LLC formation costs break down into two very different categories: the state filing fee, which is fixed and non-negotiable, and the drafting and structuring costs, which vary significantly based on how much thought goes into the paperwork.
State filing fees vary widely
Articles of organization filing fees range from roughly $50 to several hundred dollars depending on the state, and some states also charge ongoing annual report or franchise fees on top of the initial filing — worth checking before assuming formation is a one-time cost.
The articles of organization are the easy part
The state filing itself is usually a short form. The real work — and the real value — is in the operating agreement, which the state doesn't require you to file but which governs everything the articles don't address.
EIN and banking setup
Getting an EIN is free directly through the IRS, but it has to be sequenced correctly against your formation filing to avoid mismatches that delay opening a business bank account — a detail that costs time, not money, if it's done wrong.
Where it's worth spending more upfront
Skimping on the operating agreement to save a few hundred dollars at formation is one of the most common regrets founders have once a real dispute or ownership change comes up — it's cheaper to get this right the first time than to fix it later.