Average Cost of Forming an LLC by State (2025)
Complete breakdown of LLC formation costs across all 50 states. The average cost to form an LLC is $123 in state filing fees plus $73 in annual fees, totaling $224 for the first year.
$123
Avg Filing Fee
$73
Avg Annual Fee
11
States w/ No Annual Fee
$224
Avg First Year Total
Cost Extremes Across States
Lowest Filing Fee
$40
Kentucky has the lowest state filing fee
Highest Filing Fee
$500
Massachusetts has the highest state filing fee
Lowest Total Cost
$50
Arizona has the lowest first-year total
Highest Total Cost
$1000
Massachusetts has the highest first-year total
Most and Least Expensive States
💰 10 Most Affordable States
💸 10 Most Expensive States
Complete State-by-State Breakdown
All 50 states ranked by total first-year cost. Click on any state for detailed requirements and processing times.
| Rank | State | Filing Fee | Annual Fee | Franchise Tax | First Year Total | Processing Time |
|---|---|---|---|---|---|---|
| 1 | Arizona | $50 | FREE | - | $50 | 5-10 business days |
| 2 | Missouri | $50 | FREE | - | $50 | 5-7 business days |
| 3 | New Mexico | $50 | FREE | - | $50 | 7-10 business days |
| 4 | Mississippi | $50 | FREE | - | $50 | 5-7 business days |
| 5 | Kentucky | $40 | $15 | - | $55 | 5-7 business days |
| 6 | Colorado | $50 | $10 | - | $60 | 1-2 business days |
| 7 | Hawaii | $50 | $15 | - | $65 | 3-5 business days |
| 8 | Utah | $54 | $18 | - | $72 | 2-3 business days |
| 9 | Michigan | $50 | $25 | - | $75 | 7-10 business days |
| 10 | Montana | $70 | $20 | - | $90 | 5-10 business days |
| 11 | Iowa | $50 | $45 | - | $95 | 5-10 business days |
| 12 | Ohio | $99 | FREE | - | $99 | 3-5 business days |
| 13 | Idaho | $100 | FREE | - | $100 | 5-7 business days |
| 14 | South Carolina | $110 | FREE | - | $110 | 5-10 business days |
| 15 | Nebraska | $105 | $10 | - | $115 | 5-7 business days |
| 16 | Pennsylvania | $125 | FREE | - | $125 | 7-10 business days |
| 17 | West Virginia | $100 | $25 | - | $125 | 5-7 business days |
| 18 | Indiana | $95 | $30 | - | $125 | 7-10 business days |
| 19 | Oklahoma | $100 | $25 | - | $125 | 3-5 business days |
| 20 | Louisiana | $100 | $35 | - | $135 | 5-7 business days |
| 21 | Georgia | $100 | $50 | - | $150 | 7-10 business days |
| 22 | Virginia | $100 | $50 | - | $150 | 7-10 business days |
| 23 | Wisconsin | $130 | $25 | - | $155 | 5-7 business days |
| 24 | Minnesota | $155 | FREE | - | $155 | 5-7 business days |
| 25 | Wyoming | $100 | $60 | - | $160 | 3-5 business days |
| 26 | Vermont | $125 | $35 | - | $160 | 7-10 business days |
| 27 | Alabama | $183 | FREE | - | $183 | 5-10 business days |
| 28 | North Dakota | $135 | $50 | - | $185 | 5-7 business days |
| 29 | Arkansas | $45 | $150 | - | $195 | 5-7 business days |
| 30 | Connecticut | $120 | $80 | - | $200 | 5-7 business days |
| 31 | South Dakota | $150 | $50 | - | $200 | 3-5 business days |
| 32 | New Hampshire | $100 | $100 | - | $200 | 5-7 business days |
| 33 | Rhode Island | $150 | $50 | - | $200 | 3-5 business days |
| 34 | New Jersey | $125 | $75 | - | $200 | 5-10 business days |
| 35 | Oregon | $100 | $100 | - | $200 | 1-2 business days |
| 36 | New York | $200 | $9 | - | $209 | 7-10 business days |
| 37 | Kansas | $165 | $55 | - | $220 | 5-7 business days |
| 38 | Illinois | $150 | $75 | - | $225 | 5-10 business days |
| 39 | Maine | $175 | $85 | - | $260 | 7-10 business days |
| 40 | Washington | $200 | $60 | - | $260 | 2-3 business days |
| 41 | Florida | $125 | $138.75 | - | $263.75 | 3-5 business days |
| 42 | Texas | $300 | FREE | - | $300 | 5-7 business days |
| 43 | North Carolina | $125 | $200 | - | $325 | 7-10 business days |
| 44 | Alaska | $250 | $100 | - | $350 | 10-15 business days |
| 45 | Maryland | $100 | $300 | - | $400 | 7-10 business days |
| 46 | Nevada | $75 | $350 | - | $425 | 1-2 business days |
| 47 | Delaware | $90 | $300 | $300 | $690 | 5-10 business days |
| 48 | California | $75 | $20 | $800 | $895 | 10-15 business days |
| 49 | Tennessee | $300 | $300 | $300 | $900 | 5-7 business days |
| 50 | Massachusetts | $500 | $500 | - | $1000 | 5-7 business days |
| National Average | $123 | $73 | $28 | $224 | 5-10 days | |
💡 No Annual Fees
11 states don't charge annual fees: Texas, Idaho, Arizona, and more.
