Top 5 States Where Small Businesses Start Fastest
Speed matters when starting a business. We've analyzed all 50 states to find where you can form an LLC the fastest, with 3 states offering same-day processing and 12 states completing formations in 3 days or less.
3
Same-Day States
12
≤3 Days Processing
5 Days
National Average
$40-$500
Filing Fee Range
The 5 Fastest States for LLC Formation
These states offer the quickest processing times for forming an LLC, with most offering expedited same-day or next-day options.
1 Colorado
1-2 business days
Processing Time
Filing Fee
$50
Annual Fee
$10
First Year Total
$60
Why Colorado is Fast:
- ✓ Online filing system with immediate processing
- ✓ Expedited options available for urgent needs
- ✓ Streamlined documentation requirements
2 Nevada
1-2 business days
Processing Time
Filing Fee
$75
Annual Fee
$350
First Year Total
$425
Why Nevada is Fast:
- ✓ Online filing system with immediate processing
- ✓ Expedited options available for urgent needs
- ✓ Streamlined documentation requirements
3 Oregon
1-2 business days
Processing Time
Filing Fee
$100
Annual Fee
$100
First Year Total
$200
Why Oregon is Fast:
- ✓ Online filing system with immediate processing
- ✓ Expedited options available for urgent needs
- ✓ Streamlined documentation requirements
4 Washington
2-3 business days
Processing Time
Filing Fee
$200
Annual Fee
$60
First Year Total
$260
Why Washington is Fast:
- ✓ Online filing system with immediate processing
- ✓ Expedited options available for urgent needs
- ✓ Streamlined documentation requirements
5 Utah
2-3 business days
Processing Time
Filing Fee
$54
Annual Fee
$18
First Year Total
$72
Why Utah is Fast:
- ✓ Online filing system with immediate processing
- ✓ Expedited options available for urgent needs
- ✓ Streamlined documentation requirements
Top 5 Overall Best States for Small Business
Considering speed, cost, taxes, and business-friendly policies, these states offer the best overall environment for entrepreneurs.
Wyoming
LLC Formation Costs & Requirements
Filing Fee
$100
↓19% below avg
Annual Fee
$60
↓18% below avg
Franchise Tax
None
1st Year Total
$160
↓29% below avg
Processing Time
3-5 business days
5-Year Cost Projection
Total over 5 years
$400
Average per year
$80
Why Wyoming?
Privacy, no state income tax, low fees
Delaware
LLC Formation Costs & Requirements
Filing Fee
$90
↓27% below avg
Annual Fee
$300
↑311% above avg
Franchise Tax
$300
1st Year Total
$690
↑208% above avg
Processing Time
5-10 business days
5-Year Cost Projection
Total over 5 years
$3090
Average per year
$618
Why Delaware?
Business-friendly laws, court system, flexibility
Nevada
LLC Formation Costs & Requirements
Filing Fee
$75
↓39% below avg
Annual Fee
$350
↑379% above avg
Franchise Tax
None
1st Year Total
$425
↑90% above avg
Processing Time
1-2 business days
5-Year Cost Projection
Total over 5 years
$1825
Average per year
$365
Why Nevada?
No state income tax, privacy, asset protection
Florida
LLC Formation Costs & Requirements
Filing Fee
$125
↑2% above avg
Annual Fee
$138.75
↑90% above avg
Franchise Tax
None
1st Year Total
$263.75
↑18% above avg
Processing Time
3-5 business days
5-Year Cost Projection
Total over 5 years
$818.75
Average per year
$164
Why Florida?
No state income tax, large economy, fast processing
Texas
LLC Formation Costs & Requirements
Filing Fee
$300
↑144% above avg
Annual Fee
FREE
Franchise Tax
None
1st Year Total
$300
↑34% above avg
Processing Time
5-7 business days
5-Year Cost Projection
Total over 5 years
$300
Average per year
$60
Why Texas?
No state income tax, business-friendly, large market
Key Factors for Business-Friendly States
Processing Speed
Fast LLC formation means you can start doing business sooner. States with online filing and automated processing can approve LLCs in hours rather than weeks.
Best: States with same-day or 1-day processing
Low Costs & Fees
Lower filing fees and no annual fees keep more money in your business. Some states charge as little as $40 to form an LLC with no recurring fees.
Best: 11 states with no annual fees
Tax Environment
States with no income tax or favorable business tax structures help maximize profits. Nine states have no state income tax at all.
Best: WY, NV, TX, FL, SD, WA, AK, TN, NH
Privacy & Protection
Some states offer anonymity for LLC owners and strong asset protection laws, protecting personal assets from business liabilities.
