What is the cheapest state to form an LLC?

Kentucky has the lowest LLC filing fee at $40. Other affordable states include Colorado ($50), Arizona ($50), Michigan ($50), Iowa ($50), and Mississippi ($50). However, annual costs matter more than filing fees — states like Arizona have no annual report fee, making the total ongoing cost $0 per year.

What is the most expensive state to form an LLC?

Massachusetts has the highest filing fee at $500 with a $500 annual report fee. New York is also expensive due to the publication requirement ($300–$1,500 one-time). California charges an $800 annual franchise tax regardless of income. Overall, Massachusetts, New York, and California are the three most expensive states for LLCs.

Should I form my LLC in a different state to save money?

Usually no. If you form in another state but do business in your home state, you'll need to register as a foreign LLC in your home state — paying fees in both states. Forming in a different state only makes sense if you have no physical presence in any particular state (online-only business) or have specific legal reasons for choosing Delaware or Wyoming.

LLC Cost by State: Filing Fees & Annual Costs for All 50 States (2026)

LLC costs vary dramatically by state — from $40 (Kentucky) to $500 (Massachusetts) for the initial filing, with annual costs that can add hundreds more.

Quick answer: The cheapest states to form an LLC are Kentucky ($40), Colorado ($50), and Arizona ($50 + no annual fee). The most expensive are Massachusetts ($500 + $500/year), California ($70 + $800/year), and New York ($200 + $300–$1,500 publication). Most states fall in the $50–$200 range for filing fees.

LLC Costs for All 50 States

State	Filing Fee	Annual/Biennial Cost	State Income Tax	Notes
Alabama	$200	$10/year (privilege tax minimum)	2%–5%	$100 business privilege tax minimum
Alaska	$250	$100/2 years	None	Biennial report
Arizona	$50	$0	2.55%–2.98% (flat 2.5% in 2026)	No annual report required
Arkansas	$45	$150/year	2%–4.7%	Annual franchise tax
California	$70	$800/year (franchise tax)	1%–13.3%	LLC fee up to $11,790 on revenue over $250K
Colorado	$50	$10/year	4.4% (flat)	Very low ongoing cost
Connecticut	$120	$80/year	3%–6.99%	Annual report
Delaware	$90	$300/year	2.2%–6.6%	Popular for out-of-state formations
Florida	$125	$138.75/year	None	Annual report by May 1
Georgia	$100	$50/year	1%–5.49%	Annual registration
Hawaii	$50	$15/year	1.4%–11%	Annual report
Idaho	$100	$0	5.695% (flat)	No annual report fee
Illinois	$150	$75/year	4.95% (flat)	Annual report
Indiana	$95	$31/2 years	3.05% (flat)	Biennial report
Iowa	$50	$60/2 years	4.4%–6%	Biennial report
Kansas	$160	$55/year	3.1%–5.7%	Annual report
Kentucky	$40	$15/year	4.5% (flat)	Lowest filing fee in the country
Louisiana	$100	$35/year	1.85%–4.25%	Annual report
Maine	$175	$85/year	5.8%–7.15%	Annual report
Maryland	$100	$300/year	2%–5.75%	Annual report + personal property return
Massachusetts	$500	$500/year	5% (flat)	Most expensive filing + annual cost
Michigan	$50	$25/year	4.05% (flat)	Annual statement
Minnesota	$155	$0	5.35%–9.85%	No annual renewal fee
Mississippi	$50	$0	4.7% (flat)	No annual report fee
Missouri	$50	$0	4.8% (flat)	No annual report fee
Montana	$70	$20/year	1%–6.75%	Annual report
Nebraska	$100	$10/2 years	2.46%–5.84%	Biennial report
Nevada	$75	$350/year	None	Business license + annual list
New Hampshire	$100	$100/year	None (income tax on interest/dividends ending)	Annual report
New Jersey	$125	$75/year	1.4%–10.75%	Annual report
New Mexico	$50	$0	1.7%–5.9%	No annual report fee
New York	$200	$9/2 years + publication ($300–$1,500)	4%–10.9%	Publication requirement unique to NY
North Carolina	$125	$200/year	4.5% (flat)	Annual report
North Dakota	$135	$50/year	0%–2.5%	Annual report
Ohio	$99	$0	None (CAT on gross receipts)	No annual report fee
Oklahoma	$100	$25/year	0.25%–4.75%	Annual certificate
Oregon	$100	$100/year	4.75%–9.9%	Annual report
Pennsylvania	$125	$0	3.07% (flat)	Decennial report only (every 10 years)
Rhode Island	$150	$50/year	3.75%–5.99%	Annual report
South Carolina	$110	$0	0%–6.5%	No annual report fee
South Dakota	$150	$50/year	None	Annual report
Tennessee	$300 per member ($50 min)	$300 per member/year ($300 min)	None (Hall Tax phased out)	Per-member fee unique to TN
Texas	$300	$0 (franchise tax: $0 under $2.47M)	None	Must file franchise tax report
Utah	$54	$20/year	4.65% (flat)	Annual renewal
Vermont	$125	$35/year	3.35%–8.75%	Annual report
Virginia	$100	$50/year	2%–5.75%	Annual registration
Washington	$200	$60/year	None	Annual report
West Virginia	$100	$25/year	3%–6.5%	Annual report
Wisconsin	$130	$25/year	3.54%–7.65%	Annual report
Wyoming	$100	$60/year (or based on assets)	None	Popular for out-of-state formations

