Last Updated: May 2026

LLC Formation Cost by State in 2026 - Real Filing Fees and Annual Costs

TL;DR: LLC formation costs in 2026 vary dramatically by state. The state filing fee alone ranges from $50 in Kentucky to $500 in Massachusetts. But the filing fee is only part of the cost. Annual report fees, franchise taxes, and registered agent services can add hundreds more per year.

The Three Costs of Forming an LLC

Most guides focus only on the state filing fee. That is the smallest part of the actual cost. Real LLC formation cost has three components:

• State filing fee: One-time payment to the secretary of state. Ranges from $50 to $500 depending on state.
• Registered agent: Required in every state. Costs $0 if you serve as your own agent (which exposes your home address to public records) or $49 to $300 per year for a professional service.
• Annual maintenance: Most states require an annual or biennial report with a fee ranging from $0 to $800 per year. Some states also impose a franchise tax on LLCs.

States with the Lowest Total Cost

Kentucky, Arizona, and Missouri rank among the cheapest states to form and maintain an LLC. Kentucky charges $40 to file and $15 per year for the annual report. Arizona has no annual report fee at all. Missouri charges $50 to file and has no franchise tax. The U.S. Small Business Administration notes that filing fees alone do not determine the best state to form in - you generally must form your LLC in the state where you actually do business.

States with the Highest Total Cost

Massachusetts charges $500 to file plus $500 for the annual report. California charges $70 to file but adds an $800 annual franchise tax minimum regardless of income. Delaware charges $90 to file but adds a $300 annual franchise tax. New York requires a publication requirement that can add $1,000 to $2,000 in newspaper notices on top of the $200 filing fee.

The Foreign LLC Trap

Many small business owners hear about Delaware or Wyoming LLC advantages and consider forming their LLC there even though they live elsewhere. The catch: if you operate in your home state, you must register as a foreign LLC in your home state too. That means paying fees in BOTH states every year. For most small businesses, forming in your home state is the most practical and cost-effective choice. Delaware and Wyoming generally only make sense for businesses seeking outside investors or operating nationally without a physical headquarters.

How to Calculate Your Total LLC Cost

Use the Vanderflip LLC cost calculator to see your real first-year and ongoing annual cost for your specific state. The calculator includes state filing fees, annual report fees, franchise taxes, and registered agent options so you can plan accurately.

Hidden Costs Most People Miss

Beyond the state fees, plan for: an operating agreement (free template online or $50-150 for an attorney-reviewed one), an EIN from the IRS (free directly from IRS.gov), a business bank account (some have monthly fees), and any required business licenses for your industry. Total first-year costs typically run $200 to $1,500 once everything is added up.

This article is for informational purposes only and does not constitute professional financial, legal, or tax advice. Data is sourced from publicly available government reports and updated as conditions change. Consult a qualified licensed professional before making financial decisions.

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