How Much Does Small Business Filing Cost?

The honest answer to how much it costs to start a business depends on what you are starting, where you are operating, and how you structure it. Forming an LLC or corporation typically involves state filing fees, while other business structures may have different registration requirements and costs. You may also need to budget for business licenses, permits, insurance, registered agent services, professional fees, and ongoing compliance costs.

If you are asking “how much does it cost to start a business,” the real number depends on which costs apply to your situation. This guide breaks down every cost category so you can budget accurately whether you are forming a single-member LLC, an S-Corp, a nonprofit, or a C-Corp.

Cost to Register a Small Business

The average price to register a new small business by state generally ranges from $35 to $500, with the national average sitting around $132. However, your total upfront and first-year compliance costs can range anywhere from $50 to over $1,000 depending heavily on your business structure, the state you choose to register in, and whether you hire a professional service. Let’s discuss LLC vs S-Corp vs C-Corp filing cost comparison.

1. Initial Core Filing Fees by Business Structure

a) Sole Proprietorship: Costs $0 to $100

A sole proprietorship generally does not require a separate state formation filing because the business and owner are legally the same entity. If you operate under your legal name, you may not need to register a business name at the state level. However, you may need to pay a fee to file a Doing Business As (DBA) or fictitious business name if you operate under a name different from your own. Local business licenses or permits may also add to the cost.

b) Limited Liability Company (LLC): Costs $35 to $500

You must pay the mandatory fee to file your Articles of Organization with the state. For example, Texas charges $300 to file a Certificate of Formation (Form 205) for an LLC, while New York charges $200 to file a Certificate of Formation.

The total startup filing expenses for a single-member LLC typically range from $35 to $500 for basic state fees, with total first-year costs averaging around $224 to $700+ depending on whether you use a DIY approach or hire professional help. If you are looking for professional help with LLC formation, Swyft Filings offers three packages to fit different business needs. Read our full breakdown of How to Form an LLC in Each U.S. State (50 State Guides).

c) Corporation (C-Corp or S-Corp): Costs $50 to $500

A corporation generally must file Articles of Incorporation or a similar document with the state and pay the applicable filing fee. Corporations may also have additional compliance business startup costs, such as annual reports, franchise taxes, registered agent fees, and corporate recordkeeping requirements.

An S corporation is not a separate state business structure. Instead, it is a federal tax election, so it requires no extra state filing costs of setting up a business beyond standard corporation setup.

If you want help with a C-Corporation or S-Corp, Swyft Filings offers three formation packages designed for different levels of support. From a basic package costing $0 plus state fees to a premium package costing $269 plus state fees, which adds a professional business address, two months of unlimited attorney consultations, and ongoing compliance alerts, choose the package that best fits your business needs.

d) Nonprofit: Costs $25 to $125 in most states, plus a separate federal fee for 501(c)(3) status

Forming a nonprofit corporation generally requires filing formation documents with the state and paying a state filing fee. For example, Texas charges a $25 state filing fee to submit Form 202 (Certificate of Formation for a Nonprofit Corporation) through the Texas Secretary of State.

If you need professional assistance forming a nonprofit, Swyft Filings is the name you can trust. Our attorney-crafted packages meet compliance requirements, ensure fast filing, and support your nonprofit's needs. Our Basic package starts at $0 plus state fees only.

State formation is only the first step if the organization wants federal tax-exempt status. A nonprofit seeking 501(c)(3) recognition generally must also apply to the IRS and pay a separate federal application fee. The IRS currently charges $600 for Form 1023 or $275 for Form 1023-EZ for eligible organizations.

NOTE: Fees for starting a business shown are approximate and subject to change. For your specific state, search "[your state] Secretary of State business filing fees.

2. Additional Hidden & Ongoing Fees

The state formation fee is only one part of the cost of starting a business (small). Depending on your business structure, you may also encounter additional setup expenses and recurring compliance costs.

Some of these small business startup costs are optional, while others may be required by your state or business circumstances. Understanding them in advance can help you avoid underestimating your first-year business costs.

a) Registered Agent: $0 to $300+ per year

Most LLCs, corporations, and other formally registered business entities must designate a registered agent in the state where they are formed. The registered agent receives official correspondence and legal documents, such as service of process, tax notices, and certain state filings, on behalf of the business.

You can often act as your own registered agent at no additional cost if you meet your state's requirements, such as:

• You are 18+
• Have a physical street address in the state
• Available to receive documents during normal business hours

You can learn in more detail by reading our complete 2026 guide on Registered Agent Requirements by State. Plus, you can also hire a professional registered agent service if you don’t want to do DIY. Swyft Filings offers a registered agent plan at $149 + quarterly, which means you get a registered agent for less than $50 per month. Our plan includes a dedicated registered office address, secure document uploads to your account, a secure online dashboard, and more.

Important Note: Registered agent costs of setting up a business are generally an ongoing expense rather than a one-time formation cost. If you use a paid service, you should include its annual renewal cost in your business budget.

b) Employer Identification Number (EIN): $0

An Employer Identification Number (EIN) is used to identify a business for federal tax and other official purposes. Applying for an EIN directly through the IRS is free. You generally need one if your business:

• Has employees: Employers generally need an EIN for federal employment tax purposes.
• Operates as a corporation or partnership: These business structures generally need their own EIN.
• Files certain federal tax returns: An EIN may be required for specific federal tax reporting obligations.
• Has certain excise tax obligations: Businesses subject to particular federal excise taxes may need an EIN.
• Operates certain types of trusts, estates, or other entities: An EIN may be required depending on the entity and tax situation.

