Starting an LLC sounds simple until you reach the payment page.
One state may charge $35 to form an LLC. Another may charge $500. Some states ask for a low filing fee but add annual reports, franchise taxes, publication costs, business licenses, or processing charges later.
That is why checking only the “filing fee” can give you the wrong idea about the real cost of forming and maintaining an LLC.
An LLC is created under state law, not federal law, which is why costs vary so much from one state to another.
The IRS also notes that LLC rules differ by state, so business owners should check the state where they plan to form their company.
Below, you will find a practical state-by-state LLC cost breakdown, plus the extra expenses many first-time founders forget to include.
What Is the Basic Cost to Start an LLC?
The basic cost to start an LLC is the state filing fee paid when you file your Articles of Organization, Certificate of Organization, or Certificate of Formation.
The document name varies by state, but the purpose is the same: it officially creates your LLC.
As of 2026, LLC filing fees commonly range from about $35 to $500, depending on the state. Ongoing fees may include annual reports, biennial reports, franchise taxes, or state business license renewals.
That means your real LLC cost usually includes:
- State filing fee
- Annual or biennial report fee
- Registered agent fee, if you hire one
- Operating agreement cost, if you do not write it yourself
- EIN cost, although applying directly through the IRS is free
- Business license or local permit fees
- Optional add-ons like name reservation, DBA filing, certified copies, and expedited filing
The IRS clearly states that you never have to pay a fee to get an EIN if you apply directly through the IRS. (IRS)
LLC Formation Costs by State: Full 2026 Table
The table below focuses on the main state filing fee and the recurring state-level LLC fee.
Some states charge extra online processing fees, local fees, publication costs, or business license fees, so always verify the latest amount with the state before filing.
The fee ranges below are based on 2026 LLC cost references and cross-checked against current state-fee summaries.
| State | LLC Filing Fee | Annual or Biennial Fee | Notes |
|---|---|---|---|
| Alabama | $200 | $50 minimum yearly | Business privilege tax may apply |
| Alaska | $250 | $100 every 2 years | Biennial report required |
| Arizona | $50 | $0 | No annual report fee |
| Arkansas | $45 | $150 yearly | Franchise tax report required |
| California | $70 | $800 yearly + $20 every 2 years | One of the highest ongoing costs |
| Colorado | $50 | $25 yearly | Periodic report required |
| Connecticut | $120 | $80 yearly | Annual report required |
| Delaware | $110 | $300 yearly | Franchise tax due annually |
| Florida | $125 | $138.75 yearly | Annual report required |
| Georgia | $110 | $60 yearly | Annual registration required |
| Hawaii | $50 | $15 yearly | Low annual report fee |
| Idaho | $100 | $0 | Annual report required, but no fee |
| Illinois | $150 | $75 yearly | Annual report required |
| Indiana | $95 | $31 every 2 years | Business entity report required |
| Iowa | $50 | $30 every 2 years | Biennial report required |
| Kansas | $160 | $50 yearly | Annual report required |
| Kentucky | $40 | $15 yearly | Very low ongoing cost |
| Louisiana | $100 | $35 yearly | Annual report required |
| Maine | $175 | $85 yearly | Annual report required |
| Maryland | $100 | $300 yearly | Personal property return fee may apply |
| Massachusetts | $500 | $500 yearly | High filing and annual cost |
| Michigan | $50 | $25 yearly | Annual statement required |
| Minnesota | $155 | $0 | Annual renewal required, no fee |
| Mississippi | $50 | $0 | Annual report required, no fee |
| Missouri | $50 | $0 | No annual report fee |
| Montana | $35 | $20 yearly | Lowest listed filing fee |
| Nebraska | $100 | $13 every 2 years | Biennial report required |
| Nevada | $425 | $350 yearly | Includes business license and list fees |
| New Hampshire | $100 | $100 yearly | Annual report required |
| New Jersey | $125 | $75 yearly | Annual report required |
| New Mexico | $50 | $0 | No annual report fee |
| New York | $200 | $9 every 2 years | Publication costs may be expensive |
| North Carolina | $125 | $200 yearly | Annual report required |
| North Dakota | $135 | $50 yearly | Annual report required |
| Ohio | $99 | $0 | No annual report fee |
| Oklahoma | $100 | $25 yearly | Annual certificate required |
| Oregon | $100 | $100 yearly | Annual report required |
| Pennsylvania | $125 | $7 yearly | Annual report fee is low |
| Rhode Island | $150 | $50 yearly | Annual report required |
| South Carolina | $110 | $0 | Usually no annual report for standard LLCs |
