
Why LLC Filing Fees Vary So Much from State to State
If you’re comparing LLC cost by state — especially Pennsylvania, Wyoming, Michigan, and Kansas — you’ve probably already noticed the numbers jump around dramatically. Filing fees can range from as little as $50 in Wyoming to over $125 in Pennsylvania, and that’s before you factor in annual reports, registered agent fees, and publication requirements. Understanding exactly what drives these differences helps you budget accurately and avoid surprise expenses down the road. (Related: Complete Guide to LLC Benefits and How They Compare to Other Business Structures (with cost analysis)) (Related: Business Registration Cost by State: What You’ll Really Pay) (Related: DIY LLC Formation vs Formation Service: Complete 2026 Cost Analysis)
Each state sets its own fee schedule through its secretary of state office, and those fees reflect a combination of administrative costs, revenue priorities, and business-friendliness goals. Wyoming, for example, has deliberately kept fees low to attract out-of-state entrepreneurs. Pennsylvania charges a higher upfront fee but imposes no annual report requirement — a trade-off worth understanding before you sign anything. In 2026, these distinctions matter more than ever as inflation has pushed operating costs higher across the board.
Pennsylvania LLC Filing Fees: What to Expect
Forming an LLC in Pennsylvania starts with filing a Certificate of Organization with the Pennsylvania Department of State. The state filing fee is $125, which is on the higher end compared to other states in this guide. However, Pennsylvania offers a meaningful offset: there is no mandatory annual report fee for LLCs, which means once you’re formed, you won’t owe the state a recurring renewal fee every year.
That said, Pennsylvania does have a decennial report requirement — a report filed once every ten years — with a $70 filing fee. Pennsylvania also requires that you register for a state tax ID and comply with local business privilege taxes depending on your municipality. If you hire a registered agent service, budget an additional $49 to $150 per year. All told, most Pennsylvania LLC owners spend between $175 and $350 in their first year, accounting for formation, a registered agent, and any optional expedited processing fees.
Wyoming LLC Filing Fees: The Business-Friendly Benchmark
Wyoming is famous in the LLC world for a reason. The state charges just $100 to file Articles of Organization online, and the annual report fee is only $60 per year (or $52 if filed online), with a minimum based on assets located in Wyoming. For most small businesses with under $250,000 in Wyoming assets, that minimum fee applies, making ongoing costs extremely predictable.
Wyoming also offers strong privacy protections — you can use a registered agent’s address on public filings — and it imposes no state income tax on LLCs. These features have made Wyoming a top choice for online businesses, real estate holding companies, and entrepreneurs who want a low-cost, low-maintenance structure. First-year costs for a Wyoming LLC typically land between $150 and $250, including the filing fee, a registered agent, and the prorated annual report. It’s one of the most affordable options in the entire country, and that’s not an accident.
Michigan LLC Filing Fees: Mid-Range Costs with Simple Structure
Michigan charges $50 to file Articles of Organization online through the Michigan Department of Licensing and Regulatory Affairs (LARA), making it one of the cheapest states to form an LLC in terms of upfront cost. That’s a significant advantage if you’re bootstrapping a new venture and every dollar counts. Expedited processing is available for an additional $50 to $100 depending on how quickly you need approval.
Michigan does require an annual statement filing, and the fee is $25 per year. That’s remarkably affordable and helps keep ongoing compliance costs low. Combined with a registered agent fee (typically $49 to $125 annually), Michigan LLC owners usually spend between $100 and $200 in the first year and less in subsequent years. Michigan is an excellent choice for resident entrepreneurs who want to keep their business in-state without overpaying for the privilege.
Kansas LLC Filing Fees: Straightforward and Affordable
Kansas sits comfortably in the mid-range category. Filing Articles of Organization with the Kansas Secretary of State costs $160 online or $165 by mail in 2026, which is slightly higher than Michigan but still reasonable relative to the long-term value of an LLC structure. Kansas also requires an annual report, which costs $55 per year when filed online.
