it triggers a $25,000 penalty — we cover it in a dedicated article. Having an accountant prepare it is a real annual cost to budget for.
Budget estimate: the lines at a glance
| Line item | Type | Indicative range |
|---|---|---|
| State filing fee | One time | ≈ $50 – $500 |
| EIN (IRS) | One time | Free |
| Registered agent | Annual | ≈ $50 – $300 |
| Annual report / state tax | Annual | $0 – $300 by state |
| BOI report | Case by case | Free |
| 5472 / 1120 accounting | Annual | Variable — budget for it |
Why the chosen state changes almost everything
Two identical LLCs can have very different annual costs depending on the state of formation. Delaware is known for its legal framework, but its $300 annual tax weighs in; New Mexico appeals with no annual report; Wyoming sits in between. The "cheapest" is not always the "best fit": the right state depends on your activity, not just the price tag. We cover this choice in our article "Which state to choose for a non-resident LLC?".
Key takeaways
- Formation is often modest ($50 to $500 in state fees); the real budget is annual.
- The EIN is free and the BOI filing too — don't overpay for them.
- For a non-resident, 5472/1120 accounting is the recurring line never to forget — under penalty of $25,000.
- Cost depends mostly on the state and your situation, not a universal price.
Sources
- NerdWallet — "How Much Does an LLC Cost?"
- Forbes Advisor — "How Much Does It Cost To Start An LLC?"
- IRS — "Get an Employer Identification Number" (EIN is free)
- FinCEN — "Beneficial Ownership Information" (free filing)
- Delaware Division of Corporations (LLC annual tax)
- Wyoming Secretary of State (fees and annual report)