LLC Cost Calculator by State (2026): Total Year-One + Ongoing

Decoding LLC Costs: What Your Business Will Really Pay in 2026

Setting up an LLC in 2026 involves a spectrum of costs, from a lean $35 to an eye-watering $500 just for the initial filing. Beyond that, expect annual or biennial report fees in 43 states, typically around $50 per year. Then there are franchise taxes, levied by a few high-cost states, like California's substantial $800 annually, Delaware's $300, Tennessee's $300, or Massachusetts' $500. Your first-year total could be as low as $35 if you DIY in Montana, or potentially soar to $2,200 in New York due to publication requirements. Most founders find themselves paying between $200 and $500 in the first year, with ongoing costs settling into the $50 to $200 range yearly.

The common dilemma, whether to form in your home state or opt for popular choices like Wyoming or Delaware, usually resolves itself quite simply. If you have business operations in a state, its foreign qualification fees, which can run from $100 to $750 per state, will quickly erode any perceived "tax advantages" of forming elsewhere. The exceptions are genuine non-residents with no US presence, or venture capital-backed companies that specifically require Delaware for its esteemed Court of Chancery. All financial figures and details presented here are directly verified from each state's Secretary of State and the IRS, with links available for every data point.

State-by-State LLC Expenses: Filing and Recurring Fees for 2026

This table outlines the financial commitment for LLC formation across every US jurisdiction. Data was confirmed on 2026-07-13 directly from each state's Secretary of State website. The filing fee is a one-time charge at the time of establishment. The annual fee represents the recurring report or franchise charge. Bold rows indicate states with a specific franchise tax that exceeds the standard report fee.

State	Filing Fee	Annual / Recurring	Cadence	5-Yr Total
Alabama	$200	$50	annual	$400
Alaska	$250	$100	biennial	$450
Arizona	$50	$0	none	$50
Arkansas	$45	$150	annual franchise	$645
California	$70	$800 + $20 biennial	annual franchise	$4,070
Colorado	$50	$25	annual	$150
Connecticut	$120	$80	annual	$440
Delaware	$90	$300	annual franchise	$1,290
District of Columbia	$99	$300	biennial	$849
Florida	$125	$138.75	annual	$680
Georgia	$100	$50 + $10-$5,000 NWT	annual	$300+
Hawaii	$50	$15	annual	$110
Idaho	$100	$0	annual info	$100
Illinois	$150	$75	annual	$450
Indiana	$100	$30	biennial	$190
Iowa	$50	$60	biennial	$170
Kansas	$160	$50	annual	$360
Kentucky	$40	$15	annual	$100
Louisiana	$100	$35	annual	$240
Maine	$175	$85	annual	$510
Maryland	$100	$300	annual	$1,300
Massachusetts	$500	$500	annual	$2,500
Michigan	$50	$25	annual	$150
Minnesota	$155	$0	annual info	$155
Mississippi	$50	$0	annual info	$50
Missouri	$50	$0	none	$50
Montana	$35	$20	annual	$115
Nebraska	$100	$13	biennial	$126
Nevada	$425	$350	annual	$1,825
New Hampshire	$100	$100	annual	$500
New Jersey	$125	$75	annual	$425
New Mexico	$50	$0	none	$50
New York	$200	$9 biennial + filing fee	biennial	$1,400+ pub
North Carolina	$125	$202	annual	$933
North Dakota	$135	$50	annual	$335
Ohio	$99	$0	none	$99
Oklahoma	$100	$25	annual	$200
Oregon	$100	$100	annual	$500
Pennsylvania	$125	$7/yr ($70/decennial)	decennial	$160
Rhode Island	$150	$50	annual	$350
South Carolina	$110	$0	none	$110
South Dakota	$150	$50	annual	$350
Tennessee	$300	$300 + 0.25% net worth	annual	$1,500+
Texas	$300	$0 (under $1.23M rev)	annual filing	$300
Utah	$54	$18	annual	$126
Vermont	$125	$35	annual	$265
Virginia	$100	$50	annual	$300
Washington	$200	$60	annual	$440
West Virginia	$100	$25	annual	$200
Wisconsin	$130	$25	annual	$230
Wyoming	$100	$60	annual	$340

Sources for every row come directly from each state's Secretary of State website, last verified 2026-07-13. The complete citation list and underlying CSV dataset are openly published on the source site.

Deconstructing LLC Expenses: The Six Core Components

Think of LLC expenses as a layered structure, not a single lump sum. Every formation process involves potentially six distinct line items. Understanding each one helps you budget accurately.

