How We Calculated the Rankings
For each state we totaled four cost components over a 5-year ownership period: (1) the one-time state filing fee for Articles of Organization, (2) annual report fees multiplied by 4 years (due starting year 2), (3) annual franchise taxes where applicable, and (4) mandatory business license fees. We excluded optional costs like registered agent services and legal fees to keep the comparison apples-to-apples.
Data sources: each state's Secretary of State website, verified against the SBA business structure guide and IRS LLC guidance. All fees current as of April 2026.
Top 10 Cheapest States for an LLC (2026)
| Rank | State | Filing Fee | Annual Cost | 5-Year Total | Income Tax? |
|---|---|---|---|---|---|
| #1 | New Mexico | $50 | $0/yr | $50 | Yes |
| #1 | Arizona | $50 | $0/yr | $50 | Yes |
| #1 | Mississippi | $50 | $0/yr | $50 | Yes |
| #1 | Missouri | $50 | $0/yr | $50 | Yes |
| #5 | Indiana | $95 | $0/yr | $95 | Yes |
| #6 | Ohio | $99 | $0/yr | $99 | Yes |
| #7 | Idaho | $100 | $0/yr | $100 | Yes |
| #8 | Colorado | $50 | $10/yr | $110 | Yes |
| #9 | South Carolina | $110 | $0/yr | $110 | Yes |
| #10 | Kentucky | $40 | $15/yr | $115 | Yes |
| #11 | Hawaii | $50 | $15/yr | $125 | Yes |
| #12 | Utah | $54 | $18/yr | $144 | Yes |
Important: The cheapest states by raw cost all have state income taxes. If tax-free operation matters to your business, see the full 50-state fee comparison tool with tax filters.
Complete 50-State LLC Cost Rankings (2026)
Every US state and D.C. ranked by 5-year total LLC ownership cost. Use our interactive cost calculator to filter by income tax, privacy, and non-resident friendliness.
| # | State | Filing | Annual | Franchise Tax | Year 1 | 5-Year | Privacy | Non-Res? |
|---|---|---|---|---|---|---|---|---|
| 1 | New Mexico | $50 | $0/yr | $0 | $50 | $50 | Low | Yes |
| 1 | Arizona | $50 | $0/yr | $0 | $50 | $50 | Medium | Yes |
| 1 | Mississippi | $50 | $0/yr | $0 | $50 | $50 | Medium | Yes |
| 1 | Missouri | $50 | $0/yr | $0 | $50 | $50 | Medium | Yes |
| 5 | Indiana | $95 | $0/yr | $0 | $95 | $95 | Medium | Yes |
| 6 | Ohio | $99 | $0/yr | $0 | $99 | $99 | Medium | Yes |
| 7 | Idaho | $100 | $0/yr | $0 | $100 | $100 | Medium | Yes |
| 8 | Colorado | $50 | $10/yr | $0 | $60 | $110 | Medium | Yes |
| 9 | South Carolina | $110 | $0/yr | $0 | $110 | $110 | Medium | Yes |
| 10 | Kentucky | $40 | $15/yr | $0 | $55 | $115 | Medium | Yes |
| 11 | Hawaii | $50 | $15/yr | $0 | $65 | $125 | Medium | Yes |
| 12 | Utah | $54 | $18/yr | $0 | $72 | $144 | Medium | Yes |
| 13 | Minnesota | $155 | $0/yr | $0 | $155 | $155 | Medium | Yes |
| 14 | Nebraska | $100 | $13/yr | $0 | $113 | $165 | Medium | Yes |
| 15 | Montana | $70 | $20/yr | $0 | $90 | $170 | Medium | Yes |
| 16 | Michigan | $50 | $25/yr | $0 | $75 | $175 | Medium | Yes |
| 17 | Alabama | $200 | $0/yr | $0 | $200 | $200 | Medium | Yes |
| 18 | Oklahoma | $100 | $25/yr | $0 | $125 | $225 | Medium | Yes |
