What does it really cost to start an LLC and keep it for five years? We added up every required state charge in all 50 states and Washington, DC: the formation fee, any required one-time state costs, and five years of annual reports and yearly state taxes. The cheapest states cost $50 in total; the most expensive costs $4,120, about 82 times as much.
Data as of October 2026. Every fee was checked on the state’s own website between October 11, 2026 and October 13, 2026.
Key Findings
- Cheapest: Arizona, Mississippi, Missouri and New Mexico each cost $50 over five years, the formation fee and nothing more (in Arizona, add a newspaper’s fee if your statutory agent is outside Maricopa and Pima counties).
- Most expensive: California costs $4,120 over five years, mostly its $800 annual LLC tax.
- The typical state (the median) costs $310 over five years. 31 of 51 cost less than $500; 8 cost more than $1,000.
- Yearly costs matter more than the filing fee in the priciest states: in California, Massachusetts, Rhode Island, Tennessee and Nevada, yearly charges make up 80% to 98% of the five-year total.
- 10 states charge no yearly state fee after formation: Arizona, Mississippi, Missouri, New Mexico, Ohio, Idaho, South Carolina, Minnesota, Alabama and Texas. Some of them, such as Mississippi, Idaho and Minnesota, still require a yearly report or tax return, just without a fee.
Five-Year LLC Cost by State: Cheapest and Most Expensive
10 cheapest
10 most expensive
Bars share one scale. Five-year state cost = formation fee + required one-time state costs + five years of required yearly state costs.
Every State Ranked
Ranked from cheapest to most expensive five-year state cost. Click a state for its full LLC guide, or use the links to check each fee at the source.
| # | State | Formation fee | Per year | 5-year total | What you pay the state | Official sources |
|---|---|---|---|---|---|---|
| 1 | Arizona | $50 | $0 | at least $50 | No annual report; Publication requirement: at least $0 once | formation · yearly |
| 2 | Mississippi | $50 | $0 | $50 | Annual report: no filing fee | formation · yearly |
| 3 | Missouri | $50 | $0 | $50 | No annual report | formation · yearly |
| 4 | New Mexico | $50 | $0 | $50 | No annual report | formation · yearly |
| 5 | Ohio | $99 | $0 | $99 | No annual report | formation · yearly |
| 6 | Idaho | $100 | $0 | $100 | Annual report: no filing fee | formation · yearly |
| 7 | South Carolina | $110 | $0 | $110 | No annual report | formation · yearly |
| 8 | Kentucky | $40 | $15 | $115 | Annual report: $15 a year | formation · yearly |
| 9 | Hawaii | $50 | $15 | $125 | Annual report: $15 a year | formation · yearly |
| 10 | Iowa | $50 | $15 | $125 | Biennial report: $30 every two years | formation · yearly |
| 11 | Minnesota | $135 | $0 | $135 | Annual renewal: no filing fee | formation · yearly |
| 12 | Montana | $35 | $20 | $135 | Annual report: $20 a year | formation · yearly |
| 13 | Utah | $59 | $18 | $149 | Annual renewal (annual report): $18 a year | formation · yearly |
| 14 | Indiana | $75 | $15.50 | $152.50 | Business entity report: $31 every two years | formation · yearly |
| 15 | Pennsylvania | $125 | $7 | $160 | Annual report: $7 a year | formation · yearly |
| 16 | Colorado | $50 | $25 | $175 | Periodic report: $25 a year | formation · yearly |
| 17 | Michigan | $50 | $25 | $175 | Annual statement: $25 a year | formation · yearly |
| 18 | Nebraska | $100 | $12.50 | at least $187.50 | Biennial report: $25 every two years; Publication requirement: at least $25 once | formation · yearly |
| 19 | Alabama | $200 | $0 | $200 | Business privilege tax return (Alabama Department of Revenue): no filing fee | formation · yearly |
| 20 | Oklahoma | $100 | $25 | $225 | Annual certificate: $25 a year | formation · yearly |
| 21 | West Virginia | $100 | $25 | $225 | Annual report: $25 a year | formation · yearly |
| 22 | Wisconsin | $130 | $25 | $255 | Annual report: $25 a year | formation · yearly |
| 23 | New York | $200 | $4.50 | at least $272.50 | Biennial Statement: $9 every two years; Publication requirement: at least $50 once | formation · yearly |
| 24 | Louisiana | $125 | $35 | $300 | Annual report: $35 a year | formation · yearly |
| 25 | Texas | $300 | $0 | $300 | Franchise tax report (Public Information Report): no filing fee | formation · yearly |
| 26 | Kansas | $85 | $45 | $310 | Information report: $90 every two years | formation · yearly |
| 27 | Virginia | $100 | $50 | $350 | Annual registration fee: $50 a year | formation · yearly |
| 28 | Georgia | $110 | $50 | $360 | Annual registration: $50 a year | formation · yearly |
| 29 | Vermont | $155 | $45 | $380 | Annual report: $45 a year | formation · yearly |
| 30 | North Dakota | $135 | $50 | $385 | Annual report: $50 a year | formation · yearly |
| 31 | Wyoming | $100 | $60 | $400 | Annual report (license tax): $60 a year | formation · yearly |
| 32 | Alaska | $250 | $50 | $500 | Biennial report: $100 every two years | formation · yearly |
| 33 | New Jersey | $125 | $75 | $500 | Annual report: $75 a year | formation · yearly |