1. State Filing Fee (One-Time)

This is the charge levied by the Secretary of State to officially register your Articles of Organization. These fees vary widely, from a mere $35 in Montana to $500 in Massachusetts. There's no circumventing this, establishing an LLC mandates this payment. Crucially, this initial fee is a one-off payment when you establish your entity and is not typically paid again unless you dissolve and later re-form your LLC.

It's important to grasp that the legal standing of a $35 LLC is identical to one costing $500. These cost variations largely stem from how states choose to fund their administrative offices, not from any difference in your LLC's legal substance or protection.

2. Annual or Biennial Report Fee (Recurring)

In 43 states, plus Washington D.C., an annual or biennial informational filing is mandatory to keep your LLC in good standing. This report typically confirms details like your registered agent, principal office address, and sometimes member or manager names, ensuring the LLC remains active.

These fees can range from $0 in states like Arizona, Missouri, New Mexico, Ohio, South Carolina, and Mississippi (or Texas if below a certain revenue threshold) up to $500 in Massachusetts. The typical yearly fee across all states sits around $50.

The cadence of these reports varies:

• Annual: Most states require this yearly, due on a fixed date or your LLC's anniversary month.
• Biennial: States like California, New York, Iowa, Indiana, Nebraska, Alaska, and D.C. require this every two years.
• Decennial: Pennsylvania is unique, requiring a $70 filing only every 10 years (specifically, in years ending in 1).

Neglecting this report can lead to late fees, typically between $25 and $400, and ultimately, administrative dissolution within 60 to 180 days.

3. Franchise Tax (State-Specific, Recurring)

A select group of states levies a distinct entity-level tax, separate from the income tax paid by the owners. This specific charge often invalidates the perceived financial benefits of forming in a state like Wyoming when you operate in California. The states imposing a franchise tax on LLCs in 2026 include:

• California: A minimum of $800 per year, payable to the Franchise Tax Board. Additionally, a gross receipts fee of $900-$11,790 applies to LLCs with California-source income exceeding $250K.
• Delaware: A flat $300 per year for LLCs, paid to the Delaware Division of Corporations.
• Tennessee: A minimum of $300 per year, plus 0.25% of apportioned net worth, to the Tennessee Department of Revenue.
• Alabama: A minimum Business Privilege Tax of $50 annually, via the Alabama Department of Revenue.
• Texas: A margin tax ranging from 0.375% to 0.75% above a $1.23M revenue threshold. Most small LLCs will owe $0. This is handled by the Texas Comptroller.
• New York: An annual LLC filing fee tied to gross income, sliding from $25 to $4,500, administered by the NY Department of Taxation and Finance. Single-member LLCs treated as disregarded entities are exempt.
• Arkansas: A $150 annual franchise tax, detailed on the Arkansas SOS Franchise Tax page.
• Oklahoma: The franchise tax for LLCs was repealed in 2024.
• Georgia: A Net Worth Tax from $10 to $5,000, sliding scale, for LLCs electing to file as corporations.

It's worth noting that the majority of states do not impose a franchise tax. The list above covers those with significant financial implications.

4. Registered Agent Service Fee (Recurring, Optional)

Each state mandates that an LLC appoint a registered agent, an individual or service provider with a physical street address, not a P.O. Box, within the state of formation. This agent must be available during standard business hours to receive official mail and service of process. Acting as your own registered agent costs nothing, provided you reside in the state of formation and are comfortable with your personal address being publicly accessible. Otherwise, you'll need to budget for a service:

• Northwest Registered Agent: $125/year (check out their services at northwestregisteredagent.com)
• ZenBusiness: $199/year (often bundled into formation packages)
• LegalZoom: $249/year
• Wyoming-specific budget agents: $50-$80/year (these are typically only available for Wyoming LLCs)

The primary distinctions among these services often come down to customer service quality, document management, and their approach to upselling additional offerings. Functionally, all registered agents perform the same core task: receiving your mail, scanning it, and forwarding it to you.

5. Operating Agreement (One-Time, Optional in Most States)

This is a formal agreement between members, outlining operational control, ownership stakes, how profits and losses are distributed, and procedures for dissolving the entity. Five states legally require one: California, Delaware, Maine, Missouri, and New York. While 45 other states don't legally mandate an operating agreement, many banks will require one before allowing you to open a business bank account.