| 18 | West Virginia | $100 | $25/yr | $0 | $125 | $225 | Medium | Yes |
| 20 | Louisiana | $100 | $30/yr | $0 | $130 | $250 | Medium | Yes |
| 21 | Wisconsin | $130 | $25/yr | $0 | $155 | $255 | Medium | Yes |
| 22 | Vermont | $125 | $35/yr | $0 | $160 | $300 | Medium | Yes |
| 22 | Texas | $300 | $0/yr | $0 | $300 | $300 | Medium | Yes |
| 24 | Wyoming | $100 | $60/yr | $0 | $160 | $340 | High | Yes |
| 25 | Georgia | $100 | $50/yr | $0 | $150 | $350 | Medium | Yes |
| 25 | Virginia | $100 | $50/yr | $0 | $150 | $350 | Medium | Yes |
| 25 | Iowa | $50 | $60/yr | $0 | $110 | $350 | Medium | Yes |
| 28 | New York | $200 | $9/yr | $25/yr | $234 | $370 | Medium | No |
| 29 | North Dakota | $135 | $50/yr | $0 | $185 | $385 | Medium | Yes |
| 30 | Rhode Island | $150 | $50/yr | $0 | $200 | $400 | Medium | Yes |
| 30 | South Dakota | $150 | $50/yr | $0 | $200 | $400 | Medium | Yes |
| 32 | Kansas | $160 | $50/yr | $0 | $210 | $410 | Medium | Yes |
| 33 | Pennsylvania | $125 | $70/yr | $0 | $195 | $475 | Medium | Yes |
| 34 | New Jersey | $125 | $75/yr | $0 | $200 | $500 | Medium | Yes |
| 34 | Washington | $200 | $60/yr | $0 | $260 | $500 | Medium | Yes |
| 36 | Illinois | $150 | $75/yr | $0 | $225 | $525 | Medium | Yes |
| 37 | Maine | $175 | $85/yr | $0 | $260 | $600 | Medium | Yes |
| 37 | New Hampshire | $100 | $100/yr | $0 | $200 | $600 | Medium | Yes |
| 37 | Oregon | $100 | $100/yr | $0 | $200 | $600 | Medium | Yes |
| 40 | Arkansas | $45 | $150/yr | $0 | $195 | $795 | Medium | Yes |
| 41 | Florida | $125 | $139/yr | $0 | $264 | $820 | Medium | Yes |
| 42 | Alaska | $250 | $100/yr | $0 | $350 | $850 | Medium | Yes |
| 43 | North Carolina | $125 | $200/yr | $0 | $325 | $1,225 | Medium | Yes |
| 44 | Connecticut | $120 | $80/yr | $250/yr | $450 | $1,450 | Medium | No |
| 45 | Maryland | $100 | $300/yr | $0 | $400 | $1,600 | Medium | Yes |
| 46 | Tennessee | $300 | $300/yr | $0 | $600 | $1,800 | Medium | Yes |
| 47 | Nevada | $425 | $350/yr | $0 | $775 | $2,175 | High | Yes |
| 48 | District of Columbia | $99 | $300/yr | $250/yr | $649 | $2,249 | Medium | No |
| 49 | Delaware | $90 | $300/yr | $300/yr | $690 | $2,490 | Medium | Yes |
| 50 | Massachusetts | $500 | $500/yr | $0 | $1,000 | $3,000 | Medium | No |
| 51 | California | $70 | $800/yr | $800/yr | $870 | $4,070 | Medium | No |
Why Cheapest Filing Fee Does Not Mean Best Value
Kentucky has the lowest filing fee at $40, but costs $115 over 5 years due to annual reports. New Mexico costs $50 total with no annual fees — but member names are public and there's no asset protection. The cheapest states by raw cost all have state income taxes, which can dwarf the savings on filing fees.
For non-US residents specifically, Wyoming offers the best combination of low cost ($340 over 5 years), privacy protection (member names not listed publicly), zero state income tax, asset protection, and acceptance by all major US banks. Delaware costs 7x more ($2,490) over the same period due to its $300 annual franchise tax.
