This article is for general information only and is not legal advice. State fees change periodically, so confirm current amounts on your Secretary of State website before filing.
Forming a limited liability company is one of the most popular ways to start a business in the United States, but the price tag is far from uniform. The quick answer: in 2026, the one-time state filing fee for an LLC ranges from $35 in Montana to $500 in Massachusetts, with a national average of about $123. Once you add annual reports, franchise taxes, a registered agent, and optional services, the typical first-year total runs between $50 and $1,000 or more, averaging roughly $224 across all 50 states.
Where you form your LLC is the single biggest cost variable. A New Mexico LLC can cost as little as $50 with no annual fees at all, while a California LLC will cost you at least $870 in year one thanks to the state’s $800 minimum franchise tax. Below is the complete 2026 state-by-state breakdown.
LLC Filing Fees by State: The Quick Comparison
Before diving into the full list, here is a snapshot of the most-searched states in 2026. These figures cover the one-time filing fee for the Articles of Organization plus the main recurring annual charge. Optional costs like registered agent services and formation packages are covered further down.
| State | Filing Fee | Annual/Biennial Fee | Est. Year-One Total |
|---|---|---|---|
| California | $70 | $800 franchise tax | ~$870 |
| Texas | $300 | $0 | $300 |
| Florida | $125 | $138.75 | ~$264 |
| New York | $200 | $9 biennial (plus publication) | ~$209 plus publication |
| Delaware | $110 | $300 | ~$410 |
| Wyoming | $100 | $60 | ~$160 |
| Nevada | $425 | $350 | ~$775 |
| Colorado | $50 | $10 | ~$60 |
| Arizona | $50 | $0 | $50 |
| New Mexico | $50 | $0 | $50 |
| Ohio | $99 | $0 | $99 |
| Massachusetts | $500 | $500 | $1,000 |
| Tennessee | $300 | $300 minimum | ~$600 |
| Kentucky | $40 | $15 | ~$55 |
| Montana | $35 | $20 | ~$55 |
What Makes Up the Total Cost of an LLC?
The filing fee is only the headline number. To budget accurately, you need to understand every line item that can appear on an LLC’s first-year invoice.
1. State Filing Fee (Articles of Organization)
Every state charges a one-time fee to process the Articles of Organization, the document that officially creates your LLC. This is the core, unavoidable cost. In 2026 it spans $35 to $500. Some states, like Colorado and Arizona, keep it at a flat $50, while Massachusetts charges $500, the highest in the country. Paying this fee is non-negotiable: no payment, no LLC.
2. Registered Agent Service
Every state requires your LLC to maintain a registered agent, the person or company designated to receive lawsuits, tax notices, and official correspondence on your behalf. You can serve as your own agent for free if you have a physical street address in the state and are available during business hours, but many owners hire a professional service for privacy and reliability. Professional registered agent services typically cost between $50 and $300 per year.
3. Annual Reports and Franchise Taxes
Most states charge a recurring fee to keep your LLC in good standing, usually called an annual report, statement of information, or franchise tax. These range from $0 (in states like Arizona, Ohio, and Mississippi) to $800 per year in California. A few states bill every two years instead of annually. Missing these payments can trigger late penalties or even administrative dissolution, so they belong in your budget from day one.
4. Publication Requirements
Only a handful of states require new LLCs to publish a formation notice in local newspapers, but the cost is steep where it applies. New York is the famous example: you must publish in two newspapers for six weeks, which can cost anywhere from $300 in rural counties to over $1,000 in New York City. Arizona, Georgia, and Nebraska have limited or county-specific publication rules, so check local requirements.
5. Operating Agreement
An operating agreement spells out how your LLC is owned, managed, and run. Most states do not legally require one, but it is strongly recommended, especially for multi-member LLCs. A DIY template costs nothing, while an attorney-drafted agreement can run $200 to $500 or more.
6. Business Licenses and Permits
Depending on your industry and location, you may need city, county, or state licenses before you can legally operate. Costs vary wildly, from a $25 local business registration to several hundred dollars for regulated professions. These are separate from the LLC itself and are easy to forget when budgeting.
