LLC Formation Cost — Complete Breakdown (2026) | Monezzi
LLC Formation Cost: Every Fee You Will Pay — One-Time and Ongoing | Monezzi
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Complete Cost Guide 2026

LLC Formation Cost:
Every Fee You Will Pay, Nothing Hidden

The total cost to form and maintain an LLC is not just the state filing fee. It includes the registered agent, the EIN application, the operating agreement, the annual report, and — for foreign-owned LLCs — Form 5472 compliance. This guide breaks down every single cost, separates one-time from recurring, and calculates the true 5-year total by state so you can make an informed decision.

$50Lowest Formation Fee (NM)
$0/yrLowest Annual Cost (NM)
$300/yrDelaware Annual Minimum
$25,0005472 Penalty if Missed
The Real Cost of Forming an LLC: Most search results show the state filing fee and nothing else. That is misleading. The true cost to form an LLC includes five to seven separate fee categories depending on your situation. For a non-US resident, the minimum realistic first-year cost is $50 (state fee) + $0–$100 (registered agent, often included in formation packages) + $0–$200 (operating agreement, often included) = under $300 total with Monezzi. Ongoing annual costs depend entirely on your state of formation.

One-Time LLC Formation Costs

🏛️
State Filing Fee
$50 – $500+ depending on state
New Mexico
Articles of Organization filing fee
$50
Lowest in the US
Wyoming
Articles of Organization filing fee
$100
Most popular for non-residents
Delaware
Certificate of Formation filing fee
$90
Separate from annual franchise tax
Florida
Articles of Organization filing fee
$125
Nevada
Articles of Organization + state business license
$425
Includes initial state business license
California
Articles of Organization + biennial statement of information
$70+
Plus $800/year minimum franchise tax — avoid for non-residents
📋
Operating Agreement
$0 – $500+ depending on service
Included in formation service
Most quality formation services include it
$0
Monezzi includes this
Online template service
Basic template, self-managed
$29–$99
Quality varies significantly
Attorney-drafted
Custom, multi-member or complex structures
$300–$1,500
Recommended for complex multi-member LLCs

The operating agreement is required by Mercury and Relay to open a US business account. Skipping it is not an option if you plan to bank in the US.

🆔
EIN (Federal Employer Identification Number)
$0 – $300 depending on method
IRS direct — US resident with SSN
Apply online at irs.gov, instant approval
$0
Free but requires SSN
IRS Form SS-4 by fax — non-US resident
Fax to +1 267-941-1099, 2–4 weeks processing
$0
Free but slow and technical
Via formation service (included)
Service prepares and submits SS-4 on your behalf
Included
Monezzi includes EIN in all packages

The EIN is required to open a Mercury or Relay business account and to file Form 5472 annually. No shortcuts here.

📍
Registered Agent (First Year)
$0 (included) – $299/year standalone
Included in formation package
Agent service bundled with LLC formation
$0
Monezzi includes first year and beyond
Budget standalone service
Basic mail forwarding, minimal features
$29–$49
Per year
Mid-tier standalone (ZenBusiness, etc.)
Digital delivery, compliance reminders
$99–$129
Per year

Every LLC must have an active registered agent in the formation state at all times. This is a legal requirement — not optional.

Ongoing Annual LLC Costs

📅
State Annual Report Fee
$0 – $500+/year depending on state
New Mexico
No annual report required — ever
$0/year
Only state with no annual report
Wyoming
Annual report due on anniversary month
$60/year
Based on assets in state (minimum $60)
Florida
Annual report due by May 1
$138.75/year
Late fee: $400 after May 1
Delaware
Franchise tax due June 1 (LLC, not corporation)
$300+/year
$300 minimum for LLC; can be higher
Nevada
Annual report + state business license renewal
$350/year
Includes business license renewal
California
Annual franchise tax (minimum)
$800+/year
Avoid for non-residents without CA operations
📍
Registered Agent Renewal
$0 (included in Monezzi) – $299/year standalone
Included in formation package (Monezzi)
No separate renewal invoice
$0/year
Included in Monezzi's annual compliance
Standalone registered agent renewal
Budget to mid-tier services
$29–$129/year
Required every year without exception

