LLC Fees Comparison Across All 50 States: Formation, Annual & Total Costs

How do LLC fees compare across all 50 states?

LLC fees range from $40 to $500 for formation and $0 to $800+ per year for ongoing state costs. Wyoming sits at the low end with $100 formation and $60/year total, while California sits at the high end with $800/year minimum franchise tax.

Every state charges a one-time formation fee to file Articles of Organization (or Certificate of Formation/Certificate of Organization depending on the state). Most states also charge a recurring annual or biennial report fee to keep the LLC in good standing. Some states impose franchise taxes, gross receipts taxes, or minimum taxes that add significantly to the annual cost. The total cost of maintaining an LLC depends on all of these fees combined.

The following table shows LLC formation fees, annual fees, and notable taxes for every state. States are listed alphabetically. Formation fees reflect standard online filing. Annual fees reflect the most common annual report cost. Franchise taxes and special assessments are noted separately.

Complete 50-State LLC Fee Table

Which states have the cheapest LLC formation fees?

Kentucky has the cheapest LLC formation fee at $40, followed by Arkansas at $45, and a group of states at $50 including Arizona, California, Colorado, Hawaii, Iowa, Michigan, Mississippi, Missouri, and New Mexico.

Formation fees are one-time costs paid when filing Articles of Organization with the state. A low formation fee is attractive, but it tells only part of the cost story. Several states with low formation fees impose high ongoing costs through annual fees, franchise taxes, or other recurring charges.

California is the best example of a misleading formation fee. California charges only $70 to form an LLC, but then imposes an $800 annual franchise tax that starts in the first year. Over 5 years, California's low formation fee is dwarfed by $4,000 in franchise taxes. Compare this to Wyoming at $100 formation with only $300 in annual fees over the same period.

Top 10 Cheapest Formation Fees

Among the cheapest formation states, New Mexico stands out because it charges $0 for annual reports and has no franchise tax. However, New Mexico lacks Wyoming's privacy protections (New Mexico publishes member names) and does not provide the same level of asset protection for single-member LLCs.

Which states have the most expensive LLC fees?

California is the most expensive state for LLCs due to its $800 annual franchise tax minimum. Massachusetts charges $500 for formation and $500 for biennial reports. Tennessee charges $300 to form plus a $300 minimum franchise/excise tax annually.

The most expensive states fall into two categories: states with high formation fees and states with high ongoing taxes. Some states appear in both categories, making them exceptionally costly over time.

High Formation Fee States

Massachusetts leads with a $500 formation fee, followed by Texas and Tennessee at $300 each. Alaska charges $250 and New York charges $200. These states require a significant upfront investment before the LLC can begin operations.

High Annual Cost States

California's $800 annual franchise tax is the highest flat-rate recurring cost in the country. This tax applies even if the LLC earns $0 in revenue. LLCs with California income above $250,000 pay an additional LLC fee ranging from $900 to $11,790. A California LLC with $5 million in income pays $6,800 in annual state fees ($800 franchise tax + $6,000 LLC fee).

Nevada charges $150 for the annual list of members plus a $200 annual business license fee, totaling $350 per year. Despite its reputation as a "no income tax" state, Nevada's annual fees are nearly six times higher than Wyoming's. Delaware charges $300 per year for the annual tax, five times Wyoming's annual cost. Learn about specific California LLC fees.

Top 10 Most Expensive States (5-Year Total)

What do states charge for LLC annual reports and renewals?

Annual report fees range from $0 (New Mexico, Missouri, Ohio, Arizona, Mississippi) to $500 (Massachusetts biennial). Wyoming charges $60 per year. Most states fall between $25 and $150 for annual reports.

Annual reports (also called annual renewals, annual statements, or statements of information depending on the state) serve a regulatory purpose: they update the state on the LLC's current officers, managers, registered agent, and principal address. Filing the report keeps the LLC in "good standing" with the state. Failure to file results in administrative dissolution in most states.

Some states use biennial reporting (every 2 years) instead of annual reporting. Pennsylvania uses decennial reporting (every 10 years). The filing frequency affects the total annual cost. A state with a $100 biennial report effectively costs $50/year.

Annual Report Fee Comparison: Popular LLC States

Wyoming's $60 annual report is filed online through the Wyoming Secretary of State website. The process takes under 10 minutes and requires no professional assistance. The report is due on the first day of the month in which the LLC was originally formed. Late filing incurs a $50 penalty. See the full details at Wyoming LLC cost guide.

Which states charge franchise taxes on LLCs?

Eleven states charge franchise taxes or equivalent levies on LLCs: California, Connecticut, Delaware (for LPs/corps, not LLCs), Illinois, Kentucky, New Hampshire, Ohio, Oregon, Rhode Island, Tennessee, and Texas. Wyoming charges no franchise tax.