| South Dakota | $150 | $55 yearly | Annual report required |
| Tennessee | $300 | $300 minimum yearly | Fee rises with member count |
| Texas | $300 | $0 for most LLCs | Public information report still required |
| Utah | $59 | $18 yearly | Low filing and renewal cost |
| Vermont | $155 | $45 yearly | Annual report required |
| Virginia | $100 | $50 yearly | Annual registration fee required |
| Washington | $200 | $60 yearly | Annual report required |
| Washington, DC | $99 | $300 every 2 years | Biennial report required |
| West Virginia | $100 | $25 yearly | Annual report required |
| Wisconsin | $130 | $25 yearly | Annual report required |
| Wyoming | $100 | $60 minimum yearly | Annual license tax minimum applies |
Cheapest States to Form an LLC
Based only on state filing fees, the cheapest LLC states include:
- Montana: $35 filing fee
- Kentucky: $40 filing fee
- Arkansas: $45 filing fee
- Arizona: $50 filing fee
- Colorado: $50 filing fee
- Iowa: $50 filing fee
- Michigan: $50 filing fee
- Mississippi: $50 filing fee
- Missouri: $50 filing fee
- New Mexico: $50 filing fee
Montana looks especially attractive on paper because its listed filing fee is only $35.
Arizona, Missouri, New Mexico, and Ohio also stand out because they do not charge regular annual LLC report fees in the same way many other states do.
But this does not mean everyone should run to form an LLC in Montana or New Mexico.
Why the Cheapest State Is Not Always the Best State?
For most small business owners, the best state to form an LLC is usually the state where they actually live or operate.
Here is why.
If you live in Florida but form an LLC in Wyoming, you may still need to register that Wyoming LLC as a foreign LLC in Florida if you are doing business there.
That can mean two filing fees, two registered agents, and two sets of compliance rules. Suddenly, the “cheap” LLC is not cheap anymore.
This is one of the biggest mistakes first-time founders make. They search for the lowest LLC filing fee, pick a popular state, and later discover they created extra paperwork.
A low filing fee is useful only when it fits your real business location, tax situation, and compliance needs.
Most Expensive States to Form and Maintain an LLC
Some states are expensive because of high filing fees. Others are expensive because of ongoing costs.
The most expensive states usually include:
Massachusetts
Massachusetts charges a high filing fee and a high annual fee. With a $500 formation cost and a $500 yearly report fee, it is one of the costliest states for LLC owners.
California
California’s filing fee is not the issue. The bigger cost is the yearly $800 franchise tax. California LLCs may also owe additional fees depending on income, plus a biennial Statement of Information fee.
Nevada
Nevada is often marketed as business-friendly, but its LLC startup cost can be high because of the initial list and state business license. Its ongoing fees can also be much higher than many founders expect.
Tennessee
Tennessee has a $300 minimum filing fee and a $300 minimum annual fee. The cost can rise depending on the number of LLC members.
Maryland
Maryland’s formation fee is moderate, but the annual cost can be higher than expected because of the state’s personal property return requirement.
Common Extra LLC Costs Founders Forget
The state filing fee is only one part of the picture. A realistic LLC budget should include a few other expenses.
1. Registered Agent Fee
Every LLC needs a registered agent. This is the person or company that receives legal and state documents for the business.
You can act as your own registered agent in many states, but many business owners hire a professional service for privacy and convenience. Registered agent services often cost around $100 to $300 per year, although some providers charge more.
2. EIN
An EIN is free if you apply directly through the IRS. You may need one to open a business bank account, hire employees, or file certain tax returns. Avoid paying third-party sites unless you are knowingly paying for filing assistance, not the EIN itself.
3. Operating Agreement
An operating agreement explains how your LLC is owned, managed, and operated. Some states require one, while others strongly recommend it.
You can create one yourself using a template, use an LLC service, or hire an attorney. DIY can cost $0, while attorney-drafted agreements can cost several hundred dollars or more.
4. Business Licenses and Permits
Your LLC filing does not automatically give you every license needed to operate.
A restaurant, salon, contractor, consultant, ecommerce seller, or local service business may need city, county, or industry-specific permits. These costs vary widely by location and business type.