Additional Costs for Foreign-Owned LLCs

Non-US residents face two mandatory annual federal compliance obligations that domestic LLC owners do not. These are not optional and failure to comply is expensive:

📊
IRS Form 5472 + Pro Forma 1120 Filing
$200–$500/year for professional filing service
Form 5472 + pro forma 1120 preparation and mailing
Must be mailed to IRS Ogden, UT — no e-file option
$200–$500
Per year, per LLC
Penalty for failure to file
Per IRC Section 6038A(d) — applies automatically
$25,000 min
Per form per year — non-negotiable

IRS Form 5472 is due March 31 every year — regardless of whether your LLC had any income. The penalty for missing it is $25,000 minimum. This is the most expensive cost mistake foreign LLC owners make.

🏛️
FinCEN BOI Report
$0 government fee + $0–$100 service fee
FinCEN BOI government filing fee
Beneficial Ownership Information Report — required for most LLCs
$0
No government fee
Service fee for filing assistance
Optional but recommended for non-residents
$0–$100
One-time within 90 days of formation

Hidden Costs Nobody Talks About

Name reservation fee

$10–$50 (optional)

Most states allow you to reserve a business name for 60–120 days before filing. Not required if you file immediately, but useful if you need time to prepare other documents.

Expedited processing

$50–$500 additional

Standard processing is 24–72 hours in most states. Same-day or next-business-day processing is available for additional fees. Delaware charges $50–$100 for expedited service.

Registered agent change filing

$15–$50

If you switch registered agent providers, you must file a Statement of Change with the state. This fee is typically $15–$50 depending on the state.

Articles of Organization amendment

$25–$150

Changing your LLC name, registered agent, or management structure after formation requires an Amendment filing. Costs $25–$150 depending on state.

Foreign LLC registration ("foreign qualification")

$50–$300 additional per state

If your LLC operates physically in a state other than its formation state (employees, office), you must register as a "foreign LLC" in that state. This is separate from the original formation and adds cost.

Annual report late fees

$50–$400

Florida charges a $400 late fee after May 1. Wyoming adds fees for late annual reports. These are 100% avoidable with a compliance tracking system.

5-Year Total LLC Cost by State

The real comparison is not the formation fee — it is the total cost of keeping your LLC alive and compliant over 5 years. These calculations assume: no expedited processing, registered agent service included (Monezzi), Form 5472 filed annually at $250/year, no amendments required:

New Mexico
Lowest Total Cost
Formation (Year 1)$50
Annual report × 5 years$0
Form 5472 × 5 years$1,250
5-Year Total~$1,300
Florida
US Operations
Formation (Year 1)$125
Annual report × 5 years$694
Form 5472 × 5 years$1,250
5-Year Total~$2,070
Delaware
VC-Backed Only
Formation (Year 1)$90
Franchise tax × 5 years$1,500
Form 5472 × 5 years$1,250
5-Year Total~$2,840
California is not shown above for a reason: California charges a minimum $800/year franchise tax for any LLC — including foreign-owned ones with no California operations. Over 5 years, this adds $4,000 in franchise taxes alone, making California the most expensive state for a remote LLC by a significant margin. Non-residents without California business operations should never form in California.

What Monezzi Charges — Transparent Pricing

Monezzi's LLC formation packages are designed to eliminate surprise fees. Every package includes:

Everything Included in Every Monezzi Package
No hidden add-ons · No surprise renewals
State Articles of Organization filing
Filed electronically through official state portal
✓ Included
State fee paid at cost
Registered agent service
Physical address in formation state, mail forwarding
✓ Included
No separate renewal fee
Operating Agreement
State-specific, 6-section complete document
✓ Included
Required by Mercury, Relay, Stripe
EIN application (IRS Form SS-4)
Prepared and submitted on your behalf
✓ Included
2–4 weeks processing
Annual compliance calendar and reminders
Annual report, Form 5472, BOI deadlines tracked
✓ Included
Never miss a deadline
Form 5472 filing service
Annual filing — available as add-on
Add-on
See pricing page
Why the cheapest formation service often costs more in the long run: Budget formation services that charge $49 for "LLC formation" typically do not include the registered agent beyond year one, do not include an operating agreement, and do not track compliance deadlines. When you add those separately — especially if you miss a Form 5472 filing and face a $25,000 penalty — the total cost is far higher than using a complete service from the start.