Complete 50-State LLC Fee Table for 2026
Here is the full state-by-state breakdown of filing fees and recurring fees. Amounts reflect publicly published state schedules for 2026 and can change, so treat this as a planning guide, not a quote.
| State | Filing Fee | Annual / Biennial Fee |
|---|---|---|
| Alabama | $208 | $50/year (business privilege tax minimum) |
| Alaska | $250 | $100 every 2 years |
| Arizona | $50 | $0 |
| Arkansas | $45 | $150/year |
| California | $70 | $800/year (franchise tax) |
| Colorado | $50 | $10/year |
| Connecticut | $120 | $80/year |
| Delaware | $110 | $300/year |
| Florida | $125 | $138.75/year |
| Georgia | $100 | $50/year |
| Hawaii | $50 | $15/year |
| Idaho | $100 | $0 |
| Illinois | $150 | $75/year |
| Indiana | $95 | $31 every 2 years |
| Iowa | $50 | $30 every 2 years |
| Kansas | $160 | $55/year |
| Kentucky | $40 | $15/year |
| Louisiana | $100 | $35/year |
| Maine | $175 | $85/year |
| Maryland | $100 | $300/year |
| Massachusetts | $500 | $500/year |
| Michigan | $50 | $25/year |
| Minnesota | $155 | $0 (annual renewal, no fee) |
| Mississippi | $50 | $0 |
| Missouri | $50 | $0 |
| Montana | $35 | $20/year |
| Nebraska | $100 | $10 every 2 years |
| Nevada | $425 | $350/year |
| New Hampshire | $100 | $100/year |
| New Jersey | $125 | $75/year |
| New Mexico | $50 | $0 |
| New York | $200 | $9 every 2 years |
| North Carolina | $125 | $200/year |
| North Dakota | $135 | $50/year |
| Ohio | $99 | $0 |
| Oklahoma | $100 | $25/year |
| Oregon | $100 | $100/year |
| Pennsylvania | $125 | $7 every 10 years |
| Rhode Island | $150 | $50/year |
| South Carolina | $110 | $0 |
| South Dakota | $150 | $50/year |
| Tennessee | $300 | $300/year minimum |
| Texas | $300 | $0 |
| Utah | $54 | $18/year |
| Vermont | $125 | $35/year |
| Virginia | $100 | $50/year |
| Washington | $200 | $60/year |
| West Virginia | $100 | $25/year |
| Wisconsin | $130 | $25/year |
| Wyoming | $100 | $60/year minimum |
The Cheapest States to Form an LLC in 2026
If you live in one of these states, formation is genuinely cheap. Montana ($35 filing, $20/year), Kentucky ($40 filing, $15/year), Arkansas ($45 filing), Arizona, Colorado, Hawaii, Iowa, Michigan, Mississippi, Missouri, and New Mexico (all $50 filing with little to no annual fees) make the top of the list. New Mexico and Arizona stand out because they charge no annual fees at all, so a $50 filing really is the whole story for year one.
But remember: cheap only matters if you operate there. Forming in a bargain state while running the business from another state means paying foreign qualification fees in your home state too, which wipes out the savings instantly.
The Most Expensive States to Maintain an LLC
California is the undisputed cost leader: a $70 filing fee sounds harmless until the $800 minimum annual franchise tax arrives, bringing year one to at least $870. Massachusetts charges $500 to form and $500 every year. Tennessee combines a $300 filing fee with a $300-per-year minimum, and New York’s publication requirement can push first-year costs past $1,000 even though the filing fee itself is only $200.
Hidden and Optional LLC Costs Many Owners Miss
Beyond the state fees, several optional or easy-to-miss costs can add up:
- Expedited processing: need approval fast? Many states sell rush processing for $50 to $200 extra.
- Certified copies and certificates of good standing: usually $10 to $50 each, often required by banks and lenders.
- Foreign qualification: operating in a second state costs $100 to $300 per additional state, plus a second registered agent.
- DBA (doing business as) registration: $10 to $100 if you want to operate under a name other than your LLC’s legal name.
