Cost of LLC by State: PA, WY, MI, KS, GA, AL, and MN Filing Fees Explained (2026)

Why LLC Formation Costs Vary So Dramatically by State

Starting an LLC is one of the smartest moves an entrepreneur can make, but the price tag attached to that decision depends almost entirely on where you file. The cost of LLC by state — whether you’re looking at PA, WY, MI, KS, GA, AL, or MN — can range from as little as $50 to over $300 just for the initial filing fee. Add in annual reports, registered agent fees, and optional extras like expedited processing, and the true cost of forming and maintaining your LLC becomes a more complex calculation than most first-time business owners expect. (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)

Every state sets its own fee schedule, renewal requirements, and publication rules. Some states charge a flat formation fee with no annual report requirement, while others pile on recurring costs that add up significantly over time. Understanding the full picture before you file can save you hundreds of dollars — and prevent unpleasant surprises down the road.

State-by-State Breakdown: Filing Fees for PA, WY, MI, KS, GA, AL, and MN

Here is a direct look at what each of these seven states charges to form and maintain an LLC in 2026:

Pennsylvania (PA) charges a $125 filing fee to submit your Certificate of Organization. Pennsylvania does not require a traditional annual report for LLCs, which keeps long-term costs lower than many people expect. However, the state does require a Decennial Report every ten years, costing $70. If you use a registered agent service, budget an additional $50 to $150 per year.

Wyoming (WY) is widely regarded as the most LLC-friendly state in the country. The state filing fee is just $100, and the annual report fee is only $60 (or 0.0002% of assets located in Wyoming, whichever is greater). Wyoming imposes no state income tax, making it a popular choice for business owners nationwide who want to minimize their total cost burden.

Michigan (MI) has one of the most affordable entry points on this list, with a base filing fee of just $50 for Articles of Organization. Michigan does require an annual statement, which costs $25 per year. The combination of a low formation fee and a modest recurring cost makes Michigan a budget-friendly option for small business owners in the Midwest.

Kansas (KS) charges $160 to file Articles of Organization online, or $165 by mail. The state also requires an annual report with a $55 filing fee. Kansas does not have a publication requirement, which keeps overall costs manageable compared to states like New York that mandate newspaper publication.

Georgia (GA) charges $100 to file online or $110 by mail for your Articles of Organization. Georgia also requires an annual registration with a $50 fee. The state’s relatively low fees and straightforward process make it a solid choice for Southeast-based entrepreneurs.

Alabama (AL) has a more complex fee structure. The initial filing fee starts at $200 for the Certificate of Formation, but Alabama also requires a Business Privilege Tax return that starts at a minimum of $100 per year, making the first-year cost at least $300 before any professional help. Alabama is one of the more expensive states on this list when you factor in recurring obligations.

Minnesota (MN) charges $135 to file Articles of Organization online. Minnesota LLCs are required to file an annual renewal, which costs $45. The state’s fees are in the mid-range, and the filing process is straightforward through the Minnesota Secretary of State’s online portal.

Hidden Costs That Can Inflate Your Total LLC Expense

The state filing fee is rarely the only cost involved. Registered agent services are legally required in every state, and if you hire a professional service rather than acting as your own agent, expect to pay between $50 and $300 per year depending on the provider. In states like Pennsylvania and Michigan, this annual expense can actually exceed the state’s own annual report fee.

Operating agreements, while not legally required in most of these states, are strongly recommended by attorneys and accountants. Drafting one professionally can cost $150 to $500. If you want an Employer Identification Number (EIN) for your LLC, the IRS issues them for free — but many online formation services charge $50 to $70 to handle this step for you. Always check whether you’re paying for convenience or necessity.

Expedited processing fees are another overlooked cost. Michigan, for example, charges an additional $50 to $100 to fast-track your filing from the standard 5-to-7-business-day turnaround. Wyoming offers 24-hour processing for an extra $100 fee.

