This article provides a detailed overview of company formation and annual maintenance costs for a Limited Liability Company (LLC) in the United States for 2025. All figures are based on recent averages for LLCs, presenting a transparent view of startup and ongoing compliance expenses according to published sources.
Average Cost to Create a LLC in the United States (2025)
Forming a standard LLC in the U.S. in 2025 involves multiple steps and associated fees. Here are the main cost components business owners typically encounter during the setup phase:
| Fee Type | Average Rate (USD) | Description |
|---|---|---|
| State filing fee | $150 | Average fee required to officially register an LLC, varies by state |
| Registered agent service (first year) | $120 | Third-party service to receive legal documents |
| Legal/document preparation service | $400 | Professional assistance with formation documents |
| EIN application (via third-party) | $75 | Employer Identification Number facilitation, optional |
| Minimum capital requirement | $0 | No minimum capital is required for an LLC in the U.S. |
| Operating Agreement prep (optional) | $55 | Legal drafting fee if opting for professional services |
| Total Estimated Creation Cost | $800 | Aggregate of typical first-year startup expenses |
These costs indicate a practical baseline for most entrepreneurs forming a standard LLC through commonly used channels in 2025. Variations occur between states; for instance, filing fees and some requirements differ by jurisdiction.
Annual Maintenance Costs for an LLC in the USA
Once established, maintaining a U.S. LLC involves several recurring expenses. These keep your company compliant with state and federal regulations. Here are the main components and their average ranges:
| Expense Type | Typical Range (USD, Annual) | Description |
|---|---|---|
| Annual report/statement filing fee | $100 | Mandatory filing with state authorities |
| Registered agent (annual) | $120 | Ongoing representation for legal correspondence |
| State franchise tax (applicable states, e.g., CA min.) | up to $800 | Only some states require this tax (highest in California) |
| Mandatory accounting/tax filing (basic, optional but recommended) | $200 | Basic professional support for annual filings |
| Total Estimated Maintenance Cost (annual) | $100 – $900 | Varies by state tax regime and service choices |
Notably, in states like California, the franchise tax significantly increases the cost floor. In other states without franchise taxes, the maintenance costs may be closer to the lower end of this range. Accounting and tax filing services, while not strictly mandatory for some, are typically recommended for compliance and efficiency.
Key Data Points at a Glance
- Formation (Year 1) Estimate: $800 (national average, includes filing, documentation, and basic setup services)
- Annual Maintenance: $100 – $900 (wide range due to state-specific requirements and tax obligations)
Sources
Pro Tips for Managing LLC Setup and Fees
- Compare state-specific filing and annual fees before deciding your business base—costs vary considerably across the U.S.
- Utilize official online portals for EIN registration directly with the IRS to avoid unnecessary third-party fees.
- Consider whether you need third-party legal services for standard documents; official templates may suffice if your structure is straightforward.
- Keep calendar reminders for annual report and franchise tax deadlines to avoid late penalties and maintain good standing.
- Where possible, consolidate registered agent and reporting services for cost efficiency and simplified compliance routines.
Overall, forming and maintaining an LLC in the United States in 2025 is a straightforward process for most business owners, with most expenses occurring at state-level and during key compliance events. The main drivers of cost are location, choice of professional services, and whether optional services are utilized. Keeping informed of these variable requirements remains essential for efficient company management.