We break down exactly what it costs to launch legally in 2026: formation fees, registered agent, EIN, operating agreement, and first-year incidentals. No fluff.
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What Does It Really Cost to Start a Business in 2026?
The internet is full of "$500 to start an LLC" claims and "$50,000 startup cost" horror stories. Neither is useful. The actual cost depends almost entirely on three variables: your state of formation, your entity type, and how many services you outsource vs. do yourself.
For a single-member Wyoming LLC doing things the smart way, expect to spend $900-$1,300 in Year 1. For a multi-member New York LLC with attorney-drafted agreements, you are closer to $3,000-$5,000 before incidentals.
LLC State Filing Fees by State (Hadassah-Served States)
The fees below are the one-time Articles of Organization filing fee (formation fee). They do not include annual report fees, franchise taxes, or registered agent costs. Confirm current rates at each state's Secretary of State website before filing.
| State | LLC Filing Fee | Annual Report Fee | State Income Tax | Notes |
|---|---|---|---|---|
| Wyoming | $100 | $52 min | None | Best overall for privacy + asset protection |
| New Mexico | $50 | None | 4.9% | Lowest formation cost in US; no annual report |
| Nevada | $75 | $350 | None | No state income tax; higher ongoing cost |
| Delaware | $110 | $300/yr | None (non-residents) | Gold standard for investors; VC-preferred |
| Texas | $300 | None (franchise tax applies above threshold) | None | Good for TX-based businesses; no income tax |
| Florida | $125 | $138.75 | None | Strong for FL residents; no income tax |
| North Dakota | $135 | $50 | 1.1-2.5% | Low-cost formation in Great Plains |
| South Dakota | $150 | $50 | None | No state income tax; low annual cost |
| New York | $200 | $9 | 4-10.9% | Publication requirement adds ~$600-$1,200 |
California note: $70 formation fee but a mandatory $800/year minimum franchise tax makes it the most expensive common state to maintain an LLC. California residents generally form in CA despite the cost; non-residents often form elsewhere.
The Registered Agent Requirement Explained
A registered agent (also called a statutory agent or agent for service of process) is required in every US state. The agent's job is to receive legal documents (lawsuits, government notices, subpoenas) on behalf of your business during regular business hours at a physical address in the state of formation.
Your options:
- Be your own RA: Legal, but your home or office address becomes part of the public record. You must be available at that address 9am-5pm on business days. If you travel or move, you risk missing critical legal notices.
- Professional RA service: $99-$299/year. Keeps your address private. Scans and emails documents immediately. Usually includes other compliance reminders.
Worked Example: What a Wyoming LLC Actually Totals to Year One
Leave every dropdown above on its default (Wyoming, single-member LLC, the site's registered agent service, a free DIY EIN, a free operating agreement template, a free BOI filing, a free online bank account, and a basic city license) and the fixed-cost line items add up like this: $100 state filing fee, plus $129 registered agent, plus $0 EIN, plus $0 operating agreement, plus $0 BOI filing, plus $0 bank account, plus $100 local license, for a $329 fixed total. That is the floor. Nobody's real first year stops there.
Turn on five of the incidental toggles that a typical service-based solo founder actually uses, bookkeeping software ($360), mileage tracking ($60), a business credit card's annual fee ($250), a domain ($100), and basic website hosting ($180), and the incidentals add $950. Fixed total $329 plus incidentals $950 comes to $1,279, which is where the "$900 to $1,300" range in the FAQ below comes from: it is not a guess, it is this exact toggle combination run through the calculator above. Skip the credit card and the hosting and you land closer to $849. Add attorney review of the operating agreement ($500) for a two-member LLC and you are well past $1,700. Change any toggle above and the same arithmetic reruns on your own picks.
What the DIY vs. Service Comparison Above Is Actually Measuring
The DIY and service columns in the results panel hold every other choice constant, free EIN either way, free operating agreement template either way, free BOI filing either way, so the entire $129 gap between them is the registered agent line by itself: $200 filing everything yourself with your own address as agent, versus $329 paying $129 a year for a professional agent instead. That is a narrower comparison than "hire a formation company" versus "do it all yourself," because a full-service formation company's own package fee is not modeled in either column here, only the registered agent choice is. If you are pricing an actual formation service's bundle, compare its quoted flat fee against $200 (your true DIY floor) rather than against the $329 shown, since $329 already assumes you are DIY on every step except the agent.
