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How Much Does It Cost to Start an LLC in 2026?

By John Rush

Checked November 4, 2026 · How we score

Starting an LLC costs $35 to $500 in state filing fees in 2026 — Montana is cheapest at $35, Massachusetts most expensive at $500. The median is about $100. Annual fees range from $0 (New Mexico, Ohio, Missouri) to $800 (California's minimum franchise tax). Add $0–$300 a year for a registered agent; the EIN from the IRS is free.

The honest answer: the state filing fee is between $35 and $500, and the number that actually matters — what you pay every year to keep the LLC alive — ranges from $0 to $800+. Most founders I know spent $100–$300 in year one and never looked at the annual fee until the first reminder email arrived.

Below is every state's current filing fee and annual fee, then the extra costs that formation services don't put in the headline.

What does an LLC cost in each state?

Fees are state government fees only (no service markup), checked against 2026 sources including state fee changes that took effect this year. "Annual" means the recurring report fee or minimum tax; biennial fees are marked.

State Filing fee Annual / recurring fee Notes
Alabama $200 $0 Business privilege tax waived if it would be ≤ $100; return still filed
Alaska $250 $100 biennial Every 2 years
Arizona $50 $0 Publication required in some counties
Arkansas $45 $150 Franchise tax
California $70 $800 + $20 $800 minimum franchise tax; $20 Statement of Information every 2 years
Colorado $50 $25 Periodic report
Connecticut $120 $80
Delaware $110 $300 → $400 Annual LLC tax rises to $400 for tax year 2026 (paid June 1, 2027)
District of Columbia $99 $300 biennial
Florida $125 $138.75 Due May 1; $400 late fee
Georgia $110 $60 Includes $10 service charge
Hawaii $50 $15
Idaho $100 $0 Free annual report
Illinois $150 $75
Indiana $95 ~$32 biennial Online fee
Iowa $50 $30 biennial Online fee, odd years
Kansas $160 ~$50 Kansas is changing its report cycle — check before filing
Kentucky $40 $15
Louisiana $125 $35 Both raised Oct 1, 2026 (were $100 / $30)
Maine $175 $85
Maryland $100 $300
Massachusetts $500 $500 Most expensive
Michigan $50 $25
Minnesota $155 $0 Free annual renewal
Mississippi $50 $0 Free annual report
Missouri $50 $0 No annual report
Montana $35 $20 Fee waived for on-time filers in 2026
Nebraska $100 $13 biennial Publication required
Nevada $425 $350 Includes $200 state business license
New Hampshire $100 $100
New Jersey $100 $75 Cut from $125 on July 1, 2026
New Mexico $50 $0 No annual report
New York $200 $9 biennial Plus publication, often $500–$1,500+
North Carolina $125 $200
North Dakota $135 $50
Ohio $99 $0 No annual report
Oklahoma $100 $25
Oregon $100 $100
Pennsylvania $125 $7
Rhode Island $150 $50
South Carolina $110 $0
South Dakota $150 $55
Tennessee $300 $300 $50 per member, $300 minimum
Texas $300 $0 Franchise tax "no tax due" under $2.47M revenue; report still filed
Utah $59 $18
Vermont $155 $45
Virginia $100 $50
Washington $200 $70
West Virginia $100 $25
Wisconsin $130 $25
Wyoming $100 $60 $60 minimum license tax

Fees change every year (Delaware, Louisiana and New Jersey all changed in 2026), so confirm on the Secretary of State site before you pay. Our state pages, like Wyoming and Delaware, link the official fee schedule.

Which state is cheapest to form an LLC?

On pure government fees over the first year:

Rank State Year-one state fees Then per year
1 Montana $35 $0–$20
2 Kentucky $40 $15
3 New Mexico $50 $0
4 Missouri / Mississippi / Arizona $50 $0
5 Michigan $50 $25

The full ranking is on our cheapest state to form an LLC list.

But cheap is only cheap if you're allowed to use it. If you live in California and run your business there, forming in New Mexico doesn't save you the $800: California treats you as "doing business" in the state, makes you register as a foreign LLC (another $70) and still charges the $800 minimum tax. You end up paying two states. The rule for US residents: form in the state where you live and work unless you have a specific reason not to.

For non-US residents with no US office, the calculation is different — any state works, and New Mexico or Wyoming usually win. More in our LLC for non-US residents guide.

What are the most expensive states?

