Starting an LLC as an entrepreneur is one of the best decisions you can make, but understanding LLC costs is crucial. One of the costs associated with LLCs is determined by the state the entrepreneur chooses to register the company. This decision must be made while considering the budget. This is especially important when launching your first or additional businesses in more than one state. In this guide, we will review the most important aspects of LLC cost in all 50 states, which will be helpful in decision-making for business formation in 2026.
LLC costs include far more than initial state filing fees. Firms must pay for annual reports or hire a registered agent. All-in, the costs could be hundreds to thousands of dollars a year.
What Is an LLC Filing Fee?
LLC filing fees are initial one-time charges from the state, which are incurred when an entrepreneur/owner files an initial document with the state to form a business, the Articles of Organization stating that the business is a Limited Liability Company. Each state has a different fee. In 2026, these fees vary from $40 in Kentucky to more than $500 in Massachusetts. Most states offer filing online, by mail, or in person at the Secretary of State’s office, and online filing is usually quicker to process.
What Are Recurring LLC Fees?
Once the LLC is formed, there are additional costs to keep the LLC in good standing with the state. These ongoing costs can be considerable and create the bulk of the ongoing costs of an LLC.
Some of the more common ongoing fees that an LLC can expect include:
- Annual or Biennial Reports: Filing fees of $0 to $500
- Franchise Taxes: $800 annually in California, plus additional state fees
- Registered Agent Fees: $100 to $300 for services
- Business Licenses and Permits: Varies by state and industry
Initial LLC Cost vs. Ongoing Compliance Costs
Differentiating between one-time costs to form the LLC and ongoing costs to remain in compliance with the state is critical in building an accurate cost model.
LLC costs can be separated into two groups: initial costs and ongoing costs.
Initial costs can include:
- Filing your articles of organization
- Paying to reserve your name (this is optional)
- An operating agreement
- A registered agent (this is usually paid annually)
- An additional fee for expedited processing (if necessary)
Ongoing costs can include:
- Paying for your annual (or biennial) report
- Paying for a biennial franchise or privilege tax
- Renewing your registered agent (if applicable)
- Renewing your business license
- Professional service fees
Year one costs of an LLC can be anywhere from $200 to $1,000, depending on which state you are in. Years two and on can cost $50 to $800 annually, depending on what services you are subscribed to.
Why LLC Costs Vary by State
Five reasons why LLC costs can differ from state to state are:
- How a state generates revenue. States that mainly rely on business fees might charge a bit more.
- How a state processes LLC filing. States that are automated will be more affordable than those that are manual.
- How business-friendly a state is. Regulations that make it more affordable to do business often bring more competition to a state.
- A state’s cost of living. States that are more expensive to do business in will often cost more to form an LLC.
- The other services a state provides. States that bundle a set of additional services might charge a bit more.
Delaware, Wyoming, and Nevada are popular options not only for being cheap, but for being business-friendly, and LLC cost is only one of the reasons why they are popular.
Important Note: Don’t Choose a State Based Only on Low LLC Cost
When choosing what state to form your LLC in, do not simply go for the state with the lowest fees. Consider the services you will be implementing once you form your business.
Reasons Why the Cheapest State for an LLC Isn’t Always the Best LLC Registration:
- Foreign Qualification: If you operate your LLC in another state, you have to pay formation fees in both states.
- Double Filing: You will have to file reports and pay fees in both states.
- Tax: You have to pay state income tax in the state in which you conduct business.
- Management: It’s complicated to manage an LLC that’s registered in another state.
Recommendation: For most small businesses, forming your LLC in your home state is the most practical and cost-effective long-term decision.
LLC Cost by State in 2026
LLC Filing Fees by State
| State | Filing Fee | State | Filing Fee |
|---|---|---|---|
| Alabama | $236 | Montana | $35 |
| Alaska | $250 | Nebraska | $103 |
| Arizona | $85 | Nevada | $436 |
| Arkansas | $45 | New Hampshire | $102 |
| California | $70 | New Jersey | $129 |
| Colorado | $50 | New Mexico | $51 |
| Connecticut | $120 | New York | $205 |
| Delaware | $110 | North Carolina | $128 |
| District of Columbia | $99 | North Dakota | $135 |
| Florida | $125 | Ohio | $99 |
| Georgia | $105 | Oklahoma | $104 |
| Hawaii | $51 | Oregon | $100 |
| Idaho | $103 | Pennsylvania | $125 |
| Illinois | $153 | Rhode Island | $156 |
| Indiana | $97 | South Carolina | $125 |
| Iowa | $50 | South Dakota | $150 |
| Kansas | $166 | Tennessee | $307 |
| Kentucky | $40 | Texas | $300 |
| Louisiana | $105 | Utah | $59 |
| Maine | $178 | Vermont | $155 |
| Maryland | $155 | Virginia | $100 |
| Massachusetts | $520 | Washington | $200 |
| Michigan | $50 | West Virginia | $130 |
| Minnesota | $155 | Wisconsin | $130 |
| Mississippi | $53 | Wyoming | $103 |
| Missouri | $51 |
Annual and Biennial LLC Fees by State
| State | Frequency | Recurring Fee | Notes |
|---|---|---|---|
