Sarah Johnson
Most people spend more time picking their LLC name than they do researching the actual cost to form one. Then they get surprised by a $300 annual report fee they weren’t expecting, or they pay a registered agent $200 a year when a $49 option would’ve done exactly the same job.
Let me just show you the real numbers.
Filing fees to form an LLC range from $35 in Kentucky to $500 in Massachusetts, as of August 2026. That’s a fourteen-to-one ratio for the same legal structure. And the filing fee is often the cheapest part of the equation once you factor in annual fees, franchise taxes, and the occasional state-specific surcharge that nobody tells you about until you’re already in.
- LLC filing fees range from $35 (Kentucky) to $500 (Massachusetts) as of August 2026.
- Most states charge $50-$150 to file, but annual fees and franchise taxes can dwarf the upfront cost.
- California's $800 minimum franchise tax applies every year, regardless of revenue.
- Delaware is popular for investors, but out-of-state LLCs still pay their home state fees too.
- Registered agent fees ($50-$300/year) are a recurring cost most formation guides forget to mention.
The Filing Fee Is Just the Entry Ticket
Here’s what most people don’t realize: the state filing fee is a one-time cost, but the ongoing annual costs are what actually determine whether your state choice matters financially. I’ve seen clients form in Wyoming because they read a blog post about low fees, then get blindsided when they realized they still needed to register as a foreign LLC in their home state (where they actually operate), pay that state’s fees, and pay Wyoming’s too. Two sets of fees, two registered agents. Not the deal they thought they were getting.
The table below shows current 2026 filing fees and key annual costs for all 50 states. These are state fees only; they don’t include your registered agent, an attorney, or a formation service.
| State | Filing Fee | Annual/Biennial Report Fee | Notes |
|---|---|---|---|
| Alabama | $200 | $100/yr (minimum) | Annual report tied to Business Privilege Tax |
| Alaska | $250 | $100/2 yrs | Biennial report |
| Arizona | $50 | None | No annual report required |
| Arkansas | $45 | $150/yr | Annual franchise tax |
| California | $70 | $20 (Statement of Info) + $800 min franchise tax/yr | $800 minimum regardless of income |
| Colorado | $50 | $10/yr | One of the cheapest ongoing costs |
| Connecticut | $120 | $80/yr | |
| Delaware | $90 | $300/yr | Popular for investors; still need home state registration |
| Florida | $125 | $138.75/yr | Annual report fee is surprisingly steep |
| Georgia | $100 | $50/yr | |
| Hawaii | $50 | $15/yr | |
| Idaho | $100 | $0 | No annual report fee |
| Illinois | $150 | $75/yr | |
| Indiana | $95 | $31/2 yrs | Biennial report |
| Iowa | $50 | $30/2 yrs | Biennial |
| Kansas | $160 | $55/yr | |
| Kentucky | $40 | $15/yr | Cheapest filing fee in the country |
| Louisiana | $100 | $30/yr | |
| Maine | $175 | $85/yr | |
| Maryland | $100 | $300/yr | Annual personal property return |
| Massachusetts | $500 | $500/yr | Most expensive state for ongoing costs |
| Michigan | $50 | $25/yr | |
| Minnesota | $155 | $0 | No annual report fee |
| Mississippi | $50 | $0 | No annual report fee |
| Missouri | $50 | $0 | No annual report fee |
| Montana | $35 | $15/yr | Low all around |
| Nebraska | $100 | $26/2 yrs | Biennial |
| Nevada | $75 | $350/yr (State Business License + Annual List) | Expensive ongoing; often oversold as a tax haven |
| New Hampshire | $100 | $100/yr | |
| New Jersey | $125 | $75/yr | |
| New Mexico | $50 | $0 | No annual report; very low ongoing cost |
| New York | $200 | $9/2 yrs + publication requirement (~$1,200 one-time in some counties) | Publication requirement is a hidden cost |
| North Carolina | $125 | $200/yr | |
| North Dakota | $135 | $50/yr | |
| Ohio | $99 | $0 | No annual report fee |
| Oklahoma | $100 | $25/yr | |
| Oregon | $100 | $100/yr | |
| Pennsylvania | $125 | $7/10 yrs (decennial report) | Essentially no annual report cost |
| Rhode Island | $150 | $50/yr | |
| South Carolina | $110 | $0 | No annual report fee |
| South Dakota | $150 | $50/yr | |
| Tennessee | $300 | $300/yr (minimum) | Tied to member count; min 3 members = $900 |
| Texas | $300 | $0 franchise tax if revenue under $2.47M (2026 threshold) | No fee below revenue threshold |
| Utah | $54 | $18/yr | |
| Vermont | $125 | $35/yr | |
| Virginia | $100 | $50/yr | |
| Washington | $200 | $60/yr | |
| West Virginia | $100 | $25/yr | |
| Wisconsin | $130 | $25/yr | |
| Wyoming | $100 | $60 or 0.0002% of assets in state (whichever greater) | Asset-based fee; can be very low for simple businesses |
Fees verified against state SOS websites as of August 2026. Always confirm directly with your state before filing, as these can change.
The States That Will Actually Surprise You
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California and New York deserve their own conversation because they’re both popular and genuinely punishing in ways that the quick-google answer misses.