Cheapest States to Form an LLC

Lowest Filing Fees

Rank	State	Filing Fee
1	Kentucky	$40
2	Arkansas	$45
3	Arizona	$50
3	Colorado	$50
3	Hawaii	$50
3	Iowa	$50
3	Michigan	$50
3	Mississippi	$50
3	Missouri	$50
3	New Mexico	$50

Lowest Annual Costs

Rank	State	Annual Cost
1	Arizona	$0
1	Idaho	$0
1	Minnesota	$0
1	Mississippi	$0
1	Missouri	$0
1	New Mexico	$0
1	Ohio	$0
1	Pennsylvania	$0 (decennial only)
1	South Carolina	$0
10	Colorado	$10/year

Lowest Total First-Year Cost

Rank	State	Filing Fee	Year 1 Annual	Total
1	Kentucky	$40	$15	$55
2	Mississippi	$50	$0	$50
3	Missouri	$50	$0	$50
4	New Mexico	$50	$0	$50
5	Arizona	$50	$0	$50
6	Colorado	$50	$10	$60
7	Hawaii	$50	$15	$65
8	Michigan	$50	$25	$75
9	Utah	$54	$20	$74
10	Montana	$70	$20	$90

Most Expensive States to Form an LLC

Highest Filing Fees

Rank	State	Filing Fee
1	Massachusetts	$500
2	Tennessee	$300+ (per member)
2	Texas	$300
4	Alaska	$250
5	New York	$200 (+ $300–$1,500 publication)
5	Washington	$200
7	Alabama	$200
8	Maine	$175
9	Kansas	$160
10	Minnesota	$155

Highest Annual Costs

Rank	State	Annual Cost
1	California	$800/year minimum
2	Massachusetts	$500/year
3	Nevada	$350/year
4	Tennessee	$300+/year (per member)
5	Delaware	$300/year
6	Maryland	$300/year
7	North Carolina	$200/year
8	Arkansas	$150/year
9	Florida	$138.75/year
10	Wisconsin	$130/year

Highest Total 5-Year Cost

Rank	State	5-Year Total
1	California	$3,870+ ($70 + $800×5 - year 1 waiver varies)
2	Massachusetts	$2,500 ($500 + $500×4)
3	New York	$1,550–$2,750 ($200 + pub + $9×2 + LLC fee)
4	Nevada	$1,475 ($75 + $350×4)
5	Tennessee	$1,500+ ($300 + $300×4, single member)

States With No Annual Fee

These states have no annual report or renewal fee for LLCs:

State	Filing Fee	Notes
Arizona	$50	Truly $0 ongoing
Idaho	$100	No annual report
Minnesota	$155	No renewal fee
Mississippi	$50	No annual report
Missouri	$50	No annual report
New Mexico	$50	No annual report
Ohio	$99	No annual report
Pennsylvania	$125	Decennial report only (every 10 years, $7)
South Carolina	$110	No annual report

States With No Income Tax

State	Filing Fee	Annual Cost	Total First Year
Alaska	$250	$100/2 years	$300
Florida	$125	$138.75	$263.75
Nevada	$75	$350	$425
South Dakota	$150	$50	$200
Texas	$300	$0 (<$2.47M)	$300
Washington	$200	$60	$260
Wyoming	$100	$60	$160

Best Overall Value States

Considering filing fee, annual costs, taxes, and business-friendliness:

State	Why It’s Good Value
Wyoming	$100 filing, $60/year, no income tax, strong privacy
New Mexico	$50 filing, $0/year, no annual report, low cost of living
Missouri	$50 filing, $0/year, low ongoing costs
Colorado	$50 filing, $10/year, growing business environment
Texas	$300 filing, $0/year (<$2.47M), no income tax
Florida	$125 filing, $138.75/year, no income tax

Bottom Line

Form your LLC in the state where you do business — not where it’s cheapest. Forming in Wyoming to save money doesn’t help if you operate in California — you’d pay fees in both states. The state-by-state cost differences matter most for online businesses with no physical presence. For those businesses, Wyoming ($160 first year), New Mexico ($50/year), and Colorado ($60/year) offer the best value. For everyone else, your home state is the right choice.