The cost of forming an LLC varies wildly across the United States — from $35 in Montana to $500 in Massachusetts. Annual costs range from $0 in New Mexico to $800+ in California. Choosing the wrong state can cost you thousands of dollars over the life of your business.
But "cheapest" is not always "best." This guide breaks down the numbers honestly, so you can make an informed decision based on total cost of ownership — not just the filing fee.
Top 5 Cheapest States Overall
| Rank | State | Filing Fee | Annual Cost | 5-Year Total |
|---|---|---|---|---|
| 1 | New Mexico | $50 | $0 | $50 |
| 2 | Montana | $35 | $0* | $35* |
| 3 | Wyoming | $100 | $60 | $340 |
| 4 | Arkansas | $45 | $150 | $645 |
| 5 | Mississippi | $50 | $0 | $50 |
*Montana's $0 annual report is under legislative review and may change after 2027.
Full 50-State LLC Cost Table (2026)
All fees sourced from each state's Secretary of State website. Filing fees are one-time; annual costs recur every year.
| State | Filing Fee | Annual Cost | State Income Tax |
|---|---|---|---|
| Alabama | $200 | $100 (privilege tax min) | 2-5% |
| Alaska | $250 | $100 (biennial) | None |
| Arizona | $50 | $0 | 2.5% flat |
| Arkansas | $45 | $150 | 2-4.7% |
| California | $70 | $800 (franchise tax) | 1-13.3% |
| Colorado | $50 | $10 | 4.4% flat |
| Connecticut | $120 | $80 | 3-6.99% |
| Delaware | $90 | $300 | 2.2-6.6% |
| Florida | $125 | $138.75 | None |
| Georgia | $100 | $50 | 1-5.49% |
| Hawaii | $50 | $15 | 1.4-11% |
| Idaho | $100 | $0 | 5.695% flat |
| Illinois | $150 | $75 | 4.95% flat |
| Indiana | $95 | $31 (biennial) | 3.05% flat |
| Iowa | $50 | $30 (biennial) | 4.4-6% |
| Kansas | $160 | $55 | 3.1-5.7% |
| Kentucky | $40 | $15 | 4.5% flat |
| Louisiana | $100 | $35 | 1.85-4.25% |
| Maine | $175 | $85 | 5.8-7.15% |
| Maryland | $100 | $300 | 2-5.75% |
| Massachusetts | $500 | $500 | 5% flat |
| Michigan | $50 | $25 | 4.05% flat |
| Minnesota | $155 | $0 | 5.35-9.85% |
| Mississippi | $50 | $0 | 0-5% |
| Missouri | $50 | $0 | 2-4.95% |
| Montana | $35 | $0* | 1-6.75% |
| Nebraska | $105 | $10 (biennial) | 2.46-6.64% |
| Nevada | $75 | $350 | None |
| New Hampshire | $100 | $100 | None (wages)** |
| New Jersey | $125 | $75 | 1.4-10.75% |
| New Mexico | $50 | $0 | 1.7-5.9% |
| New York | $200 | $25 (biennial) | 4-10.9%*** |
| North Carolina | $125 | $200 | 4.5% flat |
| North Dakota | $135 | $50 | 0-2.5% |
| Ohio | $99 | $0 | 0-3.5% |
| Oklahoma | $100 | $25 | 0.25-4.75% |
| Oregon | $100 | $100 | 4.75-9.9% |
| Pennsylvania | $125 | $70 (decennial) | 3.07% flat |
| Rhode Island | $150 | $50 | 3.75-5.99% |
| South Carolina | $110 | $0 | 0-6.5% |
| South Dakota | $150 | $50 | None |
| Tennessee | $300 | $300 | None |
| Texas | $300 | $0 (franchise tax under threshold) | None |
| Utah | $54 | $18 | 4.65% flat |
| Vermont | $125 | $35 | 3.35-8.75% |
| Virginia | $100 | $50 | 2-5.75% |
| Washington | $200 | $60 | None |
| West Virginia | $100 | $25 | 3-6.5% |
| Wisconsin | $130 | $25 | 3.54-7.65% |
| Wyoming | $100 | $60 | None |
*Montana $0 annual under review. **NH has no income tax on wages but taxes interest/dividends (phasing out). ***NY requires publication in 2 newspapers ($300-1,500+ depending on county).
Cheapest by Formation Fee Only
- Montana — $35
- Kentucky — $40
- Arkansas — $45
- Arizona, Hawaii, Iowa, Michigan, Mississippi, Missouri, New Mexico, Colorado — $50
- Utah — $54
Cheapest by Annual Cost
- $0/year: Arizona, Idaho, Minnesota, Mississippi, Missouri, Montana*, New Mexico, Ohio, South Carolina, Texas (under threshold)
- $10/year: Colorado
- $15/year: Hawaii, Kentucky
- $18/year: Utah
- $25/year: Michigan, Oklahoma, West Virginia, Wisconsin
5-Year Total Cost Comparison (Top 10)
| Rank | State | 5-Year Total | Notes |
|---|---|---|---|
| 1 | Montana | $35 | $0 annual may change after 2027 |
| 2 | New Mexico | $50 | Stable — no annual report |
| 3 | Arizona | $50 | Has state income tax (2.5%) |
| 4 | Mississippi | $50 | Less commonly used for non-residents |
| 5 | Missouri | $50 | Has state income tax |
| 6 | Kentucky | $100 | $40 filing + $15/yr x 4 |
| 7 | Colorado | $90 | $50 filing + $10/yr x 4 |
| 8 | Hawaii | $110 | $50 filing + $15/yr x 4 |
| 9 | Utah | $126 | $54 filing + $18/yr x 4 |
| 10 | Wyoming | $340 | $100 filing + $60/yr x 4. No state income tax. |
Most Expensive States to Avoid
- Massachusetts — $500 filing + $500/year = $2,500 over 5 years
- California — $70 filing + $800/year = $3,270 over 5 years
- Tennessee — $300 filing + $300/year = $1,500 over 5 years
- Nevada — $75 filing + $350/year = $1,475 over 5 years
- Delaware — $90 filing + $300/year = $1,290 over 5 years
Nevada: the most overrated state
Nevada markets itself aggressively as a "no tax" state. While it has no state income tax, the $200 annual business license fee + $150 annual list filing = $350/year. That is nearly 6x more than Wyoming ($60/year). Nevada's privacy protections are no stronger than Wyoming's. Do not fall for the marketing.
Best Value: Our Recommendation
Wyoming offers the best overall value when you factor in cost, tax benefits, privacy, asset protection, speed, and recognition.
Yes, New Mexico and Montana are cheaper on paper. But Wyoming adds:
- No state income tax (New Mexico has 1.7-5.9%)
- Strongest charging order protection in the US
- Universal recognition by banks and payment processors
- Series LLC option for real estate investors
- Predictable costs that will not change year to year
- 1-3 day processing
The $60/year difference between Wyoming and New Mexico ($240 over 5 years) is a small price for the additional benefits. For non-residents especially, Wyoming's name recognition with banks like Mercury and Relay eliminates friction that less common states may create.
Form your LLC in the best-value state
Wyoming LLC formation, same-day EIN, registered agent, and Operating Agreement. $349 + state fee. No hidden fees.
Get Started — $349 →