Business & Legal · Updated June 2026

LLC Formation Cost Guide 2026: State Fees & Total Startup Costs

Filing fees range from $40 (Kentucky) to $500 (Massachusetts). Add registered agent and annual report fees and most LLCs cost $100–$500 in the first year — except California ($940+) and New York ($759+).

Research Team: CostPrism Analysts Sources: State SOS offices, IRS, NOLO, Wolters Kluwer Methodology

$40–$500

State Filing Fee Range

$150–$1,200

Typical First-Year Total

6.1M+

New LLCs Formed in 2025

Calculate your total LLC formation cost

Includes filing fee, registered agent, and annual compliance costs for your state.

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Full LLC Cost Breakdown: What You'll Actually Pay

State Filing Fee (Articles of Organization)

Required

One-time fee paid to your state Secretary of State. Non-refundable. Kentucky is cheapest; Massachusetts most expensive.

$40–$500

Registered Agent

Required

Required in all states. You can serve as your own RA if you have a physical address in the state during business hours. Services like Northwest cost $125/yr.

$0–$300/yr

Operating Agreement

Not required in most states but strongly recommended. DIY is free (use a template). A business attorney charges $300–$800 for custom drafting.

$0–$800

EIN (Employer Identification Number)

Required

Get your EIN directly from IRS.gov — it's free and takes 10 minutes online. Never pay a third party for this.

Free

Annual Report / Biennial Filing

Required

Most states require annual or biennial reporting. California's $800 minimum franchise tax is the most expensive in the US.

$0–$820/yr

Business Bank Account

Required to maintain liability protection. Many online banks (Relay, Mercury, Bluevine) offer free business checking.

$0–$25/mo

Business License

City/county-level license may be required depending on your business type and location. Check your local municipality.

$50–$500

Formation Services: DIY vs. Professional (2026)

You can form an LLC yourself for just the state filing fee. Here's how the major options compare.

Service	Service Fee	First-Year Total	Best For
DIY (yourself)	$0	Filing fee only	Cheapest; full control
Northwest Registered Agent	$39 + state fee	$139–$539	Excellent support, 1 free year RA included
ZenBusiness	$49 + state fee	$149–$549	Dashboard for ongoing compliance, good for beginners
LegalZoom	$0 + state fee (basic)	$50–$500+	Brand recognition, attorney network available
Bizee (formerly Incfile)	$0 + state fee	$50–$500	Free basic formation, 1 year free RA
Business Attorney	$500–$1,500 flat	$600–$2,000+	Custom operating agreement, legal advice

LLC Filing Fees by State (2026)

First-year total includes state filing fee + registered agent ($50) + estimated annual report fee.

State	Filing Fee	Annual Report	Registered Agent	First-Year Est.	Notes
Kentucky	$40	$15	N/A	$55	No RA requirement if member is in-state
Mississippi	$50	None	$50	$100	No annual report fee
New Mexico	$50	None	$50	$100	No annual report — very affordable
Colorado	$50	$10	$50	$110	Lowest ongoing costs in the US
Ohio	$99	None	$50	$149	No annual report; low cost
Georgia	$100	$50	$50	$200	Affordable, fast processing
Minnesota	$155	None	$50	$205	No annual report required
Wyoming	$100	$60	$60	$220	Business-friendly; no franchise tax
Arkansas	$45	$150	$50	$245	Annual franchise tax $150
Oregon	$100	$100	$50	$250	Reasonable ongoing costs
Illinois	$150	$75	$50	$275	Chicago has additional local requirements
Washington	$200	$60	$50	$310	No state income tax, but B&O tax applies
Florida	$125	$138	$50	$313	Popular for asset protection
Texas	$300	None	$50	$350	No annual report; franchise tax applies to larger LLCs
North Carolina	$125	$200	$50	$375	Annual report due April 15
Delaware	$90	$300	$50	$440	Low filing; higher annual franchise tax
New York	$200	$9	$50	$759	Publication requirement adds $500–$2,000
California	$70	$820	$50	$940	Mandatory $800 min. franchise tax/yr
Nevada	$425	$350	$200	$975	Privacy-friendly but expensive
Massachusetts	$500	$500	$50	$1050	Highest filing fee in the US

All fees verified from state Secretary of State websites. May not reflect most recent legislative changes. Verify at your state's official SOS website before filing.

