How Much Does It Cost to Form an LLC? 2026 Specifics

LLC Cost by State: Filing Fees and Annual Fees for All 50 States

The table below covers every state’s LLC filing fees and annual report fees. The initial filing fee is the one-time charge your state collects to process your Articles of Organization. Most states also charge an annual or biennial report fee to keep your LLC in good standing. As of 2026, the average LLC filing fee across all 50 states is $132.

A few things to know before you scan the table.

• “Annual fee” refers to the state’s recurring report or maintenance fee. These go by different names: Annual Report, Franchise Tax, Biennial Statement, or Periodic Report. Some states base them on revenue or member count rather than a flat rate.
• “$0 annual fee” means the state does not charge a recurring fee, not that your LLC has zero ongoing obligations.
• Fees verified as of 2025–2026. Always confirm with your state’s Secretary of State website before filing.

Cheapest States to Form an LLC

• Montana — $35 filing fee, $20/yr. Lowest filing fee in the nation.
• Kentucky — $40 filing fee, $15/yr. One of the best cost combinations overall.
• Arkansas — $45 filing fee. Low upfront cost, though a $150 annual franchise tax applies.
• Arizona — $50 filing fee, $0/yr. No annual fee makes it one of the cheapest states for long-term costs.
• Missouri — $50 filing fee, $0/yr. No annual report fees; a popular choice for long-term savings.

One important caveat: a low filing fee does not automatically make a state cheap. Forming in a low-fee state when you actually operate somewhere else can cost you more. You may need to file both a domestic LLC and a foreign LLC if you’re doing business in your home state without being registered there. Always form where you actually operate unless you have a specific reason to do otherwise.

Most Expensive States to Form an LLC

• Massachusetts — $500 filing fee, $500/yr. Highest filing fee in the country, and the annual report matches it.
• Nevada — $75 filing fee, $350/yr. Despite its business-friendly reputation, annual costs total $350: $150 for the Annual List plus $200 for the State Business License.
• Tennessee — $300 filing fee, $300/yr. Also imposes a franchise tax and a 6.5% excise tax on net earnings, pushing total costs higher for profitable businesses.
• California — $70 filing fee, $800+/yr. The filing fee looks modest, but every LLC owes an $800 annual franchise tax regardless of income.
• New York — $200 filing fee, $9 biennial + publication. New LLCs must publish a formation notice in two local newspapers once per week for six consecutive weeks, then file a Certificate of Publication for $50. The newspapers charge the rest: $300 to $1,500 or more depending on the county. Skipping publication isn’t a minor technicality. The state can suspend your LLC’s authority to operate until you comply.

Always calculate your total first-year cost — filing fee plus annual fee plus any state-specific obligations — not just the filing fee alone.

First-Year LLC Costs vs. Ongoing Annual Costs

Knowing which costs hit you once versus which follow you every year makes it easier to budget before you file.

One-Time LLC Formation Costs

• State filing fee. $35 to $500 depending on your state.
• Name reservation fee. Optional in most states; typically $10–$50 to lock in your business name before filing.
• Registered agent setup. Some professional services charge a one-time setup fee on top of annual renewal; others bundle it into the first year.
• Operating agreement. Not legally required in most states, but strongly recommended. A solo founder can draft one free using a template. A multi-member LLC should invest in a professionally drafted version: $50–$200 through a document service or $500 and up through an attorney.
• EIN. The IRS issues EINs at no cost through IRS.gov. There is no reason to pay a third party for this.

Recurring Annual LLC Costs

• Annual or biennial report fee. Ranges from $0 (Arizona, Missouri, Ohio) to $500 per year (Massachusetts).
• Registered agent renewal. Typically $50–$300 per year.
• Franchise tax. A state-imposed annual fee for the privilege of doing business, separate from income tax. California’s minimum runs $800 per year regardless of revenue.
• Business license renewals. City or county licenses often require annual renewal at costs that vary widely.

Your first-year cost includes formation fees you’ll never pay again plus the first round of annual fees. Every year after, you pay only the recurring stack: registered agent, annual report, and any applicable taxes.

Required LLC Fees vs. Optional Add-On Costs

Required LLC Costs

• State filing fee. $35 to $500; required to file your Articles of Organization.
• Registered agent. Required in all 50 states; you can serve as your own agent in most states or hire a professional for $50–$300/year.
• Annual or biennial report fee. $0 to $500/year depending on the state.

Optional LLC Add-On Costs

• Name reservation. $10–$50; skippable if you plan to file immediately.
• Operating agreement. Not legally required in most states but strongly recommended for any multi-member LLC.
• Expedited processing. Typically $25–$150 for faster filing turnarounds.
• DBA registration. Required only if your LLC operates under a name different from its registered legal name.
• Publication. Mandatory in New York, Arizona, and Nebraska; where required, it moves from optional to required.

Always confirm your state’s specific obligations directly with the Secretary of State’s office before you file.

Hidden LLC Costs to Watch For

Franchise Taxes and State-Specific Fees

A franchise tax is a state-imposed fee for the privilege of operating a business entity within that state. It’s separate from your annual report fee, and you owe it simply because your LLC exists and operates there.