Cost vs. Value Matrix
| Factor | Wyoming ($340) | New Mexico ($50) | Delaware ($2,490) | California ($4,070) |
|---|---|---|---|---|
| 5-Year Cost | $340 | $50 | $2,490 | $4,070 |
| State Income Tax | None | Yes | None | Yes (8.84%) |
| Privacy (Members Public?) | No | Yes | Yes | Yes |
| Asset Protection | Strong | Weak | Strong | Weak |
| Non-Resident Friendly | Yes | Yes | Yes | No |
| Bank Acceptance | All major banks | Limited | All major banks | All major banks |
The 5 Most Expensive States for an LLC
These states cost the most to own an LLC over 5 years. The main cost driver is either high annual franchise taxes (Delaware, D.C.) or high fixed annual fees (California, Massachusetts).
| Rank | State | Filing | Annual Burden | 5-Year Cost | Why So Expensive? |
|---|---|---|---|---|---|
| #51 | California | $70 | $800/yr franchise tax | $4,070 | $800 annual franchise tax regardless of revenue |
| #50 | Massachusetts | $500 | $500/yr | $3,000 | Highest filing fee + highest annual fee combo |
| #49 | Delaware | $90 | $300/yr franchise tax | $2,490 | $300 annual franchise tax on all LLCs |
| #48 | District of Columbia | $99 | $300 + $250 tax/yr | $2,249 | High annual + franchise tax |
| #47 | Nevada | $425 | $350/yr | $2,175 | Highest filing fee + high annual license |
Best States with No Income Tax for LLCs
Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Here's how they compare on total LLC cost:
| State | Filing Fee | Annual Cost | 5-Year Total | Non-Resident? |
|---|---|---|---|---|
| Texas | $300 | $0/yr | $300 | Yes |
| Wyoming | $100 | $60/yr | $340 | Yes |
| South Dakota | $150 | $50/yr | $400 | Yes |
| Washington | $200 | $60/yr | $500 | Yes |
| New Hampshire | $100 | $100/yr | $600 | Yes |
| Florida | $125 | $139/yr | $820 | Yes |
| Alaska | $250 | $100/yr | $850 | Yes |
| Tennessee | $300 | $300/yr | $1,800 | Yes |
| Nevada | $425 | $350/yr | $2,175 | Yes |
| Delaware | $90 | $300/yr | $2,490 | Yes |
Wyoming ranks cheapest among no-income-tax states at $340 over 5 years — less than half the cost of Texas ($300 one-time but possible franchise tax for high-revenue businesses) and one-sixth the cost of Nevada ($2,175).
Frequently Asked Questions
What is the cheapest state for an LLC in 2026?
New Mexico, Arizona, Mississippi, and Missouri tie at $50 total 5-year cost. Each charges $50 or less to file and has no annual report or franchise tax. However, none offer the privacy or asset protection of Wyoming ($340 over 5 years).
What is the most expensive state for an LLC?
California is the most expensive at $4,070 over 5 years. Despite a low $70 filing fee, California charges an $800 annual franchise tax minimum regardless of whether your LLC earns revenue. Massachusetts is second at $3,000.
What is the best state for a non-resident LLC?
Wyoming is the best state for non-residents. It costs $340 over 5 years, has high privacy (member names not public), no state income tax, strong asset protection, and is accepted by all major US banks including Mercury.
Is Wyoming cheaper than Delaware for an LLC?
Yes. Wyoming costs $340 over 5 years vs Delaware's $2,490. Delaware charges a $300 annual franchise tax that Wyoming doesn't have. Wyoming also offers better privacy and lower ongoing costs.
How much does an LLC cost per year on average?
The average annual LLC maintenance cost across all 50 states is approximately $120/year. The median is $50/year. Wyoming charges $60/year for the annual report, which is below the national average.
Which states have no annual LLC fees?
Twelve states charge $0 in annual LLC fees: Alabama, Arizona, Idaho, Indiana, Minnesota, Mississippi, Missouri, Ohio, South Carolina, and Texas. However, most of these states have income taxes that may offset the savings.
Ready to form your LLC? Wyoming offers the best balance of low cost and strong protections. $297 flat fee — includes state filing, EIN, registered agent, and bank guidance.
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