Formation fees range from $50 (Arizona) to $500 (Massachusetts). The median first-year cost is $185.
$50
Cheapest First Year
Arizona
$185
Median First Year
North Dakota
$1000
Most Expensive First Year
Massachusetts
California's $70 filing fee looks cheap, but the state charges an $800 annual franchise tax starting from day one -- even if your LLC earns $0. That makes California the second most expensive state for first-year LLC costs at $870, behind only Massachusetts ($1,000). Seven states charge no annual fee at all.
| State | Filing Fee | Annual Fee | First-Year Total |
|---|---|---|---|
| Arizona | $50 | $0 | $50 |
| Mississippi | $50 | $0 | $50 |
| Missouri | $50 | $0 | $50 |
| New Mexico | $50 | $0 | $50 |
| Kentucky | $40 | $15 | $55 |
| Colorado | $50 | $10 | $60 |
| Hawaii | $50 | $15 | $65 |
| Utah | $54 | $18 | $72 |
| Michigan | $50 | $25 | $75 |
| Iowa | $50 | $30 | $80 |
| Montana | $70 | $20 | $90 |
| Ohio | $99 | $0 | $99 |
| Idaho | $100 | $0 | $100 |
| South Carolina | $110 | $0 | $110 |
| Nebraska | $105 | $13 | $118 |
| Oklahoma | $100 | $25 | $125 |
| West Virginia | $100 | $25 | $125 |
| Indiana | $95 | $31 | $126 |
| Louisiana | $100 | $35 | $135 |
| Georgia | $100 | $50 | $150 |
| Virginia | $100 | $50 | $150 |
| Minnesota | $155 | $0 | $155 |
| Wisconsin | $130 | $25 | $155 |
| Vermont | $125 | $35 | $160 |
| Wyoming | $100 | $60 | $160 |
| North Dakota | $135 | $50 | $185 |
| Arkansas | $45 | $150 | $195 |
| Pennsylvania | $125 | $70 | $195 |
| Connecticut | $120 | $80 | $200 |
| New Hampshire | $100 | $100 | $200 |
| New Jersey | $125 | $75 | $200 |
| Oregon | $100 | $100 | $200 |
| Rhode Island | $150 | $50 | $200 |
| South Dakota | $150 | $50 | $200 |
| Kansas | $160 | $55 | $215 |
| Illinois | $150 | $75 | $225 |
| New York | $200 | $25 | $225 |
| Washington | $180 | $60 | $240 |
| Maine | $175 | $85 | $260 |
| Florida | $125 | $138 | $263 |
| Texas | $300 | $0 | $300 |
| North Carolina | $125 | $200 | $325 |
| Alabama | $236 | $100 | $336 |
| Alaska | $250 | $100 | $350 |
| Delaware | $90 | $300 | $390 |
| Maryland | $100 | $300 | $400 |
| Nevada | $75 | $350 | $425 |
| Tennessee | $300 | $300 | $600 |
| California | $70 | $800 | $870 |
| Massachusetts | $500 | $500 | $1000 |
Filing fees are for online filing where available. Annual fees shown are the minimum required amount. Some states charge based on revenue or assets. Data current as of January 2025.
Arizona, Idaho, Minnesota, Mississippi, Missouri, Ohio, and South Carolina have no recurring annual LLC fee. If you operate in one of these states, your only ongoing state cost is the initial filing fee. Ohio stands out at $99 with no annual obligation.
Delaware is marketed as the "best state for business," but its advantages apply mainly to C-corps seeking venture capital. For a typical LLC, Delaware costs $390 in the first year ($90 filing + $300 annual tax). If you also do business in your home state, you'll pay foreign LLC registration fees there too -- potentially doubling your costs.
Wyoming ($100 filing + $60 annual = $160) is significantly cheaper than Nevada ($75 filing + $350 annual = $425) while offering similar privacy protections and no state income tax. Wyoming is the clear winner for privacy-focused LLC formation on a budget.
For most small business owners, forming in your home state is the best choice. You avoid foreign LLC registration fees and comply with local requirements. If your home state is expensive (Massachusetts, California, Tennessee), consider whether the business truly needs a separate state entity.
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Kentucky has the lowest filing fee at $40 with a $15 annual report, totaling $55 in the first year. Several states like Arizona and Missouri have $50 filing fees with no annual fee, making them equally affordable long-term.
Massachusetts charges $500 to file and $500 per year for the annual report, totaling $1,000 in the first year. California is second at $870 ($70 filing + $800 franchise tax).
No, but if you do business in your home state, you may need to register as a foreign LLC there, paying fees in both states. For most small businesses, forming in your home state is cheaper and simpler.
For most small businesses, no. Delaware is popular with C-corps raising venture capital due to its specialized business courts. A single-member LLC gains no meaningful advantage and pays $390+ per year in Delaware alone.
Most states require an annual report or franchise tax. Fees range from $0 (Arizona, Missouri, Mississippi, Ohio) to $800 (California franchise tax). You may also need a registered agent ($100-$300/year) and business licenses.