Question 1

How much does an LLC cost in 2026?

Accepted Answer

Forming an LLC costs $35 to $520 in state filing fees depending on the state (median $100): Montana is cheapest at $35, Massachusetts most expensive at $520. But the filing fee is only the start. Annual reports ($0–$500/yr), franchise or minimum taxes (California $800/yr, Delaware $400/yr, Rhode Island $400/yr), newspaper publication (New York $200–$2,000) and a registered agent ($0–$300/yr) decide the real price. Use the TCO calculator above for a 1, 5 or 10-year total per state.

Question 2

How much does an LLC cost in California?

Accepted Answer

A California LLC costs $70 to file, plus a $20 Statement of Information every two years — and a mandatory $800 annual minimum franchise tax to the Franchise Tax Board, owed even with zero revenue. Realistic 5-year state cost: $70 + 5 × $800 + biennial $20 filings = about $4,110. California is the most expensive state to maintain an LLC in, which is why the Cheapest-State tab above ranks it last.

Question 3

How much does an LLC cost in Texas?

Accepted Answer

Texas charges $300 to form an LLC — one of the highest filing fees — but $0 in annual report fees for most LLCs (you still file a yearly Public Information Report). The franchise (margin) tax is 0% if revenue stays under $2.65 million for 2026/2027 reports. Realistic 5-year state cost: about $300, making Texas cheap to maintain despite the steep entry fee.

Question 4

How much does an LLC cost in Florida?

Accepted Answer

Florida costs $125 to form (that includes a required $25 registered-agent designation) plus $138.75 every year for the annual report, due May 1. Realistic 5-year state cost: $125 + 5 × $138.75 = $818.75. File the annual report late (after May 1) and a $400 late fee applies — one of the steepest late penalties in the country.

Question 5

Do I have to pay for my LLC every year?

Accepted Answer

In most states, yes — but not all. Seven jurisdictions require no recurring report at all: Alabama, Arizona, Delaware, Missouri, New Mexico, Ohio and South Carolina (Delaware still charges its $400 annual tax; Arizona still requires publication). Five more charge $0 for a required filing: Idaho, Minnesota, Mississippi, Montana and Texas. Everywhere else, missing the annual or biennial filing puts your LLC out of good standing and can lead to administrative dissolution.

Question 6

What is the cheapest state to form an LLC?

Accepted Answer

By 5-year total state cost, the cheapest are Montana ($35 formation, $0 annual report fee), New Mexico, Missouri and Mississippi (about $50 total), and Ohio ($99, no annual report). But forming in a cheap state only saves money if you actually operate there — forming in Wyoming while doing business in California means paying both states (see the Out-of-State Advisor tab). For most owners, the cheapest state is their home state.

Question 7

What state is best to form an LLC in?

Accepted Answer

For roughly 95% of small businesses, the best state is the one where you live and work. Forming in Delaware, Wyoming or Nevada while operating elsewhere forces you to foreign-qualify at home — paying formation plus annual fees in two states, plus a registered agent in the formation state. Delaware's Court of Chancery and deep case law matter for startups planning to raise venture capital; Wyoming and New Mexico offer privacy (no member names on public filings). For a typical freelancer or local business, none of that outweighs double fees — form at home.

Question 8

Should I form my LLC in Delaware, Wyoming or Nevada instead of my home state?

Accepted Answer

Usually not. The 'foreign qualification trap': if your Delaware LLC does business in California, you must register as a foreign LLC in California too — paying Delaware's $110 + $400/yr AND California's $70 + $800/yr. Over 5 years that is $6,220 versus $4,110 forming in California alone: $2,110 extra for zero benefit. The Out-of-State Advisor tab above computes this for any state pair. Out-of-state formation only makes sense for specific legal reasons (VC fundraising in Delaware, anonymity in Wyoming/New Mexico), not to save fees — it never saves fees.

Question 9

How much does a registered agent cost for an LLC?