5. DBA or Trade Name
If your LLC operates under a name different from its legal name, you may need a DBA, also called a fictitious name, assumed name, or trade name.
DBA fees usually range from low-cost local filings to higher state-level filings, depending on where you operate.
6. Expedited Filing
Some states offer standard filing for one price and expedited processing for an extra fee. If you are not in a hurry, skipping expedited filing is one of the easiest ways to save money.
7. Publication Fees
New York is the big example here. LLC owners may need to publish a notice in newspapers after formation. The cost can vary heavily by county and can become more expensive in places like New York City.
First-Year LLC Cost Example
A basic first-year LLC budget may look like this:
| Cost Type | Estimated Cost |
|---|---|
| State filing fee | $35 to $500 |
| Registered agent service | $0 to $300 |
| Operating agreement | $0 to $500+ |
| EIN | $0 through IRS |
| Business license | Varies |
| Annual or biennial report | $0 to $500+ |
| Optional expedited filing | Varies |
For a simple home-state LLC, many founders may spend under $300 in the first year if they file themselves and act as their own registered agent. In higher-cost states, or when using a professional service, the first-year cost can easily reach $500 to $1,000 or more.
Should You Form an LLC Yourself or Use a Service?
You can form an LLC yourself by filing directly with your state. This is usually the cheapest route.
A formation service can be helpful if you want support with filing, registered agent setup, compliance reminders, an operating agreement, or EIN guidance. Just remember that service fees are separate from state filing fees.
A lawyer may make sense if your LLC has multiple owners, investors, unusual profit-sharing terms, professional licensing issues, or a higher-risk business model.
For a basic single-member LLC, DIY or a low-cost LLC service is usually enough. For a complicated business, legal help can prevent bigger problems later.
Which State Has the Best LLC Cost Overall?
There is no single “best” state for every LLC.
If you live and operate in one state, your home state is usually the cleanest and most practical option.
If you are a non-US founder, an ecommerce seller, a holding company owner, or an investor, states such as Wyoming, Delaware, and New Mexico may be worth comparing more closely.
For pure low-cost appeal, states like Montana, Kentucky, Arizona, Missouri, New Mexico, and Ohio look strong. For privacy and business-friendly positioning, Wyoming and New Mexico are often considered.
For venture-backed startups, Delaware still has legal familiarity, although it is not the cheapest.
The right state depends on where your business operates, where you pay taxes, whether you need privacy, and whether you want the lowest possible annual compliance burden.
FAQs
How much does it cost to start an LLC?
Most LLC filing fees range from about $35 to $500, depending on the state. Your total cost may be higher if you use a registered agent, buy an operating agreement, file for a DBA, get licenses, or pay annual state fees.
What is the cheapest state to form an LLC?
Montana has one of the lowest listed LLC filing fees at $35. Kentucky, Arkansas, Arizona, Missouri, Mississippi, New Mexico, and Michigan are also low-cost states for filing.
Is an LLC free to start?
No. You must pay the state filing fee to officially create an LLC. However, you can save money by filing yourself, applying for your EIN directly through the IRS for free, and acting as your own registered agent where allowed.
Do LLCs pay annual fees?
Many states require LLCs to pay annual or biennial fees. Some states charge $0, while others charge hundreds of dollars per year. California, Massachusetts, Nevada, Maryland, and Tennessee are among the more expensive states for ongoing LLC costs.
Do I need a registered agent?
Yes, every LLC needs a registered agent. You may be able to serve as your own registered agent, but many owners hire a professional service for privacy, reliability, and compliance support.
Is it better to form an LLC in Delaware or Wyoming?
Delaware is popular for companies that may raise investment or need a well-known business court system. Wyoming is often preferred by small business owners looking for lower costs, privacy, and simple maintenance. For most local businesses, forming in the home state is usually simpler.
Can I form an LLC in another state to save money?
You can, but it may not save money. If you operate in your home state, you may need to register the out-of-state LLC as a foreign LLC there. That can create extra fees, extra registered agent costs, and more compliance work.
Final Verdict
LLC formation costs are not just about the filing fee.
The smarter way to compare states is to look at the formation fee, annual fee, franchise tax, registered agent requirement, local license rules, and foreign qualification risk together.
For most small business owners, forming in the state where they actually operate is the simplest and safest choice. Chasing the cheapest state can backfire if it forces you to maintain two registrations.
A low-cost LLC is good. A compliant LLC is better.