What a State Filing Fee for an LLC Buys
The state filing fee for an LLC is just the first check you write. Here is what it covers, why it varies, and what comes after.
Every LLC starts with one payment to the state. That is the state filing fee for an LLC. It is the check that makes your company real in the eyes of the state. But it is only the first check. Know what it buys, and what it does not, before you budget.
What the state filing fee covers (and what it doesn't)
The filing fee pays the state to record one document. That is all. Once the state accepts it, your LLC exists. The fee does not cover the other things a new company needs. It does not pay for a name hold or a later report, which carry their own fees in Colorado and Kentucky.
Why filing fees vary so much between states
Each state sets its own price. The spread is wide. Kentucky charges $40.00 to file Articles of Organization for a domestic limited liability company. Colorado charges a $50.00 online fee for the same kind of filing. Texas charges $300 for a Certificate of Formation for a limited liability company.
Why the gap? States just price their paperwork differently. There is no single right price.
The paperwork behind the fee: articles of organization
What are you actually paying to file? In Colorado and Kentucky, a short form called the articles of organization. The SBA's guide calls it a simple document that describes the basics of your LLC. It includes business information like the company name, address, member names, and the registered agent.
Texas calls its version a Certificate of Formation. The name differs. The job is the same. You give the state the basics, pay the fee, and the state keeps it on record.
Costs that come after the initial filing
The filing fee gets you in the door. Then the state comes back for more.
Kentucky and Colorado both charge for a later report. Kentucky charges $15.00 for a domestic limited liability company's annual report. Colorado calls its version the Periodic Report and charges $25.00 to file online. Miss the due date and it costs you. Colorado adds a $50.00 late filing penalty. You can read more about Colorado's report and its fees.
Want to hold a name before you file? That costs extra too. Kentucky charges $15.00 to reserve a name for 120 days. Colorado charges $25.00 for a Reservation of Name. Useful if you are not ready to file. Skip it if you are.
Budgeting for your LLC beyond the filing fee
Add up the whole first year, not just the filing. Start with the filing fee for your state. Add the yearly report. Add a name hold if you need one.
Then plan for the years after. The report comes every year. A late report can cost you a penalty on top of the report fee. In Kentucky, bringing an administratively dissolved LLC back costs a $100.00 reinstatement penalty.
A good rule: find your state's fee page before you file. Kentucky lists its LLC fees on one page. Budget for the filing fee plus the yearly report.