LLC First-Year Costs: What You’ll Pay to Start and Maintain an LLC

LLC startup costs in the first year include the state filing fee and the first annual state charge, which can range from $0 to $800 depending on the state. Other costs may include a registered agent, tax return preparation, and bookkeeping. If you reside outside the U.S. and own the LLC, you may need to pay these expenses personally and recover them through the LLC.

The biggest surprise for most LLC founders is the unexpected nature of the expenses. The state charges you before the LLC has a bank account, and the first charge comes due before the LLC generates any income. We help founders, most of whom are nonresident alien LLC owners, to navigate through the unexpected challenges of the first year.

What do LLC startup costs look like in the first year?

Fewer line items than most people expect. Here is the working list in the order the bills arrive, as of October 2026:

The IRS charges nothing for an EIN. If a website asks you to pay the IRS for one, you are paying for the paperwork, not the number. Non-resident founders sometimes pay for help because there is no online option without an SSN. That is the case where our EIN for non-US residents’ service earns its fee.

When does the first annual state bill land?

The filing fee is paid once. The recurring state cost is what catches founders, because it arrives on a state calendar, not yours:

There are three main things to know.

• House Bill 400 raised the LLC tax in Delaware from $300 to $400. Delaware has a policy of non-proration. Because of this, an LLC formed in 2026 will owe $400 and have to make its first payment in 2027.
• Florida charges an annual report fee of $138.75, plus an additional $400 if it is filed after the May 1st deadline. An LLC formed in November in Florida will still have to file its annual report between January and May of the following year.
• The Golden State is very different from the other states. When forming an LLC in California, a foreign LLC must pay an additional $800.

What do non-resident founders pay?

The EIN takes about 4 to 6 weeks to be processed by mail. Fax usually takes about 4 business days. Non-resident founders can also call the IRS at 267-941-1099. Three obligations apply to non-resident owners in particular:

• Form 5472 is mandatory. A foreign individual who owns a single-member LLC must file Form 5472 with a pro forma Form 1120, even if there is no revenue. The penalty for failing to file or for filing an incorrect form is $25,000. From a preventive standpoint, this is the least costly mistake; from an impact standpoint, it is the most costly. From the time you form your LLC, you must account for tax compliance.
• An ITIN is usually not needed at formation. You do not need to obtain an ITIN to form an LLC or to obtain an EIN. Most foreign individuals only need to obtain an ITIN to file a US personal income tax return or to claim a tax treaty benefit.
• Currently, it is free to report to the BOI. As of August 14, 2026, FinCEN’s final rule exempts domestic LLCs. Foreign LLCs that are registered to do business in the US will still be subject to the requirements. FinCEN does not charge to file a report.

How do you fund the first year of an LLC?

We suggest the following steps:

1. Determine the total cost for formation in the state you have chosen. This will include the filing fee, the first annual charge, and the cost for a registered agent. While the state cost through the first annual charge is $510 in Delaware, it is $160 in Wyoming, for example.
2. Because the LLC does not have access to banking until it is formed, you will need to pay the state fee from your own funds and account.
3. The LLC must reimburse you for this amount, or you can treat it as a capital contribution to the LLC.
4. Before forming your LLC, order a registered agent service to include in your formation documents. A registered agent must have a physical address in the state where the LLC is formed.
5. After you receive the EIN, open a business checking account to keep the LLC’s funds separate from your personal funds. If you hold larger startup reserves, you can also compare jumbo deposit products for funds the LLC will not need right away.
6. Anticipate and set aside the first annual report fee. If funds are not set aside, the cost may come as a surprise and be considered a retroactive expense.
7. Begin keeping business books to simplify year-end bookkeeping.

What surprises do first-year costs hold for founders?

• The surprise costs usually arise when you form your LLC in a low-cost state and operate in a high-cost one. If you operate in California, for example, you will have to pay the state’s $800 annual tax. Also, if you foreign qualify your LLC in another state, you’ll face a similar situation.
• The IRS issues EINs for free. So, you shouldn’t pay for your EIN.
• The first anniversary of your LLC may occur before you are aware that you need to file annual reports. If your LLC is formed in May or June, you may miss the filing deadline in other states where it is registered. To avoid this, you should know when the annual report is due in each state where your LLC is registered.
• Form 5472 is required whether or not your LLC has income. Just because your LLC didn’t earn any income for the year doesn’t mean you don’t have to file Form 5472.
• Don’t form your LLC in a state just because that state charges a lower fee. Depending on the circumstances, you may need a state with a more developed body of business law.

FAQs About LLC First-Year Costs

How much does the first year of an LLC cost?

Costs depend on the state. Expect filing fees of $50-$500 and charges of $0-$800. There may also be annual or other fees. Additionally, consider the costs of a registered agent and the preparation of any income taxes.

Can personal payment be used to cover LLC startup costs?

Yes. In fact, the great majority of founders use personal funds, since business accounts are created after the fact. Be sure to indicate in your records how the money will be treated.

Is a US bank account required to start an LLC?

No. Banks require your formation documents and EIN to create the account, so the account can be created after the LLC.

Is a BOI report required for an LLC?

No. A final rule by FinCEN, effective August 14, 2026, exempts domestic LLCs from beneficial ownership reporting under the Corporate Transparency Act; therefore, reporting is not required. Foreign LLCs registered to do business in the U.S. are still required to report.

What is the least expensive way to ensure my LLC is in good standing?

Choose a state with no annual business fees, like New Mexico. Then, to avoid late fees, be sure to file reports on time.