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Cheapest LLC Formation by State (2026)

Compare LLC filing fees across all 50 states to find the most affordable place to start your business.

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50-State LLC Cost Comparison Table

LLC formation costs vary dramatically by state. Kentucky is the cheapest at just $40 to file, while Massachusetts charges $500 for Articles of Organization plus a $500 annual report. The table below shows every state sorted by filing fee, including annual recurring costs so you can plan your total first-year budget.

When comparing costs, remember that the filing fee is just one factor. Some states with low filing fees have high annual reports or franchise taxes. California, for example, charges only $70 to file but imposes an $800 minimum annual franchise tax regardless of whether your LLC earns any income. Conversely, states like Arizona and Mississippi charge $50 to file with no annual report requirement at all.

StateFiling FeeAnnual ReportFirst-Year Total
Kentucky$40$15$55
Arkansas$45$150$195
Arizona$50$0$50
Colorado$50$10$60
Hawaii$50$15$65
Iowa$50$60$110
Michigan$50$25$75
Mississippi$50$0$50
Missouri$50$0$50
New Mexico$50$0$50
Utah$54$18$72
California$70$800$870
Montana$70$20$90
Nevada$75$150$225
Delaware$90$300$390
Indiana$95$31$126
Ohio$99$0$99
Georgia$100$50$150
Idaho$100$0$100
Louisiana$100$35$135
Maryland$100$300$400
Nebraska$100$10$110
New Hampshire$100$100$200
Oklahoma$100$25$125
Oregon$100$100$200
Virginia$100$50$150
West Virginia$100$25$125
Wyoming$100$60$160
South Carolina$110$0$110
Connecticut$120$80$200
Florida$125$139$264
New Jersey$125$75$200
North Carolina$125$200$325
Pennsylvania$125$70$195
Vermont$125$35$160
Wisconsin$130$25$155
North Dakota$135$50$185
Illinois$150$75$225
Rhode Island$150$50$200
South Dakota$150$50$200
Minnesota$155$0$155
Kansas$160$55$215
Maine$175$85$260
Alabama$200$0$200
New York$200$9$209
Washington$200$71$271
Alaska$250$100$350
Tennessee$300$300$600
Texas$300$0$300
Massachusetts$500$500$1000

Sources: Individual state Secretary of State offices. Fees current as of early 2026. Annual report fees may vary for biennial filers.

Cheapest States to Form an LLC

The five cheapest states to form and maintain an LLC are:

  1. Kentucky ($40 filing, $15 annual): The lowest filing fee in the nation at just $40. Annual reports cost only $15, making the first-year total just $55. Kentucky also has a flat 4% income tax rate.
  2. Arkansas ($45 filing, $150 franchise tax): Very low initial cost, though the annual franchise tax adds up. Good option if you want cheap formation and plan to keep revenue modest.
  3. Arizona ($50 filing, no annual report): Only $50 to file with no ongoing annual report requirement. Arizona also has a low flat 2.5% income tax rate, making it attractive for both formation and ongoing operations.
  4. Colorado ($50 filing, $10 periodic report): Extremely affordable formation and maintenance. The periodic report is just $10, and Colorado has a business-friendly regulatory environment.
  5. Hawaii ($50 filing, $15 annual): Matches Arizona's filing fee with a minimal $15 annual report. Total first-year cost is just $65.

Most Expensive States for LLC Formation

On the other end, these states have the highest LLC costs:

  • Massachusetts ($500 + $500/year): $1,000 first-year cost makes it the most expensive state overall for LLC formation and maintenance.
  • Tennessee ($300 + $300/year): $600 first-year total, though the lack of state income tax offsets ongoing costs for profitable businesses.
  • California ($70 + $800/year): The $800 minimum franchise tax applies even if your LLC earns zero revenue, making California one of the costliest states for dormant or low-revenue LLCs.
  • Texas ($300 filing, no annual report): High upfront cost but no ongoing annual report fee. The franchise tax only applies to businesses exceeding $2.47 million in revenue.

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