  • Massachusetts: $500 to file, $500 a year.
  • California: only $70 to file, but $800 a year minimum franchise tax from year one, plus an LLC fee once gross receipts pass $250,000. The temporary first-year exemption ended after 2023.
  • Nevada: $425 to file and $350 a year, because the state bundles a $200 business license into both.
  • New York: $200 to file, but the publication requirement (six weeks in two newspapers) can cost $1,000+ in Manhattan.
  • Tennessee: $300 minimum both to form and every year, higher if you have more than six members.

What other costs come with an LLC?

The state fee is rarely the full bill. Here's what else shows up:

Cost Typical price Required?
Registered agent $0 (be your own) to $125–$300/yr Yes — you need a physical in-state address
EIN from the IRS $0 Yes if you hire, open a bank account or have 2+ members
Operating agreement $0 (template) to $500+ (lawyer) Required in a few states, smart everywhere
Formation service $0–$500 + state fee No
Publication $40–$1,500+ Only AZ, NE, NY
Local business license $0–$500 Depends on city and activity
Name reservation $10–$50 No
Expedited filing $25–$1,000 No
Bookkeeping / tax prep $0 (DIY) to $1,000+/yr Strongly recommended

The EIN is free directly from the IRS. Anyone charging you $70–$300 "for the EIN" is charging for filling in a form.

The beneficial ownership (BOI) report under the Corporate Transparency Act no longer applies to US-formed LLCs after FinCEN's March 2025 rule, so that's one less cost — ignore services still selling "BOI filing" for domestic LLCs.

Do I need a formation service?

No. Every state lets you file online yourself in 15–30 minutes. A service makes sense when:

  • You're outside the US and need a registered agent and mailing address anyway.
  • You want the EIN handled (especially non-residents, where the IRS online tool doesn't work without an SSN/ITIN).
  • You value a dashboard that reminds you of annual deadlines.

Typical pricing in 2026: Northwest charges a $39 service fee plus state fees with the first year of registered agent included; ZenBusiness has a $0 base plan with paid add-ons; doola's starter tier is roughly $297/yr for non-residents. See our Stripe Atlas alternatives comparison for the full list.

How much does an LLC cost per year to maintain?

Realistic annual budgets for a one-person LLC:

Setup State fees Registered agent Tax prep Total/yr
New Mexico, DIY, non-resident $0 ~$50–$125 $0–$500 $50–$625
Wyoming, non-resident $60 ~$25–$125 $0–$500 $85–$685
Texas, US resident $0 $0 (self) $300–$800 $300–$800
Delaware LLC $300 (2025) / $400 (2026+) $50–$300 $300–$800 $650–$1,500
California LLC $800 + $10 avg $0 (self) $500–$1,000 $1,310–$1,810

Federal income tax is separate: a single-member LLC is taxed on your personal return by default, so the LLC itself adds no federal tax — only paperwork.

Is it worth paying more for Delaware or Wyoming?

For a small business owned by US residents: usually not. You'll pay your home state anyway. Delaware makes sense for VC-backed C-corps (not really LLCs); Wyoming makes sense for non-residents and privacy. Our Delaware vs Wyoming LLC guide has the side-by-side, and best state to form an LLC ranks all 50.

My rule of thumb after setting up companies in several states: pick the state you live in; if you don't live in the US, pick Wyoming or New Mexico; only pick Delaware if an investor asks.

Not tax or legal advice; rules change — verify with a local adviser.

Frequently asked questions

What is the cheapest state to start an LLC in 2026?

Montana has the lowest filing fee at $35, and its $20 annual report fee was waived for on-time filers in 2026. Kentucky ($40 + $15/yr) and New Mexico ($50, no annual report) are next. Remember you usually still have to register in the state where you actually operate.

Can I start an LLC for free?

No. Every state charges a filing fee, from $35 in Montana to $500 in Massachusetts. You can avoid all other costs — the EIN is free from the IRS, you can be your own registered agent if you have an in-state address, and operating agreement templates are free.

Why is a California LLC so expensive?

California charges every LLC an $800 minimum annual franchise tax from the first year, plus a $20 Statement of Information every two years and an additional LLC fee once gross receipts exceed $250,000. The 2021–2023 first-year exemption has expired.

Do I have to pay the annual fee if my LLC made no money?

Yes. Annual report fees and minimum franchise taxes are due regardless of income. Missing them leads to late penalties and eventually administrative dissolution — Florida, for example, charges a $400 late fee on its $138.75 report.

How much does it cost a non-US resident to start an LLC?

Typically $150–$600 in year one: a $50–$100 state fee in New Mexico or Wyoming, $25–$125 for a registered agent, and optionally a formation service. The EIN is free but must be requested by fax or phone using Form SS-4.

Related

Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.

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