- Formation service packages: LLC formation services typically charge $0 to $300 on top of state fees, often bundling registered agent service and an operating agreement template.
- Attorney fees: hiring a business attorney for formation or a custom operating agreement commonly costs $500 to $2,000.
- Business bank account fees: many LLC owners open a dedicated account, and some banks charge monthly maintenance fees, though free options exist.
Should You Form Your LLC in a Different State?
You have probably seen Wyoming, Nevada, and Delaware marketed as “tax havens” for LLCs. For the vast majority of small businesses, forming out of state is a bad deal. If you form in Wyoming but operate in California, California still treats you as a foreign LLC doing business within its borders. You end up maintaining two states of paperwork for one business.
The rule of thumb: form your LLC in the state where you actually do business. The exceptions are narrow: fully remote businesses with no physical presence anywhere, businesses specifically seeking Delaware’s specialized business courts for investor reasons, or owners with genuine privacy concerns in a state like Wyoming. Even then, run the numbers on foreign qualification first. Most small business owners are better off choosing between a sole proprietorship vs LLC in their home state than chasing out-of-state savings that evaporate on closer inspection.
How to Save Money on LLC Formation
You do not need to overpay to form an LLC correctly. Start by filing directly with your Secretary of State instead of paying a formation service markup, since most states have straightforward online portals. Serve as your own registered agent if you have a stable in-state address and are reliably available during business hours, which saves $100 to $300 a year. Use a free operating agreement template as your starting point rather than commissioning a custom one, and file your annual reports on time to avoid late penalties.
Also think about timing. Some states prorate or time their annual fees around your formation date or the calendar year, so filing late in December versus early January can shift when your first annual fee comes due. A quick call or email to the Secretary of State’s office can clarify the timing for your situation.
Frequently Asked Questions
What is the cheapest state to form an LLC in 2026?
Montana has the lowest filing fee at $35, but Arizona and New Mexico are arguably the cheapest overall because they charge just $50 to file with no annual fees. Keep in mind you should generally form in the state where you operate, not the cheapest one.
How much does an LLC cost per year after formation?
Ongoing costs range from $0 in states like Arizona, Ohio, and Mississippi to $800 per year in California. The typical state charges an annual report fee between $20 and $150, so most owners pay well under $200 a year in recurring state fees plus any registered agent service they use.
Can I form an LLC for free?
Not quite. Some formation services advertise “free” packages, but you still pay the mandatory state filing fee. The service fee is waived, not the state fee. The cheapest realistic first-year total is around $50 in states like Arizona or New Mexico if you act as your own registered agent.
Do I need a registered agent, and how much does one cost?
Yes, every state requires LLCs to maintain a registered agent with a physical in-state address. You can be your own agent for free, or hire a professional service for roughly $50 to $300 per year. Using a service keeps your personal address off public records.
Why is California’s LLC cost so high?
California charges a $70 filing fee plus a minimum $800 annual franchise tax on LLCs, plus a $20 Statement of Information every two years. The franchise tax applies even if your LLC earns no revenue, making California by far the most expensive state for ongoing LLC maintenance.
What happens if I don’t pay my LLC annual fees?
Consequences escalate from late penalties and interest to loss of good standing, which can prevent you from borrowing, signing contracts, or defending lawsuits in state court. Eventually the state can administratively dissolve your LLC, which removes your liability protection.
Related Articles
If you are working through the early steps of forming your business, DigitalGeekSpot has guides on each piece of the puzzle:
- Best LLC Formation Services for Small Business
- Sole Proprietorship vs LLC: Which Is Right for You?
- What Is an EIN and How to Get One
- How to Get a Business License for Small Business
The Bottom Line
An LLC costs anywhere from about $50 to well over $1,000 in the first year depending on your state, with the national average hovering around $224. The filing fee gets the headlines, but annual reports, franchise taxes, publication rules, and registered agent costs determine what you actually pay over time. Form in the state where you operate, file directly with the state to avoid markups, and calendar your annual reports so late fees never eat your budget.
