LLC Formation Cost by State (2026)
Compare the exact state filing fees required to start an LLC in all 50 states, plus ongoing annual report fees, franchise taxes, and hidden setup costs.
Quick Answer
The cost to form an LLC in 2026 ranges from $40 (Kentucky) to $500 (Massachusetts) just for the state filing fee. However, the true first-year cost usually includes a registered agent service ($39–$150) and potentially an operating agreement or business license, bringing the average total to around $150–$300.
Key Points
- Filing fees vary wildly: The fee to file your Articles of Organization is a one-time charge set by your state.
- Beware hidden costs: You also need to budget for annual reports, franchise taxes, and registered agent fees.
- Out-of-state forming: Forming an LLC in a cheap state like Wyoming when you actually operate in California will end up costing you more due to foreign qualification fees.
The primary cost is the state filing fee for your Articles of Organization. This fee is unavoidable and goes directly to the Secretary of State (or equivalent agency).
A low filing fee does not mean a state is cheap in the long run. You must also consider the state's ongoing Annual Report fees and Franchise Taxes before deciding where to incorporate.
The Hidden Cost: Registered Agents
As you review the table below, note that almost every state requires a Registered Agent with a physical address in the state of formation. If you are forming an LLC outside of your home state (such as a Delaware LLC or Wyoming LLC), you will need to hire a commercial registered agent service. This typically adds $50 to $150 to your total yearly cost.
50-State LLC Cost Comparison Table (2026)
Note: This table reflects standard online filing fees as of 2026. Some states charge more for paper filings or expedited processing. "First-Year" and "Yearly" estimates do not include the cost of a registered agent service.
| State | Formation Fee | Annual Report Fee | Franchise Tax | Estimated First-Year | Estimated Yearly Maintenance |
|---|---|---|---|---|---|
| Alabama | $200 | $100 (min) | Yes | $200+ | $100+ |
| Alaska | $250 | $100 (every 2 yrs) | No | $250 | $50 |
| Arizona | $50 | $0 | No | $50 | $0 |
| Arkansas | $45 | $150 | Yes | $45 | $150 |
| California | $70 | $20 | $800 (min) | $870 | $820 |
| Colorado | $50 | $10 | No | $50 | $10 |
| Connecticut | $120 | $80 | No | $120 | $80 |
| Delaware | $90 | $0 | $300 | $390 | $300 |
| Florida | $125 | $138.75 | No | $125 | $138.75 |
| Georgia | $100 | $50 | No | $100 | $50 |
| Hawaii | $50 | $15 | No | $50 | $15 |
| Idaho | $100 | $0 | No | $100 | $0 |
| Illinois | $150 | $75 | No | $150 | $75 |
| Indiana | $95 | $31 (every 2 yrs) | No | $95 | $15.50 |
| Iowa | $50 | $30 (every 2 yrs) | No | $50 | $15 |
| Kansas | $160 | $50 | No | $160 | $50 |
| Kentucky | $40 | $15 | No | $40 | $15 |
| Louisiana | $100 | $30 | No | $100 | $30 |
| Maine | $175 | $85 | No | $175 | $85 |
| Maryland | $100 | $300 | No | $100 | $300 |
| Massachusetts | $500 | $500 | No | $500 | $500 |
| Michigan | $50 | $25 | No | $50 | $25 |
| Minnesota | $135 | $0 | No | $135 | $0 |
| Mississippi | $50 | $0 | No | $50 | $0 |
| Missouri | $50 | $0 | No | $50 | $0 |
| Montana | $35 | $20 | No | $35 | $20 |
| Nebraska | $100 | $10 (every 2 yrs) | No | $100 | $5 |
| Nevada | $425 | $150 | $200 (Business License) | $425 | $350 |
| New Hampshire | $100 | $100 | No | $100 | $100 |
| New Jersey | $125 | $75 | $150 (min) | $125 | $225 |
| New Mexico | $50 | $0 | No | $50 | $0 |
| New York | $200 | $9 (every 2 yrs) | $25 (min) | $200 + Pub | $29.50 |
| North Carolina | $125 | $200 | No | $125 | $200 |
| North Dakota | $135 | $50 | No | $135 | $50 |
| Ohio | $99 | $0 | No | $99 | $0 |
| Oklahoma | $100 | $25 | No | $100 | $25 |
| Oregon | $100 | $100 | No | $100 | $100 |
| Pennsylvania | $125 | $0 | No | $125 | $0 |
| Rhode Island | $150 | $50 | $400 (min) | $150 | $450 |
| South Carolina | $110 | $0 | No | $110 | $0 |
| South Dakota | $150 | $50 | No | $150 | $50 |
| Tennessee | $300 (min) | $300 (min) | Yes | $300+ | $300+ |
| Texas | $300 | $0 | No (unless high rev) | $300 | $0 |
| Utah | $54 | $18 | No | $54 | $18 |
| Vermont | $125 | $35 | No | $125 | $35 |
| Virginia | $100 | $50 | No | $100 | $50 |
| Washington | $200 | $60 | No | $200 | $60 |
| West Virginia | $100 | $25 | No | $100 | $25 |
| Wisconsin | $130 | $25 | No | $130 | $25 |
| Wyoming | $100 | $60 minimum | No | $100 | $60 minimum |
Which States Are the Cheapest?