One important detail for Kansas LLCs: you must maintain a registered agent with a physical Kansas address. If you’re not based in Kansas, you’ll need to hire a commercial registered agent, which adds $49 to $150 annually to your operating costs. First-year total costs for a Kansas LLC typically fall between $215 and $320, depending on whether you handle everything yourself or use a formation service. Kansas isn’t the cheapest option, but it offers a stable, business-friendly environment with no unusual compliance surprises.
Comparing All Four States Side by Side
Here’s a quick breakdown of the key numbers for each state in 2026:
Pennsylvania: $125 formation fee, no annual report (decennial report $70 every 10 years), strong liability protections.
Wyoming: $100 formation fee, $60 annual report, excellent privacy laws, no state income tax.
Michigan: $50 formation fee, $25 annual report, fast online processing, great for resident business owners.
Kansas: $160 formation fee, $55 annual report, straightforward process, registered agent required.
If cost is your primary driver, Michigan wins on formation fees. If you want the lowest total cost of ownership over multiple years, Wyoming is hard to beat — especially for businesses not physically located in any particular state. Pennsylvania and Kansas make the most sense when you’re operating locally and want to avoid the complexity of maintaining a foreign LLC registration in your home state.
To get exact numbers customized to your situation, use our free LLC cost calculator — it factors in formation fees, annual reports, registered agent costs, and more for all 50 states.
Frequently Asked Questions
Which state has the lowest LLC filing fee among PA, WY, MI, and KS?
Michigan has the lowest formation fee at $50, making it the most affordable state to start an LLC among these four. However, Wyoming’s combination of a $100 formation fee and only $60 annual report makes it the overall winner for long-term affordability, especially for non-resident owners.
Does Pennsylvania require an annual report for LLCs?
No — Pennsylvania does not require LLCs to file a traditional annual report. Instead, LLCs must file a decennial report every ten years, which costs $70. This makes Pennsylvania’s ongoing compliance costs lower than many people expect after the initial $125 formation fee.
Can I form a Wyoming LLC even if I don’t live in Wyoming?
Yes, absolutely. Wyoming allows non-residents to form LLCs in the state, which is one of the main reasons it’s so popular. You’ll need a Wyoming registered agent with a physical in-state address, which typically costs between $49 and $100 per year from a commercial service.
What is the total first-year cost to form an LLC in Kansas?
Most Kansas LLC owners spend between $215 and $320 in their first year. This includes the $160 online filing fee, the $55 annual report, and a registered agent fee ranging from $49 to $150 depending on the provider you choose.
Are there hidden fees I should watch out for when forming an LLC?
Yes — common hidden costs include expedited processing fees (typically $25 to $100), name reservation fees ($10 to $30 in most states), registered agent fees if you don’t use your own address, and state business license fees that vary by city or county. Always calculate your total first-year cost before choosing a state.
Conclusion
Comparing LLC cost by state across Pennsylvania, Wyoming, Michigan, and Kansas reveals that there’s no single “best” answer for everyone. Michigan wins on upfront cost, Wyoming wins on long-term value and privacy, Pennsylvania offers ongoing savings with no annual report, and Kansas keeps things straightforward for local business owners. The right choice depends on where you operate, how long you plan to maintain the LLC, and what compliance trade-offs you’re willing to accept.
Use Our Free LLC Cost Calculator
Head to llccostcalc.com right now to get a complete, state-by-state cost breakdown in seconds. Our calculator outputs exact dollar amounts for formation fees, annual reports, registered agent costs, and potential savings from choosing one state over another — all customized to your business situation. Stop guessing and start planning with real numbers today.
- LegalZoom LLC Formation Service — Directly helps readers form LLCs across multiple states with professional guidance, addressing the core topic of LLC formation costs and filing requirements
- Amazon: Business Formation & LLC Planning Books — Provides readers with comprehensive guides to understand LLC filing processes and cost structures across different states before formation
- Incfile LLC Formation Service — Offers affordable LLC formation with transparent state-specific pricing, helping readers compare costs and file in PA, WY, MI, or KS
Related: LLC Cost by State: PA, WY, MI, and KS Filing Fees Explained for 2026
Related: LLC Cost Minnesota: Filing Fees, Annual Renewal & Total Startup Expenses (2026 Guide)
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