⚡ Fastest Processing
Several states offer same-day or 1-day processing for expedited fees.
📊 Franchise Tax
3 states charge franchise tax in addition to filing fees.
Understanding LLC Formation Costs
1. State Filing Fee
The one-time fee paid to the state to file your Articles of Organization. This ranges from $40 in Kentucky to $500 in Massachusetts, with a national average of $123.
What it covers: Processing your LLC formation documents, registering your business name, and establishing your LLC as a legal entity in the state.
2. Annual Report/Fee
Recurring yearly fee to maintain your LLC's good standing. 11 states charge no annual fee, while others charge up to $800 per year. The national average is $73.
What it covers: Keeping your business information updated with the state, maintaining active status, and complying with state reporting requirements.
3. Franchise Tax
Some states charge a franchise tax for the privilege of doing business. Only 3 states impose this tax on LLCs, ranging from $50 to $800 annually.
What it covers: This is essentially a tax for the right to operate as an LLC in the state, separate from income taxes.
4. Additional Costs (Not Included Above)
- • Registered Agent: $100-$300/year (required in all states)
- • EIN (Federal Tax ID): Free from IRS, $50-$100 if using a service
- • Operating Agreement: $0-$200 (required in some states)
- • Business License: $50-$400 (varies by location and business type)
How to Choose the Right State for Your LLC
✅ Form in Your Home State If:
- • You'll have a physical location (office, store, warehouse)
- • You'll have employees in that state
- • You'll primarily do business locally
- • You want to avoid foreign qualification fees
🌎 Consider Another State If:
- • You run a purely online business
- • You need specific privacy protections
- • You want to minimize taxes (legally)
- • You plan to have investors
⚠️ Important Consideration: Foreign Qualification
If you form an LLC in a state where you don't do business, you'll likely need to "foreign qualify" in your home state anyway, essentially doubling your fees and compliance requirements. Most small businesses are better off forming in their home state unless they have specific reasons not to.
Frequently Asked Questions
Which state has the lowest LLC formation costs?
Arizona has the lowest total first-year cost at $50, with a filing fee of $50 and no annual fee.
Why do some states have no annual fees?
11 states don't charge annual fees to encourage business formation and reduce administrative burden. These states typically generate revenue through other taxes or have determined that the economic benefit of more businesses outweighs the fee revenue.
Are there additional costs beyond state fees?
Yes, additional costs may include: Registered Agent service ($100-$300/year), EIN application (free from IRS or $50-$100 through a service), Operating Agreement ($0-$200), Business licenses ($50-$400), and potentially formation service fees ($0-$500) if you don't file yourself.
Should I form my LLC in Delaware or Wyoming?
Delaware and Wyoming are popular for their business-friendly laws and privacy protections, but they're usually only advantageous for larger businesses or those seeking investors. Most small businesses should form in their home state to avoid foreign qualification fees and complexity.
How often are these costs updated?
State fees can change annually, typically at the beginning of the fiscal year. We update our data monthly to reflect any changes. This data was last verified in October 2025. Always verify current fees with your state's Secretary of State website before filing.
Data Sources & Methodology
Sources
All fee data is collected directly from official state sources:
- • Each state's Secretary of State website
- • State Department of Revenue (for franchise taxes)
- • Official state business formation guides
- • Direct verification with state offices when needed
Note: Fees shown are for standard LLC formation. Some states offer expedited processing for additional fees, and certain business types may have different requirements. Always verify current fees with your state's official website before filing.
Ready to Form Your LLC?
Save time and ensure accuracy by using a professional formation service
Compare Formation Services