How Much Does an LLC Cost in 2026? (All 50 States)

Breaking Down the Real Cost of Your LLC in 2026

Starting an LLC in 2026 typically costs $35 to $500 for initial formation. Beyond that, annual maintenance fees can range from $0 to $800. These figures fluctuate significantly based on your chosen state, any additional services you opt for, and whether you handle the process yourself or hire a formation agency. For instance, the absolute lowest entry point is $35, achievable in Montana with a DIY approach and no extra features. On the higher end, a setup in Massachusetts, involving New York publication, a custom operating agreement from an attorney, and a full formation service, could easily exceed $1,000 in the first year. Most founders, however, will find themselves spending between $200 and $600 during their first year. Let's break down these expenses.

Reviewed by LLC Formation Cost Editorial Team, fact-checked against primary government sources. Last updated 2026-07-10. 7 primary sources cited.

The Quick Overview

In short, your LLC's total cost comprises six primary components. These include the state filing fee, typically ranging from $35 to $500, and an annual or biennial report fee, which can be $0 to $500. Some states also levy a franchise tax, potentially $0 to $800 annually. You'll likely need a registered agent service, costing $0 to $249 per year, and an operating agreement, which varies from $0 to $1,500. Finally, publication or specific licensing requirements in certain states could add another $30 to $2,000.

Initial year expenses can span from $35 to $2,200, influenced by your state and chosen extras. However, focusing on the five-year ownership cost provides a clearer picture. California, for example, stands out with a $4,070 five-year total, making it the most expensive. In contrast, Mississippi, Missouri, and New Mexico share the title for the most affordable at $50 over five years. Opting for a do-it-yourself approach generally saves $200 to $600 annually compared to using a paid formation service like ZenBusiness or LegalZoom. Remember, obtaining an EIN directly from the IRS is free, while many services charge $50 to $99 for what is essentially a five-minute online process.

The Six Key Cost Elements of an LLC

Understanding the various expenditures involved in setting up and maintaining an LLC is crucial for any founder. These aren't hidden fees, but rather standard line items you should budget for.

1. State Filing Fee, The Non-Negotiable Start

This is the foundational cost, the one expense no founder can bypass. Every state demands a one-time fee to formally register your Articles of Organization, or Certificate of Formation in some jurisdictions. Without this initial filing, your LLC simply doesn't exist as a legal entity.

The cost spectrum for this fee is broad, from a low of $35 in Montana to a high of $500 in Massachusetts. This significant difference largely reflects state-specific revenue policies. It's important to note that a $35 Montana LLC offers the same liability protection and legal standing as a $500 Massachusetts LLC. The fee disparity is purely an administrative choice by state legislatures to fund their Secretary of State (SOS) offices, not an indicator of quality or legal robustness.

Across all 50 states and Washington D.C., the median filing fee sits at $100. The most frequently observed fee, the mode, is also $100. Several states, like Mississippi, Missouri, New Mexico, Hawaii, and Michigan, cluster at the $50 mark. Conversely, Texas ($300), Tennessee ($300), Massachusetts ($500), and Nevada ($425) represent the higher tier, alongside a few other mid-range outliers.

For a comprehensive list of filing fees across all 50 states plus D.C., check the official state SOS websites. You can find a compiled table on the pillar page at https://llcformationcost.com/how-much-does-an-llc-cost/.

2. Annual or Biennial Report Fee, Your Recurring Administrative Tax

Once your LLC is formed, most states require ongoing administrative filings. Specifically, 43 states and Washington D.C. mandate an annual or biennial information report. This filing is essential to keep your LLC in "good standing" with the state.

These reports typically update vital information, including your registered agent, principal office address, and in some states, the names of members or managers. They also confirm that your LLC remains active and operational.

The cost for these recurring reports varies from $0 in states like Arizona, Missouri, New Mexico, Ohio, South Carolina, and Mississippi, to a hefty $500 in Massachusetts. The median annual fee is $50.

The filing frequency also differs:

• Annual: Most states follow this cadence, with reports due on a fixed date or around your LLC's anniversary month.
• Biennial: States such as California, New York, Iowa, Indiana, Nebraska, Alaska, and D.C. require filings every two years.
• Decennial: Pennsylvania is unique, requiring a $70 filing only once every ten years.

Neglecting to file this report or pay its associated fee can lead to penalties, typically ranging from $25 to $400. Persistent non-compliance can result in administrative dissolution after 60-180 days. Once dissolved, your LLC temporarily loses its liability protection until it's reinstated, a situation no founder wants.

This annual report fee is a recurring cost that many founders initially overlook. A seemingly "cheap" $50 LLC, for instance, could incur a $200 annual report fee, pushing its five-year total to $1,050. This highlights why the five-year cost of ownership is often a more relevant metric than just the initial year's expense.

You can find detailed information on annual report cadences and fees for all 50 states on the LLC cost by state hub at https://llcformationcost.com/llc-cost-by-state/. Each state page outlines its specific report form, due date, and late-filing penalties.