Note: A sole proprietor without employees generally does not need an EIN for federal tax purposes if they have no other circumstances requiring one. However, they may still choose to obtain one for business purposes.

Even when an EIN is not strictly required, getting one can be useful. A business owner may obtain an EIN to:

• Open a business bank account
• Work with certain payment processors or financial institutions
• Provide a federal business tax ID to customers or vendors
• Help separate business activities from personal tax identification information
• Prepare for hiring employees in the future

Banks and other financial institutions may have their own requirements for opening a business account, so having an EIN does not by itself guarantee that an account can be opened.

So, if you are thinking, “How much does it cost to get an EIN for a small business?

The short answer is $0! Some companies offer EIN application assistance as part of a paid package. So, don’t pay extra to have an EIN filed with any company. If you want deeper knowledge, read our guide on What Is an EIN? The Complete Guide for Small Business Owners (2026).

c) Publication Fees: $30 to $1,500+

Some states impose additional publication requirements when a small business is formed. This means the business may have to publish a notice of its formation in one or more approved newspapers.

Examples include:

• New York: Certain newly formed LLCs must publish a formation notice in designated newspapers and then file a Certificate of Publication.
• Arizona: Certain LLCs may be subject to publication requirements depending on the location of the statutory agent.
• Nebraska: Certain business filings may also involve publication-related requirements.

The actual publication costs of setting up a business can vary significantly because newspaper rates differ by location. In some areas, publication may cost only a few dozen dollars, while in others it can cost hundreds or more than $1,000.

Tip: Always check the current publication requirements for your specific state, county, and business structure before calculating your total formation cost.

d) Operating Agreements & Bylaws: $0 to $1,000+

These are internal business documents, not state formation filings. They explain how the business is structured, who has decision-making authority, and how the owners or directors will operate the company.

The document you need depends on your business structure:

• LLC → Operating Agreement: Defines how the LLC is owned and managed.
• Corporation → Corporate Bylaws: Establishes the corporation's internal rules and procedures.
• Sole Proprietorship → Generally no operating agreement or corporate bylaws required: Because the owner and business are legally the same person.

An operating agreement may outline:

• Ownership percentages of each member
• Each owner's financial contribution
• How profits and losses are divided
• Member voting rights
• Who manages the company
• How major business decisions are approved
• Rules for adding or removing members
• What happens if an owner leaves or dies
• How the LLC can be dissolved
• How disputes between members are handled

Even when a state does not require an LLC to file an operating agreement, having one can help establish clear rules among the owners. On the other hand, Corporate bylaws generally establish the corporation's internal governance rules, including:

• Roles and responsibilities of directors and officers
• How directors are elected or removed
• How shareholder and board meetings are conducted
• Voting procedures
• Rules for approving corporate decisions
• Procedures for maintaining corporate records
• How corporate officers are appointed
• How conflicts of interest are handled

So, if you are searching “estimated legal fees for drafting small business operating agreements,” The startup costs for a business operating agreement depend largely on how you prepare the document:

• $0: You can create the document yourself using a reputable free template, where appropriate.
• $99: Hire a professional to draft a custom operating agreement. If you don’t have time to do DIY.

e) Trademark Registration Costs

Trademark protection is optional but common for businesses building a brand:

• State trademark registration: typically 50–150
• Federal trademark registration (through the U.S. Patent and Trademark Office): official USPTO filing fees generally range from about 250–350 per class of goods/services filed electronically, not including attorney fees if you use one

F) Local Permits & Business Licenses: $25 to $500+

Registering your LLC or corporation with the state does not necessarily give you permission to conduct every type of business. Depending on your location and industry, you may also need local business licenses, permits, or professional/industry-specific approvals.

These requirements can come from:

• City governments
• County governments
• State agencies
• Health departments
• Building or zoning departments
• Professional licensing boards
• Fire departments
• Industry-specific regulators

Examples of businesses that may need additional licenses or permits:

• Restaurants and food businesses: Health permits, food establishment licenses, food-handler certifications, or similar approvals
• Retail stores: Local business licenses and potentially sales-tax registration
• Construction companies: Contractor licensing and local permits
• Child-care businesses: State or local child-care licensing
• Beauty salons and barbershops: Professional licenses and establishment permits
• Home-based businesses: Home-occupation permits or zoning approval
• Professional services: State-issued professional licenses for regulated occupations

So, how much do business licenses cost? There’s no single nationwide fee. A basic local business license may cost anywhere from $25 to $500 or more, while specialized licenses and permits can be significantly more expensive. For a better understanding of the tax deductions that may help offset some of your business expenses, read our guide to 8 Common Missed or Misunderstood Tax Deductions for Small Business.

Professional Service Fees Vs DIY Business Filing Costs

For a straightforward single-member LLC, a formation service typically closes the gap between "cheap but risky" DIY filing and "thorough but expensive" attorney fees.

Conclusion

The costs of setting up a business in the United States vary widely because registration occurs at the state level rather than the federal level. To officially form an LLC or a Corporation, a business owner can expect to pay anywhere from $35 to $500 in one-time state filing fees, with the average state fee for starting a business around $132. When factoring in required ongoing compliance, first-year costs of setting up a business typically range from $500 to $1,500, depending on the business structure and location.

If you would rather not track down state-specific requirements, publication rules, and annual deadlines on your own, Swyft Filings can help you sort through the many tasks and filing fees involved so you can focus on what you do best, i.e., running your company.