LLC Formation Fees by State: Complete 50-State Chart

Wondering how much it costs to form an LLC in each state? The answer depends entirely on where you file. LLC fees by state range from as low as $40 in Kentucky to $500 in Massachusetts. In this guide, I lay out every state’s formation fee in a single chart, share what I learned from forming my own company, and show you exactly how to pick the right state without overpaying.

LLC Fees by State: The Bottom Line You Need Right Now

One Sentence Answer

Most states charge between $50 and $200 to file Articles of Organization, and the cheapest options for non-residents are Wyoming ($100), New Mexico ($50), and Kentucky ($40). If you live in a state with reasonable fees, filing domestically is almost always the smartest move because you avoid the extra cost of foreign qualification.

I say this not just from reading fee schedules but from actually going through the formation process myself. As an AFP-certified financial planner and a company representative who has dealt with cross-border entity structures, I have seen founders waste hundreds of dollars chasing “cheap” states without accounting for total annual costs.

Why This Is the Correct Conclusion

• Formation fee is only the starting cost. Annual report fees, franchise taxes, and registered agent fees add up quickly. Delaware charges a $300 annual franchise tax on top of its $90 filing fee, which many first-time founders overlook.
• Foreign qualification doubles your paperwork. If you form in Wyoming but operate in California, you must register as a foreign LLC in California anyway, paying both states. California’s $800 annual franchise tax applies regardless.
• The “best” state depends on your situation. A single-member LLC selling digital products has very different needs than a real estate holding company. Your revenue model, physical presence, and growth plan all matter more than a $50 difference in filing fees.

My Real Experience Forming a Business Entity

When I Actually Set Up My Own Company

I established my own Japanese kabushiki kaisha (株式会社) several years ago, and the process taught me more about entity formation than any textbook ever could. Before that, I had already been navigating cross-border structures through my work at an overseas financial institution, where I helped clients open accounts and evaluate entity options across multiple jurisdictions.

When I first looked into forming a US LLC for a real estate holding purpose — I own properties in Manila, Cebu, and Hawaii — I nearly filed in Delaware without thinking twice. Everyone online said “Delaware is the best.” But when I sat down with the actual numbers, I realized Delaware’s $300 annual franchise tax plus the cost of a registered agent would exceed what I would pay in other states by a significant margin, especially since I had no plans to seek venture capital or go public.

That moment of almost blindly following internet advice was a wake-up call. I felt genuinely frustrated that so many “guides” pushed Delaware without disclosing the full annual cost picture. As someone holding a 宅地建物取引士 (real estate transaction specialist) license, I know the importance of reading the fine print, yet even I almost fell for surface-level advice.

What I Learned in Hard Numbers

Here is the math that changed my perspective. If you form in Delaware and operate in another state, your Year 1 costs typically look like this:

• Delaware filing fee: $90
• Delaware annual franchise tax: $300
• Registered agent in Delaware: $100–$200/year
• Foreign qualification in your home state: $50–$500 depending on the state
• Home state annual fees: varies

Total first-year cost can easily exceed $700, compared to roughly $150–$250 if you simply filed in your home state. Over five years, that gap can reach $2,000 or more. For a bootstrapped founder, that money is better spent on marketing or product development.

From managing my Airbnb in Asakusa, Tokyo, I learned that small recurring costs compound in ways that silently eat into margins. My monthly platform fees, cleaning costs, and local tax obligations added up to roughly 35% of gross revenue. The same principle applies to LLC maintenance — every $100 in annual fees matters when you are just starting out.

Complete 50-State LLC Fee Comparison Chart

State-by-State Filing Fees and Annual Costs

Below is the comprehensive chart showing the initial formation fee and the primary recurring cost for all 50 states plus the District of Columbia. Fees are current as of 2024 and are subject to change. Always verify with the state’s Secretary of State website before filing.

A few things stand out immediately. Kentucky ($40), Montana ($35), and Arizona ($50) are among the cheapest to file. Massachusetts ($500) and Tennessee ($300 minimum) sit at the top. But remember, formation fee alone does not tell the full story.

