Starting a Limited Liability Company (LLC) is one of the most popular ways to structure a business in the United States. But while the process is relatively simple, the cost to start an LLC varies by state. Whether you’re a freelancer, small business owner, or startup founder, knowing the LLC filing fees by state can help you plan your budget and make smart decisions.
In this guide, we’ll provide a state-by-state breakdown of how much it costs to form an LLC, including initial filing fees, annual maintenance costs, and hidden charges that entrepreneurs often overlook. If you’re researching LLC cost by state, this article gives you everything you need to know in one place.
Why Understanding LLC Costs Matters
When comparing LLCs, cost is often one of the first considerations. But it’s not just about the initial filing fee—you should also consider:
- Annual report fees
- Franchise taxes
- Registered agent fees
- Business license requirements
- Whether you’ll need to register in multiple states (known as a foreign LLC)
These costs can quickly add up and impact your bottom line.
LLC Filing Fees: A State-by-State Comparison
The LLC formation fee is the amount you must pay the Secretary of State (or equivalent agency) to officially register your LLC. Here’s a detailed LLC state comparison table:
LLC Formation Costs by State (2025 Update)
| State | Filing Fee | Annual/Biennial Fee | Franchise Tax | Total Estimated First-Year Cost |
|---|---|---|---|---|
| Alabama | $208 | $100 (min) | Yes | $308+ |
| Alaska | $250 | $100 (biennial) | No | $250 |
| Arizona | $50 | No annual fee | No | $50 |
| Arkansas | $45 | $150 | No | $195 |
| California | $70 | $800 franchise tax | Yes | $870 |
| Colorado | $50 | $10 | No | $60 |
| Connecticut | $120 | $80 | No | $200 |
| Delaware | $90 | $300 franchise tax | Yes | $390 |
| Florida | $125 | $138.75 | No | $263.75 |
| Georgia | $100 | $50 | No | $150 |
| Hawaii | $50 | $15 | No | $65 |
| Idaho | $100 | $0 | No | $100 |
| Illinois | $150 | $75 | No | $225 |
| Indiana | $95 | $50 (biennial) | No | $95 |
| Iowa | $50 | $45 (biennial) | No | $50 |
| Kansas | $160 | $50 | No | $210 |
| Kentucky | $40 | $15 | No | $55 |
| Louisiana | $100 | $30 | No | $130 |
| Maine | $175 | $85 (annual) | No | $260 |
| Maryland | $100 | $300 | No | $400 |
| Massachusetts | $500 | $500 | No | $1000 |
| Michigan | $50 | $25 | No | $75 |
| Minnesota | $135 | $0 | No | $135 |
| Mississippi | $50 | $0 | No | $50 |
| Missouri | $50 | $0 | No | $50 |
| Montana | $35 | $20 | No | $55 |
| Nebraska | $100 | $10 | No | $110 |
| Nevada | $75 | $350+ (includes business license) | No | $425+ |
| New Hampshire | $100 | $100 | No | $200 |
| New Jersey | $125 | $75 | Yes (min $500) | $625+ |
| New Mexico | $50 | No annual fee | No | $50 |
| New York | $200 | $9 biennial | Yes (publication fee varies) | $200–$1200+ |
| North Carolina | $125 | $200 | No | $325 |
| North Dakota | $135 | $50 | No | $185 |
| Ohio | $99 | $0 | No | $99 |
| Oklahoma | $100 | $25 | No | $125 |
| Oregon | $100 | $100 | No | $200 |
| Pennsylvania | $125 | $70 (decennial) | No | $125 |
| Rhode Island | $150 | $50 | No | $200 |
| South Carolina | $110 | $0 | No | $110 |
| South Dakota | $150 | $50 | No | $200 |
| Tennessee | $300 | $300 (min franchise tax) | Yes | $600 |
| Texas | $300 | $0 (if under threshold) | Yes | $300 |
| Utah | $54 | $20 | No | $74 |
| Vermont | $125 | $35 | No | $160 |
| Virginia | $100 | $50 | No | $150 |
| Washington | $200 | $60 | No | $260 |
| West Virginia | $100 | $25 | No | $125 |
| Wisconsin | $130 | $25 | No | $155 |
| Wyoming | $100 | $60 | No | $160 |
Also, read:
Best States to Form an LLC (and Why)
Most Expensive States to Start an LLC
Not surprisingly, states like California, Massachusetts, and Tennessee top the list of most expensive states.