BOI Report: A Requirement Most New LLCs No Longer Have
The Corporate Transparency Act created a federal beneficial ownership disclosure requirement enforced by FinCEN, the Treasury Department's Financial Crimes Enforcement Network. That requirement changed twice within about eighteen months. FinCEN's March 2025 interim final rule removed the reporting obligation for companies formed in the United States and for US persons, limiting it to entities formed under a foreign country's law that are registered to do business in a US state. FinCEN made that change permanent in a final rule published August 14, 2026 (FinCEN news release, August 14, 2026).
In practice: a Wyoming, Texas, or any other US-formed LLC no longer has to file a BOI report at all, which is why the calculator's default BOI cost is $0 either way. Only a foreign-formed entity registered to do business in a US state still files, and that filing remains free directly at fincen.gov/boi. A third-party service that charges $50 to $100 to "file your BOI report" for a plain domestic LLC is charging for a filing that current federal rules no longer require. Confirm your own entity's status at FinCEN's site before paying anyone for this, since rules tied to litigation have moved before and could move again.
DIY vs. Formation Service: When Each Makes Sense
The DIY route is genuinely free for most formation steps: the IRS issues EINs at no cost, and state SOS websites accept Articles of Organization directly. The cost is your time and the risk of paperwork errors.
A formation service bundles filing, registered agent, and EIN into a predictable flat fee. For a first-time founder, that predictability and error-reduction is often worth the added cost over DIY.
The operating agreement is the most common place DIY founders cut corners. A template works for simple single-member LLCs. Multi-member LLCs with different capital contributions, profit splits, or exit terms need attorney review. A $500 operating agreement is designed to help prevent a far costlier dispute down the road, not to guarantee one never happens.
Frequently Asked Questions
How much does it cost to start a business?
The minimum to form a single-member LLC ranges from about $50 (Wyoming, New Mexico) to $500+ (Massachusetts) in state filing fees alone. Add a registered agent ($0 to $299 a year), an EIN ($0 if done yourself, $79 if expedited), and an operating agreement ($0 template to $500+ attorney-drafted). Running the calculator's defaults plus five common first-year incidentals lands at $1,279, shown as a worked example above.
Can you be your own registered agent for an LLC?
Yes, in every state, as long as you have a physical address (not a PO box) in the state of formation and can be reliably reachable there during business hours to accept legal service of process. Doing so puts that address on the public record. A professional registered agent service typically runs $49 to $299 a year and keeps your address private instead.
What is a BOI Report and do I need to file one?
As of FinCEN's final rule published August 14, 2026, LLCs and corporations formed in the United States no longer have to file a Beneficial Ownership Information report. Only entities formed under foreign law and registered to do business in a US state still file. Confirm your entity's status at fincen.gov before treating this as final.
Why is Wyoming a popular state to form an LLC?
Wyoming has a $100 state filing fee, one of the lowest in the country, no state income tax, and permissive privacy rules. It shows up often for single-member LLCs and holding companies for exactly those reasons, not because it is the cheapest option in every scenario; New Mexico's $50 fee and no annual report can beat it on pure formation cost.
What does the "DIY vs. service" comparison on this page actually compare?
It holds your EIN, operating agreement, BOI filing, and bank account choices constant and isolates the registered agent decision: $200 total if you act as your own agent versus $329 if you pay a professional agent, a $129 gap. It is not a full comparison against a formation company's bundled package price, which is a separate fee layered on top of these line items.
Does this calculator work for a nonprofit or church?
Not directly. This calculator is built around LLC formation costs, so the dollar figures shown, including the state filing fee and any franchise tax line, are LLC-specific and should not be used as your nonprofit's actual numbers. Nonprofit religious corporation filing fees are typically lower and follow different rules by state; in California, for example, nonprofit corporations are not subject to the $800 minimum franchise tax shown here for LLCs. What this page can still help with is seeing the categories of cost to budget for, a state filing fee, a registered agent, an EIN, before you confirm the real numbers with your state's nonprofit filing office. If you're organizing a church specifically, our guide on what a 508(c)(1)(A) status actually requires walks through the federal tax side before you get to formation costs.
Is this startup cost calculator providing legal or financial advice?
No. This calculator is an educational estimation tool. Cost figures are directional ranges based on publicly available data. State filing fees, registered agent pricing, and service costs vary and change. Confirm current figures with your state's Secretary of State and consult a licensed attorney or CPA before forming any entity.