If you’re considering jumping into the money transmission game, you’ve likely heard that securing Money Transmitter Licenses (MTLs) is both pricey and complex. Sure, there's some truth to that, but let’s cut through the scare tactics. In this blog, we’ll demystify the upfront MTL costs and give you a clear breakdown of the actual costs involved.
What Goes Into MTL Costs?
1. State Fees
Each state charges its own fees for MTL applications, and these can range from a few hundred to several thousand dollars. The variation is quite broad, so it's essential to know what to expect in each state.
2. Surety Bonds
Surety bonds are a critical part of the licensing process. The cost of these bonds can vary significantly based on factors like transaction volume, business model, company financials and the overall risk profile of your company.
3. Registered Agents + Secretary of State Fees
These fees are generally more consistent, usually around $100-200 per state, covering the cost of having a registered agent and filing with the Secretary of State.
4. Smaller Fees Like Background Checks & Fingerprinting
In addition to the above costs there are smaller ad hoc fees that get applied based on business context but usually range between few 100s to a few thousands.
TLDR, the total cost?
- State Fees: ~$115,000
- Surety Bonds: ~$120,000-140,000
- Registered Agents + Secretary of State Fees: ~$20,000
Breaking Down the Costs by Each State
Here’s a full breakdown of all 50 states broken by the major cost category. Please note that surety bonds are an estimated amount and can range between 1-3% of the total bond amount.
| State |
License Application Fees |
High Level Estimate of Surety Bonds (~1.5% of Bond Amount) |
SoS + Registered Agent Fee |
| Alabama | $1,000.00 | $1,300.00 | $200 |
| Alaska | $3,000.00 | $6,500.00 | $200 |
| Arizona | $1,500.00 | $325.00 | $200 |
| Arkansas | $2,250.00 | $1,300.00 | $200 |
| California | $5,000.00 | $3,250.00 | $200 |
| Colorado | $7,500.00 | $3,250.00 | $200 |
| Connecticut | $1,875.00 | $3,900.00 | $200 |
| Delaware | $230.00 | $325.00 | $200 |
| District of Columbia | $500.00 | $650.00 | $200 |
| Florida | $384.00 | $1,300.00 | $200 |
| Georgia | $2,150.00 | $3,250.00 | $200 |
| Guam | $500.00 | $650.00 | $200 |
| Hawaii | $10,000.00 | $1,300.00 | $200 |
| Idaho | $100.00 | $130.00 | $200 |
| Illinois | $500.00 | $1,300.00 | $200 |
| Indiana | $1,000.00 | $3,900.00 | $200 |
| Iowa | $1,500.00 | $650.00 | $200 |
| Kansas | $1,750.00 | $2,600.00 | $200 |
| Kentucky | $1,100.00 | $6,500.00 | $200 |
| Louisiana | $800.00 | $325.00 | $200 |
| Maine | $500.00 | $1,300.00 | $200 |
| Maryland | $3,000.00 | $1,950.00 | $200 |
| Massachusetts | $1,300.00 | $650.00 | $200 |
| Michigan | $3,650.00 | $6,500.00 | $200 |
| Minnesota | $4,000.00 | $325.00 | $200 |
| Mississippi | $800.00 | $325.00 | $200 |
| Missouri | $300.00 | $1,300.00 | $200 |
| Montana | $0.00 | $0.00 | $200 |
| Nebraska | $1,000.00 | $1,300.00 | $200 |
| Nevada | $675.00 | $1,300.00 | $200 |
| New Hampshire | $500.00 | $1,300.00 | $200 |
| New Jersey | $1,400.00 | $1,625.00 | $200 |
| New Mexico | $4,000.00 | $3,900.00 | $200 |
| New York | $3,000.00 | $6,500.00 | $200 |
| North Carolina | $1,500.00 | $1,950.00 | $200 |
| North Dakota | $850.00 | $1,950.00 | $200 |
| Ohio | $5,000.00 | $3,900.00 | $200 |
| Oklahoma | $5,000.00 | $3,250.00 | $200 |
| Oregon | $1,000.00 | $325.00 | $200 |
| Pennsylvania | $5,000.00 | $13,000.00 | $200 |
| Puerto Rico | $2,500.00 | $6,500.00 | $200 |
| Rhode Island | $1,500.00 | $650.00 | $200 |
| South Carolina | $2,250.00 | $650.00 | $200 |
| South Dakota | $1,500.00 | $1,300.00 | $200 |
| Tennessee | $250.00 | $650.00 | $200 |
| Texas | $10,000.00 | $3,900.00 | $200 |
| US Virgin Islands | $4,000.00 | $650.00 | $200 |
| Utah | $300.00 | $650.00 | $200 |
| Vermont | $2,000.00 | $1,300.00 | $200 |
| Virginia | $1,000.00 | $650.00 | $200 |
| Washington | $1,000.00 | $130.00 | $200 |
| West Virginia | $1,000.00 | $3,900.00 | $200 |
| Wisconsin | $500.00 | $130.00 | $200 |
| Wyoming | $2,500.00 | $130.00 | $200 |
| Grand Total | $115,414.00 | $116,545.00 | $10,800 |
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