• California charges every LLC a minimum $800 annual franchise tax regardless of whether your business earned a dollar that year.
• Delaware imposes a minimum $300 per year franchise tax on LLCs. Forming there only makes sense for businesses with a specific legal or investor-related reason to do so.
• Tennessee runs a two-part system: a franchise tax of 0.25% of real and tangible worth or net worth (whichever is greater, minimum $100), plus a 6.5% excise tax on net taxable income. For a profitable Tennessee LLC, those figures add up fast.

These are recurring annual obligations that stack on top of every other cost already covered.

Publication Requirements

New York, Arizona, and Nebraska require LLCs to publish a notice of formation in local newspapers after filing. Of the three, New York carries by far the steepest price. Your LLC must publish in two local newspapers once per week for six consecutive weeks, then file a Certificate of Publication with the Department of State for $50. In high-cost counties like New York City’s five boroughs, the total publication bill can run $1,000 to $1,500 or more. Upstate counties are cheaper but rarely under $300. Skipping publication can result in the state suspending your LLC’s authority to operate, which means you lose the ability to enforce contracts or initiate legal action in state court.

Foreign Qualification Fees

Foreign qualification is the process of registering your existing LLC in a second state where your business actively operates. “Foreign” simply means your LLC was formed elsewhere; it has nothing to do with international operations.

A typical LLC foreign qualifying in one additional state can expect to pay $200 to $500 upfront and $200 to $1,000 per year in ongoing costs. This includes a new registered agent and that state’s annual report fee, on top of whatever you’re already paying in your home state.

This is the hidden cost that trips up founders who formed in a low-fee state while actually living and working somewhere else. That second stack of fees often exceeds whatever savings the cheaper state offered. Skipping foreign qualification where it’s required can mean being barred from filing lawsuits in state courts, plus back fees and penalties.

DIY vs. LLC Formation Service vs. Attorney: What Each Option Costs

DIY filing keeps costs at the absolute minimum. The trade-off is that you own every step: researching your state’s requirements, completing the Articles of Organization without errors, and tracking every annual report deadline. One missed deadline can trigger late fees or cost your LLC its good standing.

Formation services offer step-by-step guidance at a fraction of attorney cost. They often include filing assistance, operating agreement templates, and registered agent services. Service fees range from $0 to $300, and a registered agent is frequently bundled into the first year.

An attorney makes sense when the stakes are higher. Flat-fee packages for standard LLC formation typically run $500 to $1,500. These cover the Articles of Organization, a custom operating agreement, and initial legal advice. Complex structures may be billed hourly at $150 to $400 per hour.

The practical rule: if your LLC is simple (single member, standard structure, one state), a formation service covers the job well. If your situation involves multiple owners, unusual tax elections, or industry-specific liability exposure, an attorney’s upfront cost is worth it to get the structure right from day one.

How to Estimate Your Total LLC Cost in Your State

Step 1: Look up your state’s filing fee on the Secretary of State website.

Use official state sources only. Fees change, sometimes without much public notice. Many states also offer expedited processing for $50 to $200 if your timeline is tight.

Step 2: Confirm whether you can serve as your own registered agent or whether you need a professional.

Most states permit a member or manager to serve in this role at no cost. Professional registered agent services typically run $100–$300 annually.

Step 3: Check whether your state imposes a mandatory publication requirement.

As of 2025, New York, Arizona, and Nebraska require publication in a local newspaper. If your state is on that list, get a quote from local publications before you file. This cost isn’t paid to the state but is mandatory and can significantly affect your first-year total.

Step 4: Find your state’s annual report fee and its due date.

Most states collect it every one or two years regardless of your LLC’s income or activity. Miss the deadline and your state can dissolve your LLC and tack on late fees. Log the due date the moment your LLC is approved.

Step 5: Check whether your state imposes a franchise tax on LLCs.

California is the clearest example: every LLC doing business or organized in California owes $800 annually, even if not actively conducting business, until you cancel your LLC. Tennessee and Delaware carry their own franchise tax obligations on top of annual report fees. If your state charges a franchise tax, add it to your recurring column. It applies every year your LLC exists.

Putting it all together: A real-world example

In Kentucky, the math is simple: $40 to file, $15 per year to maintain, no franchise tax, no publication requirement. A solo founder who serves as their own registered agent pays $40 in year one and $15 every year after.

In California, the same founder pays $70 to file but owes an $800 annual franchise tax regardless of income. That makes the true first-year cost at least $870 before any registered agent, operating agreement, or optional services. LLCs with gross income over $250,000 pay additional fees ranging from $900 to $11,790 based on income brackets. For a full breakdown of California LLC costs, including the franchise tax tiers and Statement of Information requirements, see the state-specific guide.

Add the one-time costs, stack the annual recurring costs, and you’ll have a first-year total and an ongoing annual number that reflects what you’ll actually pay, not just the figure a headline advertises.

Is an LLC Worth It for a Small Business?

For most small businesses, yes. An LLC legally separates your personal assets from business debts and obligations at a cost that typically runs $200 to $1,000 in your first year. That’s a modest price for a legal shield that keeps a lawsuit or unpaid debt from touching your personal bank account, home, or savings.