Franchise taxes are separate from annual report fees. While an annual report fee is a flat charge for filing paperwork, a franchise tax is a tax on the privilege of doing business in the state. Franchise taxes are typically based on revenue, income, net worth, or a flat minimum amount. They represent a significant ongoing cost for LLC owners.

State Franchise Taxes That Affect LLCs

For a deep dive into Texas franchise tax specifically, read Texas LLC Franchise Tax Explained. Understanding franchise taxes is critical because they represent the largest variable cost of LLC ownership in many states.

What is the 5-year total cost of an LLC by state?

The 5-year total cost of an LLC ranges from $50 (New Mexico) to over $4,170 (California) in state fees alone. Wyoming's 5-year total is $400, making it one of the three cheapest states alongside New Mexico and Missouri.

The 5-year total cost calculation includes the formation fee (paid once) plus annual fees and franchise taxes (paid each year for 5 years). This calculation excludes registered agent fees, which are paid to private companies rather than the state. Registered agent fees range from $25 to $300 per year depending on the provider and state.

5-Year Total Cost: Top 15 Popular LLC States

Wyoming ranks 9th in pure state fees over 5 years but offers the best overall value when factoring in privacy, asset protection, and zero franchise tax at any revenue level. States ranked 1-8 lack one or more of Wyoming's key benefits: New Mexico publishes member names, Missouri has no specific single-member protections, and Arizona requires publication in some counties.

What hidden costs make some states more expensive than they appear?

Hidden costs include franchise taxes, publication requirements, business license fees, gross receipts taxes, and mandatory tax filings that add hundreds or thousands of dollars beyond the advertised formation and annual fees.

New York Publication Requirement

New York requires every new LLC to publish a notice of formation in two newspapers (one daily, one weekly) in the county where the LLC is located for six consecutive weeks. The cost ranges from $300 in rural counties to $2,000+ in New York City (Manhattan). This is a one-time cost but adds significantly to the first-year expense. Failure to publish within 120 days results in the LLC's authority to conduct business being suspended.

California Annual Franchise Tax

California's $70 formation fee is misleading because the $800 annual franchise tax applies immediately. New LLCs formed after January 1, 2024, are exempt from the $800 tax in their first year, but the tax applies in full starting in year two. Additionally, California charges an LLC fee on top of the franchise tax for LLCs with California-source income above $250,000:

• $250,000-$499,999 income: $900 additional fee
• $500,000-$999,999 income: $2,500 additional fee
• $1,000,000-$4,999,999 income: $6,000 additional fee
• $5,000,000+ income: $11,790 additional fee

Nevada Business License Fee

Nevada charges a $200 annual business license fee in addition to the $150 annual list of members fee. Nevada is marketed as a "no income tax" state, but the $350 combined annual fees are nearly six times Wyoming's $60 annual report fee. Nevada also charges a commerce tax of 0.051% on gross revenue above $4 million.

Hawaii General Excise Tax

Hawaii imposes a 4% General Excise Tax (GET) on the gross income of all businesses, including LLCs. Unlike a sales tax, the GET applies to the business's total gross income, not just retail sales. This means service businesses, wholesale businesses, and all other LLCs pay the GET on their entire revenue. A Hawaii LLC with $500,000 in revenue pays $20,000 in GET annually.

Washington Business & Occupation Tax

Washington state has no income tax but charges a Business & Occupation (B&O) tax on the gross revenue of all businesses. Rates range from 0.138% to 3.3% depending on the business classification. Most service businesses pay 1.5% of gross revenue. A Washington LLC with $500,000 in service revenue pays $7,500 in B&O tax annually.

Why does Wyoming rank as the best value for LLC formation?

Wyoming ranks as the best value because it combines low state fees ($100 formation + $60/year), zero franchise tax at any revenue level, maximum privacy, the strongest single-member asset protection, and simple annual compliance in one package.

Low Total Cost

Wyoming's 5-year total state cost is $400. Only New Mexico ($50), Missouri ($50), Arizona ($50), Colorado ($100), and a few other states are cheaper on pure state fees. However, none of those states match Wyoming's combination of privacy, asset protection, and business-friendly legal framework.

Zero Franchise Tax Forever

Wyoming has no franchise tax, no gross receipts tax, no corporate income tax, and no personal income tax. An LLC earning $100 million in annual revenue pays the same $60 annual report fee as an LLC earning $0. This predictability is essential for growing businesses that do not want state-level costs to increase with revenue.

