LLC Formation Cost: What You'll Actually Pay in Every State (2026)
By Frédéric Deltour, Entrepreneur and Business Consultant, 22+ years forming and operating companies.
Published: April 1, 2026 · Last updated: April 23, 2026
Quick Answer
Forming an LLC costs the state filing fee ($35 to $500 depending on state) plus optional service fees. Northwest Registered Agent at $39 and Bizee at $0 are the best-value 2026 options. Budget $289 (Northwest) or $238 (Bizee) over three years, including registered agent renewals and compliance fees.
The filing fee to create an LLC ranges from $35 to $520 depending on your state. But the filing fee is one line item. Registered agent service, annual reports, state franchise taxes, and optional add-ons (EIN, operating agreement) add $0 to $1,000+ in year one alone. This guide breaks down every cost category with real 2026 numbers so you can budget accurately before filing.
Bottom line: Most LLC owners spend $74-$400 in their first year (state fee + registered agent). Using Northwest Registered Agent at $39 (includes free registered agent for year one) keeps your non-state costs as low as possible.
Quick Cost Summary
| Cost Category | Range | When You Pay |
|---|---|---|
| State filing fee | $35-$520 | Once, at formation |
| Registered agent | $0-$300/yr | Annually |
| Annual report | $0-$300/yr | Annually (some states biennial) |
| State franchise tax | $0-$800/yr | Annually (only some states) |
| EIN (federal tax ID) | $0 (DIY) or $50-$100 (service) | Once |
| Operating agreement | $0 (template) or $50-$500 | Once |
| Business license | $0-$500/yr | Varies |
State Filing Fees: The Complete 2026 Table
This is the one-time fee your state charges to process your Articles of Organization. It is non-negotiable, every LLC pays this regardless of whether you file yourself or use a service.
Low-Cost States ($35-$75)
| State | Filing Fee | Annual Report Fee | Notes |
|---|---|---|---|
| Montana | $35 | $20 | Lowest filing fee in the US |
| Kentucky | $40 | $15 | Annual report due June 30 |
| Arkansas | $45 | $150 (franchise tax report) | Higher ongoing cost |
| Arizona | $50 | $0 | No annual report required |
| Colorado | $50 | $10 | Fast online processing (1-3 days) |
| Iowa | $50 | $30 (biennial) | Report due every 2 years |
| Michigan | $50 | $25 | Annual statement required |
| Mississippi | $50 | $0 | No annual fee |
| Missouri | $50 | $0 | No annual report or fee |
| New Mexico | $50 | $0 | No annual report, no RA required |
| Hawaii | $50 | $15 | Annual report due annually |
| California | $70 | $20 (biennial) | Plus $800 annual franchise tax |
Mid-Cost States ($100-$200)
| State | Filing Fee | Annual Report Fee | Notes |
|---|---|---|---|
| Wyoming | $100 | $60 (min) | No state income tax |
| Georgia | $100 | $50 | Annual registration required |
| Oregon | $100 | $100 | Annual report required |
| Florida | $125 | $138.75 | Annual report due May 1 |
| Illinois | $150 | $75 | Annual report required |
| New York | $200 | $9 (biennial) | Publication requirement adds $200-$1,500+ |
| Washington | $200 | $60 | Annual report required |
High-Cost States ($200-$520)
| State | Filing Fee | Annual Report Fee | Notes |
|---|---|---|---|
| Nevada | $75 + $200 (license) + $150 (list) | $150 (list) + $200 (license) | Total first-year: $425+ |
| Tennessee | $300 (min) | $300 (min franchise tax) | Based on net worth |
| Texas | $300 | $0 | No annual report; franchise tax only if revenue >$2.47M |
| Massachusetts | $500-$520 | $500 | Highest filing + annual fee |
The Costs Nobody Tells You About
The filing fee gets all the attention. These are the expenses that inflate your real LLC cost:
1. Registered Agent Service ($0-$300/year)
Required in 49 of 50 states. You can be your own agent for $0, but your home address goes on public record. Professional services cost $39-$300/year.
Registered agent pricing comparison:
| Service | Year 1 Cost | Year 2+ Renewal | 3-Year Total | Our Pick |
|---|---|---|---|---|
| Northwest Registered Agent | Free (with $39 formation) | $125/yr | $250 | ✅ Get Northwest → Highest rated + Frederic's choice |
| Bizee | Free (with $0 formation) | $119/yr | $238 | – |
| ZenBusiness | $199 | $199/yr | $597 | – |
| Inc Authority | Free (with $0 formation) | $199/yr | $398 | – |
| LegalZoom | $249 | $249/yr | $747 | – |
Key insight: The "free formation" providers make their money on registered agent renewals. A $0 formation with a $199/year registered agent costs $398 over 3 years. Northwest's $39 formation with $125/year renewal costs $289 over 3 years, $109 less. The exception is Bizee, whose $119/year renewal makes their 3-year total $238. the cheapest overall, though with more limited support.
