How Much Does It Cost to Set Up an LLC?
Real numbers, hidden costs exposed, and the smartest way to get it done without overpaying.
🚀 Start Your LLC with Tailor Brands — Free + State FeesForming an LLC Costs $50 to $800+, Depending on Your State
Most entrepreneurs pay $200–$400 in year one. State filing fees range from $50 (New Mexico, Colorado) to $800+ (California franchise tax). Formation service fees range from $0 to $500+. Tailor Brands offers one of the most complete packages — LLC filing, registered agent, branding tools, and business essentials — all starting at $0 + your state fee.
Breaking Down the Real Cost of Forming an LLC in 2026
If you’ve been searching for answers on what it costs to start an LLC, you’ve probably noticed the numbers are all over the map. Some sites scream “$0 + state fees!” while others quote $1,000 or more. Here’s the honest answer: both can be true, and knowing why is the difference between smart planning and an expensive surprise.
The total cost of forming an LLC in 2026 comes down to three core components — and only one of them is fixed. The other two are entirely in your control.
💰 State Filing Fees
Paid directly to your state government. Non-negotiable. California charges a $70 filing fee but slaps you with an $800/year franchise tax. New Mexico? Just $50, and $0 annually.
🏢 Formation Service Fees
What you pay a company to handle your filing. Advertised prices start at “$0” but real year-one costs vary wildly based on what’s included — registered agent, operating agreement, EIN, and more.
📋 Ongoing Compliance
Every LLC needs a registered agent (legally required), annual report filings, and compliance tracking. These recurring costs often eclipse the original setup fee over time.
Why We Recommend Tailor Brands for Your LLC
Most formation services give you a filing receipt and call it a day. Tailor Brands is built differently — it’s the only platform that combines LLC formation, registered agent service, branding, business banking, and a full suite of business tools in one seamless experience. You’re not just filing paperwork; you’re launching a real business.
State Filing Fees: What Every State Charges in 2026
Your single biggest cost variable is where you form your LLC. Here are the most common states with their full cost picture, including often-overlooked annual fees:
| State | Filing Fee | Processing Time | Annual Fee | Total Year 1 |
|---|---|---|---|---|
| New Mexico LOWEST | $50 | 1–15 days | $0 | $50 |
| Colorado | $50 | Same day – 1 day | $10 | $60 |
| Ohio | $99 | 5–7 days | $0 | $99 |
| Wyoming | $100 | 1–5 days | $50 | $150 |
| Pennsylvania | $125 | 5–7 days | $70 | $195 |
| Florida | $125 | 5–7 days | $138.75 | $263.75 |
| Illinois | $150 | 5–10 days | $75 | $225 |
| Delaware | $90 | 1–3 days | $300 | $390 |
| New York | $200 | 7–10 days | $9 | $209 |
| Texas | $300 | 3–5 days | $0 | $300 |
| California HIGH TAX | $70 | 7–14 days | $800 franchise tax | $870 |
| Nevada EXPENSIVE | $425 | 1–7 days | $350 | $775 |
Yes, for 95% of small businesses. Despite what you may read about Nevada or Wyoming being “tax havens,” if you operate in California or New York, you’ll still owe those state taxes plus foreign qualification fees ($100–$200) to legally operate there. Only form out of state if your business is 100% remote with no physical presence anywhere.
Formation Services: The “$0” Myth Exposed
Nearly every LLC formation service advertises “$0 + state fees” in 2026. But here’s the catch: that $0 covers only the bare minimum filing. Running a real business requires registered agent service, an operating agreement, an EIN, and compliance tracking — and that’s where prices quietly balloon.
Here’s what 24 months of using each service actually costs:
| Service Provider | Advertised Price | Real Year 1 Cost | Year 2 Cost | 24-Month Total |
|---|---|---|---|---|
| Tailor Brands ⭐ BEST OVERALL | $0 + state | $249 | $149 | $398 + branding tools included |
| Northwest Registered Agent | $39 + state | $264 | $125 | $389 |
| Bizee (Incfile) | $0 + state | $199 | $149 | $348 |
| Inc Authority | $0 + state | $299 | $199 | $498 |
| ZenBusiness | $0 + state | $358 | $199 | $557 |
| Rocket Lawyer | $99.99 | $399 | $299 | $698 |
| LegalZoom MOST EXPENSIVE | $0 + state | $479 | $329 | $808 |
What makes Tailor Brands the best overall value? While some services beat it on raw price, Tailor Brands includes branding tools, a logo maker, website builder, and business essentials that would cost hundreds extra elsewhere. You’re getting an all-in-one business launch platform, not just a filing service.
Ready to Launch Your LLC the Smart Way?
Tailor Brands combines LLC formation, registered agent service, professional branding, and business tools — all under one roof. No hidden fees. No surprises.
✅ Start My LLC with Tailor Brands →The 6 Hidden Costs Behind “Free” LLC Formation
Before you click on any “$0 LLC” ad, understand what they’re not showing you upfront. Here are the six costs that catch new business owners off guard:
What You’re Actually Paying For
1. Registered Agent Service
Legally required in every state. A registered agent receives legal documents and government notices on your LLC’s behalf. Most formation services include the first year free, then auto-renew at $99–$300/year. Tailor Brands includes this in its plans — no surprise renewals.