Key Highlights:
- California: Despite a low $70 filing fee, the $800 franchise tax makes it the priciest state overall.
- Massachusetts: $500 filing fee + $500 annual report makes it costly to start and maintain an LLC.
- Tennessee: Minimum $300 franchise tax applies even if you make no profit.
✅ Tip: If cost is a major factor, you may want to avoid these states unless you’re based there.
Cheapest States to Start an LLC
If you’re looking for the cheapest state to form an LLC, these are your best bets:
- Arizona – $50, no annual fee
- Mississippi, Missouri, New Mexico – All have $50 filing fees and no recurring fees
- Colorado and Hawaii – Low filing fees and minimal annual reporting
These states are ideal for low-cost startups or online businesses testing the waters.
LLC State Comparison: Key Cost Factors
Beyond just filing fees, there are other cost considerations when comparing states.
1. Annual/Biennial Reports
Some states require yearly updates and fees. Others (like Arizona) don’t require reports at all.
2. Franchise Tax
- Franchise tax is not based on profit but your business’s existence in the state.
- States like California, Delaware, and Tennessee charge flat-rate or variable franchise taxes.
3. Registered Agent Fees
If you form an LLC in a state other than where you live, you must hire a registered agent, which usually costs $100–$300 per year.
4. Business License Fees
Some states and cities require a local business license, which may involve extra fees.
Should You Form an LLC in a Different State?
It may be tempting to form your LLC in a cheaper or tax-friendly state like Wyoming or New Mexico, but consider this:
If You Operate Locally:
- You’ll still need to register as a foreign LLC in your home state.
- That means double fees, paperwork, and more complexity.
If You Operate Online:
- You may benefit from Wyoming or Delaware if you’re not tied to a physical location.
- However, your home state may still consider your LLC liable for state taxes if you reside there.
✅ Pro Tip: Always consult a tax professional or attorney to understand compliance obligations across state lines.
Top States to Consider Based on Cost + Business Benefits
| State | Why Consider It |
|---|---|
| Wyoming | Low cost, privacy, no income tax |
| New Mexico | Cheapest fees, anonymous LLCs |
| Delaware | Legal protection, ideal for startups and investors |
| Texas | No income tax, strong business environment |
| Florida | Tax-friendly, large market |
| Nevada | Strong liability protection, but higher fees |
Tips to Minimize LLC Costs
- Form in your home state to avoid foreign registration
- Choose low-cost states if operating online or without location constraints
- File on time to avoid late penalties and interest
- Use an online LLC formation service that offers bundled registered agent and EIN services to save time and money
Conclusion: Choose the Right State Based on Cost & Context
Understanding the LLC cost by state is critical when forming a business. From $50 in Arizona or New Mexico to over $800 in California, the differences are substantial.
In summary:
- Cheapest states: Wyoming, New Mexico, Arizona, Mississippi, Colorado
- Most expensive states: California, Massachusetts, Tennessee
- Consider total costs, not just filing fees—include annual reports, franchise tax, and agent fees
- Forming your LLC in your home state is usually the best option unless you have a solid reason not to
With this LLC state comparison, you’re better equipped to make an informed, cost-effective decision.
FAQs: LLC Cost by State
1. What state has the lowest LLC filing fee?
Arkansas and New Mexico have some of the lowest filing fees, starting at $45–$50.
2. Which state has no annual LLC fee?
Arizona, New Mexico, and Mississippi do not require annual report fees.
3. What’s the most expensive state for LLC formation?
California, due to its $800 annual franchise tax, even if your business makes no income.
4. Can I avoid franchise tax?
Only by forming your LLC in a state without franchise taxes and not operating in a state that does impose them.
5. Is it worth forming an LLC in Delaware or Wyoming?
Yes, if you value privacy, legal protection, or are not tied to a single state. But always weigh those benefits against foreign registration costs if you’re operating elsewhere.