Best: Wyoming, Nevada, Delaware, New Mexico
Simple Compliance
States with minimal reporting requirements and straightforward compliance make it easier to maintain your LLC in good standing.
Best: States with biennial reporting or minimal requirements
Online Services
Fully digital filing systems, online account management, and electronic document delivery streamline the entire process.
Best: States with complete online filing capabilities
Speed vs. Cost: Finding the Right Balance
States Offering Best Value (Fast + Affordable)
🏆 Best Overall Value
- Arizona $50 (5-10 business days)
- Missouri $50 (5-7 business days)
- Mississippi $50 (5-7 business days)
⚡ Same-Day Processing Available
- Colorado Same Day (+expedite fee)
- Nevada Same Day (+expedite fee)
- Oregon Same Day (+expedite fee)
💡 Pro Tip: Consider Your Priorities
If you need to start operating immediately, paying extra for expedited processing in your home state might be worth it. If you have time and want to minimize costs, choose a state with low fees and standard processing times.
Remember: Most businesses should form in their home state unless they have specific reasons to incorporate elsewhere (like seeking investment or specific legal protections).
Quick Statistics Summary
States with Same-Day
3
Number of states offering same-day LLC formation
Average Processing
5 Days
National average processing time for LLC formation
Most Popular
Wyoming
Top state for out-of-state LLC formations
No Annual Fees
11 States
States that don't charge yearly maintenance fees
Which State is Right for Your Business?
For Speed: Choose States with Online Filing
If getting started quickly is your priority, focus on states with robust online filing systems and expedited processing options. Many states now offer same-day or next-day approval for an additional fee.
Recommended: Any state with 1-3 day processing and online filing
For Cost Savings: Consider No-Annual-Fee States
11 states don't charge annual fees, which can save hundreds of dollars per year. Combined with low filing fees, these states offer excellent value for budget-conscious entrepreneurs.
Recommended: New Mexico, Arizona, Missouri, and others with no annual fees
For Privacy: Wyoming, Nevada, or Delaware
These states offer strong privacy protections, including anonymous LLC ownership in some cases. They also have business-friendly laws and court systems experienced in business matters.
Recommended: Wyoming for privacy, Delaware for corporate law, Nevada for asset protection
For Most Businesses: Your Home State
Unless you have specific needs for privacy or tax advantages, forming in your home state is usually the best choice. It avoids foreign qualification requirements and simplifies compliance.
Recommended: Your state of residence or primary business operations
Frequently Asked Questions
What's the fastest possible time to form an LLC?
Several states offer same-day processing, meaning you can have your LLC approved within hours. States like Wyoming, Nevada, and others process expedited filings immediately upon receipt during business hours. With online filing, you could theoretically form an LLC in under an hour.
Is expedited processing worth the extra cost?
It depends on your urgency. Expedited fees typically range from $50-$200 extra. If you need to start operating immediately, sign contracts, or open a business bank account quickly, the extra cost is often worth it. For most businesses without urgent deadlines, standard processing is fine.
Why do processing times vary so much between states?
Processing times depend on several factors: the state's technology infrastructure (online vs. paper filing), staffing levels at the Secretary of State office, volume of filings, and state policies. States with modern online systems and automated processing can approve LLCs much faster than those still using manual review processes.
Should I choose a state based solely on speed?
No, speed should be just one factor. Consider total costs (including annual fees), tax implications, where you'll actually do business, and compliance requirements. Most businesses should form in their home state regardless of processing speed, as forming elsewhere often requires foreign qualification, doubling your fees and compliance burden.
Can I speed up processing in any state?
Most states offer expedited processing for an additional fee, typically $50-$200. Using a professional formation service can also speed things up as they know exactly how to file correctly the first time, avoiding delays from errors or missing information. Online filing is always faster than mail filing.
Data Sources & Methodology
How We Determined the Rankings
Our rankings are based on official processing times published by each state's Secretary of State office, combined with real-world data from business formations. We considered:
- • Standard processing times for online and paper filings
- • Availability and cost of expedited processing
- • Total first-year costs including all fees
- • Business tax environment and regulatory climate
- • Quality of online services and digital infrastructure
Note: Processing times can vary based on filing method, completeness of application, and current volume at state offices. Times shown are for standard online filings with complete, error-free applications. Always check current processing times with your state's official website.
Ready to Form Your LLC Quickly?
Professional formation services can expedite your filing and ensure everything is done correctly the first time.