LLC Formation Costs
State Filing Fee
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Processing Time
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Expedited Option
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Annual Report / Franchise Tax
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Registered Agent Required
Yes
Est. Registered Agent Cost
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First Year Total (Filing + RA)
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Ongoing Annual Cost (Report + RA)
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How We Calculate This
State Filing Fee: Each state charges a one-time fee to file your Articles of Organization. These fees range from $35 (Montana) to $500 (Massachusetts) and are set by each state's Secretary of State office.
Annual/Ongoing Costs: Most states require annual reports or franchise tax payments to keep your LLC in good standing. We display each state's annual cost along with a description of what the fee covers (annual report, franchise tax, biennial report, etc.).
Registered Agent: Every state requires a registered agent. We estimate $125/year for a professional registered agent service, which is typical for nationwide providers. This cost is added to both first-year and ongoing totals.
Top 5 Cheapest: We rank all 51 jurisdictions by first-year cost (filing fee + estimated registered agent fee) to help you compare the most affordable options.
Data Sources: Filing fees from each state's Secretary of State website as of early 2026. Annual report fees from official state business filing portals. Processing times are estimates based on standard (non-expedited) filing.
Understanding LLC Formation Costs
Forming a Limited Liability Company (LLC) involves state-specific filing fees that range from as low as $35 in Montana to $500 or more in Massachusetts. Beyond the initial filing fee, you should plan for ongoing costs such as annual reports, franchise taxes, and registered agent services. This calculator helps you compare costs across all 50 states and Washington DC so you can make an informed decision.
Frequently Asked Questions
What is the cheapest state to form an LLC?
Kentucky is one of the cheapest states to form an LLC with a $40 filing fee and only $15 per year for annual reports. Montana ($35 filing fee) and Arkansas ($45 filing fee) are also very affordable options. However, if you conduct business in a different state, you will likely need to register as a foreign LLC there, which adds costs. For most small business owners, forming in your home state is the most cost-effective choice.
Do I need a registered agent for my LLC?
Yes, all 50 states and Washington DC require every LLC to have a registered agent (sometimes called a statutory agent or resident agent). A registered agent is a person or service designated to receive legal documents, tax notices, and official correspondence on behalf of your LLC. You can serve as your own registered agent in most states, but many business owners prefer to hire a professional service for $100-$300 per year for privacy and reliability.
Should I form my LLC in my home state or another state?
For most small businesses, forming your LLC in your home state is the best and most affordable option. While states like Wyoming and Delaware are popular for their business-friendly laws, if you physically operate in another state, you will need to also register as a foreign LLC there. This means paying filing fees and maintaining a registered agent in two states. Forming out of state primarily benefits larger companies with specific legal, tax, or asset protection needs.
What ongoing costs does an LLC have?
Ongoing LLC costs vary by state and typically include: annual report or franchise tax fees (ranging from $0 in states like Arizona to $800+ in California), registered agent service fees ($100-$300 per year), state business licenses or permits, and any applicable state taxes. Some states like Nevada combine annual list fees with business license fees. It is important to budget for these recurring costs when choosing where to form your LLC.
How long does it take to form an LLC?
Standard LLC formation typically takes 1-5 weeks depending on the state. States like California, Connecticut, Louisiana, and Ohio often process filings within 3-5 business days. Most other states take 2-3 weeks for standard processing. Nearly all states offer expedited processing for an additional fee of $50-$100 or more, which can reduce processing time to 1-3 business days. Online filing is generally faster than mail-in filing.