What does forming an LLC actually cost?
Three kinds of state cost hit almost every LLC:
- Formation filing fee (one-time): what you pay the Secretary of State for your Articles of Organization. Range: $35 (Montana) to $500 (Massachusetts).
- Annual or biennial report fee (recurring): keeps the LLC in good standing. Four states charge $0 (Arizona, Missouri, New Mexico, and Ohio has no fee; Idaho and Mississippi require a report with no fee).
- Franchise or minimum tax (recurring): the budget-killers. California charges $800 per year from year one. Delaware charges $300 per year. Kentucky adds a $175 minimum Limited Liability Entity Tax. Nevada layers a $200 business license plus a $150 annual list fee.
Watchouts the raw numbers hide: New York requires newspaper publication in the first year, typically $200 to $2,000+ in major counties. Nevada's $75 articles must be filed with a $150 initial list and $200 business license, so the real day-one minimum is $425. Tennessee charges $50 per member (minimum $300, maximum $3,000) at formation and every year after.
5-Year Cost Calculator
Pick a state to see the full five-year cost of ownership: formation fee plus five years of recurring state costs.
LLC Fees by State: Full Comparison Table
| State | Filing fee | Annual cost | Frequency | 5-year total | Notes |
|---|
Click a column header to sort. "Annual cost" averages biennial fees across years. "5-year total" = filing fee + 5 years of recurring state cost, excluding registered agent, operating agreement, and publication costs.
Frequently Asked Questions
Which state has the cheapest LLC?
By state fees alone, Ohio ($99 formation, no annual fee) and Arizona ($50 formation, no annual report) are cheapest over five years. But if you operate in your home state, foreign-registering elsewhere usually costs more overall, because you must register in both states.
Is the cheapest state always the best choice?
No. Most small businesses should form in the state where they operate. Forming in Delaware or Wyoming while living in California still means paying California's $800 annual franchise tax plus foreign registration fees, wiping out the savings.
Are these fees all I will pay?
No. State fees exclude a registered agent ($50-$300/year if hired), an operating agreement (free to $200), an EIN (free from the IRS), business licenses, and publication costs in New York, Nebraska, and parts of Arizona and Pennsylvania.
Why is California so expensive?
California levies an $800 minimum franchise tax every year from year one, on top of the $70 filing fee and a $20 Statement of Information every two years. It has the highest five-year state cost of any jurisdiction.
Do fees change often?
Yes. States adjust fees, waive report fees (Montana waived 2026-27), and change thresholds. Always confirm the current amount with your Secretary of State before filing.
Disclaimer
Fees verified October 2026 from state Secretary of State fee schedules and the clearlegaltips.com July 2026 verification dataset, re-checked October 2026. Figures are state filing costs only and exclude registered agents, publication, licenses, and taxes. Nebraska's biennial amount is approximate. Montana's report fee is waived for 2026-27 and normally $20/year. Always verify with your Secretary of State before filing. This is general information, not legal advice.
Guides
- The Cheapest State to Form an LLC as a Nonresident Is Not Delaware
New Mexico vs Wyoming vs Delaware for nonresidents, with five-year costs and the home-state trap.
- LLC Annual Fees by State: What Your LLC Really Costs Every Year
What annual reports and franchise taxes really cost in 2026, from California's $800 to the $0 states.