In this guide LLC Cost by State, we’ll break down the 2025 LLC costs for all 50 states, explain hidden fees to avoid, and share tips to save money.
Forming an LLC is a critical step for entrepreneurs, but understanding the costs involved can be confusing. While LLC fees vary widely by state, one thing is clear: forming an LLC focusing on LLC Cost by State in your home state is almost always cheaper and simpler than chasing “magical” low-fee states like Nevada or Wyoming.
Forming an LLC is one of the most important steps for entrepreneurs, freelancers, and small business owners. However, the costs of forming and maintaining an LLC vary significantly depending on the LLC Cost by State where you register your business. While some states charge as little as 35∗∗toformanLLC,otherscancost∗∗35∗∗toformanLLC,otherscancost∗∗500 or more, with ongoing annual fees adding to the expense.
In this guide, we’ll break down the LLC cost by State for all 50 states and Washington, D.C., explain the factors that influence these costs, and provide actionable tips to save money. Whether you’re forming your first LLC or expanding your business to a new state, this guide will help you make informed decisions.
Why LLC Cost by State Vary for Different States
The cost of forming and maintaining an LLC depends on several factors, including:
- State Filing Fees: Every state charges a fee to file your LLC formation documents (e.g., Articles of Organization). These fees range from 35(Montana)∗∗to∗∗500 (Massachusetts).
- Annual/Biennial Fees: Most states require LLCs to file annual or biennial reports and pay associated fees. These fees can range from 0(Arizona,Ohio)∗∗to∗∗800/year (California).
- Registered Agent Fees: If you hire a professional registered agent, you’ll pay 50–50–300/year depending on the state.
- Additional Costs: Some states impose franchise taxes, business license fees, or expedited processing fees.
Understanding these LLC Cost by State is crucial to avoiding surprises and budgeting effectively for your LLC.
Breaking Down LLC Costs by State: Initial vs. Ongoing Fees
1. Initial LLC Filing Fees
Every state charges a one-time fee to file your LLC formation documents (typically called Articles of Organization or Certificate of Formation). This fee ranges from 35(Montana)∗∗to∗∗500 (Massachusetts).
Example:
- California: $70 filing fee.
- Texas: $300 filing fee.
2. Ongoing LLC Fees
Most states require annual or biennial fees to keep your LLC compliant. These include:
- Annual Reports: Updates your business details with the state.
- Franchise Taxes: Paid by LLCs in certain states (e.g., California charges $800/year).
- Registered Agent Fees: Required if you hire a professional agent.
Pro Tip: States like Ohio and Missouri have no annual fees, making them budget-friendly for long-term compliance.
State-by-State LLC Fees (2025)
Here’s a detailed breakdown of LLC Cost by State for all 50 states and Washington, D.C., updated for 2025:
| State | Initial Filing Fee | Annual/Biennial Fee | Registered Agent Cost (Optional) |
|---|---|---|---|
| Alabama | $200 | $50/year | 100–100–150/year |
| Alaska | $250 | $100 every 2 years | 125–125–200/year |
| Arizona | $50 | $0 | 50–50–100/year |
| Arkansas | $45 | $150/year | 100–100–150/year |
| California | $70 | 800/year+800/year+20 biennial | 100–100–150/year |
| Colorado | $50 | $10/year | 50–50–100/year |
| Connecticut | $120 | $80/year | 100–100–150/year |
| Delaware | $90 | $300/year | 50–50–100/year |
| Florida | $125 | $138.75/year | 100–100–150/year |
| Georgia | $100 | $50/year | 50–50–100/year |
| Hawaii | $50 | $15/year | 50–50–100/year |
| Idaho | $100 | $0 | 50–50–100/year |
| Illinois | $150 | $75/year | 100–100–150/year |
| Indiana | $95 | $31 every 2 years | 50–50–100/year |
| Iowa | $50 | $30 every 2 years | 50–50–100/year |
| Kansas | $160 | $50/year | 50–50–100/year |
| Kentucky | $40 | $15/year | 50–50–100/year |
| Louisiana | $100 | $35/year | 50–50–100/year |
| Maine | $175 | $85/year | 50–50–100/year |
| Maryland | $100 | $300/year | 50–50–100/year |
| Massachusetts | $500 | $500/year | 100–100–150/year |
| Michigan | $50 | $25/year | 50–50–100/year |
| Minnesota | $155 | $0 | 50–50–100/year |
| Mississippi | $50 | $0 | 50–50–100/year |
| Missouri | $50 | $0 | 50–50–100/year |
| Montana | $35 | $20/year | 50–50–100/year |
| Nebraska | $100 | $13 every 2 years | 50–50–100/year |
| Nevada | $425 | $350/year | 100–100–200/year |
| New Hampshire | $100 | $100/year | 50–50–100/year |
| New Jersey | $125 | $75/year | 50–50–100/year |
| New Mexico | $50 | $0 | 50–50–100/year |
| New York | $200 | $9 every 2 years | 50–50–100/year |
| North Carolina | $125 | $200/year | 50–50–100/year |
| North Dakota | $135 | $50/year | 50–50–100/year |
| Ohio | $99 | $0 | 50–50–100/year |
| Oklahoma | $100 | $25/year | 50–50–100/year |
| Oregon | $100 | $100/year | 50–50–100/year |
| Pennsylvania | $125 | $7/year | 50–50–100/year |
| Rhode Island | $150 | $50/year | 50–50–100/year |
| South Carolina | $110 | $0 | 50–50–100/year |
| South Dakota | $150 | $50/year | 50–50–100/year |
| Tennessee | $300 | $300/year | 50–50–100/year |
| Texas | $300 | $0 | 50–50–100/year |
| Utah | $59 | $18/year | 50–50–100/year |
| Vermont | $125 | $35/year | 50–50–100/year |
| Virginia | $100 | $50/year | 50–50–100/year |
| Washington | $200 | $60/year | 50–50–100/year |
| Washington DC | $99 | $300 every 2 years | 50–50–100/year |
| West Virginia | $100 | $25/year | 50–50–100/year |
| Wisconsin | $130 | $25/year | 50–50–100/year |
| Wyoming | $100 | $60/year | 50–50–100/year |
Why Washington, D.C. is Included
While Washington, D.C. is not a state, it functions similarly for business formation purposes. Entrepreneurs and business owners in the District of Columbia follow the same LLC formation process as those in the 50 states. For this reason, we’ve included D.C. in our state-by-state breakdown to provide a complete picture of LLC Cost by State across the United States.
