💸 The Real Cost of Starting an LLC

(Spoiler: It’s Not Just Filing Fees)

So, you’ve decided to start your business — congrats, CEO! 🥳
You’ve got the name picked out, the dream, the drive, and now you’re ready to make it official.

And then someone says, “You just have to pay the filing fee.”

Ah, yes. The filing fee. The sweet little government number that sounds like the whole cost… until it isn’t.

Let’s talk about what it really costs to start an LLC — and what nobody tells you before you swipe your card.

🧾 1. The Filing Fee — AKA The Cover Charge

Every state sets its own price to form an LLC, and it’s about as consistent as gas prices.

You could pay $50 in Kentucky or $500 in Massachusetts, depending on where you live.

💬 Pro Tip: Check your state’s Secretary of State website (the official one, not the “helpful” ones that charge you extra) for the real price.

But that’s just your entry ticket — the cover charge to the entrepreneurship club.
The bouncer lets you in, but drinks (and paperwork) cost extra.

🧾 2. The Registered Agent Fee — Because Someone Has to Get the Mail

Every LLC needs a registered agent — a person or service who receives legal documents and official notices on your behalf.

Can you be your own agent? Sure, if you don’t mind your home address being public and getting served papers during brunch.

💬 Typical Cost: $100–$300 per year for a professional registered agent service.

Worth it? Absolutely. Nothing ruins eggs Benedict like a process server.

🧾 3. The Operating Agreement — The Rulebook You Didn’t Know You Needed

Even if your state doesn’t require one, you need an Operating Agreement.
It’s the internal rulebook for how your business runs — who owns what, how decisions are made, and how profits are divided.

Can you write one yourself? Technically, yes. Should you? Maybe not.

💬 Typical Cost:

• DIY Template: $0–$50

• Attorney Drafted: $200–$600

Why it matters: Without it, you’re flying blind — and if there’s ever a dispute, you’ll wish you’d spent that extra hundred bucks.

💾 4. The EIN (Employer Identification Number) — Free, But Beware the Fake Websites

The EIN is your business’s Social Security number — and it’s 100% free to get directly from the IRS.

But search “get EIN” on Google and you’ll see a dozen third-party sites charging $75–$200 for the same thing.

💬 Pro Tip: Go directly to IRS.gov. It’s free, fast, and doesn’t come with spam emails promising “instant funding.”

🧭 5. The Business Bank Account — and Its Hidden Requirements

Here’s the deal: most banks will ask for your:

• LLC approval paperwork

• EIN

• Operating Agreement

That means if you skipped any steps above, you’ll be sent home to do your homework.

💬 Typical Cost:

• Some banks are free, but others require a minimum balance ($500–$2,000) or charge monthly maintenance fees.

And if you plan to accept card payments, you’ll need a merchant account or payment processor, which often has its own fees.

🧮 6. The Annual Report — The State’s Way of Saying “We Remember You”

Most states require you to file an annual report (sometimes called a renewal or franchise tax).

💬 Typical Cost: $20–$300 per year depending on your state.

If you forget to file, they’ll hit you with late fees — or worse, dissolve your LLC faster than you can say “pass-through taxation.”

💬 Pro Tip: Set a calendar reminder for your state’s renewal deadline. It’s the cheapest form of insurance you’ll ever have.

🏢 7. The “Real Business” Expenses Nobody Mentions

Forming an LLC is the easy part — running one costs money.
Don’t forget about:

• Business insurance: $30–$100/month (depending on your field)

• Website + domain: $100–$300/year

• Accounting software: $25–$50/month

• Bookkeeper or CPA: $500+ annually (worth every penny)

• Licenses or permits: $50–$500 depending on your industry

💬 Pro Tip: These aren’t “extra” costs — they’re the difference between looking like a hobby and operating like a real business.

💳 8. Optional — But Smart — Startup Investments

You don’t have to spend money on these, but the right tools can save you from headaches later:

• Business credit monitoring (NAV): ~$30/month

• Virtual business address: ~$10–$50/month

• Professional email (G Suite or Microsoft 365): $6–$12/month

They make your business look legit, which helps when applying for business credit and funding down the road.

🧠 So… What’s the Real Cost?

Here’s the breakdown for the average new LLC:

Expense Typical Cost Filing Fee $100–$500 Registered Agent $100–$300/year Operating Agreement $0–$600 Business Bank Account $0–$25/month Annual Report $20–$300/year Optional Setup Tools $100–$500/year

Total: Somewhere between $300 and $1,500 to get started like a pro.

💬 Pro Tip: If that sounds like a lot, remember — this is the foundation of your business. You’re not just forming an LLC; you’re building credibility, protection, and funding potential.

🎯 Final Thought

Starting an LLC isn’t expensive — if you do it right the first time.
The real cost isn’t just money — it’s time, accuracy, and doing it in a way that keeps you protected long-term.

So yes, go ahead and form that LLC.
Just budget a little extra for all the parts that turn it from “official paperwork” into a real, functioning business.

Because while anyone can file an LLC, only smart entrepreneurs know what it truly takes to build one. 💼