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Business Formation Cost Estimator

Estimate first-year formation costs for an LLC, corporation, or sole proprietorship.

Entity type State fee band Registered agent EIN filing help ($0 – $75; the IRS itself issues EINs free of charge) Operating agreement or bylaws template ($0 – $200)

Choose your options and click Calculate for a first-year range.

How to use

Choose the entity type you are considering.
Pick the state fee band that matches your state, or check your secretary of state website for the exact fee.
Choose whether to act as your own registered agent or hire a service.
Tick any extras you plan to buy, then click Calculate.

Worked example

Inputs: LLC, medium state fee band ($150 – $300), hired registered agent ($100 – $300 per year), EIN filing help ($0 – $75), operating agreement template ($0 – $200).

Result: estimated first-year formation cost $250 – $875 ($150 + $100 + $0 + $0 at the low end; $300 + $300 + $75 + $200 at the high end). Annual reports, franchise taxes, licenses, and permits are not included and can add ongoing costs.

How attorney fees work

Most lawyers charge in one of four ways. An hourly fee means you pay for each hour (or fraction of an hour) the lawyer works on your matter. A flat fee is a single fixed price for a defined task, such as drafting a simple document. A contingency fee is a percentage of the amount recovered in a case; if nothing is recovered, the fee arrangement may still leave you responsible for court costs and other expenses, depending on the agreement. A retainer is an advance payment, often held in a trust account and drawn against as work is done; it is not always the total cost, and unused amounts may be refundable under the terms of the agreement.

Fee structures vary by lawyer, location, and type of matter. Some states restrict contingency fees for certain kinds of cases, and some matters are not handled on contingency at all. Always read the written fee agreement before signing it.

What to ask a lawyer before hiring

Which fee structure applies to my matter, and what exactly does it cover?
What costs are separate from the fee, such as filing fees, expert fees, copies, postage, or travel?
How often will I receive an itemized bill, and how are hours rounded and recorded?
What happens to any retainer or advance payment if the work ends early?
Who else will work on my matter, and what are their rates?
How will you keep me updated, and how quickly should I expect replies?

What drives costs up or down

Costs tend to rise with complexity, the number of parties involved, disputed facts, extensive documents or discovery, court appearances, expert witnesses, and a longer timeline. Costs tend to be lower when the matter is routine, the facts are clear, documents are organized, communication is efficient, and the scope is agreed in writing at the start. Getting a clear written scope and a realistic estimate, and asking for updates when the scope changes, helps avoid surprises.

This page provides GENERAL INFORMATION ONLY and is NOT legal advice; it does not create an attorney-client relationship; consult a licensed attorney in your state for advice about your situation.

Frequently Asked Questions

What is a registered agent?

A registered agent is the designated person or service that receives official legal and government mail for a business. Many states require one, and the agent must have a physical address in the state where the business is registered.

Is an EIN free?

Yes, the IRS issues Employer Identification Numbers free of charge. Some services charge a fee to complete the application for you, which is what the EIN checkbox in this estimator represents.

Do I need an operating agreement for an LLC?

Some states require one and others do not, but a written agreement clarifies ownership, management, and what happens if an owner leaves. It is a document worth considering even where it is not legally required.

What costs continue after the first year?

Annual reports, registered agent renewals, franchise or business taxes, licenses, and permits can all recur. Budget for those separately from the one-time formation cost.

Does forming an LLC protect my personal assets in every situation?

An LLC can provide a layer of separation between business and personal assets, but the protection has limits and depends on state law, proper record-keeping, and how the business is run. General guides cannot answer whether it applies to a specific situation.

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