What a First-Time Founder Should Do First

Before you pick a state based purely on this chart, answer three questions:

1. Where do you physically operate? If you have an office, employees, or inventory in a specific state, form there. Filing elsewhere creates foreign qualification costs that negate any savings.
2. What is the total 5-year cost? Add formation fee + annual fees + registered agent fees for five years. This gives you a realistic comparison.
3. Do you need a specific legal advantage? Delaware’s Court of Chancery matters for VC-backed startups. Wyoming’s privacy protections matter for asset protection. If neither applies, your home state is the best default.

If you are completely new to LLC formation, start by reading our step-by-step guide for choosing a state. [INTERNAL_LINK_1] That article walks through the decision framework in detail.

Common Mistakes and Pitfalls When Choosing a State

Three Mistakes Founders Make Repeatedly

1. Chasing the lowest filing fee without calculating annual costs. Nevada charges only $75 to file, but the combined annual list fee and business license fee reaches $350 per year. Over five years, that is $1,825 in total — far more than forming in Colorado ($50 filing + $10/year annual report = $100 total over five years).
2. Forming in Delaware “because everyone does.” Delaware is excellent for C-corps seeking institutional investment. For a single-member LLC selling consulting services, it offers no meaningful advantage and adds $300/year in franchise tax you would not otherwise pay.
3. Forgetting about the New York publication requirement. New York requires newly formed LLCs to publish a notice in two newspapers for six consecutive weeks. Depending on the county, this can cost $300 in cheaper counties or over $1,500 in New York County (Manhattan). I have spoken with founders who were blindsided by this expense.

A Real Situation from My Own Network

A fellow entrepreneur I know through my work in overseas financial services formed his e-commerce LLC in Wyoming in 2021 because he read that Wyoming had “no state income tax and great privacy.” What he did not realize was that he lived and operated entirely from Illinois. Within the first year, Illinois required him to register as a foreign LLC, costing him $150 in foreign qualification fees on top of the $75 Illinois annual report. He also needed a registered agent in both Wyoming and Illinois.

His total Year 1 cost came to roughly $560 — more than double what he would have spent simply forming in Illinois from the start ($150 filing + $75 annual report = $225). He told me he felt “stupid for not just Googling the total cost.” That honest reaction is something I want every reader to avoid.

As someone who holds an AFP certification and deals with financial planning across borders, I always advise people to map out the full cost structure before committing. It is the same principle I apply when evaluating real estate deals in the Philippines — the purchase price means nothing if you ignore taxes, management fees, and currency risk. For more on how entity structure affects your tax obligations, see our detailed guide. [INTERNAL_LINK_2]

One more thing: some states change their fees periodically. California temporarily waived its $800 first-year franchise tax for LLCs formed between 2021 and 2023, but that waiver has since expired. Always check the current fee schedule directly with the Secretary of State before filing.

Summary: LLC Fees by State and Your Next Step

Three Key Takeaways from This Article

• LLC fees by state range from $35 (Montana) to $500 (Massachusetts) for initial filing, but the annual maintenance costs are often more important than the formation fee itself.
• Your home state is usually the best choice unless you have a specific legal or tax reason to file elsewhere. Foreign qualification fees erase most savings from filing in a “cheap” state.
• Calculate the 5-year total cost — including filing fee, annual reports, franchise taxes, and registered agent fees — before you make a decision. This one step prevents the most common and most expensive mistakes.

Take Action Now

You have the data. You know what each state charges. The next step is to actually file. If you want the process handled correctly from the start — with a registered agent included, compliance alerts set up, and no hidden upsells — I recommend using a service that specializes in exactly this.

I have reviewed multiple formation services, and for founders who value transparent pricing and reliable registered agent coverage across all 50 states, one provider consistently stands out. They charge a flat fee, include a full year of registered agent service, and keep your personal information off public records where state law allows.

Stop comparing and start building. Your LLC fees by state are clear — now make the filing happen.

Start Your LLC with Northwest Registered Agent