LLC Costs by State Comparison (2026)

Key Takeaways

Forming an LLC provides personal asset protection, tax flexibility, and a simple management structure.

LLC costs vary by state, with filing fees ranging from $35 to over $500 and annual fees differing by location.

States like Wyoming and Nevada offer tax benefits, while others like Delaware and California have higher franchise taxes.

The best state to form your LLC depends on factors such as taxes, fees, and legal protections.

For most businesses, forming an LLC in your home state is the most efficient and cost-effective choice.

As a business owner, every decision you make affects your business’s success, including:

• Hiring employees
• Selection of business location
• The choice of business structure and many more

One of the best ways to minimize personal and financial risks is to choose the right legal framework.

This is where forming a Limited Liability Company (LLC) online comes in. It:

• Protects your personal assets from business debts and legal claims
• Offers tax flexibility
• Provides a straightforward management structure

But did you know that LLC costs vary greatly by state? Whether you’re asking how much it costs to start an LLC, or wondering about LLC costs by state?

Let’s break down the costs of LLC by state and guide you through forming an LLC to secure your business’s future.

What Are The Key Costs To Form an LLC?

LLC formation includes both mandatory state expenses and optional, recommended costs.

Mandatory Costs

State Filing Fees

The state filing fee is the cost you pay to the state’s Secretary of State to file the Articles of Organization (or Certificate of Formation) to officially create your LLC.

This fee ranges from $35 (Montana) to over $500 (Massachusetts). This is the primary LLC price by state and varies for domestic and foreign LLCs.

The filing fees vary depending on the state, and the cost may also be different for domestic LLCs and foreign LLCs.

Annual/Biennial Fees

These are state-mandated changes that come with filing required Annual Reports or Statements of Information to update your LLC’s formation in the state’s records.

The costs can vary a lot, from $0 to over $500. Here is the quick comparison:

No Fee States

Arizona, Missouri, New Mexico, Mississippi, Ohio, South Carolina (though you might still need to file an info report).

Low Fee States

• New York: $9 (biennial)
• Indiana: $32 online or $50 if filed by mail (biennial)
• Utah: $18 (annual)

High Fee States

• Massachusetts: $125.00; $150 if not filed timely (annual)
• Nevada: $350 (annual)
• Tennessee: $300 minimum (annual)
  

Optional (But Recommended) Costs

Registered Agent Service

When you form an LLC, you will need a registered agent who receives legal documents and official notices on your behalf. You can technically act as your own registered agent for free, but your home address will become public. Most businesses opt for registered agent services to streamline the process and protect their privacy.

Operating Agreement

An operating agreement is important for outlining the roles, ownership stakes, and profit-sharing arrangements of each LLC member. Some states don’t require it to be filed, but it is an important document for ensuring limited liability protection and clearly defining member relationships. You can opt for a custom-drafted operating agreement that is tailored specifically to your business.

Business Name Reservation

You can reserve your name if you have thought of the perfect name, but you are not ready to create your business. Most states allow you to file a form for a fee. The details can vary by state, though. Some states have different timeframes.

DBA (“Doing Business As”)

You will need to register a DBA (Doing Business As) if you are planning to operate your business under a name that is different from your LLC’s legal name. The cost to register a DBA typically varies by state and county. Some states may also require you to publish your DBA in local newspapers. This adds extra costs to the registration process. Most businesses are considering registering a DBA through professional services to streamline the process.

Licenses And Permits

Licenses and permits are a must when starting a business. The cost can vary a lot depending on your industry and location. In most states, a general license costs between $15 and $200. The costs can be higher if your business falls under a specific industry.

Plus, there may be other permits you need, such as sales tax licenses, professional licenses, health permits, zoning permits, or sign permits.

The specifics depend on where you are located and the type of business you are running. Please check with your local city and county authorities to make sure you have everything covered.

LLC Cost By State (As of 2026)

NOTE: States vary in LLC costs due to filing fees, annual taxes (like franchise taxes), and operational requirements. Recurring LLC fees may change. It is essential to check the latest information for each state to fully understand how much an LLC costs to maintain.

Which Is The Best State to Form Your LLC in 2026?

The best state to form your LLC in 2026 depends on several factors:

1. State Taxes

Some states, like Wyoming and Nevada, have no personal or corporate income taxes. This is beneficial for LLC owners.

2. Franchise Taxes and Fees

States like Delaware and California have franchise taxes that may apply, even if the business isn't generating income.

3. Legal Protections

States like Delaware are attractive to businesses seeking well-developed legal systems and judicial expertise in business matters.

4. Best for Local Operations

Forming an LLC in your home state is best if your business operates mainly in one state. You don’t need extra tax benefits or privacy protections. It is more efficient and cost-effective.

Are you thinking of forming an LLC in one of the 50 states?

Then let Swyft Filings help you navigate the complexities of LLC formation, including paperwork and all legal requirements.