Cheapest States to Form an LLC (2026)
The filing fee is only half the story — what a state charges every year after matters more over the life of a business. Below: every state ranked two ways, computed from fee schedules we verified against each Secretary of State in July 2026. Montana is the cheapest to form ($35); states with zero recurring fees (Missouri, New Mexico, Ohio, Arizona) win on long-term cost; and California's $800/year franchise tax makes it the most expensive by a wide margin.
Top 10 cheapest formation fees
All 50 states ranked by true 5-year cost
Formation fee plus five years of annual reports and minimum franchise taxes — the number that actually matters if you plan to stay in business.
| # | State | To form | Per year | 5-year total |
|---|---|---|---|---|
| 1 | Montana | $35 | — | $35 |
| 2 | Arizona * | $50 | — | $50 |
| 3 | Mississippi | $50 | — | $50 |
| 4 | Missouri | $50 | — | $50 |
| 5 | New Mexico | $50 | — | $50 |
| 6 | Ohio | $99 | — | $99 |
| 7 | Idaho | $100 | — | $100 |
| 8 | South Carolina | $110 | — | $110 |
| 9 | Kentucky | $40 | $15 | $115 |
| 10 | Hawaii | $50 | $15 | $125 |
| 11 | Iowa | $50 | $15 | $125 |
| 12 | Utah | $59 | $18 | $149 |
| 13 | Minnesota | $155 | — | $155 |
| 14 | Pennsylvania | $125 | $7 | $160 |
| 15 | Nebraska * | $100 | $12.50 | $162.50 |
| 16 | Colorado | $50 | $25 | $175 |
| 17 | Indiana | $95 | $16 | $175 |
| 18 | Michigan | $50 | $25 | $175 |
| 19 | Alabama | $200 | — | $200 |
| 20 | New York * | $200 | $4.50 | $222.50 |
| 21 | Oklahoma | $100 | $25 | $225 |
| 22 | West Virginia | $100 | $25 | $225 |
| 23 | Louisiana | $100 | $30 | $250 |
| 24 | Wisconsin | $130 | $25 | $255 |
| 25 | Texas | $300 | — | $300 |
| 26 | Kansas | $85 | $45 | $310 |
| 27 | Virginia | $100 | $50 | $350 |
| 28 | Vermont | $155 | $45 | $380 |
| 29 | North Dakota | $135 | $50 | $385 |
| 30 | Georgia | $100 | $60 | $400 |
| 31 | Rhode Island | $150 | $50 | $400 |
| 32 | Wyoming | $100 | $60 | $400 |
| 33 | South Dakota | $150 | $55 | $425 |
| 34 | New Jersey | $100 | $75 | $475 |
| 35 | Alaska | $250 | $50 | $500 |
| 36 | Connecticut | $120 | $80 | $520 |
| 37 | Illinois | $150 | $75 | $525 |
| 38 | Washington | $200 | $70 | $550 |
| 39 | Maine | $175 | $85 | $600 |
| 40 | New Hampshire | $100 | $100 | $600 |
| 41 | Oregon | $100 | $100 | $600 |
| 42 | Arkansas | $45 | $150 | $795 |
| 43 | Florida | $125 | $138.75 | $818.75 |
| 44 | North Carolina | $125 | $200 | $1,125 |
| 45 | Maryland | $100 | $300 | $1,600 |
| 46 | Delaware | $110 | $300 | $1,610 |
| 47 | Tennessee | $300 | $300 | $1,800 |
| 48 | Nevada | $425 | $350 | $2,175 |
| 49 | Massachusetts | $500 | $500 | $3,000 |
| 50 | California | $70 | $810 | $4,120 |
* Newspaper-publication requirement adds one-time cost beyond state fees (New York ~$300–$1,600 by county; Nebraska and Arizona typically under $250). Registered-agent services and income-based taxes not included.
Frequently asked questions
What is the cheapest state to form an LLC?
Montana has the lowest formation fee at $35 — and with annual report fees waived through 2027, it's currently the cheapest state on total cost too. Kentucky ($40 to form, $15/year) and states with no recurring fees at all (Missouri, New Mexico, Ohio, Arizona) are close behind on long-term cost.
Should I form my LLC in a cheap state if I live elsewhere?
Usually no. If your business operates in your home state, you'd have to register there anyway as a 'foreign LLC' — paying BOTH states' fees plus a registered-agent service in the formation state. For most small businesses, forming at home is cheaper and simpler. The Delaware/Wyoming/Nevada play mainly benefits companies raising outside capital or with specific legal needs.
What's the most expensive state for an LLC?
California, by far, on recurring cost: the $800 minimum annual franchise tax applies even if the business earns nothing, putting 5-year cost over $4,100. Massachusetts is the most expensive to form and maintain on fees alone ($500 to file, $500 every year). Nevada's combined licenses run $350/year after a $425 start.
What costs are NOT included in these rankings?
Registered-agent services (optional if you serve as your own, ~$100–$150/year otherwise), newspaper publication where required (New York ~$300–$1,600, Nebraska and Arizona less), business licenses, and taxes on actual income. The rankings cover mandatory state filing fees only.
All figures computed from Secretary of State fee schedules verified July 17, 2026.