→ See our complete comparison of LLC formation services
2. State Franchise or Privilege Taxes ($0-$800/year)
Some states impose annual taxes just for the privilege of having an LLC registered there, regardless of your revenue:
| State | Annual Tax | Exemptions |
|---|---|---|
| California | $800 | Waived first year for LLCs formed 2024+ |
| Delaware | $300 | None |
| Tennessee | $300 minimum | Based on net worth or tangible property |
| Texas | $0 for most | Only applies if revenue exceeds $2.47M |
| Illinois | $0 (abolished 2024) | Previously $75/yr |
California deserves special attention. The $800 annual franchise tax applies to every LLC regardless of income. If your California LLC earns $5,000/year in profit, you're paying a 16% effective tax rate on the franchise tax alone. For low-revenue California businesses, a sole proprietorship may be more cost-effective until revenue justifies the LLC's liability protection.
3. New York Publication Requirement ($200-$1,500+)
New York requires new LLCs to publish a formation notice in two newspapers (one daily, one weekly) in the county where the LLC is located for six consecutive weeks. Costs vary dramatically by county:
- Albany County: ~$200-$400
- Manhattan (New York County): $1,000-$1,500+
- Brooklyn (Kings County): $400-$800
This is a one-time cost but catches most first-time LLC owners off guard.
4. EIN Application ($0 DIY, $50-$100 via service)
The IRS provides EINs for free at irs.gov/ein. The application takes 5 minutes online. Formation services charge $50-$100 for this task. There is no reason to pay for it unless you're a non-US resident.
5. Operating Agreement ($0-$500)
Not a state-charged fee, but a practical necessity. Free templates are available online. Attorney-drafted versions cost $200-$500. Formation services offer templates for $50-$100.
Original Research: The 3-Year Total Cost Model
We calculated the true 3-year cost of owning an LLC in the 10 most popular formation states, including filing, registered agent (via Northwest Registered Agent), annual reports, and franchise taxes:
| State | Filing Fee | RA (3yr via NWRA) | Annual Reports (3yr) | Franchise Tax (3yr) | 3-Year Total |
|---|---|---|---|---|---|
| Colorado | $50 | $289 | $30 | $0 | $369 |
| Montana | $35 | $289 | $60 | $0 | $384 |
| New York | $200 | $289 | $18 | $0 | $507 + publication |
| Georgia | $100 | $289 | $150 | $0 | $539 |
| Wyoming | $100 | $289 | $180 | $0 | $569 |
| Texas | $300 | $289 | $0 | $0 | $589 |
| Illinois | $150 | $289 | $225 | $0 | $664 |
| Florida | $125 | $289 | $416 | $0 | $830 |
| Delaware | $90 | $289 | $0 | $900 | $1,279 |
| California | $70 | $289 | $40 | $1,600 | $1,999 |
Findings:
- Colorado ($369) and Montana ($384) are the cheapest states for 3-year LLC ownership, low filing fees, low annual reports, no franchise taxes.
- California ($1,999) is the most expensive due to the $800 annual franchise tax, it's 5x the cost of Colorado.
- Delaware ($1,279) is expensive despite its "business-friendly" reputation. The $300 annual tax adds up. Only worth it if you're raising venture capital or need Delaware's Court of Chancery.
- Wyoming ($569) and Texas ($589) are mid-range, reasonable filing fees, no income tax, but not the cheapest for ongoing costs.
- New York looks cheap on paper but the publication requirement adds $200-$1,500 in hidden one-time costs.
The Cheapest Way to Form an LLC (Decision Tree)
If you want the absolute lowest cost:
- Form in your home state (avoid double registration fees)
- Be your own registered agent ($0, but address goes public)
- File online directly with your Secretary of State (state fee only)
- Use a free operating agreement template
- Apply for EIN yourself at IRS.gov (free, 5 minutes)
Total: State filing fee only ($35-$520)
If you want low cost with address privacy and compliance support:
- Use Northwest Registered Agent ($39 + state fee), includes formation + registered agent year 1
- Apply for EIN yourself (free)
- Use their operating agreement template ($50) or a free one online
Total: $39-$89 + state filing fee
→ Read our step-by-step LLC formation guide for the complete process.
$39 Business Formation Service
Northwest Registered Agent includes LLC filing + free year of registered agent + business address privacy. The lowest total first-year cost among formation services with RA included.
Form Your LLC for $39 + State Fee →Budget option: Bizee files for $0 + state fee with a free year of registered agent, the cheapest 3-year total at $238.
Form Your LLC for $0 with Bizee →When Paying More Actually Saves Money
Not every LLC owner should optimize for the cheapest option:
- If you're forming in a complex state (New York, California), a formation service ensures you don't miss state-specific requirements like publication rules or franchise tax deadlines. Missing California's franchise tax deadline costs $250+ in penalties.