2. Operating Agreement
A document that defines ownership percentages, profit distribution, and management structure. Banks often require it to open a business account. Some providers include it free; LegalZoom charges $99–$249 extra. Tailor Brands includes this in higher-tier plans.
3. EIN Obtainment
Your Employer Identification Number — essentially your LLC’s Social Security number. You can get it free directly from the IRS, but many services charge $50–$139 to handle it for you. A convenient option if you want it done fast and correctly.
4. Annual Report Filing
Most states require LLCs to file an annual (or biennial) report to stay in good standing. Miss one, and your LLC could be administratively dissolved. Tailor Brands handles compliance reminders so this never sneaks up on you.
5. Business Name Search & Reservation
Some states let you reserve a business name before filing. If your desired name is taken, you may need to pivot or pay a reservation fee. Tailor Brands includes name availability checks as part of its formation flow.
6. Certified Copy / Certificate of Good Standing
Often needed when opening a business bank account or applying for funding. States charge $20–$75 for certified document copies. Not always required upfront, but good to budget for.
Your Real Total: What to Budget for Year One
Here’s a realistic breakdown of what most people actually spend in their first year, depending on which state and service they choose:
🟢 Budget Scenario
New Mexico + DIY: File directly with the state ($50 filing fee), serve as your own registered agent (allowed in NM), download a free operating agreement template. Best for solo entrepreneurs comfortable with paperwork.
🔵 Smart Scenario
Home state + Tailor Brands: State fee + Tailor Brands’ LLC plan. You get professional filing, registered agent, operating agreement, EIN, branding tools, and ongoing compliance — all without the DIY risk.
🔴 Costly Scenario
California + LegalZoom: $70 state fee + $800 franchise tax + $479 LegalZoom year one costs. The most expensive combination — and unfortunately the one many beginners stumble into.
✅ Key Takeaways Before You File
- Form in your home state unless you’re 100% remote — foreign qualification costs wipe out any “tax benefit” of out-of-state filing.
- Compare 24-month costs, not just the advertised price — registered agent renewals are where most services make their money.
- Tailor Brands offers the most complete package: LLC formation + branding + business tools in one platform.
- Always get an operating agreement — banks require it, partners expect it, and courts rely on it.
- Your EIN is free directly from the IRS at irs.gov — don’t pay $100+ for something you can do in 10 minutes.
- Budget $200–$400 for year one if you’re in a mid-cost state using a reputable formation service.
Frequently Asked Questions
Can I form an LLC for free?
Technically no — every state charges a filing fee ranging from $50 to $800+. However, some services waive their service fee, meaning you only pay the state fee. The cheapest all-in option is forming directly in New Mexico ($50 total) and handling paperwork yourself. For most entrepreneurs, using a service like Tailor Brands for $0 + state fee is worth it for the time saved and mistakes avoided.
How long does it take to form an LLC?
Standard processing takes 5–15 business days in most states. Many states offer expedited processing (same-day to 3 days) for an extra $25–$200. Colorado and Wyoming are among the fastest for standard processing. Tailor Brands automatically selects the best processing option for your state.
Is Tailor Brands legit for LLC formation?
Yes. Tailor Brands is a legitimate, registered business formation service that has helped hundreds of thousands of entrepreneurs launch their businesses. What sets it apart is its all-in-one platform — beyond just filing your LLC, it provides branding tools, a logo maker, website builder, and business essentials that most pure formation services don’t offer. It’s particularly valuable for entrepreneurs who want to launch a complete brand, not just file paperwork.
Do I need a lawyer to form an LLC?
For most single-member LLCs with straightforward ownership, no — you don’t need a lawyer. Formation services like Tailor Brands handle all the paperwork correctly and affordably. However, if your LLC has multiple members with complex ownership arrangements, significant outside investment, or operates in a highly regulated industry, a business attorney consultation ($150–$400/hr) is worth the cost.
What’s the cheapest state to form an LLC?
New Mexico is the cheapest state to form an LLC: $50 to file, $0 annual fee, and no annual report requirement. Colorado is a close second at $50 to file with a $10 annual report. However, if you operate in a different state, you’ll need to register there too (foreign qualification), which adds cost and complexity. For most small businesses, forming in your home state is the practical choice.
What does Tailor Brands include in its LLC plans?
Tailor Brands’ LLC plans include state filing of your Articles of Organization, registered agent service, operating agreement, EIN obtainment assistance, and compliance alerts — plus its signature branding tools: AI logo maker, website builder, and brand identity toolkit. It’s the only major formation service that gives you a complete business launch toolkit, not just a filing receipt.
Launch Your LLC with Tailor Brands
Join hundreds of thousands of entrepreneurs who’ve used Tailor Brands to form their LLC and build their brand. Starting at $0 + your state fee, you get everything you need to go from idea to official business — fast, correctly, and without the headache.
✅ Form My LLC with Tailor Brands Now →
