LLC is a very common business structure that provides the protection of personal assets. It is best described as a “hybrid entity” containing attributes of both corporations and partnerships but avoiding some difficulties that face each.
Having an LLC can be a wise choice if you own anything as assets like property, vehicles or boats etc.
Generally, for the majority of people, their home state — where they do business—is going to be the best place in which to form an LLC. But if you're a property investor with an llc, your LLC needs be formed in the state where the real estate is. That's because that area houses your company legally operating.
As of 2025, the average state filing fee to form an LLC is $132. Most states charge between $50 and $150, but some are more expensive. Here’s a breakdown:
While it might be tempting to form your LLC in a cheaper state, think twice! If you form an LLC outside your home state, you’ll need to register it as a Foreign LLC in your home state, which can double your costs.
Most states require LLCs to file an Annual Report (or pay an Annual Fee). On average, this costs $91 per year, with most states charging between $50 and $100. However, some states have no annual report requirements, while others can be quite pricey.
Even in states with low or no Annual Fees, there might be other costs. For example, Connecticut charges just $20 for an Annual Report but adds a $250 Business Entity Tax every other year. Always research the full cost before forming your LLC!
If you, a friend, or a family member acts as your LLC’s Registered Agent, there’s no extra cost. However, if you prefer to hire a professional, Commercial Registered Agents typically charge between $100 and $300 per year.
We recommend Registered Agents Inc for their excellent customer service and reliability.
A Registered Agent (also called a Resident Agent or Statutory Agent) is a person or company responsible for receiving legal documents and official mail on behalf of your LLC. Every state (with a few exceptions) requires you to designate a Registered Agent when forming your LLC.
The purpose of a Registered Agent is to ensure there’s a reliable point of contact and a physical address (PO Boxes are rarely accepted) for legal correspondence.