Introduction
Ask five business owners what it costs to form an LLC and you'll get five different answers. That's because LLC formation costs vary by state, sometimes by hundreds of dollars, and the sticker price on the Secretary of State's website rarely tells the whole story.
Many founders budget for the Articles of Organization fee and stop there. Then an annual report notice arrives, or a franchise tax bill, or a publication requirement they'd never heard of.
A 2026 LLC budget needs to separate three things: the one-time state filing fee, the true first-year cost, and what it takes to keep the LLC in good standing every year after.
This guide breaks down all 50 states plus DC and explains the hidden costs founders miss. You also get a practical formula for a realistic budget, whether you are forming your first US LLC domestically or setting one up as an international founder.
Key Takeaways
- Initial LLC filing fees in 2026 range from $35 in Montana to $500 in Massachusetts
- First-year costs often include registered agent fees, annual reports, and franchise taxes on top of the filing fee
- The lowest filing fee doesn't guarantee the lowest total cost, especially with foreign qualification
- Total cost depends on location, ownership structure, industry, and how many states you operate in
- An EIN from the IRS is always free, no matter which state you form in
How Much Does an LLC Cost by State in 2026?
There's no single national price tag for an LLC. Each state sets its own formation fee, reporting schedule, and recurring taxes.
Some states charge a low filing fee but hit you with an expensive annual report. Others do the opposite.
Misjudging these costs creates real problems:
- Underbudgeting the launch by only accounting for the filing fee
- Missing recurring obligations like annual reports or franchise taxes
- Choosing a state that triggers duplicate registration costs if you operate elsewhere
- Missing deadlines, which can mean penalties or loss of good standing
Here's the state-by-state breakdown, verified against official Secretary of State and tax authority sources as of September 2026. Always confirm current figures directly with the relevant state agency before filing, since fee schedules change.
| State | Initial Filing Fee | Recurring Report/Tax | Notes |
|---|---|---|---|
| Alabama | $200 | Business Privilege Tax (variable) | No flat annual report |
| Alaska | $250 | $100 biennial report | |
| Arizona | $50 | None shown | No annual report |
| Arkansas | $45 online/$50 paper | $150 annual franchise tax | Due May 1 |
| California | $70 | $800 minimum annual tax + $20 biennial statement | High recurring cost |
| Colorado | $50 | $25 annual report | |
| Connecticut | $120 | $80 annual report | |
| Delaware | $110 | $400 annual LLC tax | No annual report filing |
| Florida | $125 (incl. agent fee) | $138.75 annual report | Late fee jumps to $538.75 |
| Georgia | $100 online/$110 paper | $60 annual registration | Due April 1 |
| Hawaii | $50 | $15 annual report | |
| Idaho | $100 | None shown | |
| Illinois | $150 | $75 annual report | |
| Indiana | $95 online/$100 paper | $32/$50 biennial report | |
| Iowa | $50 | $30/$45 biennial report | |
| Kansas | $75 | $55 biennial info report | |
| Kentucky | $40 | $15 annual report | |
| Louisiana | $100 | $30 annual report | |
| Maine | $175 | $85 annual report | |
| Maryland | $100 | $300 annual report | Due April 15 |
| Massachusetts | $500 | $500 annual report | Highest combined cost |
| Michigan | $50 | $25 annual statement | |
| Minnesota | $135 mail/$155 online | $0 annual renewal | |
| Mississippi | $50 | $0 annual report | |
| Missouri | $50 | None shown | Confirm at filing |
| Montana | $35 | $20 annual report | Lowest base fee; series adds $50/member |
| Nebraska | $100/$110 | $30 biennial report | |
| Nevada | $425 startup (fees + license) | $350/year | Highest true start-up cost |
| New Hampshire | $100 | $100 annual report | |
| New Jersey | $100 | $75 annual report | |
| New Mexico | $50 | None shown | |
| New York | $200 | $9 biennial statement + publication | Publication can add $600–$1,200 |
| North Carolina | $125 | $200/$203 annual report | |
| North Dakota | $135 | $50 annual report | |
| Ohio | $99 | $25 biennial report | |
| Oklahoma | $100+ | $25 annual fee | |
| Oregon | $100 | $100 annual report | |
| Pennsylvania | $125 | $7 annual report | Requirement started 2025 |
| Rhode Island | $150 | $50 report + $400 min tax | |
| South Carolina | $110 | $50 annual report | |
| South Dakota | $150/$165 | $55/$70 annual report | |
| Tennessee | $300 minimum | $300 minimum annual report | Scales with members |
