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Legal & Business Setup

LLC Formation Guide: State-by-State Costs 2026

Complete guide to forming an LLC. State-by-state filing fees from $40 (Kentucky) to $500 (Massachusetts). Learn the cheapest states and what you need.

12 min read · Updated Jan 21, 2026 How we research →
12 min read Updated Jan 21, 2026 How we research →

Forming an LLC (Limited Liability Company) is one of the first steps many entrepreneurs take. It provides personal liability protection and tax flexibility—but costs vary dramatically by state. This guide breaks down LLC filing fees for all 50 states, plus what else you need to know.

$40

Cheapest (KY)

$132

Average

$500

Most Expensive (MA)

What is an LLC?

An LLC is a business structure that combines the liability protection of a corporation with the tax simplicity of a sole proprietorship. Your personal assets (home, car, savings) are protected from business debts and lawsuits.

LLC Benefits:

  • Personal liability protection — your personal assets are separate from business
  • Tax flexibility — choose to be taxed as sole prop, partnership, S-corp, or C-corp
  • Credibility — "LLC" after your name signals legitimacy to customers
  • Simplicity — less paperwork than corporations

LLC Filing Fees by State (2026)

State Filing Fee Annual Fee Processing
Kentucky $40 $50-200 1-2 weeks
Arkansas $45 $50-200 1-2 weeks
Arizona $50 $50-200 1-2 weeks
Colorado $50 $50-200 1-2 weeks
Hawaii $50 $50-200 1-2 weeks
Iowa $50 $50-200 1-2 weeks
Michigan $50 $50-200 1-2 weeks
Mississippi $50 $50-200 1-2 weeks
Missouri $50 $50-200 1-2 weeks
New Mexico $50 $50-200 1-2 weeks
Utah $54 $50-200 1-2 weeks
California $70 $800 3-5 days
Montana $70 $50-200 1-2 weeks
Nevada $75 $350 1-2 weeks
Delaware $90 $300 1-2 days
Indiana $95 $50-200 1-2 weeks
Ohio $99 $50-200 1-2 weeks
Georgia $100 $50-200 1-2 weeks
Idaho $100 $50-200 1-2 weeks
Louisiana $100 $50-200 1-2 weeks
Maryland $100 $50-200 1-2 weeks
Nebraska $100 $50-200 1-2 weeks
New Hampshire $100 $50-200 1-2 weeks
Oklahoma $100 $50-200 1-2 weeks
Oregon $100 $50-200 1-2 weeks
Virginia $100 $50-200 1-2 weeks
West Virginia $100 $50-200 1-2 weeks
Wyoming $100 $60 1-2 weeks
South Carolina $110 $50-200 1-2 weeks
Connecticut $120 $50-200 1-2 weeks
Florida $125 $50-200 2-3 weeks
New Jersey $125 $50-200 1-2 weeks
North Carolina $125 $50-200 1-2 weeks
Pennsylvania $125 $50-200 1-2 weeks
Vermont $125 $50-200 1-2 weeks
Wisconsin $130 $50-200 1-2 weeks
North Dakota $135 $50-200 1-2 weeks
Illinois $150 $50-200 1-2 weeks
Rhode Island $150 $50-200 1-2 weeks
South Dakota $150 $50-200 1-2 weeks
Minnesota $155 $50-200 1-2 weeks
Kansas $160 $50-200 1-2 weeks
Maine $175 $50-200 1-2 weeks
Alabama $200 $50-200 1-2 weeks
New York $200 $25 3-5 days
Washington $200 $50-200 1-2 weeks
Alaska $250 $50-200 1-2 weeks
Tennessee $300 $50-200 1-2 weeks
Texas $300 $0 2-3 weeks
Massachusetts $500 $500 1-2 weeks

* Fees current as of May 2026. Annual fees vary based on revenue in some states.

10 Cheapest States to Form an LLC

$40
$45
$50
$50
5 Hawaii
$50
6 Iowa
$50
$50
$50
$50
$50

Important: If you don't live in these states, forming an LLC there means paying for a registered agent ($100-300/year) AND foreign qualifying in your home state. For most people, it's cheaper to form in your home state.

5 Most Expensive States

Texas $300
Tennessee $300
Alaska $250
Washington $200

Note: High filing fees don't always mean expensive overall. Massachusetts ($500 filing) has no annual report fee, while California ($70 filing) charges $800/year minimum franchise tax.

How to Form an LLC (5 Steps)

1

Choose Your State

For most businesses, form in the state where you'll operate. Only consider Delaware/Wyoming for complex, multi-state operations.

2

Choose a Name

Must include "LLC" or "Limited Liability Company." Check availability on your state's Secretary of State website.

3

Designate a Registered Agent

Someone to receive legal documents. Can be yourself (free) or a service ($100-300/year).

4

File Articles of Organization

Submit the formation document to your Secretary of State. Can usually be done online.

5

Create an Operating Agreement

Not legally required in most states, but strongly recommended. Outlines ownership and operating procedures.

DIY vs Formation Service

DIY Formation

$50-500

State filing fee only

  • ✓ Cheapest option
  • ✓ Full control
  • ✗ More research required
  • ✗ No hand-holding

Formation Service

$150-500+

Service fee + state filing

  • ✓ Done for you
  • ✓ Operating agreement included
  • ✓ Registered agent often included
  • ✗ More expensive

Our recommendation: If you're comfortable with paperwork, DIY is fine. Services like ZenBusiness, LegalZoom, or Northwest make sense if you want everything handled or need a registered agent.

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Frequently Asked Questions

What is the cheapest state to form an LLC?
Kentucky has the lowest LLC filing fee at $40. Other cheap options include Arkansas ($45), Colorado ($50), and Arizona ($50). However, if you don't live in these states, you'll need a registered agent there, which adds $100-300/year.
Do I need to form an LLC in my home state?
If you'll be physically operating your business (office, employees, inventory) in a state, you typically need to register there. You can form in another state like Delaware or Wyoming, but you'll still need to "foreign qualify" in your home state, paying fees in both places.
How long does it take to form an LLC?
Standard processing takes 1-4 weeks depending on the state. Many states offer expedited processing for an additional $50-100, which can reduce time to 1-3 business days.
What's the difference between LLC and sole proprietorship?
An LLC provides personal liability protection, separating your personal assets from business debts. A sole proprietorship offers no protection—you're personally liable for everything. LLCs also offer more tax flexibility but cost more to set up and maintain.
Do I need a lawyer to form an LLC?
No, you can form an LLC yourself by filing Articles of Organization with your state. However, a lawyer can help with complex situations like multiple members, specific operating agreements, or unusual business structures.
What ongoing costs does an LLC have?
Annual costs vary by state: annual reports ($0-800), franchise taxes ($0-800), registered agent if using a service ($100-300). Some states like Texas have no annual fees, while California charges $800/year minimum.

Sources & References

State Secretary of State websites IRS.gov SBA.gov NOLO Legal Encyclopedia

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