3. Franchise Tax, The State-Specific Financial Curveball

Beyond standard report fees, a handful of states, typically eight to ten, impose an entity-level tax known as a franchise tax. This particular charge often surprises founders, especially those comparing costs between states like California and Wyoming.

For 2026, the key states with notable LLC franchise taxes include:

• California: A minimum of $800 annually, managed by the Franchise Tax Board. Additionally, a gross receipts fee ranging from $900 to $11,790 applies if receipts exceed $250K. More details at https://www.ftb.ca.gov/file/business/types/limited-liability-company/index.html.
• Delaware: A flat $300 per year, according to the Delaware Division of Corporations at https://corp.delaware.gov/fee/.
• Tennessee: A minimum of $300 annually, plus 0.25% of net worth.
• Alabama: A $50 minimum Business Privilege Tax each year.
• Texas: A margin tax of 0.375%-0.75% applies to revenue exceeding $1.23M.
• New York: An annual filing fee ranging from $25 to $4,500, varying for partnerships. See https://www.tax.ny.gov/bus/llc/article9_a.htm.
• Arkansas: A $150 annual franchise tax.
• Georgia: A Net Worth Tax is applicable for LLCs that elect corporate tax treatment.

Most states do not levy an LLC franchise tax. The list above highlights the states where this particular tax can significantly impact your overall cost.

For comprehensive details, refer to the LLC tax compliance hub and individual state pages on https://llcformationcost.com/llc-cost-by-state/. Each state page will list its specific franchise-tax statute and current rate.

4. Registered Agent Service, Optional but Often Essential

Every state mandates that your LLC designate a registered agent. This individual or service must have a physical street address, no PO boxes allowed, within the state where your LLC is formed. Their role is to be available during standard business hours to receive official mail and "service of process," meaning legal documents.

You can act as your own registered agent if you reside in the state of formation and are comfortable with your home address becoming part of the public record. Otherwise, you'll need to hire a service.

Common registered agent service providers and their typical annual fees include:

• Northwest Registered Agent: $125 per year. More info at https://www.northwestregisteredagent.com/registered-agent/services.
• ZenBusiness: $199 per year, often bundled into their formation packages.
• LegalZoom: $249 per year.
• Wyoming-specific budget agents: These can be found for $50 to $80 per year.

The primary differences between these services often come down to customer support quality, document storage features, and how aggressively they upsell additional products. Functionally, all registered agents perform the same core duty: receiving your mail, scanning it, and forwarding it to you.

For a deeper dive into registered agent providers and their pricing structures, consult the LLC formation services comparison at https://llcformationcost.com/llc-formation-services-compared/.

5. Operating Agreement, Required in a Few States, Smart Everywhere

An operating agreement is a critical internal document, essentially a contract among your LLC's members. It outlines key aspects like management structure, ownership percentages, how profits and losses are allocated, and the procedures for dissolution. While only five states legally require one, California, Delaware, Maine, Missouri, and New York, it's a smart practice for every LLC. Moreover, most banks will require an operating agreement before allowing you to open a business bank account.

Cost tiers for an operating agreement:

• Free: Utilise an SBA template or a state bar association form.
• Online Template: Services like LegalNature, Rocket Lawyer, or Bonsai offer templates for $39 to $99.
• Attorney-drafted, Single-Member: Expect to pay $400 to $800.
• Attorney-drafted, Multi-Member with Complex Allocations: This can range from $800 to $1,500.

Excellent free resources include the American Bar Association Section of Business Law's model OA library at https://www.americanbar.org/groups/business_law/resources/, the SBA template, and various state bar associations.

For a single-member LLC without external investors, a free template is often sufficient. However, for multi-member LLCs, or any setup involving specific buy-sell provisions, investing $400 to $800 for attorney review is highly recommended. The default state laws, often referred to as the LLC Act, frequently dictate equal management and profit splits regardless of capital contribution, which rarely aligns with founders' original intentions.

Our research process for operating agreement pricing, including the free templates we cross-checked, is detailed on the methodology page at https://llcformationcost.com/methodology/.

6. Publication and Licensing, The Unexpected State-Specific Outlays

Some states have unique, less common requirements that add to your LLC's cost. Three states, for example, mandate publishing notice of your LLC's formation in a local newspaper:

• New York: Costs can range from $1,200 to $2,000 in Manhattan, or $200 to $500 upstate. The NY Department of State provides a publication FAQ at https://dos.ny.gov/limited-liability-companies-publication-requirement.
• Arizona: Generally $30 to $300, with an exemption in Maricopa and Pima counties.
• Nebraska: Typically $40 to $200.

Beyond these, nearly every city or county will require a business license for any operation within its jurisdiction, costing $25 to $500 annually. If you sell taxable goods and have nexus in a state, you'll also need sales tax permits, which are usually free or under $50. Furthermore, workers' compensation insurance is mandatory in 49 states, with Texas being the sole exception.

For a comprehensive look at these potential hidden costs, explore https://llcformationcost.com/hidden-llc-costs/.