| Texas | $300 | No flat fee; franchise tax above threshold | No-tax-due threshold $2.65M |
| Utah | $59 | $18 annual renewal | |
| Vermont | $155 | $45 annual report | |
| Virginia | $100 | $50 annual registration | |
| Washington | $180 | $70 annual report | |
| West Virginia | $100 | $25 annual report | |
| Wisconsin | $130/$170 | $25/$40 annual report | |
| Wyoming | $100 | $60 minimum license tax | |
| Washington, DC | $99 | $300 biennial report |
Formation fee categories, explained:
- Initial formation filing — the one-time fee for Articles of Organization or Certificate of Formation
- Recurring report or tax — annual, biennial, or franchise obligations to stay in good standing
- Additional state requirements — publication, initial reports, member lists, or local licenses
Watch for these patterns. Some states pair low filing fees with real annual obligations (Arkansas, Florida, Maryland). Others look modest at formation but carry heavy recurring costs—Delaware’s $400 LLC tax, California’s $800 minimum tax, or Massachusetts at $500 to file and $500 every year. A few charge no annual fee at all (Arizona, Mississippi, and Minnesota’s $0 renewal).
One more wrinkle: if you form an LLC in one state but actually operate in another, you'll likely need foreign qualification.
Say you form in Wyoming for its low taxes but run your business from California. You'll still owe California's $800 minimum tax and file a second registration, on top of Wyoming's fees. Forming out of state rarely eliminates home-state obligations.
What Costs Make Up an LLC Budget?
The filing fee is just the entry point. A realistic budget covers mandatory, conditional, optional, and professional costs.
State Filing and Government Fees
How you file changes the price in several states. Arkansas charges $45 online versus $50 paper. Wisconsin's spread is wider: $130 online versus $170 paper, with the same online discount applied to its annual report ($25 versus $40).
Other conditional costs to check per state:
- Expedited processing — Arizona charges $85 for expedited versus $50 standard; Maryland's same-day online option runs $425
- Certified copies and good-standing certificates — typically $10 to $50 depending on the state
- Name reservation — required in some states if you're not filing immediately
Registered Agent, Operating Agreement, and EIN
Every LLC must designate a registered agent with a physical address in the formation state. You can serve as your own agent at no cost if you have an in-state address, or hire a commercial service. Published pricing runs roughly $99 to $249 per year, depending on the provider.
An operating agreement has no filing fee attached. A single-member LLC can often use a straightforward template. Multi-member LLCs with unequal ownership, investor terms, or special profit allocations usually warrant attorney drafting instead.
The EIN is always free when obtained directly through the IRS. Third parties may charge for application assistance, but the IRS itself never charges a fee for issuing one.
Licenses, Permits, DBA, and Professional Support
Forming an LLC doesn't automatically authorize you to operate. Depending on your industry and location, you may still need:
- City or county business licenses
- State occupational or industry-specific permits
- Sales tax registration
- A DBA (assumed name) filing, separate from your LLC name
DBA costs vary widely. Arkansas, for example, charges $22.50 online for a fictitious-name filing tied to an LLC.
Founders comfortable with paperwork can often file basic formation documents themselves. An attorney or CPA is worth it for multi-member structures, unusual tax elections, or heavily regulated industries—not as a default for every filing.
Ongoing Compliance and Tax-Related Costs
This is where budgets go wrong most often. Recurring obligations include annual or biennial reports, franchise or privilege taxes, registered-agent renewals, and bookkeeping.
Two examples worth flagging specifically:
- California — $800 minimum annual tax by the 15th day of the fourth month, even with no revenue (California FTB)
- New York — publish in two county-approved newspapers for six weeks, plus a $50 Certificate of Publication (often missed by first-time founders)
Your LLC's actual tax treatment depends on ownership structure, elections made with the IRS, business activity, and jurisdiction. Formation fees are not a substitute for tax planning. A qualified tax professional should confirm your specific obligations before you file.
Low-Cost vs High-Cost LLC States — What's the Difference?
