LLC Formation Cost by State [2026 Calculator] — All 50 States

What’s Included in LLC Formation Cost?

When people ask “how much does it cost to form an LLC?” they’re usually only thinking about the state filing fee — but that’s rarely the full picture. A complete first-year cost includes up to five components:

Two costs that are always free: your federal EIN (Employer Identification Number — apply free at IRS.gov in under 5 minutes) and your business bank account (most major banks offer free business checking for new LLCs).

Cheapest States to Form an LLC (2026)

The five cheapest states for total first-year cost (filing + first-year state fees + $79 registered agent + $49 operating agreement template):

1. Montana — $163: $35 filing + $0 annual (waived through 2027) + $79 RA + $49 OA. Lowest filing fee in the country — and the cheapest first year outright.
2. Arizona — $178: $50 filing + $0 annual + $79 RA + $49 OA. No annual fee; publication required outside Maricopa/Pima counties (~$30–$300).
3. New Mexico — $178: $50 filing + $0 annual + $79 RA + $49 OA. No annual report at all.
4. Missouri — $178: $50 filing + $0 annual + $79 RA + $49 OA. No annual report for LLCs.
5. Mississippi — $178: $50 filing + $0 annual + $79 RA + $49 OA. Report required but $0 fee.

Best for zero ongoing state fees: Alabama, Arizona, Idaho, Minnesota, Mississippi, Missouri, New Mexico, Ohio, South Carolina, and Texas all have no annual report fee for LLCs. Combine that with a cheap filing fee and you minimize ongoing overhead.

Most Expensive States to Form an LLC

1. Massachusetts: $500 filing + $500/yr annual report = $1,000 just in state fees year one
2. New York: $200 filing + $1,000–$2,000 publication requirement = $1,200–$2,200 year one
3. Tennessee: $300 filing + $300/yr annual report = $600 in state fees, before registered agent
4. California: $70 filing, a $20 Statement of Information, and the $800/yr minimum franchise tax — adds up to $890+ in year one
5. Nevada: $75 filing but $350/yr in annual fees — often oversold for asset protection benefits

Hidden Costs to Watch For

New York Publication Requirement

New York requires LLCs to publish a notice of formation in two newspapers for six consecutive weeks within 120 days of formation. In Manhattan and Brooklyn, this can cost $1,000–$2,000 because publication rates are set by the state for each county. Upstate counties are cheaper ($150–$300). This is the biggest surprise cost new LLC owners encounter. See our full New York LLC cost guide.

California Minimum Franchise Tax

California’s $70 filing fee is deceptively low. The state charges a minimum $800/year franchise tax on every LLC — even those with zero revenue. It’s due within 3.5 months of formation for most LLCs, making year one cost $890 (with the $20 Statement of Information) before registered agent and operating agreement. See our California LLC cost guide.

Nebraska Publication Requirement

Nebraska requires a newspaper publication similar to New York, typically costing $40–$250 in a local newspaper for three consecutive weeks, plus a $25 affidavit filing. Smaller, less expensive than New York but still a surprise. See Nebraska LLC costs.

Delaware Double-State Registration

Delaware is popular for corporations, but most small LLCs don’t benefit. If you form in Delaware but operate in another state (e.g., Texas), you’ll need to register as a foreign LLC in Texas too — paying Delaware’s $110 + $300/yr AND Texas’s registration fees. You end up paying twice. Unless you have investor or legal reasons to use Delaware, form in your home state.

Annual Report Fees That Sneak Up

Some states have low filing fees but high ongoing annual costs: Maryland ($300/yr), Nevada ($350/yr), Tennessee ($300/yr), Massachusetts ($500/yr). Over five years, Maryland’s annual report alone costs $1,500 — more than forming in many other states combined.

LLC Formation Costs — All 50 States (2026)

Every state links to a detailed guide with current filing fees, annual costs, processing times, and step-by-step instructions.

*Min. Year 1 = filing fee + annual fee only, no registered agent or operating agreement included. Add $79–$149/yr for a registered agent service and $0–$500 for an operating agreement.

Registered Agent: DIY vs. Service

Every LLC is required to maintain a registered agent — a person or entity with a physical address in the state of formation who can receive legal documents and government correspondence during business hours. Your options:

• Be your own registered agent ($0): Use your home or office address. Your address becomes part of the public record. Works well if you have a fixed business address and will reliably be there during business hours
• Budget registered agent service ($49–$99/yr): Companies like Northwest Registered Agent or Registered Agents Inc. Provides privacy, a professional address, and handles document forwarding. Recommended for most small LLCs
• Premium/full-service ($99–$199/yr): Includes registered agent plus compliance reminders, annual report filing, and sometimes a free operating agreement template. ZenBusiness, LegalZoom, Harbor Compliance

Operating Agreement: Do You Need One?

Most states don’t require an operating agreement to be filed — but you need one. It establishes:

• Ownership percentages and capital contributions
• How profits and losses are distributed
• Management structure (member-managed vs. manager-managed)
• Decision-making procedures and voting rights
• What happens if a member wants to leave or the LLC dissolves

Without an operating agreement, disputes between members fall under default state LLC laws — which may not match your intentions. For single-member LLCs, an operating agreement reinforces the separation between you and the LLC (important for liability protection). California, New York, Missouri, Maine, and Delaware specifically require operating agreements.

Frequently Asked Questions

What is the cheapest state to form an LLC?

Montana ($35 filing fee) has the lowest filing fee in the country — and with its annual report fee waived through 2027, the cheapest first year outright. Kentucky also has a very low filing fee ($40), but the $175/yr LLET minimum puts its ongoing state cost at $190/yr — Ohio and Idaho, by contrast, charge $0 in ongoing state fees. If you live in these states and operate there, they’re genuinely cheap options. Forming in a different state from where you operate usually costs more overall due to foreign registration requirements.

Should I form my LLC in Delaware, Wyoming, or Nevada?

Only if you have specific reasons. Delaware is best for venture-backed startups (investors expect it). Wyoming and Nevada have strong asset protection laws and no income tax, which benefits real estate holding companies and privacy-conscious owners. For most small operating businesses, forming in your home state costs less and creates less administrative complexity.

Can I form an LLC online?

Yes — almost every state accepts online filings through the Secretary of State website. Most states process online filings faster (1–3 business days for expedited, 5–15 days standard) than paper filings. Use the state links in the table above to reach each state’s filing page.

How long does LLC formation take?

Most states process online filings in 1–15 business days. States with faster processing: Kentucky (same day online), Arizona (1–2 days), Delaware (1 day). Slower states: New York (5–7 days + publication period), Massachusetts (up to 2 weeks). Expedited filing options usually cost an additional $50–$150.

Is my LLC formation cost tax deductible?

Yes. LLC formation costs are organizational expenses deductible under IRC §248. You can deduct up to $5,000 in the first year; amounts above $5,000 are amortized over 15 years. This covers state filing fees, registered agent fees, attorney fees for the operating agreement, and similar start-up costs.

What’s the difference between formation cost and total LLC cost?

Formation cost covers getting the LLC approved by the state. Total ongoing cost adds annual report fees, franchise taxes, registered agent renewals, and any compliance costs. For states like California ($800/yr franchise tax) or Massachusetts ($500/yr annual report), the ongoing costs dwarf the one-time formation fee.