If you are looking purely at the numbers, the cheapest states to form and maintain an LLC are those with low upfront fees and zero annual fees.
- Missouri: $50 formation fee, $0 annual fee. (Read Missouri guide)
- Ohio: $99 formation fee, $0 annual fee.
- Arizona: $50 formation fee, $0 annual fee.
- New Mexico: $50 formation fee, $0 annual fee.
Which States Are the Most Expensive?
Some states are notoriously hostile to small business owners when it comes to compliance fees.
- California: $70 to form, $20 statement of information, plus a minimum $800 annual franchise tax. Total first-year minimum: $870.
- Massachusetts: $500 to form, and $500 every single year to file the annual report.
- Nevada: $425 to form, $150 annual list fee, plus a $200 state business license. Total yearly maintenance: $350.
Other Startup Costs to Consider
The state filing fee isn't the only cost associated with starting your LLC. You should also budget for:
- Registered Agent Service ($39–$150/year): Required in all 50 states. While you can be your own agent, a professional service protects your privacy.
- Operating Agreement ($0–$100): You can draft this yourself using free templates, but some business owners prefer to purchase customized templates or hire an attorney.
- Publication Fees ($50–$2,000): Only required in New York, Arizona, and Nebraska. You must publish a notice of your LLC formation in a local newspaper. New York's publication requirement can be notoriously expensive.
Estimated Cost Example
State filing fee: $100
Registered agent: $125
Annual report: $50/year
Franchise tax: $0
Other fees: $0
Estimated first-year total: $225 Estimated yearly maintenance: $175
Ongoing Annual Costs
Once your LLC is formed, you aren't done paying the state. Almost every state requires you to file a recurring report to keep your business in "good standing."
Before forming your LLC, check our State Guides Hub to make sure you can afford the recurring compliance costs.
Example Scenario: Out-of-State Formation
David lives in California but decided to form his LLC in Wyoming because he saw the filing fee was only $100 compared to California's $70. He also saved money on franchise taxes. However, because he lives and operates his business from California, the California Franchise Tax Board required him to foreign-qualify his Wyoming LLC in California. He ended up paying Wyoming's $100 fee, California's $70 foreign qualification fee, and still had to pay California's $800 annual franchise tax.
Common Mistakes
- Forming out of state to save money: As David learned above, forming in a cheap state when you operate in an expensive state will just result in paying fees to both states.
- Ignoring the annual report: Many business owners budget for the formation fee but forget they have to pay $50 to $800 every year to keep the LLC active.
- Paying a third party unnecessary processing fees: You do not legally have to use a service like LegalZoom to form your LLC. You can file directly on your state's Secretary of State website to pay only the mandatory state fee.
What to Do Next
- Choose your state: Normally, this should be the state where you live or operate.
- Check the annual fee: Verify you can afford the recurring compliance cost for that state.
- Hire a registered agent: If you want privacy, hire a registered agent in that state before you file.
- File your Articles of Organization: Go to the Secretary of State website to file your documents and pay the formation fee.
Official Sources
- SBA - Register your business
- Always consult your specific state's Secretary of State portal for the most up-to-date fee schedules.