{
  "slug": "llc-formation-cost-calculator",
  "title": "LLC Formation Cost Calculator",
  "heading": "LLC Formation Cost Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/llc-formation-cost-calculator",
  "summary": "First-year and ongoing cost of forming an LLC, including franchise taxes.",
  "description": "The advertised price of forming an LLC — often under $100 — is the state filing fee alone. The real first-year cost adds a registered agent, the state's annual report or franchise tax, an operating agreement, an EIN-adjacent bookkeeping setup, and in some states a publication requirement that costs more than everything else combined. This calculator totals the first year and then projects the recurring annual cost, so you can compare forming in your home state against the frequently promoted alternative of forming elsewhere. Note the trap in that comparison: an LLC formed in another state but operating where you live usually has to register as a foreign LLC at home anyway, paying both sets of fees. The tool includes that scenario. It also shows cost per member and the break-even revenue at which the annual overhead is a trivial share of the business, which is the practical test of whether the entity is worth maintaining.",
  "formula": "Year One = Filing + Agent + Operating Agreement + Publication + Franchise Tax + Extras. Recurring = Agent + Annual Report + Franchise Tax.",
  "dateModified": "2026-09-06",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=llc-formation-cost-calculator",
  "inputs": [
    {
      "id": "filing",
      "label": "State filing fee",
      "kind": "number",
      "hint": null,
      "default": 130,
      "unit": "$",
      "min": 0,
      "max": 800
    },
    {
      "id": "agent",
      "label": "Registered agent",
      "kind": "number",
      "hint": null,
      "default": 125,
      "unit": "$/year",
      "min": 0,
      "max": 500
    },
    {
      "id": "annualReport",
      "label": "Annual report fee",
      "kind": "number",
      "hint": null,
      "default": 50,
      "unit": "$/year",
      "min": 0,
      "max": 800
    },
    {
      "id": "franchise",
      "label": "Franchise / minimum tax",
      "kind": "number",
      "hint": null,
      "default": 0,
      "unit": "$/year",
      "min": 0,
      "max": 2000
    },
    {
      "id": "publication",
      "label": "Publication requirement (NY, AZ, NE)",
      "kind": "number",
      "hint": null,
      "default": 0,
      "unit": "$",
      "min": 0,
      "max": 2500
    },
    {
      "id": "operating",
      "label": "Operating agreement / legal",
      "kind": "number",
      "hint": null,
      "default": 250,
      "unit": "$",
      "min": 0,
      "max": 3000
    },
    {
      "id": "foreign",
      "label": "Forming out of state but operating at home?",
      "kind": "select",
      "hint": null,
      "default": "no",
      "options": [
        {
          "value": "no",
          "label": "No — same state"
        },
        {
          "value": "yes",
          "label": "Yes — foreign registration needed"
        }
      ]
    },
    {
      "id": "members",
      "label": "Members",
      "kind": "number",
      "hint": null,
      "default": 1,
      "unit": "people",
      "min": 1,
      "max": 20
    }
  ],
  "outputs": [
    {
      "id": "yearOne",
      "label": "First-year cost",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "recurring",
      "label": "Recurring annual cost",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "fiveYear",
      "label": "Five-year total",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "perMember",
      "label": "First-year cost per member",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "foreignCost",
      "label": "Extra for foreign registration",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "State filing fee: 130 $",
      "Registered agent: 125 $/year",
      "Annual report fee: 50 $/year",
      "Franchise / minimum tax: 0 $/year",
      "Publication requirement (NY, AZ, NE): 0 $",
      "Operating agreement / legal: 250 $",
      "Forming out of state but operating at home?: No — same state",
      "Members: 1 people"
    ],
    "outputs": [
      "First-year cost: $555",
      "Recurring annual cost: $175",
      "Five-year total: $1,255",
      "First-year cost per member: $555",
      "Extra for foreign registration: $0"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter state filing fee ($).",
      "Enter registered agent ($/year).",
      "Enter annual report fee ($/year).",
      "Enter franchise / minimum tax ($/year).",
      "Enter publication requirement (ny, az, ne) ($).",
      "Enter operating agreement / legal ($).",
      "Enter forming out of state but operating at home?.",
      "Enter members (people).",
      "Read your first-year cost on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "filing": 80,
        "agent": 75,
        "annualReport": 30,
        "franchise": 0,
        "publication": 0,
        "operating": 150,
        "foreign": "no",
        "members": 1
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "filing": 130,
        "agent": 125,
        "annualReport": 50,
        "franchise": 0,
        "publication": 0,
        "operating": 250,
        "foreign": "no",
        "members": 1
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "filing": 210,
        "agent": 200,
        "annualReport": 80,
        "franchise": 0,
        "publication": 0,
        "operating": 400,
        "foreign": "no",
        "members": 2
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "Is forming in Delaware or Wyoming cheaper?",
      "a": "Rarely, for a small operating business. If you conduct business where you live, you generally must register there as a foreign LLC too, so you pay two filing fees, two agents, and two annual reports. Turn on the foreign registration option to see it."
    },
    {
      "q": "Do I need a registered agent service?",
      "a": "You need a registered agent with a physical address in the state during business hours. You can serve as your own in most states, which drops that line to zero — at the cost of putting your address in the public record."
    },
    {
      "q": "What is a franchise tax?",
      "a": "A flat or revenue-based annual charge some states levy simply for existing as an entity. California's minimum is the well-known example; several states charge nothing. Check your state and enter the figure."
    },
    {
      "q": "Does an LLC save me tax?",
      "a": "By default an LLC is taxed the same as a sole proprietorship or partnership. Tax savings usually come from an S-corporation election once profit is high enough to justify payroll costs, which is a separate calculation."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/s-corp-vs-llc-tax-savings-calculator",
    "https://www.revenuelab.fyi/toolbox/business-liability-insurance-cost-calculator"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — LLC Formation Cost Calculator (https://www.revenuelab.fyi/toolbox/llc-formation-cost-calculator)"
}