| 34 | South Dakota | $150 | $70 | $500 | Annual report: $70 a year | formation · yearly |
| 35 | Connecticut | $120 | $80 | $520 | Annual report: $80 a year | formation · yearly |
| 36 | Illinois | $150 | $75 | $525 | Annual report (Form LLC-50.1): $75 a year | formation · yearly |
| 37 | Washington | $180 | $70 | $530 | Annual report: $70 a year | formation · yearly |
| 38 | Maine | $175 | $85 | $600 | Annual report: $85 a year | formation · yearly |
| 39 | New Hampshire | $100 | $100 | $600 | Annual report: $100 a year | formation · yearly |
| 40 | Oregon | $100 | $100 | $600 | Annual report: $100 a year | formation · yearly |
| 41 | Arkansas | $45 | $150 | $795 | Annual franchise tax report: $150 a year | formation · yearly |
| 42 | Florida | $125 | $138.75 | $818.75 | Annual report: $138.75 a year | formation · yearly |
| 43 | Washington, DC | $99 | $150 | $849 | Biennial report: $300 every two years | formation · yearly |
| 44 | North Carolina | $125 | $203 | $1,140 | Annual report: $203 a year | formation · yearly |
| 45 | Maryland | $100 | $300 | $1,600 | Annual Report / Personal Property Return: $300 a year | formation · yearly |
| 46 | Delaware | $110 | $400 | $2,110 | Annual LLC tax: $400 a year | formation · yearly |
| 47 | Nevada | $425 | $350 | $2,175 | Annual list and state business license renewal: $350 a year | formation · yearly |
| 48 | Tennessee | $300+ | $400 | at least $2,300 | Annual report: $300 a year; Franchise and excise tax: at least $100 a year; Formation fee is a minimum ($50 per member, minimum $300, maximum $3,000) | formation · yearly |
| 49 | Rhode Island | $150 | $450 | $2,400 | Annual report: $50 a year; Minimum annual business tax: $400 a year | formation · yearly |
| 50 | Massachusetts | $500 | $500 | $3,000 | Annual report: $500 a year | formation · yearly |
| 51 | California | $70 | $810 | $4,120 | Statement of Information (Form LLC-12): $20 every two years; California annual LLC tax: $800 a year | formation · yearly |
“+” means the fee is a minimum (Tennessee charges $50 per member, at least $300). “At least” means part of the cost is a published minimum, so yours can be higher.
What About Delaware, Wyoming and Nevada?
These three states are famous for business formation, but for a small business that operates somewhere else they are rarely the cheapest choice. Delaware ranks #46 of 51 at $2,110 over five years; Wyoming ranks #31 of 51 at $400 over five years; Nevada ranks #47 of 51 at $2,175 over five years. Forming there usually also means registering in your home state as a foreign LLC and paying a registered agent in the formation state.
How We Calculated This
- Counted: the state’s LLC formation filing fee; required one-time state costs (such as New York’s Certificate of Publication fee); and five years of required yearly state costs: annual or biennial report fees (biennial fees counted as half per year) plus yearly taxes every LLC owes regardless of income (California’s $800 annual tax, Rhode Island’s $400 minimum annual tax, Tennessee’s minimum franchise tax).
- Not counted: taxes that depend on your income or revenue (for example, Texas franchise tax above the no-tax-due threshold), registered agent services, local business licenses, newspaper publication charges, expedite fees and formation-service fees.
- Timing: some states start the yearly report the year after you form, and states with every-two-year reports may bill two or three times in five years. We use the average yearly cost so every state is measured the same way.
- Sources: each state’s official filing office or tax agency, linked in the table. Fees change, so check your state’s official source before you file.
Use this data. Journalists, librarians, small business centers and bloggers are welcome to cite or share these figures. Please credit and link to this page:
Source: HowToIncorporateForFree.com, "Cheapest States to Start an LLC in 2026," October 2026.
Questions about the data? Contact us.
FAQ
What is the cheapest state to start an LLC?
By five-year state cost, Arizona, Mississippi, Missouri and New Mexico are the cheapest at $50. But the cheapest state for you is usually the state where your business operates, because doing business in another state normally means registering there too.
What is the most expensive state to keep an LLC?
California, at $4,120 over five years in required state costs, followed by Massachusetts ($3,000), Rhode Island ($2,400) and Tennessee (at least $2,300).
Does this include taxes on my profits?
No. It includes only charges every LLC owes the state no matter how much it earns. Income taxes and revenue-based taxes depend on your business.
Can I lower these costs?
Yes: file the formation papers and yearly reports yourself on your state’s website (you only pay the state fee), and act as your own registered agent if you meet your state’s rules. Our guide to incorporating yourself walks through it, and the annual report deadline finder can email you before each report is due so you don’t miss a deadline.
Related: LLC filing fees by state · LLC annual report fees and deadlines by state · LLC cost calculator