| Alabama | Annual | $100 | – |
| Alaska | Biennial | $100 | Every 2 years |
| Arizona | – | $0 | No report required |
| Arkansas | Annual | $150 | – |
| California | Annual/Biennial | $800 + $20 | $800 annually + $20 every 2 years |
| Colorado | Annual | $10 | – |
| Connecticut | Annual | $80 | – |
| Delaware | Annual | $300 | Franchise tax |
| District of Columbia | Biennial | $300 | Every 2 years |
| Florida | Annual | $138.75 | – |
| Georgia | Annual | $50 | – |
| Hawaii | Annual | $15 | – |
| Idaho | Annual | $0 | Report required |
| Illinois | Annual | $75 | – |
| Indiana | Biennial | $30 | Every 2 years |
| Iowa | Biennial | $45 | Every 2 years |
| Kansas | Annual | $50 | – |
| Kentucky | Annual | $15 | – |
| Louisiana | Annual | $35 | – |
| Maine | Annual | $85 | – |
| Maryland | Annual | $300 | – |
| Massachusetts | Annual | $500 | – |
| Michigan | Annual | $25 | – |
| Minnesota | Annual | $0 | Report required |
| Mississippi | Annual | $0 | Report required |
| Missouri | – | $0 | No report required |
| Montana | Annual | $20 | – |
| Nebraska | Biennial | $10 | Every 2 years |
| Nevada | Annual | $350 | – |
| New Hampshire | Annual | $100 | – |
| New Jersey | Annual | $75 | – |
| New Mexico | – | $0 | No report required |
| New York | Biennial | $9 | Every 2 years |
| North Carolina | Annual | $200 | – |
| North Dakota | Annual | $50 | – |
| Ohio | – | $0 | No report required |
| Oklahoma | Annual | $25 | – |
| Oregon | Annual | $100 | – |
| Pennsylvania | Annual | $7 | – |
| Rhode Island | Annual | $50 | – |
| South Carolina | – | $0 | No report required |
| South Dakota | Annual | $50 | – |
| Tennessee | Annual | $300 | – |
| Texas | – | $0 | No report required |
| Utah | Annual | $20 | – |
| Vermont | Annual | $35 | – |
| Virginia | Annual | $50 | – |
| Washington | Annual | $60 | – |
| West Virginia | Annual | $25 | – |
| Wisconsin | Annual | $25 | – |
| Wyoming | Annual | $60 | – |
In this table, we show example states. Every state has different requirements.
Lowest vs. Highest LLC Cost States
States with Low Costs (5-Year Projection):
- Missouri: $51 for filing + $0 in yearly fees = $51 total
- Arizona: $85 for filing + $0 in yearly fees = $85 total
- Kentucky: $40 for filing + $15 in yearly fees = $55 total
States with High Costs (5-Year Projection):
- California: $70 for filing + $4,000 for franchise taxes+$40 for statements= $4,110 total
- Massachusetts: $520 for filing + $2,500 in yearly fees = $3,020 total
- Nevada: $436 for filing + $1,750 in yearly fees = $2,186 total
Additional LLC Costs to Consider
Name Reservation and DBA Fees
- Name Reservation Fee: $10-$50, depending on the state
- Reservation Time: Usually between 30 and 120 days
- DBA Registration: $10-$100 if you operate under a different name
EIN and Internal LLC Document Costs
- EIN Application: Free if you go through the IRS
- Preparation of Operating Agreement: $0-$500
- Organizational Minutes: Free if you do it yourself, $100-$300 if done professionally
Registered Agent and Expedited Filing Fees
Types of Registered Agent:
- Do it yourself: Free, but you need to be available during business hours
- Service from a 3rd Party: $100-$300 per year
- Service from an attorney or CPA: Usually included in their ongoing services
For Expedited Processing:
- For 24-Hour Processing: $50-$100 more
- For Same-Day Processing: $100-$200 more
- For Rushed Service: $200-$500 for immediate processing
How to Estimate Your Total LLC Cost
Step 1: Compute the Costs for the First Year
State filing fee + Registered agent fee + Name reservation + Operating Agreement + Business licenses
Step 2: Anticipate Annual Recurring Costs
Annual reports + Franchise taxes + Registered agent renewal + License renewals
Step 3: Anticipate Optional Expenses
Expedited fees + DBA registration + Additional requirements + Insurance
Example for California LLC:
- Year 1: $70 (filing) + $800 (tax) + $125 (agent) + $250 (agreement) = $1,245
- Years 2-5: $800 (tax) + $125 (agent) + $10 (report) = $935/year
- 5-Year Total: $4,985
How EasyFiling Helps Manage LLC Costs
EasyFiling offers a range of support options to help simplify the process, saving you both time and costs associated with your LLC.
Here’s how you can benefit:
- State-specific pricing with no hidden fees
- Guidance through the filing process
- Registered agent services
- Deadline monitoring and compliance support
- Document preparation
- Formation support
When you choose EasyFiling, you can be confident that your LLC will be structured and maintained, so you will know your costs will remain consistent.
Final Thoughts on LLC Cost in 2026
Having the best understanding of an LLC cost picture helps determine your business formation strategy. While sacrificing business formation services just for a cheap filing service may seem like a good idea, smart business owners understand the cost of ownership, including compliance, operational costs, etc.
For the majority of small business owners, creating an LLC in their home state still seems like the most reasonable solution if the state offers reasonable costs. The margin of savings in choosing a low-cost formation state will usually justify the decision.
Creating an LLC should be regarded as an investment for the business; the more complex the LLC, the more it should be planned. The more complex it is, the more manageable it becomes in the context of running the business.
“This content is for informational purposes only and does not constitute legal, tax, or financial advice. For advice specific to your situation, consult a qualified US attorney or CPA.”
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Swostika Silwal