Privacy Protection

Wyoming does not require LLC member names in public filings. Only the registered agent and organizer appear in Secretary of State records. This privacy protection is a key differentiator from states like New Mexico (which has low fees but publishes member names), Texas (which requires a Public Information Report), and California (which publishes the Statement of Information with manager names). Learn about all Wyoming LLC benefits.

Asset Protection

Wyoming provides charging order protection for single-member LLCs under Wyoming Statute §17-29-503. A creditor of the LLC member cannot seize LLC assets, force distributions, or compel liquidation. Wyoming is one of only a few states that explicitly extends this protection to single-member LLCs. States like California, Texas, and Florida do not provide the same level of protection for single-member LLCs.

Simple Compliance

Wyoming's annual compliance consists of one form: the annual report filed online with the Secretary of State for $60. There are no tax returns, franchise tax calculations, public information reports, or publication requirements. A Wyoming LLC owner spends approximately 10 minutes per year on state compliance. Texas LLC owners spend hours on franchise tax calculations and multi-form filings.

Which state is the best choice for non-resident LLC formation?

Wyoming is the best state for non-resident LLC formation because it offers the lowest total costs, strongest privacy, best asset protection, no franchise tax, and a well-established track record of serving international LLC owners.

Wyoming for Non-Residents

Wyoming has served non-resident LLC owners for decades. The state's LLC Act (Wyoming Statute Title 17, Chapter 29) was the first in the United States, enacted in 1977. Wyoming's legal framework for LLCs is the most tested and developed in the country. Non-residents benefit from this stability and the extensive case law supporting Wyoming LLC protections.

Non-residents form Wyoming LLCs to access US banking (Mercury, Relay), US payment processing (Stripe), and US business credibility. The formation process is 100% remote. No US visit, SSN, or ITIN is required. Read the complete guide at Best State for Non-Resident LLC Formation.

Delaware for Non-Residents

Delaware is a popular alternative for non-residents, particularly those planning to raise venture capital or form a C-Corp later. Delaware's Court of Chancery provides specialized business law expertise. However, Delaware charges $300/year for the annual tax (5x Wyoming's cost), requires a registered agent in Delaware, and does not provide the same single-member LLC asset protection as Wyoming.

New Mexico for Non-Residents

New Mexico offers the lowest state fees ($50 formation, $0 annual) but lacks Wyoming's privacy protections and asset protection framework. New Mexico publishes member names in public records and has fewer legal precedents protecting LLC owners. New Mexico is a viable option for entrepreneurs focused purely on cost, but most non-residents prefer Wyoming's additional protections.

States Non-Residents Should Avoid

• California: $800 annual franchise tax makes it the most expensive option. No benefit for non-residents without California operations.
• New York: Publication requirement adds $300-$2,000 in the first year. Complex compliance for non-residents.
• Nevada: $350/year in state fees with no additional benefits over Wyoming. Marketed heavily but overpriced for what it offers.
• Massachusetts: $500 formation + $500 biennial report. Expensive with no compelling advantage for non-residents.

How should you choose a state based on fees and total cost?

Choose your LLC state by calculating the 5-year total cost including formation fees, annual fees, franchise taxes, and compliance costs, then weighing those costs against privacy, asset protection, and business needs.

Step 1: Calculate 5-Year Total State Cost

Add the formation fee to 5 years of annual fees and any franchise taxes. This gives the minimum state cost for maintaining the LLC. Use the tables in this guide to look up your target state. Compare at least 3 states before making a decision.

Step 2: Add Compliance Costs

Some states require professional tax preparation for franchise tax filings (Texas: $200-$500/year for an accountant). Other states have simple online filings that require no professional help (Wyoming: $0 additional for the annual report). Factor in the cost of professional assistance when comparing states.

Step 3: Evaluate Privacy

If privacy matters to your business, eliminate states that publish member names in public records. Wyoming, Delaware, and Nevada offer the strongest privacy protections. Texas, California, Florida, and most other states publish manager or member information publicly.

Step 4: Assess Asset Protection

If you are forming a single-member LLC, prioritize states with explicit charging order protection for single-member LLCs. Wyoming and Nevada provide this protection. Many other states protect only multi-member LLCs or have ambiguous case law on single-member protection.

Step 5: Consider Physical Nexus

If your business has physical operations (office, warehouse, employees) in a specific state, you will need to register in that state regardless. In that case, you may form in that state to avoid the cost of maintaining registrations in two states (home state + operating state). For remote businesses with no physical presence in any state, Wyoming is the optimal choice.

Decision Summary

For most non-residents and remote business owners, Wyoming provides the best overall value. The $350 difference between Wyoming ($400/5yr) and the absolute cheapest states ($50/5yr) buys privacy, asset protection, and the most established LLC legal framework in the United States. Read the full Wyoming LLC cost guide for a detailed breakdown.