How much does it cost to start an LLC?
An LLC has three kinds of cost. The formation fee is what the state charges once to approve your Articles of Organization, which some states call a Certificate of Formation. The yearly state fee keeps the LLC active, as an annual report fee, a franchise tax or both. Then there are other costs, such as the registered agent every state requires and, in a few states, a newspaper notice.
The formation fee gets the most attention, but over time it's often the smallest part. Four years of California's yearly charges come to $3,240, about 36 times its $90 filing fee. That's why the cheapest state to form an LLC ranks states by their five-year cost.
LLC formation fees by state
These are the state's own fees for its standard filing method, and we pass them through at cost. They run from $35 in Montana to $520 in Massachusetts, and 17 states charge less than $100. Some states also offer faster filing for an extra fee.
Check the speed as well as the price. Arizona's standard filing is by mail and takes about 10 days, while Wyoming's is online and takes about 2 days. If a bank or client is waiting on your documents, a slower cheap state can cost you more than the fee difference.
Cheapest states to form an LLC
| State | Formation fee | Filing method | Yearly state cost |
|---|---|---|---|
| Montana | $35 | Standard · online | $20, waived if filed by April 15 through 2027 |
| Kentucky | $40 | Standard · online | $15 |
| Arizona | $50 | Standard · mail | $0 |
| Arkansas | $50 | Standard · online | $150 |
| Colorado | $50 | Standard · online | $25 |
| Iowa | $50 | Standard · online | $30 every 2 years online ($45 on paper) |
| Michigan | $50 | Standard · online | $25 |
Most expensive states to form an LLC
| State | Formation fee | Filing method | Documents back in |
|---|---|---|---|
| Massachusetts | $520 | Standard · online | about 3 days |
| Nevada | $436 | Standard · online | about 2 days |
| Texas | $310 | Standard · online | about 2 days |
| Tennessee | $309 | Standard · online | about 2 days |
| Alaska | $250 | Standard · online | about 2 days |
The formation fee alone can mislead. California looks cheap at $90, then charges $800 minimum tax + $20 statement every 2 years. Over five years that's $3,330 in state fees, against $343 for Wyoming.
How much does an LLC cost per year?
Most states charge something every year to keep an LLC in good standing. It's usually an annual or biennial report fee, sometimes a franchise tax, and in a few states both. The amounts below are for a small LLC with little or no income; taxes on profits are separate.
| State | Yearly cost | What you pay | Due |
|---|---|---|---|
| California | $810 | $800 minimum tax + $20 statement every 2 years | 15th day of the 4th month of your tax year (April 15 for calendar-year LLCs) |
| Delaware | $400 | $400 flat tax | June 1 |
| Maryland | $300 | $300 | April 15 |
| North Carolina | $203 | $203 online ($200 by mail) | April 15 |
| Arkansas | $150 | $150 | May 1 |
| District of Columbia | $150 | $300 every 2 years | April 1, every 2 years |
A report fee and a minimum tax behave differently. A fee pays for a filing, while a minimum tax is owed for the right to exist in the state, so California's $800 and Delaware's flat $400 are due even if the LLC had no revenue. Texas works the other way: its franchise tax starts only above $2.65 million in annualized revenue, although every LLC still files a yearly Public Information Report.
At the other end, states such as New Mexico, Missouri, Arizona, South Carolina and Minnesota charge no yearly state fee for a typical small LLC. Some of them still expect a free report or a zero-tax filing every year, and missing it can still cost you your good standing.
Biennial states bill every two years, so we show half the fee as the yearly cost. For due dates, late fees and which states tax LLCs directly, see LLC annual fees by state.
Other LLC costs: registered agent, EIN, publication and licenses
- Registered agent. Every state requires one, with a street address in the state, so founders abroad pay a service. It's a yearly cost per state. See what a registered agent does.