LLC Formation Cost — Frequently Asked Questions

How much does it cost to form an LLC?

The minimum cost to form an LLC is $50 — the New Mexico state filing fee. In practice, the first-year total for a non-US resident using a complete formation service (state fee + registered agent + operating agreement + EIN) ranges from $200–$600 depending on the state and service. Wyoming typically costs $100–$300 in formation fees depending on service tier. The cheapest sustainable option for a non-resident is New Mexico with Monezzi: $50 state fee, no annual report fee, registered agent and operating agreement included.

What is the cost to register an LLC per year?

The annual cost to maintain an LLC consists of: (1) Annual report fee — $0 (New Mexico), $60 (Wyoming), $138.75 (Florida), $300+ (Delaware); (2) Registered agent renewal — $0 (included in Monezzi) or $29–$129 standalone; (3) Form 5472 filing — $200–$500 for foreign-owned LLCs. For a Wyoming LLC with Monezzi, the total annual cost is approximately $60 (annual report) + Form 5472 filing. For a New Mexico LLC, it is $0 annual report + Form 5472 filing.

What is the cost to form an LLC in Wyoming?

Wyoming LLC formation cost: $100 state filing fee (Articles of Organization). First-year total with Monezzi (state fee + registered agent + operating agreement + EIN): see Monezzi pricing page. Annual ongoing cost: $60 Wyoming annual report fee. Wyoming has no state income tax and member names are not listed in public records. Over 5 years, Wyoming costs roughly $400–$500 in state fees alone, making it one of the most cost-effective premium states for non-US residents.

Is there a free way to form an LLC?

No — the state filing fee is mandatory and is paid directly to the state. The minimum fee is $50 (New Mexico). You can reduce formation costs by filing the Articles of Organization yourself through the state's website and handling the operating agreement and EIN application directly. However, for non-US residents, the IRS Form SS-4 for EIN requires specific procedures that benefit from professional handling. Monezzi's formation packages are designed to make the total process affordable while eliminating the risk of errors that create expensive problems later.

What is the cheapest state to form an LLC?

New Mexico is the cheapest state to form and maintain an LLC: $50 one-time formation fee and $0/year (no annual report ever). Over 5 years, the only state fees are $50 total. Wyoming is the second cheapest at $100 formation + $60/year = $400 over 5 years. Delaware at $90 formation + $300/year = $1,590 over 5 years is the most expensive of the popular states for a small operational LLC.

Does forming an LLC have tax costs?

State formation itself is not a tax — it is a filing fee. However, LLCs have annual tax compliance obligations for foreign owners: (1) IRS Form 5472 with pro forma Form 1120 must be filed by March 31 every year — the penalty for missing this is $25,000 minimum; (2) State franchise tax or annual report fee must be paid to maintain good standing (varies by state, from $0 in New Mexico to $800+ in California). There is no federal income tax on the LLC itself for disregarded entities — income passes through to the owner's personal return.

What is the total cost of an LLC formation service?

LLC formation services range from "budget" ($49–$99 for just the state filing) to "complete" services that include registered agent, operating agreement, and EIN. Budget services are deceptive — they typically add separate charges for the registered agent annually and do not include the operating agreement, meaning the real cost is significantly higher. Monezzi's pricing covers the full formation including all required components, allowing you to know the complete cost upfront. See the Monezzi pricing page for current rates.

LLC Formation Cost — The Bottom Line

The real cost to form and maintain an LLC for a non-US resident includes: state filing fee ($50–$125 for practical states), registered agent ($0 with Monezzi), operating agreement ($0 with Monezzi), EIN ($0 with Monezzi), annual report ($0–$300/year depending on state), and Form 5472 annual compliance ($200–$500/year). The cheapest 5-year total is New Mexico (~$1,300 total, mostly Form 5472 filing). The most popular balance of cost and quality is Wyoming (~$1,650 total).

Monezzi's formation packages include registered agent, operating agreement, and EIN with no hidden annual add-ons. View complete pricing → or start your LLC today →

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