Cheapest & Most Expensive States to Form an LLC
Cheapest States
- Montana (35filingfee+35filingfee+20/year).
- Arizona ($50 filing fee, no annual fee).
- Ohio ($99 filing fee, no annual fee).
Caveat: Forming an LLC in a low-fee state only makes sense if you live or operate there. Otherwise, you’ll pay double fees as a Foreign LLC Cost by State.
Most Expensive States
- Massachusetts (500filingfee+500filingfee+500/year).
- California (70filingfee+70filingfee+800/year).
- Nevada (425filingfee+425filingfee+350/year).
Key Notes About the Table
- Annual/Biennial Fees: States like Arizona, Missouri, and Ohio have no annual fees, making them budget-friendly.
- Registered Agent Costs: Optional if you act as your own agent (saves 50–50–300/year).
- Hidden Fees: Watch for franchise taxes (e.g., California’s $800/year) and late penalties.
Hidden Costs of Forming an LLC
While the initial filing fee and annual report fees are the most obvious LLC Cost by State, there are several hidden expenses to consider:
- Business Licenses and Permits: Many states and local governments require LLCs to obtain business licenses, which can cost 50–500/year hence it vary LLC Cost by State.
- Expedited Processing Fees: If you need your LLC formed quickly, some states charge 50–200 for expedited processing.
- Registered Agent Fees: Hiring a professional registered agent typically costs 50–300/year.
- Franchise Taxes: Some states (e.g., California, Delaware) impose franchise taxes on LLCs, which can range from 800–1,000/year.
5 Tips to Reduce LLC Costs
- Form Your LLC in Your Home State: Avoid double fees and compliance headaches.
- Be Your Own Registered Agent: Save 100–100–300/year if your state allows it.
- File Initial Paperwork Yourself: Use free guides instead of paying formation services.
- Skip Unnecessary Add-Ons: Avoid upsells like “expedited processing” unless urgent.
- Track Annual Deadlines: Late fees can add 50–50–500/year.
LLC Cost FAQs
1. Can I avoid paying annual LLC fees?
No. Most states require annual fees to keep your LLC active. Ignoring them can lead to penalties or dissolution.
2. Do LLCs pay federal taxes?
LLCs have pass-through taxation, meaning profits are reported on your personal tax return. You don’t pay corporate taxes unless you elect C-Corp status.
3. What’s the cheapest way to start an LLC?
- File paperwork yourself (35–35–500).
- Be your own Registered Agent (free).
- Use free Operating Agreement templates.
4. Why is California so expensive?
California charges an $800 minimum franchise tax yearly, regardless of income. This applies even to inactive LLCs.
5. Can non-US residents form an LLC cheaply?
Yes! States like Wyoming (100filingfee)and∗∗Delaware∗∗(100filingfee)and∗∗Delaware∗∗(90 filing fee) are popular, but factor in registered agent fees (50–50–200/year).
Tips for Saving Money on LLC Costs
- Form Your LLC in Your Home State: Avoid double fees and compliance headaches.
- Be Your Own Registered Agent: Save 100–100–300/year if your state allows it.
- File Initial Paperwork Yourself: Use free guides instead of paying formation services.
- Skip Unnecessary Add-Ons: Avoid upsells like “expedited processing” unless urgent.
- Track Annual Deadlines: Late fees can add 50–50–500/year.
References
- IRS.gov: Pass-through taxation rules for LLCs.
- SBA.gov: State-specific business licensing requirements.
- Nolo: Legal guides on LLC formation and compliance.
- Investopedia: Analysis of LLC costs and tax strategies.
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