Cost tiers for an operating agreement:

• Free SBA template or state-bar form: $0
• Online template (LegalNature, Rocket Lawyer, Bonsai): $39-$99
• Attorney-drafted, single-member: $400-$800
• Attorney-drafted, multi-member with profit/loss allocations: $800-$1,500

If you're running a single-member LLC without external investors, a complimentary template typically suffices. However, for multi-member LLCs or any scenario involving buy-sell provisions, an attorney's review is a worthwhile investment, potentially $400-$800. This is because default state LLC laws often dictate equal management and profit splits, which rarely aligns with founders' actual intentions, especially regarding capital contributions.

6. Publication or Notice Cost (State-Specific, One-Time)

In three states, you're legally obligated to publish a notice of your LLC's formation in a newspaper. This can significantly increase your initial setup costs:

• New York: Requires publication in two newspapers (one daily, one weekly) for six weeks in the county of formation. This can cost anywhere from $1,200 to $2,000 in Manhattan, or $200 to $500 in upstate counties. There's also an additional $50 fee for the Certificate of Publication. You can find more details at the dos.ny.gov LLC publication FAQ.
• Arizona: Mandates three weeks of publication in one newspaper, costing $30-$300. An exemption applies in Maricopa and Pima counties, where the AZCC automatically publishes.
• Nebraska: Requires three weeks of publication in one newspaper, typically costing $40-$200.

This publication requirement truly adds an additional $200 to $2,000 to your expenses in New York, Arizona (outside Maricopa and Pima counties), and Nebraska. We highlight this on every state page to ensure founders are aware. For example, a California LLC might look like $70 (filing) + $20 (biennial report) + $800 (franchise tax) = $890 for its first year minimum, excluding optional services.

The Most Economical States for LLC Formation

When ranked by the cumulative five-year ownership cost, which includes initial filing and five years of ongoing fees, excluding optional add-ons, these states offer the lowest entry points:

1. Mississippi: $50 filing + $0/yr = $50 over 5 years
2. Missouri: $50 + $0 = $50
3. New Mexico: $50 + $0 = $50
4. Ohio: $99 + $0 = $99
5. South Carolina: $110 + $0 = $110
6. Montana: $35 + $20/yr = $115
7. Hawaii: $50 + $15/yr = $110
8. Kentucky: $40 + $15/yr = $100
9. Utah: $54 + $18/yr = $126
10. Nebraska: $100 + $13 biennial = $126
11. Pennsylvania: $125 + ~$7/yr (decennial $70/10) = $160

Here's the critical caveat: the economics of filing fees are only relevant if you also reside and conduct your primary business operations within that specific state. If you're based in California, generating $80K in revenue, and decide to form an LLC in Mississippi, you'll still be liable for California's $800 franchise tax plus a $70 foreign qualification fee. In this scenario, Mississippi's $50 saving is entirely negated. Refer to the section below on the home-state versus Wyoming/Delaware debate for more clarity.

The Most Expensive States for LLCs

When considering the five-year total cost of ownership, these states represent the higher end of the spectrum:

1. California: $4,070 ($70 filing + $800/yr franchise tax + $20 biennial)
2. Massachusetts: $2,500 ($500 + $500/yr)
3. Nevada: $1,825 ($425 + $350/yr)
4. Tennessee: $1,500+ ($300 + $300/yr base, plus net worth tax)
5. Maryland: $1,300 ($100 + $300/yr)
6. Delaware: $1,290 ($90 + $300/yr franchise tax)
7. DC: $849 ($99 + $300 biennial)
8. Maine: $510 ($175 + $85/yr)

The states appearing at the top of this list, namely California, Massachusetts, Nevada, and Tennessee, exhibit a common characteristic: their state governments utilize LLC fees as a consistent revenue stream, rather than merely recovering service costs. California stands out as a unique case, offering a relatively cheap formation fee ($70) which might suggest it welcomes new businesses, but then extracts significant revenue through an $800 annual franchise tax. Many founders who establish their LLC in California for perceived simplicity are often caught off guard in their second year when the Franchise Tax Board's bill arrives.

Debunking the Wyoming/Delaware Myth for Your Home State LLC

Let's dig into the financial realities that aren't often highlighted on social media. The common narrative suggests, "Incorporate your LLC in Wyoming or Delaware to minimize your tax burden!" The truth is, your operational location carries more weight than your state of formation.

Tax authorities rely on the principle of nexus, signifying a substantial connection to a particular state. If your business establishes nexus, for example, through offices, employees, or significant sales within California, you are obligated to pay California's taxes. This holds true regardless of where your LLC was initially formed.

Full data + interactive calculator: llcformationcost.com