For international entrepreneurs and digital nomads, the process of starting a company in the United States can feel like navigating a maze of fees, filings, and state-imposed requirements. If you’re frustrated by opaque costs and ever-changing regulations, you’re not alone. In 2025, understanding the real, data-backed costs of forming and maintaining a standard Limited Liability Company (LLC) in the US is essential for optimizing your fiscal strategy and minimizing unnecessary burdens.
Average LLC Formation Costs in the US (2025)
Let’s cut through the confusion: the average cost to create an LLC in the US in 2025 is $800. This figure is based on a composite of state fees and common service charges, offering a realistic snapshot for most founders. Here’s a detailed breakdown:
| Cost Item | Average Amount (USD) |
|---|---|
| State filing fee (average across states) | $150 |
| Registered agent service (first year, average) | $120 |
| Legal/document preparation service (average) | $400 |
| EIN application (if done via third-party service) | $75 |
| Minimum capital requirement | $0 |
| Operating Agreement preparation (optional, average legal fee) | $55 |
Pro Tip #1: DIY your EIN application directly through the IRS website to avoid unnecessary third-party fees.
Annual Maintenance Costs: What to Expect in 2025
Once your LLC is up and running, annual maintenance costs can range from $100 to $900, depending on your state and compliance needs. Here’s how those costs typically break down:
| Maintenance Item | Annual Cost (USD) |
|---|---|
| Annual report/statement filing fee (average across states) | $100 |
| Registered agent service (annual, average) | $120 |
| State franchise tax (where applicable, e.g., California minimum) | $800 |
| Mandatory accounting/tax filing (basic, optional but recommended) | $200 |
Pro Tip #2: Choose your state wisely. Some states, like California, impose a minimum $800 franchise tax, while others have no franchise tax at all. This single decision can dramatically impact your annual costs.
Case Example: The Cost of Compliance in California vs. Other States
Suppose you form your LLC in California. Your annual maintenance could easily reach $900, primarily due to the state’s $800 minimum franchise tax. In contrast, forming in a state with no franchise tax could keep your annual costs closer to $220 (annual report + registered agent). This is a classic example of how state selection is a powerful lever for optimizing your fiscal footprint.
Pro Tip #3: Always budget for basic accounting and tax filing, even if not strictly mandatory. Clean books and timely filings are your best defense against state scrutiny and surprise penalties.
Checklist: Steps to Minimize LLC Costs in the US (2025)
- Research state-specific filing fees and franchise taxes before choosing your LLC’s home base. Nolo’s 50-state guide is a reliable resource.
- Handle your EIN application directly with the IRS to avoid third-party charges.
- Consider preparing your own Operating Agreement using reputable templates, unless your structure is complex.
- Shop around for registered agent services; prices vary, but $120/year is a solid average.
- Stay ahead of annual report deadlines to avoid late fees and administrative dissolution.
Summary: Key Takeaways for 2025
- The average LLC formation cost in the US is $800, with state filing fees and legal services as the main drivers.
- Annual maintenance ranges from $100 to $900, heavily influenced by state franchise taxes.
- Strategic state selection and DIY approaches can significantly reduce your fiscal burden.
For further reading and up-to-date fee schedules, consult these trusted sources: