Form an LLC in 6 Easy Steps – A Beginner’s Guide
Starting an LLC should be easy and affordable. Our free, step-by-step guides simplify the process
Saving you time and hundreds in legal fees.
Learn more about LLC Tutorial, select your state below to start your LLC in minutes!
What's the best state to start an LLC?
Not all states are ideal for LLCs—discover the best state for your LLC based on taxes, privacy, and legal benefits.
Save on Registered Agent Fees
Avoid unnecessary service fees—find out how to appoint a registered agent for free or at the lowest possible cost.
LLC Cost by State - Full Breakdown
Explore the most accurate LLC cost breakdown by state, including filing fees, annual maintenance, and additional expenses for 2025.
Start forming your LLC!
Select your State:
LLC Tutorial makes forming an LLC simple with free, step-by-step guides for every state. Simply choose your state below to find the dedicated LLC formation guide and detailed resources for your location.
Each state above links to our free, state-specific LLC formation guide, which covers the entire process from filing requirements and fees to operating agreements. Use these free state-by-state LLC formation guides to start an LLC in your state with confidence.
What is an LLC?
An LLC (Limited Liability Company) is a popular business structure that protects your personal assets by keeping your personal finances separate from your company. It combines the tax flexibility of a partnership with the legal protections of a corporation, giving you the advantages of both corporations and partnerships without most of their disadvantages. An LLC is easy to manage and can be used to run any small business or even to hold investments.
For example, an LLC can operate an active business or hold assets like real estate, vehicles, or equipment. By placing these assets under the company’s name, your personal bank account and home (and other personal property) are generally shielded from business liabilities. This means creditors and lawsuits are limited to the LLC’s assets, keeping your personal finances safer.
Where is the best state to form an LLC?
In most cases, it’s best to form your LLC in your home state – where you live and actually do business. Forming out-of-state usually adds extra steps and costs (you’d have to register as a foreign LLC in your home state). For nearly everyone, your home state is the best state to form an LLC.
If you own out-of-state rental property or run a business in another state, you generally should form the LLC in the state where the property or business is located. For example, real estate investors typically form each LLC in the state where the property is, since that is where the LLC is legally operating. In short: form your LLC where you do business or live, to avoid unnecessary fees and filings.
How much does it cost to form an LLC?
LLC formation costs vary by state. As of 2025, the average LLC filing fee nationwide is about $132. Most states charge between about $50 and $150 for the initial filing. (This covers the Articles of Organization or Certificate of Formation that officially creates your LLC.)
For a complete breakdown of fees, see our LLC cost by state charts. These show every state’s filing fee and any extra fees.
Expensive States to Form an LLC
A few states charge much more than the average for LLC formation. Notable examples include Massachusetts ($500), Texas ($300), Tennessee ($300), and Alaska ($250). If you’re considering a high-fee state, remember you should only do that if you truly need to operate there. Forming an out-of-state LLC means you would later register a foreign LLC at home, effectively doubling your state filing fees.
LLC Annual Reports
Nearly all states require LLCs to file an annual report or pay an annual fee to stay in good standing. The average annual fee for an LLC is around $91, and most states charge roughly $50–$100 per year. Annual reports are usually filed to update the state on your LLC’s address and members, or as a simple franchise tax.
States with no LLC Annual Reports
Some states have no annual LLC fee (though you may still file a short annual report or update). These states currently include:
-
Arizona
-
Idaho
-
Minnesota
-
Mississippi
-
Missouri
-
New Mexico
-
Ohio
-
South Carolina
-
Texas
In these states you do not owe a yearly fee to maintain your LLC (but always check for any required filings or reports).
States with Expensive Annual LLC Fees
Other states have very high annual fees or taxes. For example, California charges a minimum of $800 per year for an LLC. States like Nevada ($500), Massachusetts ($500), Delaware ($300), Maryland ($300), and Washington D.C. ($300) also have steep annual fees or franchise taxes. Always review your state’s annual requirements to avoid surprises.
“Hidden” LLC Fees
Be aware that some states add extra taxes beyond the annual fee. For example, Connecticut’s LLC filing fee is low, but it also imposes a $250 “Business Entity Tax” every other year. Even if a state’s annual report fee seems small, check for any hidden costs like these. We recommend reading our full state guide for each jurisdiction to understand all the fees associated with starting and maintaining an LLC in that state.
LLC Registered Agent Fees
Every LLC must have a registered agent: a person or service listed to receive legal documents for the company. If you or a friend/family member serve as your own registered agent, there’s no extra cost. If you hire a professional Commercial Registered Agent, expect to pay around $100–$300 per year. For example, Northwest Registered Agent (a highly rated service) charges about $125/year and is known for excellent customer service.
What is an LLC Registered Agent?
A Registered Agent (also known as a resident or statutory agent) is the individual or company designated to accept official mail and legal papers for the LLC. All states require that your LLC list a registered agent with a physical street address (a P.O. Box usually won’t suffice). The agent must be available during business hours to receive service of process (like lawsuit notices or other legal documents).
The purpose of having a registered agent is to ensure there is a reliable address on file for legal correspondence. Many new business owners serve as their own agent to save money. If you hire a service, it can add extra privacy and convenience, but it is optional.
LLC classes and online courses
LLC Tutorial also offers free online courses and classes on forming and managing an LLC. Our educational resources walk you through how to start an LLC step by step. Topics include choosing the best state for your business, comparing LLC costs by state, appointing a registered agent, handling annual reports, and more. All our LLC classes are completely free – perfect for entrepreneurs who want to learn at their own pace and save money on LLC formation.