DIY Versus Formation Service: A Real Cost Breakdown

Many services like ZenBusiness, Bizee, and LegalZoom promote "$0 LLC formation." This claim is technically accurate for the initial formation step itself, as their headline price often reflects $0 plus the state filing fee. Their primary recurring revenue typically comes from the registered agent service, which auto-renews after a free or discounted first year.

Let's compare some scenarios, using California as an example for its significant franchise tax:

Approach	Year 1 Cost	Year 2-5 Cost	5-Year Total (in CA)
DIY (you as RA)	$90 (CA filing + $20 SOI) + $800 franchise = $910	$820/yr	$4,190
DIY + Northwest RA	$90 + $125 + $800 = $1,015	$945/yr	$4,795
ZenBusiness Starter	$0 + $90 + $0 + $800 = $890	$820 + $199 RA after year 1	$5,065
LegalZoom Basic	$0 + $90 + $800 = $890	$820 + $249 RA after year 1	$5,265
Attorney-formed	$1,500 + $90 + $800 = $2,390	$945/yr (with RA)	$6,170

As the table shows, the DIY route is consistently the most economical. Formation services offer convenience, such as form pre-filling, document storage, and customer support. This convenience typically adds $200 to $1,400 to your five-year total cost. Whether this added value is worth the expense depends on your comfort level with state SOS forms and your willingness to serve as your own registered agent.

For a detailed pricing comparison, including Northwest, ZenBusiness, Bizee, LegalZoom, and Tailor Brands, with both year-1 and five-year totals, check out the LLC formation services compared page at https://llcformationcost.com/llc-formation-services-compared/.

Year One Versus Ongoing Cost: The Long View

Many founders mistakenly focus solely on the first-year cost. However, this figure can be misleading because it includes one-time expenses like the initial filing fee and the operating agreement. The true financial impact comes from the ongoing cost, the recurring annual outflow, which is paramount for calculating the five-year total cost of ownership.

The most affordable five-year ownership totals (DIY, no add-ons):

• Mississippi, Missouri, New Mexico, Ohio: $50-$99
• Montana: $115
• South Carolina: $110
• Pennsylvania: $160 (filing + amortized decennial fee)
• Wyoming (DIY, no RA, only for residents): $340

The most expensive five-year ownership totals:

• California: $4,070
• Massachusetts: $3,000
• Nevada: $1,825
• Tennessee: $1,500+
• Maryland: $1,300
• Delaware: $1,290

The staggering 80x difference between the cheapest and most expensive states is largely attributable to state franchise tax policies. California's $800 annual franchise tax alone, for instance, can outweigh the entire five-year cost of an LLC in a non-franchise-tax state.

How States Compare on Cost

While the state-by-state hub at https://llcformationcost.com/llc-cost-by-state/ provides granular details, we can identify some key cost clusters:

• Sub-$200 Five-Year Cluster: Mississippi, Missouri, New Mexico, Ohio, Montana, Kentucky, Hawaii, Nebraska, Utah, South Carolina. These represent the absolute cheapest states for long-term LLC ownership.
• $200-$500 Five-Year Cluster: This group includes the majority of states, such as Arizona, Colorado, Indiana, Iowa, Michigan, Kansas, Oregon, Virginia, Wyoming, and Florida.
• $500-$1,000 Five-Year Cluster: Illinois, Massachusetts (excluding high-end scenarios), New York (depending on county), Alabama, and Maine fall into this range.
• $1,000+ Five-Year Cluster: California, Massachusetts (high-end), Nevada, Tennessee, Maryland, Delaware, and North Carolina are among the most expensive.

A crucial piece of advice for founders: choose your formation state based on where your business actually operates, not just for the cheapest initial filing fee. Your "nexus," or the physical presence and economic activity of your business, determines your tax exposure regardless of where your LLC is formally registered. Forming in Wyoming to sidestep California's $800 franchise tax won't work if your business primarily operates in California.

When a Formation Service is a Smart Investment

Services from ZenBusiness, LegalZoom, Northwest, Bizee, and Tailor Brands primarily sell convenience. The decision of whether this convenience justifies an additional $200 to $1,400 over five years depends on several factors:

• First-time Founder Anxiety: If you're new to business formation and find the process intimidating, a service can provide valuable hand-holding through the initial filing.
• No Physical Address in State: If you don't have a physical address in your chosen state of formation, you'll need a registered agent service. Northwest, at $125/year, is often considered a budget-friendly option.
• Multi-State Operations: For businesses operating in multiple states, services offering compliance dashboards can help manage deadlines and filings, reducing the risk of missed obligations.
• Time-Cost Trade-Off: Consider your own hourly rate. If you value your time at $200+ per hour, spending four hours navigating state forms might cost more than the service fee itself.

Conversely, you might skip formation services if:

• You're comfortable with online forms and administrative tasks.
• You reside in the state of formation and can serve as your own registered agent.
• Your business operates exclusively in one state.
• The potential $200-$600 annual savings are significant for your budget.

Full data + interactive calculator: llcformationcost.com