How much does it cost to start an LLC in 2025?

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Starting your own business is a big move, and forming an LLC is one of the smartest ways to protect yourself legally while keeping things flexible. If you’re thinking about launching an LLC in 2025, you're probably wondering what it’ll cost to get started. The good news? You don’t need a law degree or a huge budget to make it happen. In this guide, we’ll break down the typical costs of forming an LLC, explain what those fees actually cover, and help you avoid any unexpected expenses along the way.

Mandatory LLC startup costs 

Before you start an LLC, it’s important to know that some startup costs are non-negotiable. These are the must-pay fees that every new LLC faces, like state filing fees and required licenses or permits. While the exact amount can vary depending on where you’re setting up shop, these baseline costs are part of getting officially up and running.   

State-by-state fees 

Every state has different LLC costs. We’ve outlined them below to help you get an idea of what you’ll pay.

LLC Licenses and permits fees 

Depending on your location and LLC type, your LLC may need specific licenses or permits to operate legally. These requirements help ensure your business meets local, state, and federal regulations. You may need:

• Business license: Required by many cities or counties just to operate locally
• Sales tax permit: Needed if you sell physical goods
• Professional or occupational license: For industries like cosmetology, legal services, or construction
• Health permits: Often required for food-related businesses
• Sign permits: If you’re installing a business sign outside your storefront

LLC costs can range from as little as $20 to several hundred dollars, depending on what’s required by your state. Some permits need to be renewed annually, so factor those into your budget, too.

Publication fees 

In a few states, including New York, Arizona, and Nebraska, newly formed LLCs are required to publish a notice announcing their formation in a local newspaper. The rules vary by state, but generally, you’ll need to publish the notice for several weeks in a newspaper approved by your county clerk, then file proof of publication with the state.

The cost depends on the newspaper’s rates and your location. While it might seem old-school, skipping this step can delay your LLC’s approval, so be sure to check your state’s exact requirements.

Optional LLC startup costs 

Not every LLC cost is required. We’ll walk through a few of the most common optional startup costs below to help you decide which ones are worth including in your business budget.

LLC Name reservation 

Reserving your LLC name in advance is optional in most states, but it can be a smart move if you’re not quite ready to file yet. Once you’ve chosen your LLC name, reservation ensures your business name is held for a set period (usually 30 to 120 days), giving you time to finalize your paperwork. Fees vary but are generally under $50.

As you lock in your LLC name, remember to think ahead to your online presence. Make sure the name is available as a domain by checking your domain name, and consider creating a website early on. Even a basic website can help you establish credibility before your official launch.

Operating agreement 

An operating agreement outlines how your LLC will be run, from ownership structure to decision-making processes. It’s not required in every state, but it’s a good idea, especially if your LLC has multiple members. You can draft one yourself using templates or legal resources, or hire a service to assist you. This can cost anything from $0 to $1,000, depending on which route you take.

DBA 

You may be wondering, what is a DBA? A DBA, or “Doing Business As,” lets your LLC operate under a name that’s different from its legal name. This is useful if you want to brand your business a certain way or run multiple services under one LLC. Filing a DBA isn’t mandatory unless you plan to use a different name, but it’s a common step for many entrepreneurs. Fees typically range from $10 to $200, depending on your state.

Registered agent 

A registered agent is the person or service that receives legal and government documents on behalf of your LLC. You can serve as your own registered agent, but many business owners choose to hire a service for privacy and convenience. Costs for a registered agent service usually range from $50 to $300 per year.

Related: What is a registered agent 

Expedited filing 

If you're in a rush to get your LLC approved, most states offer expedited processing for an extra fee. This can shorten the turnaround time from weeks to just a few days. Expedited filing fees vary but generally fall between $25 and $150, depending on how fast you need your documents processed. If time is of the essence, it could be worth the added cost.

Ongoing LLC costs 

Starting your LLC is just the beginning — there are also a few ongoing costs you’ll need to budget for to keep your business in good standing. These recurring expenses are part of maintaining your LLC legally and financially, and skipping them can result in penalties, extra fees, or even the loss of your LLC status.

• Annual report fees: Most states require LLCs to file a yearly report to keep their business info current. Filing fees range from $0 to $500+, depending on the state.
• Franchise taxes: Some states charge a flat fee or percentage-based tax just for the privilege of doing business, even if you're not a franchise. These can range from $0 to $1,000 annually.
• Registered agent fees: If you hire a service instead of acting as your own agent, expect to pay around $50 to $400 per year.
• Business license renewals: Local or state licenses may need to be renewed annually, with fees depending on your industry and location.
• Operating costs: Things like accounting software, website hosting, and marketing tools are part of your day-to-day expenses but still worth factoring into your annual budget.
• Tax filing: Depending on how your LLC is taxed, you may need to file state or federal returns annually. Learn more about filing taxes for LLCs to understand your obligations.

Overall LLC costs 

Forming an LLC comes with a mix of mandatory and optional expenses, but having a clear understanding of these costs can help you plan ahead and avoid surprises. As you weigh your options, keep in mind the LLC pros and cons, especially when it comes to long-term flexibility, protection, and ongoing maintenance.

Ready to start your LLC? GoDaddy Airo can help streamline the setup process. It guides you through forming your LLC, securing your domain name, and building your online presence, all in one place. Starting a business is a big step, but you don’t have to do it alone. Let GoDaddy help you get started the smart way.  

FAQ 

How much money does it cost to start an LLC? 

The cost to start an LLC varies depending on your state and the services you choose. At a minimum, you’ll need to cover your state’s filing fee, which typically ranges from $40 to $500. If you choose to add extras like a name reservation, operating agreement, or a registered agent service, those will add to your total. Without considering ongoing costs or foreign LLC formation fees, the cost to start an LLC can range from $40 to $2,000.

How much money should you have before starting an LLC? 

There’s no exact dollar amount you need in the bank, but it’s a good idea to budget for both startup and early operating costs. Aside from formation fees, you’ll want enough to cover things like licenses, a basic website, and your first few months of business expenses. Planning ahead gives your LLC a stronger start and fewer surprises.

What are LLC start-up costs? 

LLC startup costs include required fees like your state filing fee and any licenses or permits you need to operate legally. You might also choose to spend on optional items like a name reservation, a registered agent, or legal templates like an operating agreement. These costs help lay the foundation for your business and can vary depending on how hands-on you want to be.