How Much Does It Cost to Form an LLC in Each State?
When you decide to form a Limited Liability Company (LLC), you’re making a smart investment in your business’s future. But like any investment, it comes with costs. While the idea of “LLC Cost” often brings to mind the one-time state filing fee, the true cost of starting and maintaining an LLC is more nuanced.
To budget effectively, you need to understand both the upfront formation fees and the recurring annual costs required to keep your business in good standing. This guide provides a comprehensive, state-by-state breakdown of the essential fees you need to know.
Beyond the Filing Fee: Understanding Total LLC Costs
Before diving into the state-specific numbers, it’s crucial to recognize all the potential costs involved:
- State Filing Fee (Articles of Organization): This is the mandatory, one-time fee paid to the state to officially create your LLC. This fee varies significantly from state to state.
- Annual or Biennial Report Fees: Most states require LLCs to file a report on an annual or biennial (every two years) basis. This report updates the state on your business’s basic information, and it comes with a filing fee.
- Franchise Tax: Some states, like California and Delaware, impose an annual “franchise tax,” which is essentially a fee for the privilege of doing business in that state. This is often in addition to the annual report fee.
- Registered Agent Fees: Every LLC must have a registered agent. While you can act as your own, many entrepreneurs hire a professional service for privacy and convenience, which typically costs $100-$300 per year.
- Other Potential Costs: Depending on the state and your industry, you may also encounter fees for name reservation, publication requirements (publishing your formation in a newspaper), and business licenses or permits.
Understanding these different costs is the key to accurately planning your business budget.
State-by-State LLC Cost Breakdown (2025)
Here is a detailed look at the primary formation and maintenance costs across all 50 states and Washington D.C.
| State | Initial Filing Fee | Annual / Recurring Fee | Frequency |
| Alabama | $200 | $100 | Annual |
| Alaska | $250 | $100 | Biennial |
| Arizona | $50 | $0 (No Annual Report) | N/A |
| Arkansas | $45 | $150 | Annual |
| California | $70 | $800 Franchise Tax + $20 Report | Annual / Biennial |
| Colorado | $50 | $10 | Annual |
| Connecticut | $120 | $80 | Annual |
| Delaware | $90 | $300 Franchise Tax | Annual |
| Florida | $125 | $138.75 | Annual |
| Georgia | $100 | $50 | Annual |
| Hawaii | $51 | $15 | Annual |
| Idaho | $100 | $0 (No Annual Report) | N/A |
| Illinois | $153 | $75 | Annual |
| Indiana | $95 | $31+ | Biennial |
| Iowa | $50 | $30+ | Biennial |
| Kansas | $165 | $100+ | Biennial |
| Kentucky | $40 | $15 + $175 (min LLET) | Annual |
| Louisiana | $100 | $30 | Annual |
| Maine | $178 | $85 | Annual |
| Maryland | $100 | $300 | Annual |
| Massachusetts | $500 | $500 | Annual |
| Michigan | $50 | $25 | Annual |
| Minnesota | $155 | $0 (No Annual Report) | N/A |
| Mississippi | $50 | $0 (No Annual Report) | N/A |
| Missouri | $50 | $0 (No Annual Report) | N/A |
| Montana | $35 | $20 | Annual |
| Nebraska | $100 | $10 | Biennial |
| Nevada | $425 | $150 Report + $200 License | Annual |
| New Hampshire | $100 | $100 | Annual |
| New Jersey | $125 | $75 | Annual |
| New Mexico | $50 | $0 (No Annual Report) | N/A |
| New York | $200 | $9 | Biennial |
| North Carolina | $125 | $200 | Annual |
| North Dakota | $135 | $50 | Annual |
| Ohio | $99 | $0 (No Annual Report) | N/A |
| Oklahoma | $100 | $25 | Annual |
| Oregon | $100 | $100 | Annual |
| Pennsylvania | $125 | $70 (Decennial Report) | Every 10 Years |
| Rhode Island | $150 | $50 | Annual |
| South Carolina | $110 | $0 (No Annual Report) | N/A |
| South Dakota | $150 | $50 | Annual |
| Tennessee | $300 | $300 | Annual |
| Texas | $300 | $0 (Franchise tax may apply) | Annual |
| Utah | $54 | $18 | Annual |
| Vermont | $125 | $35 | Annual |
| Virginia | $100 | $50 | Annual |
| Washington | $200 | $60 | Annual |
| West Virginia | $100 | $25 | Annual |
| Wisconsin | $130 | $25 | Annual |
| Wyoming | $100 | $60 | Annual |
| Washington D.C. | $99 | $300 | Biennial |
Choosing Where to File: More Than Just the Filing Fee
As the table shows, the “cheapest” state to form an LLC isn’t necessarily the one with the lowest initial fee. States like Kentucky and Arkansas have very low formation costs, while states like California and Massachusetts have high annual commitments.
For most new businesses, the best and most cost-effective choice is to form your LLC in your home state. Forming elsewhere often requires you to foreign qualify your LLC to do business in your home state, doubling your fees and administrative work.
Plan Your Budget for Long-Term Success
Understanding the full scope of LLC costs is the first step toward sound financial planning. By accounting for both the one-time filing fees and the recurring annual costs, you can ensure your business remains compliant and financially healthy for years to come.
Navigating state-specific requirements can be complex. At Empire Ecommerce, we handle all the paperwork and state filings, ensuring your LLC is formed correctly and efficiently, so you can focus on building your business.
[Ready to launch your LLC without the guesswork? Contact Empire Ecommerce for a free consultation and let our experts guide you through every step.]
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This portion of our website is for informational or educational purposes only. Empire Ecommerce is not a law firm, and the information on this website does not constitute legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Empire Ecommerce is not responsible for the information and/or its accuracy or completeness. It also does not indicate any affiliation between Empire Ecommerce and any other brands, services or logos on this page.