Comparing states purely on the filing fee misses most of the real cost picture.
Initial Cost
Lower-cost states like Montana ($35), Mississippi ($50), and Arizona ($50) look attractive upfront. But check whether that low number hides a recurring report or tax that closes the gap over time.
Higher-cost states like Massachusetts ($500) or Tennessee ($300 minimum) front-load the expense. That single number should be weighed against the state's overall compliance system, not judged in isolation.
Ongoing Cost and Compliance
Low recurring fees don't always mean low total cost:
- Minnesota's $0 annual renewal is a genuine advantage
- Missouri and New Mexico currently list no recurring state LLC report, though local licenses may still apply
- Arizona charges nothing annually at the state level, but county and industry permits can still apply
Higher-cost states add more over the long term:
- California's $800 minimum tax applies every year, even with no profit
- Massachusetts charges $500 to file and $500 again each year
- New York's publication rule can add $600–$1,200 in newspaper costs above state fees
If you're registered in a low-fee state but conduct business elsewhere, foreign qualification fees in your operating state usually erase any savings.
The "cheapest state" should mean the lowest realistic total cost for how your business actually operates, not the lowest number on a filing fee chart.
How to Estimate the Right LLC Budget and Avoid Costly Mistakes
A workable budgeting formula looks like this:
State formation fee + first-year report or tax + registered-agent cost + licenses and permits + optional documents or professional support + contingency for state-specific requirements
Scenario 1: Single-state domestic LLC (Ohio)
- Filing fee: $99
- Biennial report: $25 (averaged, roughly $12.50/year)
- Registered agent (self-serve): $0
- Basic licenses: ~$50
- Estimated first-year total: ~$160
Scenario 2: Multi-state LLC with international owner (formed in Wyoming, operating in California)
- Wyoming filing fee: $100
- Wyoming annual license tax: $60
- California foreign qualification: ~$70–$100+
- California $800 minimum franchise tax
- Registered agent service: ~$150/year
- Estimated first-year total: over $1,100
These are illustrative, not universal prices. Your actual numbers depend on your specific state combination.
Factors to Consider
- Where the business will actually operate, and whether foreign qualification applies
- Ownership structure: number of members, investor involvement, operating agreement complexity
- Industry, employees, and any physical premises requiring local licenses
- Filing urgency: standard versus expedited processing
- Recurring deadlines for reports, taxes, and registered-agent renewals
What Most People Miss When It Comes to LLC Cost
- Fixating on the filing fee instead of calculating first-year and multi-year totals
- Assuming Delaware, Wyoming, or Nevada formation erases home-state obligations. It doesn't. The Small Business Administration notes foreign-qualified businesses typically pay fees in both states
- Forgetting publication, licensing, or franchise-tax rules that don't show up in the basic formation price
- Treating registered agents, operating agreements, or EINs as one fixed price — some are free, some recurring, some provider-dependent
For international founders forming a US LLC the first time, tracking 50 fee schedules plus foreign qualification rules gets complicated fast.
VJM Global helps businesses set up in the US—including Australian founders and those in the UK and elsewhere—with formation documents, registered-agent arrangements, and ongoing financial compliance. This is not a substitute for state-specific legal advice, but it does take administrative weight off founders juggling multiple jurisdictions.
Conclusion
LLC cost by state isn't a single number. Total cost stacks several layers:
- Initial state filing fee
- Recurring state obligations (annual reports, franchise tax, and similar)
- Conditional local and industry costs
- Professional support you choose to bring in
The right state depends on total cost, where you operate, tax and compliance needs, and your business model. The lowest advertised filing fee alone is not enough.
VJM Global supports US business setup, accounting, tax compliance, and related advisory work, with professional review matched to your situation.
Frequently Asked Questions
How much does it cost to set up an LLC in the US?
It depends on your state and business circumstances. Initial filing fees in 2026 range from $35 to $500, but first-year costs also include registered-agent fees, licenses, and possibly franchise taxes. Check the state-by-state table above and confirm current figures with official state sources.
Which state has the lowest LLC filing fees?
Montana currently has the lowest verified basic filing fee at $35, though series LLCs add $50 per named series member. That said, the lowest filing fee doesn't automatically mean the lowest total cost once you factor in annual obligations, taxes, and where your business actually operates.