- If you have multiple members An attorney-drafted operating agreement ($200-$500) prevents disputes that could cost thousands in litigation.
- If you need fast turnaround Expedited state processing ($25-$100) plus a service that submits quickly can get your LLC approved in 1-2 days instead of 2-4 weeks.
- If privacy matters The $39-$125/year cost of a registered agent service keeps your home address off public databases. That's worth it if you receive solicitation mail, have safety concerns, or simply don't want your address on the internet.
Next Steps
- Know your state's costs? → Follow our step-by-step formation guide
- Want to compare formation services? → See our top 5 comparison
- Ready to file? → Start with Northwest Registered Agent for $39
- Need the cheapest option? → Bizee files for $0 + state fee
- Want a deep dive on our #1 pick? → Read the full Northwest RA review
→ Browse all LLC formation guides for more resources.
→ Form Your LLC with Northwest for $39
→ Form Your LLC with Bizee for $0
Watch out for hidden fees: Many "$0 formation" services bury auto-renewing subscriptions in checkout. Read our LLC formation scams to avoid guide before signing up anywhere.
Not sure which service fits your budget? Our step-by-step guide on how to choose an LLC formation service walks you through pricing tiers, feature checklists, and red flags so you can match a provider to your exact needs.
Considering an LLC vs staying a sole proprietor? Our LLC vs sole proprietorship comparison shows exactly when the liability protection and tax benefits justify the cost. Freelancers should also check our LLC guide for freelancers and consultants.
Remember: formation is just the first cost. Review our annual LLC compliance requirements by state to budget for ongoing fees like annual reports, franchise taxes, and registered agent renewals that vary dramatically by state.
Why I Choose Northwest Registered Agent
After forming 3 LLCs myself and helping clients through the process, I keep coming back to Northwest Registered Agent. Here is why:
- Remarkable Customer Support: Quick, human responses every time.
- Caring & Privacy-Focused: Genuine service with full respect for your privacy.
- Lightning-Fast Formation: Often faster than promised.
- Incredible Value: Prices far below the premium service quality.
- Clear & Transparent: No hidden fees or surprises.
Ready to form your business? Choose Northwest today!
Frédéric has founded and operated businesses across multiple countries, including 3 LLCs formed using Northwest Registered Agent. He holds certifications as a holistic coach and therapist trainer, is a published author, and has been featured in Le Parisien, IMDb, Goodreads, and international encyclopedias.
Frequently Asked Questions
What Is the Average Cost to Form an LLC?
The average state filing fee is approximately $132. Adding registered agent service ($0-$125 for year one) and an EIN (free from IRS), most LLC owners spend $100-$300 total in their first year, excluding state-specific taxes like California's $800 franchise fee.
Which State Has the Cheapest LLC Filing Fee?
Montana at $35, followed by Kentucky ($40), Arkansas ($45 online), and a group of states at $50 (Arizona, Colorado, Iowa, Michigan, Mississippi, Missouri, New Mexico, Hawaii). However, cheapest filing fee doesn't mean cheapest total cost, consider annual reports, franchise taxes, and whether you'd need foreign LLC registration in your home state.
Is It Worth Paying for a Formation Service?
If your time is worth more than $20-$40/hour, yes. DIY filing takes 1-3 hours. Northwest Registered Agent charges $39 and includes a registered agent worth $125/year. The time savings plus included registered agent make it a net positive for most filers. Compare the top formation services here.
Do I Have to Pay LLC Fees Every Year?
Most states require annual or biennial filings (annual report, statement of information, or franchise tax) with fees ranging from $0 to $800+. States with zero ongoing fees include Arizona, Missouri, New Mexico, and Ohio. California ($800/yr franchise tax) and Delaware ($300/yr flat tax) have the highest recurring costs.
Can I Avoid the California $800 Franchise Tax?
Not while maintaining an active California LLC. New LLCs formed in 2024 or later are exempt for their first tax year only. After that, the $800 applies annually regardless of income. The only way to avoid it is to dissolve the LLC or form in another state (but you'll need foreign LLC registration in California if you do business there, which costs $800/yr anyway).
What's the Cheapest Way to Get a Registered Agent?
Be your own registered agent ($0) if you don't mind your home address on public record and being available during business hours. For professional service, Northwest Registered Agent offers the best value at $39 for year one (bundled with formation) and $125/year renewal. → See our full Northwest Registered Agent review
Related Guides
- How to Form an LLC: Step-by-Step Guide
- Cheapest LLC Service in 2026
- Best Online LLC Formation Service (2026)
- LLC Formation Services: Side-by-Side Comparison
- Annual LLC Compliance Requirements by State
- Cheapest States to Form an LLC (2026)
- What Is an LLC? Complete Beginner's Guide
FTC Disclosure: OnlineLLCGuide.com earns affiliate commissions when you use our links. These commissions do not affect our ratings, rankings, or editorial positions. We independently evaluate each service. , OnlineLLCGuide.com
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