Comparing Five-Year Total Cost of Ownership Across These States

Thinking beyond year one reveals significant differences in how these states compare over time. Wyoming’s total five-year cost (filing plus annual reports) comes to approximately $340, making it one of the most affordable long-term options. Michigan’s five-year total is roughly $150 — the lowest on this list — thanks to its $50 formation fee and $25 annual statements. Alabama, by contrast, can reach $700 or more over five years when the Business Privilege Tax and formation fee are combined.

Pennsylvania sits in the middle range at roughly $125 for formation plus minimal recurring costs, making it a solid choice for Pennsylvania-based businesses that want predictability. Georgia and Minnesota both land around $300 to $350 over five years, representing fair value for the services and legal protections they provide. Kansas comes in near $415 over five years when annual reports are included.

Tips for Minimizing Your LLC Formation and Maintenance Costs

File directly through your state’s official Secretary of State website whenever possible. Third-party formation services add markups ranging from $50 to several hundred dollars on top of the state fee. In Michigan, for example, the state’s online system is fast, user-friendly, and free beyond the $50 filing fee itself.

If you are not physically located in Wyoming but are attracted to its low taxes and privacy protections, make sure you weigh the cost of a registered agent (required since you won’t have a WY address) against the actual tax savings your business will realize. For small businesses earning under $100,000 per year, a Wyoming LLC often provides less financial benefit than simply filing in your home state.

Set calendar reminders for annual report deadlines. Missing these deadlines in states like Alabama and Kansas triggers late fees and can result in administrative dissolution of your LLC, which creates expensive legal headaches to resolve.

Frequently Asked Questions

Which of these states is the cheapest to form an LLC in?

Michigan is the least expensive state to form an LLC among PA, WY, MI, KS, GA, AL, and MN, with a base filing fee of just $50. Its $25 annual statement keeps ongoing costs low as well, making it ideal for budget-conscious entrepreneurs already based in Michigan.

Is Wyoming really worth it for out-of-state business owners?

Wyoming offers genuine advantages including no state income tax, strong privacy protections, and a low annual report fee of $60. However, out-of-state owners must hire a registered agent, costing $50 to $150 per year, and may still need to foreign-qualify in their home state, adding another layer of fees.

Does Pennsylvania require an annual report for LLCs?

Pennsylvania does not require a traditional annual report for LLCs. Instead, the state requires a Decennial Report filed every ten years for $70. This makes Pennsylvania’s ongoing maintenance costs among the lowest on this list over a standard five-year period.

Why is Alabama more expensive than the other states listed?

Alabama charges a $200 formation fee and also requires an annual Business Privilege Tax return with a minimum payment of $100, bringing the first-year minimum to at least $300. This combination of formation and tax costs makes Alabama one of the higher-cost states for LLC owners compared to Michigan or Wyoming.

Can I form an LLC in one of these states if I live in a different state?

Yes, you can legally form an LLC in any state regardless of where you live. However, if you conduct business in your home state, you will likely need to foreign-qualify your LLC there, paying that state’s own registration and annual fees in addition to the state where you originally filed.

Conclusion

The cost of forming an LLC varies significantly across Pennsylvania, Wyoming, Michigan, Kansas, Georgia, Alabama, and Minnesota. Michigan offers the lowest combined costs for in-state residents, while Wyoming is a perennial favorite for its tax advantages and low annual fees. Alabama sits at the higher end of the spectrum when total first-year obligations are counted. No matter which state fits your situation best, knowing the exact fees before you file puts you in control of your business budget from day one.

Use Our Free LLC Cost Calculator

Stop guessing and start planning with precision. Head to llccostcalc.com and use our free LLC cost calculator to get exact dollar amounts for your chosen state, including formation fees, annual report costs, registered agent estimates, and projected five-year totals. Whether you are comparing Wyoming versus Michigan or weighing Georgia against Pennsylvania, the calculator delivers a side-by-side cost breakdown so you can make a confident, money-saving decision right now.

Related: LLC Cost by State: PA, WY, MI & KS Filing Fees Explained (2026 Guide)

Related: LLC Cost by State: PA vs WY vs MI vs KS Comparison 2026