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The filing fee is the number most people compare, but it is paid once. The yearly charges repeat for as long as the LLC exists. To find the cheapest state for you, add them up:
Total state cost = filing fee + yearly report fees + any franchise or privilege tax
Count the years you expect to keep the company. A state with a slightly higher filing fee and no yearly charge beats a cheap filing with a large tax every year.
Low cost states we have checked
These figures come from each state's own fee page or statute. The table lists low cost states whose fees we confirmed word for word on the official page. Our LLC fees by state table has the full list as it grows.
| State | Filing fee | Yearly report | Source |
|---|---|---|---|
| Kentucky | $40 | $15 annual report, due by June 30 | KY fees |
| Arizona | $50 | LLCs file no annual report | AZ LLC fee schedule |
| Colorado | $50 online | $25 periodic report online | CO business fees |
| Hawaii | $50 plus a $1 State Archives fee | $12.50 annual business report online | HI LLC registration |
| Montana | $35 | Annual report fee waived if filed before April 15 | MT fees |
| Missouri | $50 online ($105 paper) | LLCs file no annual report | MO FAQ |
| Mississippi | $50 | $0, due April 15 | MS fee schedule |
| Michigan | $50 | $25, due February 15 | MI fees, MI annual statement |
| Iowa | $50 | $30 online every odd year | IA forms and fees |
| Utah | $59 | $18 | UT fees |
| Ohio | $99 | No annual or biennial filing for LLCs | OH forms, OH LLC guide |
For Arizona, Missouri, Mississippi and Ohio, ask the state tax agency whether an LLC tax applies before you rely on a zero.
Where the yearly cost is higher
Some states have a modest filing fee but a larger charge every year:
- California. $70 to file and a $20 Statement of Information every two years (CA fee schedule). On top of that, the Franchise Tax Board says "Every LLC that is doing business or organized in California must pay an annual tax of $800."
- Delaware. $110 to form. LLCs file no annual report, but Delaware law sets an annual tax of $400, due by June 1 according to the Division of Corporations.
- Arkansas. $45 online to form, then a $150 annual franchise tax report for an LLC, due by May 1 (AR franchise tax forms).
- North Carolina. $125 to form and a $200 annual report for an LLC (NC LLC fees).
- Florida. $125 to form and a $138.75 annual report by May 1 (Florida LLC fees).
Texas charges $300 to file a certificate of formation. It has no filing office report fee, but LLCs file a franchise tax report with the Comptroller by May 15. The Comptroller lists a no tax due threshold of $2,650,000 in revenue.
The home state trap
A low fee in another state only helps if that is the only state you pay. A company doing business in a state generally has to register there as a foreign LLC, even if it was formed elsewhere. Once registered, it pays that state's registration fee, keeps an agent there and files its yearly reports too. Our foreign LLC registration guide explains when that applies.
Take an owner who lives and works in California and forms in Montana. The Montana fees are low. But California charges $70 to register a foreign LLC, and its $800 tax covers LLCs "doing business" there, not only those formed there. The owner pays Montana and California every year. Forming in California would have meant one state.
So the cheapest state is usually your home state if the business works from there. A different state is worth comparing mainly when the LLC has no office, staff or regular in-person work in any one state, for example some owners who live abroad. See LLC for non-residents and which state to form an LLC in.
Other costs to count
State fees are only part of the bill. You may also pay for a registered agent service, an online card or portal surcharge, a business licence, local permits and the cost of getting a certificate of good standing for a foreign registration. The LLC cost calculator adds up the state fees for the states you pick.
When you have a state in mind, the start form below asks where the owners live and where the business will work. You get the steps and state fees for that case.