Watch Out: California and New York Have Hidden Costs

⚠ California LLC Costs

Filing fee: $70 (cheap!)
But: $800 minimum franchise tax every year — even if your LLC earns $0
Statement of Information: $20 every 2 years
LLC fee: Additional 0%–$11,790/yr based on revenue over $250,000
First-year minimum: ~$940

⚠ New York LLC Publication Requirement

Filing fee: $200
But: You must publish your LLC formation in 2 newspapers for 6 weeks
Publication cost: $500–$2,000+ (more in NYC)
Certificate of Publication fee: $50
First-year total: $750–$2,300+

How LLCs Are Taxed (And Why It Matters)

LLCs are flexible — you can choose how you're taxed. The right choice can save thousands per year.

Single-Member LLC (default)

Tax form: Schedule C (sole prop)

Best for: Freelancers, consultants, part-time businesses

Self-employment tax: Yes — 15.3% on all profits

Multi-Member LLC (default)

Tax form: Partnership (Form 1065)

Best for: Business partners with no outside investors

Self-employment tax: Yes — on each partner's distributive share

S-Corp Election

Tax form: S-Corp (Form 1120-S)

Best for: LLCs earning $40,000+ in profit

Self-employment tax: Only on reasonable salary (can save $5K–$20K/yr)

C-Corp Election

Tax form: C-Corp (21% flat rate)

Best for: VC-backed startups seeking outside investment

Self-employment tax: No self-employment tax; double taxation risk

Tax treatment is complex. Consult a CPA or tax attorney before making tax elections. The S-Corp election typically makes sense when annual LLC profit exceeds $40,000.

Form Your LLC in Minutes — From $39

Northwest Registered Agent handles your filing, registered agent service, and keeps you compliant. Rated #1 by business owners for support quality.

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Frequently Asked Questions

How much does it cost to form an LLC in 2026?

The state filing fee to form an LLC ranges from $50 (Kentucky) to $500 (Massachusetts). Add a registered agent ($50–$300/yr), operating agreement (free DIY or $150–$500 attorney-drafted), and EIN registration (free via IRS). Total first-year costs are typically $150–$1,200.

What is the cheapest state to form an LLC?

Kentucky ($40), Colorado ($50), and Arkansas ($45) have the lowest filing fees. Wyoming ($100) and Delaware ($90) are popular for business-friendly laws despite slightly higher fees. But for most small businesses, forming in your home state is cheapest because you avoid foreign LLC registration fees.

Do I need a lawyer to form an LLC?

No. Most LLC formations are straightforward enough to do yourself (DIY) by filing Articles of Organization with your state. For $50–$300 you can use a formation service like Northwest Registered Agent or ZenBusiness. You should hire an attorney if you have partners/investors, complex ownership structures, or operate in a regulated industry.

What ongoing fees does an LLC have?

Most states require an annual report or biennial filing fee ($0–$800/yr). California's minimum franchise tax is $800/yr. A registered agent costs $50–$300/yr. If you use an accountant for business taxes, add $500–$2,000/yr. Budget $200–$2,500/yr in ongoing compliance costs depending on your state.

Is Wyoming or Delaware better for forming an LLC?

Wyoming is better for most small businesses seeking privacy and asset protection — no annual franchise tax, anonymous ownership allowed, and only $60/yr to maintain. Delaware is favored by venture-backed startups because investors are familiar with Delaware laws and the Court of Chancery is well-established. For most sole proprietors and small businesses, Wyoming wins on cost.

Related Resources

LLC Formation Calculator

Get your state-specific estimate

Startup Cost Calculator

Total costs to launch a business

Bookkeeping Cost Calculator

Ongoing accounting costs