- EIN. An EIN is the IRS's tax ID for businesses, and banks ask for it. The IRS never charges a fee for one. Without an SSN or ITIN, or with the business based abroad, you apply by phone, fax or mail instead of instantly online; see getting an EIN without an SSN.
- Newspaper publication. A few states require a notice in local newspapers after formation. New York requires a notice in two newspapers for six weeks within 120 days, plus a $50 certificate of publication. Arizona requires three notices within 60 days unless the statutory agent is in Maricopa or Pima County. The newspapers set their own prices.
- Business licenses. Forming an LLC doesn't license it to operate. Depending on what you do and where, a state, county or city can require a business license or tax registration where you actually do business.
- Registering in a second state. If you actually do business in another state, for example with an office or staff there, that state usually requires you to register as a foreign LLC and pay its fees as well.
- Federal filings. The IRS charges no fee for Form 5472, which a single-member LLC owned by a non-US person files every year, but the penalty for not filing it is $25,000. See Form 5472 for foreign-owned LLCs.
- Faster filing. Optional. States charge their own expedite fees, and we add $49 on top when you choose it.
What your LLC costs in total with us
Our Starter plan is $349 a year plus the state fee at cost, with no markup. It includes formation in any state, your EIN (even without an SSN), a registered agent and US business address for the year, legal and state mail scanned, the annual report filed for you and a compliance calendar with reminders. After the first year, you pay the plan again plus whatever the state charges yearly.
| State | Formation fee | Yearly state cost | First year total | Later years |
|---|---|---|---|---|
| Wyoming | $103 | $60 minimum | $452 | $409 |
| New Mexico | $52 | $0 | $401 | $349 |
| Delaware | $110 | $400 flat tax | $459 | $749 |
| Florida | $125 | $138.75 | $474 | $487.75 |
| Texas | $310 | $0 up to $2.65M revenue | $659 | $349 |
In rupees, a Wyoming LLC's first year comes to about ₹43,200, and each later year about ₹39,100. We charge in US dollars, so the rupee amount moves with the exchange rate. Pro, at $999 a year plus the state fee, adds Form 5472 and the pro forma 1120 prepared by our US tax partner.
How to keep your LLC costs low
- If you'll operate from a US state, form there. Forming elsewhere means paying two states once you register where you work.
- If you run the business from abroad, compare five-year costs. A $0 yearly fee saves more than a cheap filing fee. Start with the cheapest state to form an LLC.
- Watch for extra steps. New York's newspaper publication and California's first-year $800 tax are both due within months of forming, on top of the filing fee.
- File on time. Late fees and reinstatement cost more than filing on schedule, and some states dissolve an LLC for a missed report.
- Don't pay for speed you don't need. Standard filing is enough unless a bank or client is waiting on your documents.
Still choosing? The best state for an LLC as a non-resident weighs cost with taxes, privacy and banking, and Wyoming vs Delaware compares those two states in depth. Nevada, Wyoming and every other state have their own guide on our state pages.
Frequently asked questions
What is the cheapest state to form an LLC?
How much does an LLC cost per year?
Do I pay the formation fee again every year?
Is getting an EIN free?
Can I form my LLC in a cheap state and run it from another state?
How much does a US LLC cost in rupees?
Sources
- IRS, get an employer identification number
- IRS, apply for an EIN online (eligibility)
- IRS, instructions for Form 5472 (penalties)
- New York LLC Law § 206, publication requirement
- Arizona Revised Statutes § 29-3201, articles of organization and publication
- California Revenue and Taxation Code § 17941, LLC annual tax
- Delaware Division of Corporations, LLC annual tax instructions
- Texas Comptroller, PIR and OIR filing requirements
- Florida Statutes § 605.0902, foreign LLC certificate of authority
- Wyoming Secretary of State, business FAQs (annual report and license tax)
Facts checked on September 17, 2026 against the sources above. Rules and fees change, so confirm anything important with the official source. Register Quick LLC is not a law firm or CPA firm, and this page is general information, not legal or tax advice.
