Complete LLC Cost Guide by State 2026: PA, WY, MI, KS, GA, AL, MN

LLC formation costs vary significantly by state. In 2026, filing fees range from $50 in Wyoming to $150 in Pennsylvania and Michigan. Georgia charges $100, Alabama $200, Minnesota $155, and Kansas $165. Annual report fees add ongoing costs that can double your first-year investment depending on the state you choose. (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)

State-by-State LLC Filing Fees and Formation Costs

Understanding exactly what each state charges helps you budget accurately before you commit to a formation decision. Below is a detailed breakdown of the seven states covered in this guide, including both one-time formation fees and recurring annual obligations.

Pennsylvania (PA)

Pennsylvania charges a $125 filing fee for Articles of Organization submitted to the Pennsylvania Department of State. There is no mandatory annual report for most standard LLCs in PA, which makes it attractive for long-term cost management. However, Pennsylvania does require a Decennial Report every ten years ($70), and LLCs with employees must register for state tax accounts. Expect first-year costs of $125–$300 when factoring in a registered agent and operating agreement preparation.

Wyoming (WY)

Wyoming remains one of the most cost-effective and privacy-friendly states for LLC formation. The state charges a $100 filing fee for online submissions (paper is $100 as well). The annual report fee is just $60 minimum (or two-tenths of one mill on assets located in Wyoming, whichever is greater). Wyoming’s strong asset protection laws and no state income tax make it a favorite for non-resident LLC owners seeking low ongoing costs.

Michigan (MI)

Michigan charges $50 to file Articles of Organization online through the Michigan Department of Licensing and Regulatory Affairs (LARA). The annual statement fee is $25, making Michigan one of the lowest annual renewal states on this list. Total first-year costs typically land between $75 and $250 depending on registered agent selection and optional services.

Kansas (KS)

Kansas requires a $165 filing fee for LLC Articles of Organization. The annual report fee is $55 for domestic LLCs. Kansas processes filings through the Secretary of State’s office, and expedited processing is available for an additional fee. Budget approximately $220–$400 for your first year in Kansas.

Georgia (GA)

Georgia charges $100 to file online (or $110 by mail) for LLC formation through the Georgia Secretary of State. The annual registration fee is $50, due between January 1 and April 1 each year. Georgia’s relatively low ongoing fees and strong business environment make it a competitive formation choice in the Southeast. Plan for $150–$350 in first-year total costs.

Alabama (AL)

Alabama has a slightly more complex fee structure. The state charges a $200 filing fee for LLC formation, plus a Privilege License Tax that varies by county. Alabama also requires an annual report with a $50 fee (plus a $14 Secretary of State processing fee). First-year costs in Alabama often reach $300–$500 when county-level requirements are factored in. According to the U.S. Small Business Administration, understanding all state and local registration obligations is essential before choosing your formation state.

Minnesota (MN)

Minnesota charges $155 online (or $135 by mail) to file Articles of Organization. The annual renewal fee is $0 for paper renewals — Minnesota currently does not charge an annual LLC renewal fee, which is a significant long-term savings advantage. First-year costs typically range from $155 to $350 depending on registered agent and legal services used.

Comparing Total 3-Year LLC Costs Across These Seven States

The formation fee is only part of the picture. Smart entrepreneurs calculate the total 3-year cost of ownership before choosing a state. Here is a simplified comparison using base state fees only:

• Pennsylvania: ~$125 formation + $0 annual = ~$125 over 3 years (no decennial cost in year 1–3)
• Wyoming: ~$100 formation + $180 in annual reports (3 x $60) = ~$280 over 3 years
• Michigan: ~$50 formation + $75 in annual statements (3 x $25) = ~$125 over 3 years
• Kansas: ~$165 formation + $165 in annual reports (3 x $55) = ~$330 over 3 years
• Georgia: ~$100 formation + $150 in annual registrations (3 x $50) = ~$250 over 3 years
• Alabama: ~$264 formation + $192 in annual fees (3 x $64) = ~$456 over 3 years
• Minnesota: ~$155 formation + $0 annual = ~$155 over 3 years

Michigan and Pennsylvania offer exceptional value for cost-conscious owners. Use our LLC annual fee calculator to model multi-year costs with your specific situation factored in.

It is also worth noting that non-residents forming LLCs in states like Wyoming will typically need to pay a registered agent ($50–$150/year), which shifts the total cost comparison. The SBA’s business registration guide outlines why registered agents are required in most states and what role they play in compliance.

How to Use the LLC Cost Calculator

Instead of manually researching each state’s fee schedule, you can use our LLC cost by state calculator to instantly compare formation and ongoing costs side by side. Simply select the states you’re considering, input your business type, and the tool generates a complete cost breakdown including formation fees, annual reports, and registered agent estimates.

This is especially useful when you’re weighing a home-state formation against a popular alternative state like Wyoming or Delaware. The calculator pulls from current state fee schedules so your comparison reflects 2026 pricing. You can also explore our LLC startup cost estimator to include soft costs like operating agreements, EIN registration, and business banking setup into your total budget.

Frequently Asked Questions

Which of these seven states is cheapest to form an LLC in 2026?

Michigan has the lowest formation fee at $50, making it the cheapest to start. However, when factoring in three years of ongoing fees, Pennsylvania and Minnesota also rank as very affordable because their recurring annual costs are minimal or zero.

Do I have to form my LLC in the state where I live?

No. You can form an LLC in any state. However, if you operate in your home state, you will likely need to register as a foreign LLC there anyway, which means paying fees in both states. For most small business owners, forming

Related: LLC Cost by State Calculator: A Complete 2026 Guide to What You’ll Pay in Every State

Related: Complete LLC Cost Guide: PA, WY, MI & KS in 2026

Related: Pennsylvania LLC Cost: The Complete 2026 Guide