California charges every LLC a minimum $800 annual franchise tax, due even if your business made zero dollars. No exemption for new businesses in their first year as of 2026 (that temporary exemption expired). A reader named Marcus emailed me last spring after forming a California LLC for a side project he hadn’t launched yet. He owed $800 before earning a single dollar. If you’re a California resident running a small or part-time business, that $800 floor is real money and worth factoring into whether you even need an LLC yet.
New York has the publication requirement, which I’d argue is the most archaic business formation rule still on the books. You have to publish a notice of formation in two newspapers for six consecutive weeks in the county where your LLC is located. In Manhattan and some other downstate counties, that can run $1,200 to $2,000. Albany and upstate counties are cheaper, sometimes under $200 total. The state filing fee is $200, which looks fine until you add the publication cost.
Nevada gets oversold as a tax haven constantly. Yes, Nevada has no state corporate income tax. But Nevada’s annual fees for an LLC (the State Business License plus the Annual List) currently run around $350 a year. If you actually live in, say, Arizona, you’ll also register your Nevada LLC as a foreign entity in Arizona and pay Arizona’s fees too. You’re not avoiding your home state’s rules by filing elsewhere. The Consumer Financial Protection Bureau’s small business resources are worth checking if you’re trying to understand what financial disclosures apply to your structure regardless of formation state.
What Registered Agent Fees Actually Cost You
Every LLC needs a registered agent in its state of formation. If you form in your home state and you have a physical address there, you can be your own registered agent for free. Most people don’t know that.
If you form in a state where you don’t live (Delaware, Wyoming, Nevada), you need to pay someone to be your registered agent there. Prices range from $49 to $299 a year depending on the service. Northwest Registered Agent currently runs $125/year, which is what I’d call the sweet spot for reliability without overpaying. Registered Agents Inc. has an $89/year option that works fine for straightforward situations.
Worked example: a Colorado freelancer forms an LLC in Wyoming thinking they’ll save money.
Scenario: $100 Wyoming filing fee + $60 Wyoming annual fee + $125 registered agent = $285/year in Wyoming costs alone. Then Colorado foreign LLC registration at $100 + $10/year. Total first year: $495. If they’d just formed in Colorado: $50 + $10/year = $60. The Wyoming route costs $435 more in year one, and the ongoing savings from Wyoming’s lack of income tax are zero because Colorado income tax applies to where they live and work anyway.
I’ve run this comparison for dozens of clients and the math almost never favors out-of-state formation for a single-member LLC with no investment ambitions.
When Delaware Actually Makes Sense
Delaware is genuinely worth it in specific situations: you’re raising venture capital, you plan to issue multiple classes of shares, or you have sophisticated investors who just expect a Delaware entity. Delaware’s Court of Chancery has 200 years of case law that makes it the most predictable jurisdiction for business disputes. That matters when real money is involved.
For a solo consultant, an Etsy seller, or a two-person service business? Delaware adds cost and complexity with essentially no benefit. I’d go straight to your home state.
SCORE mentorship resources can connect you with a free mentor who has done this themselves, which is genuinely useful if you’re trying to decide between formation states without paying attorney fees upfront.
The Costs Nobody Puts in the Headline
A few things that regularly catch people off guard:
Publication fees (New York, as covered). Some formation services charge “state fees” that include their markup without disclosing it clearly. Always compare what they quote against your state’s SOS website directly. Tennessee’s annual LLC fee is tied to member count, not revenue: $300 per member, with a $300 minimum. A 3-member Tennessee LLC pays $900 a year just in state fees. Maryland’s $300 annual personal property return fee is steep relative to its $100 filing fee. And Arizona has no annual report at all, which nobody advertises loudly enough.
If you’re handling your own books after formation, Mike Piper’s Accounting Made Simple is a genuinely useful $10 paperback. (The site may earn a small commission on that link.) And yes, please talk to a CPA before you file, especially regarding tax elections like S-corp status, which can be made on top of your LLC and affect your actual tax bill more than the state filing fee ever will.
Sources
- National Conference of State Legislatures (NCSL): State-by-state business formation fee data and LLC statute tracking
- State Secretary of State Websites: Primary source for all filing fees and annual report requirements cited above (verified August 2026)
- IRS.gov, LLC Tax Classification: Official guidance on single-member vs. multi-member LLC tax treatment
- Consumer Financial Protection Bureau Small Business Resources: Financial disclosure requirements for small business entities
- SCORE.org: Free mentorship and state-specific formation guidance from experienced business owners
Photo: Sora Shimazaki via Pexels
This article is for general informational purposes only and does not constitute financial, tax, or legal advice. Business finance and tax rules vary by entity type, state, and individual circumstances. Consult a qualified CPA, enrolled agent, or business attorney for advice specific to your situation.
Recommended Resources
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- Mastering QuickBooks 2025 (~$32), The most comprehensive QuickBooks 2025 guide, covers bookkeeping, payroll, invoicing, tax prep, and cash flow.
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- QuickBooks Small Business Bookkeeping Guide (~$17), Compact, practical QuickBooks pocket guide, ideal for new business owners setting up accounting for the first time.
