Is the EIN really free?

Yes. The IRS issues EINs at no charge. Any service charging for one is charging for the administration of applying on your behalf, which can be worth paying for if you are filing on paper from abroad — but you should know that is what you are buying.

What is the cheapest state to run an LLC in?

New Mexico, at $50 to file and no annual report. Wyoming is close behind at $100 to file and a $60 minimum annual report, and has the advantage that the annual filing acts as a recurring reminder the company exists.

What costs do people forget?

Registered agent renewal in year two, which some providers price low in year one and raise sharply afterwards; the federal Form 5472 filing for foreign-owned LLCs; and state franchise taxes that are owed regardless of revenue, such as Delaware's $300 and California's $800.

US company formation: choosing your entity and your state

Guide · 2 min read

How much does an LLC really cost? Every fee, first year and after

The filing fee is the smallest number in this. Here is what the first year actually costs, and what it costs every year after that.

The short answer

Forming a US LLC costs $50 to $500 in state filing fees plus $50 to $150 a year for a registered agent. The EIN is free. A realistic first year is $150 to $800 excluding accounting. Foreign-owned LLCs should add $300 to $1,500 for the mandatory Form 5472 filing.

Line item	Low	Typical	Note
State filing fee	$50	$100–$200	New Mexico $50 · Wyoming $100 · Delaware $90 · Florida $125
Registered agent	$50	$100	Annual, mandatory in every state
EIN	$0	$0	Free from the IRS directly
Operating agreement	$0	$0–$300	Template to lawyer-drafted
Annual report / franchise tax	$0	$60–$300	New Mexico none · Wyoming $60 · Delaware $300
Business bank account	$0	$0	Most fintech accounts have no monthly fee
Federal filing (foreign-owned)	$0	$300–$1,500	Form 5472 + pro forma 1120 preparation
Bookkeeping	$0	$0–$2,400	DIY software to outsourced

Fees verified against state and IRS published schedules in August 2026. Service pricing is an indicative market range, not a quote.

The two numbers that matter

Year one is what every provider advertises. Year two is what you actually live with, and it is where the pricing differences between providers become large. A first year bundled attractively can renew at several times the price.

The cost founders miss entirely

If your LLC has a foreign owner, Form 5472 is due every year with a pro forma Form 1120, whether or not the company traded. Preparation typically costs a few hundred to low four figures. The penalty for not filing starts at $25,000, which makes this the least optional line in the table.

US LLC formation

State filing, registered agent, operating agreement and the EIN application together — with the renewal price shown before you buy.

See what's included

Frequently asked questions

Is the EIN really free?: Yes. The IRS issues EINs at no charge. Any service charging for one is charging for the administration of applying on your behalf, which can be worth paying for if you are filing on paper from abroad — but you should know that is what you are buying.
What is the cheapest state to run an LLC in?: New Mexico, at $50 to file and no annual report. Wyoming is close behind at $100 to file and a $60 minimum annual report, and has the advantage that the annual filing acts as a recurring reminder the company exists.
What costs do people forget?: Registered agent renewal in year two, which some providers price low in year one and raise sharply afterwards; the federal Form 5472 filing for foreign-owned LLCs; and state franchise taxes that are owed regardless of revenue, such as Delaware's $300 and California's $800.

Sources

Last reviewed August 23, 2026. Verify against the primary source before acting.

More in US company formation: choosing your entity and your state

All of US company formation: choosing your entity and your state