Business Basics
How Much Does an LLC Cost? Formation and Annual Fees by State
What it really costs to form and keep an LLC: state filing fees, annual reports and franchise taxes in popular states, registered agent and publication costs.
"Form your LLC for $0" ads usually mean the service fee is zero. The state still charges a filing fee, and many states charge again every year to keep the LLC in good standing. Over three years, the difference between states can run from under $200 to several thousand dollars. This guide breaks down what an LLC really costs, with fees for popular states as of 2026.
Warning: State fees change, and some changed during 2026. Every figure below comes from state fee schedules and compiled trackers checked in late 2026. Always confirm on the state's official site before filing.
The parts of LLC cost
| Cost | One-time or recurring | Typical range |
|---|---|---|
| State filing fee (articles of organization) | One-time | About $50 to $500 |
| Annual or biennial report, or franchise tax | Recurring | $0 to $800+ per year |
| Registered agent | Recurring if you use a service | $0 if you serve yourself; roughly $50 to $300 per year for a service |
| Publication | One-time, in a few states | Under $100 to well over $1,000 |
| Expedited processing | Optional | Varies by state |
| Name reservation | Optional | Small fee in most states |
| Operating agreement | One-time | $0 for a template; roughly $500 to $2,500 for a tailored multi-member agreement |
| Local business licenses and DBAs | Varies | Depends on city, county and business type |
| EIN | One-time | Free from the IRS |
Fees in selected states (as of 2026, verify)
| State | Formation filing fee | Recurring state requirement |
|---|---|---|
| Wyoming | $100 | Annual report with license tax, minimum $60 |
| Delaware | $110 | Annual LLC tax of $400 for tax year 2026 onward (increased from $300); no annual report |
| Florida | $125 | Annual report $138.75, due by May 1; $400 late fee after |
| Texas | $300 | Franchise tax report and Public Information Report by May 15; no tax due below a revenue threshold, but filing is still required |
| California | $70 | $800 minimum annual LLC tax; Statement of Information $20 every two years; extra fee at higher gross receipts |
| New York | $200 | Biennial statement $9; publication within 120 days, cost varies widely by county |
| Nevada | About $425 total at formation | About $350 per year (annual list plus state business license) |
| Massachusetts | $500 | Annual report $500 |
| Arizona | $50 | No annual report for LLCs; publication may be required outside Maricopa and Pima counties |
Annual fees elsewhere vary too: Georgia's annual registration is about $60, Illinois's annual report about $75 and North Carolina's annual report about $200 (verify). Several states, including Arizona, Missouri, Ohio, New Mexico and South Carolina, have no regular secretary of state report for most LLCs. You still need to keep your registered agent current.
Publication: the surprise cost
A few states require new LLCs to publish a notice in newspapers:
- New York: within 120 days of formation, publish in two newspapers designated by the county for six consecutive weeks, then file a Certificate of Publication ($50 as of 2026). Costs range from under $100 in some counties to well over $1,000 in others.
- Arizona: may require publication if the statutory agent address is outside Maricopa and Pima counties.
- Nebraska: has a publication requirement for new LLCs.
The home state rule
If you live and do business in State A but form your LLC in State B, you usually must also register in State A as a foreign LLC and pay State A's fees. Forming in Wyoming or Delaware does not avoid your home state's taxes or annual fees. For most US residents running a local or online business from home, forming in the home state is simpler and cheaper.
Tip: Delaware and Wyoming make the most sense for specific situations: venture-backed companies that will become C corporations (often Delaware) or non-US founders with no US home state (often Wyoming or New Mexico for low fees).
Worked example: three-year cost comparison
A freelance designer in California compares forming at home with forming in Wyoming.
| Cost | California LLC | Wyoming LLC (also registered in California) |
|---|---|---|
| Formation filing | $70 | $100 Wyoming + about $70 California foreign registration (verify) |
| Registered agent (3 years) | $0 (self) | About $150 to $600 for Wyoming, plus California agent if not self |
| Annual state fees (3 years) | $800 × 3 = $2,400, plus $20 Statement of Information twice | Wyoming $60 × 3 = $180, plus California's $800 × 3 = $2,400 and $40 in Statements of Information |
| Three-year total (approx.) | About $2,510 | About $2,940 to $3,390+ |
Forming in Wyoming costs her more, because California's annual tax applies either way. The same logic holds in most states.
A first-year cost worksheet
| Item | Your cost |
|---|---|
| State filing fee | |
| Expedited processing (optional) | |
| Name reservation (optional) | |
| Registered agent (first year) | |
| Publication (if required) | |
| Operating agreement | |
| Local business license(s) | |
| DBA registration (if needed) | |
| Total first-year cost |
Ways to keep LLC costs down
- Form in your home state unless you have a specific reason not to
- Get your EIN free directly from IRS.gov, not through a paid middleman
- Serve as your own registered agent if your state allows and you are comfortable with your address being public
- Use a free template for a simple single-member operating agreement
- Calendar annual report deadlines to avoid late fees
- Skip optional add-ons you do not need
- Compare publication costs between eligible newspapers where the rules allow a choice
Paying someone to form it for you
Formation services charge anywhere from nothing (on top of the state fee) to a few hundred dollars for packages that bundle a registered agent, an operating agreement template, an EIN application and compliance reminders. Some are useful, especially for non-US founders who need a US address and agent. But read the package carefully: the EIN is free from the IRS, operating agreement templates are widely available, and annual "compliance" add-ons often just remind you of a deadline you could put on your own calendar. Compare the package price with the state fee plus the one or two services you actually need.
Costs that come with any business
An LLC does not replace business licenses, permits, insurance or tax obligations. Budget for local licenses, any professional licenses, insurance and bookkeeping alongside your LLC fees.
Mistakes to avoid
- Forming out of state to "save on taxes" and paying both states
- Missing annual reports and losing good standing
- Paying for an EIN that is free from the IRS
- Forgetting New York's publication requirement
- Assuming no revenue means no filing; Texas and other states still require reports
Your next step
Knowing the cost is step one; forming the LLC correctly and keeping it compliant is the rest. Forming a US LLC & Getting an EIN by Omer Muneer Qazi covers choosing a structure and state, naming, registered agents, filing, operating agreements, getting an EIN, beneficial ownership reporting, tax classification, bank accounts, licenses and staying in good standing, with templates and a compliance calendar.
General information only, not legal, tax or financial advice. Rules and costs vary by state and change; verify with official sources. Read the disclaimer.