Form an LLC
Compare filing fees and requirements across states, and find the best LLC formation service for you.
A Limited Liability Company (LLC) is the most popular business structure for small businesses in the United States. It separates your personal assets from business debts, offers pass-through taxation, and requires less paperwork than a corporation. Filing fees range from $50 to $500 depending on the state, with some states also charging annual report fees. Use the table below to compare costs and click through to the full formation guide for your state.
LLC Filing Fees by State
| State | Filing Fee | Annual Fee | Income Tax | |
|---|---|---|---|---|
| Texas (TX) | $300 | None | None | Full guide → |
| California (CA) | $70 | $800 | Yes | Full guide → |
| Florida (FL) | $125 | $138 | None | Full guide → |
What Is an LLC?
A Limited Liability Company (LLC) is a business structure that combines the liability protection of a corporation with the tax benefits and simplicity of a sole proprietorship or partnership. As an LLC owner (called a "member"), your personal assets like your home, car, and savings are protected from business debts and lawsuits.
LLCs are taxed as pass-through entities by default, meaning business profits flow directly to your personal tax return. This avoids the double taxation that C corporations face. You can also elect to be taxed as an S corporation if that structure saves you money on self-employment taxes.
LLC vs. Other Business Structures
LLC vs. Sole Proprietorship: A sole proprietorship is simpler to set up but offers no personal liability protection. If your business is sued, your personal assets are at risk. An LLC creates a legal separation between you and your business.
LLC vs. Corporation: Corporations offer liability protection but require more formalities such as annual meetings, board resolutions, and corporate minutes. LLCs have fewer compliance requirements and more flexibility in how profits are distributed among members.
LLC vs. Partnership: A general partnership exposes all partners to unlimited personal liability. A multi-member LLC provides the same collaborative structure with added asset protection for every member.
Frequently Asked Questions
- How long does it take to form an LLC?
- Most states process LLC filings within 1 to 2 weeks. Expedited processing is available in many states for an additional fee, often reducing the timeline to 1 to 3 business days.
- Do I need a lawyer to form an LLC?
- No. You can file directly with your state's Secretary of State office or use an online formation service. A lawyer may be helpful for complex operating agreements or multi-member LLCs.
- Can I form an LLC in a state where I don't live?
- Yes. Many business owners form LLCs in states like Delaware, Wyoming, or Nevada for their favorable business laws. However, you may still need to register as a foreign LLC in the state where you actually operate.