Accepted Answer

Commercial registered agent services cost $50 to $300 per year (around $125–$150 is typical). Every state requires an LLC to maintain one with a physical street address in the formation state — no PO boxes. You can be your own registered agent for $0 if you have an in-state street address and are available during business hours, but your address becomes public record and you cannot serve as your own agent in a state where you have no address (which is why out-of-state formation always adds this cost).

Question 10

Can I be my own LLC registered agent?

Accepted Answer

Yes, in every state — if you have a physical street address in the formation state and someone is available there during normal business hours. The tradeoffs: your address goes on a public, searchable government register; you must be present to accept lawsuits in person; and every move triggers a state filing. It does not work across state lines: a Texas resident cannot be their own Wyoming registered agent.

Question 11

Which states require LLC newspaper publication, and what does it cost?

Accepted Answer

Three states: New York, Arizona and Nebraska. New York is the expensive one — publish once a week for 6 weeks in two newspapers (one daily, one weekly) designated by the county clerk, then file a $50 Certificate of Publication. Costs range from about $200–$500 upstate to $1,200–$2,000 in Manhattan. Arizona requires 3 consecutive publications within 60 days ($80–$300) except in Maricopa and Pima counties, where the Corporation Commission publishes for free. Nebraska requires 3 consecutive weeks in a legal newspaper of the designated-office county. Use the Publication tab above for county-by-county estimates.

Question 12

What is the California $800 LLC tax and can I avoid it?

Accepted Answer

The $800 is California's annual minimum franchise tax, administered by the Franchise Tax Board — every LLC registered or doing business in California owes it each year, even with zero revenue or zero profit. It cannot be avoided while the LLC exists in California; the only ways out are dissolving the LLC or never registering there. It is separate from the $20 biennial Statement of Information. First-year exemptions that existed for 2021–2023 formations have expired.

Question 13

LLC vs sole proprietorship: which costs less?

Accepted Answer

A sole proprietorship costs less — typically just a DBA/fictitious-name filing (~$10–$100, varies by county) and $0 in annual state fees. An LLC costs its state's formation fee plus recurring reports and any franchise tax (e.g. about $4,110 over 5 years in California, $300 in Texas). What the extra money buys: limited liability (business debts generally cannot reach personal assets), credibility with banks and clients, and the option to elect S-corp taxation later. Both default to pass-through taxation. The Cost Comparator tab above shows the 5-year math side by side for any state.

Question 14

How much does it cost to get an EIN for an LLC?

Accepted Answer

An EIN (Employer Identification Number) is free directly from the IRS — apply online and it is issued immediately. Any site charging for the number itself is charging for filling out the form, not the EIN. You need an EIN if the LLC has employees, multiple members, or elects corporate/S-corp taxation; banks also require one to open a business account, so most single-member LLCs get one anyway.

Question 15

LLC vs S corporation — which costs more to run?

Accepted Answer

An S corporation is not a different state entity — it is a federal tax election an LLC (or corporation) makes. State formation costs are identical either way. The difference is ongoing: S-corp election adds payroll (you must pay yourself a reasonable salary with payroll taxes and filings), a separate business tax return (Form 1120-S), and usually an accountant — often $1,000–$3,000+/yr in compliance costs. It can still save money overall once profits are high enough that the 15.3% self-employment tax savings exceed those costs — typically around $60k–$80k+ in annual profit. This is a tax-planning decision: talk to a CPA before electing.

Question 16

Is this LLC cost calculator legal or tax advice?

Accepted Answer

No. This tool gives educational cost estimates from published state fee schedules — not legal or tax advice, and not a substitute for a licensed attorney or CPA in your jurisdiction. State fees change (Delaware raised its LLC tax from $300 to $400 effective 2026; Georgia changed its schedule in 2025), so always verify the current fee with your Secretary of State before filing, and talk to a professional about entity choice, taxes and liability for your specific situation.

LLC Cost Lab

State Fee Explorer — all 50 states + DC

Total Cost of Ownership Calculator

Cheapest-State Ranker

Out-of-State Advisor — the foreign-qualification trap

Publication Cost Estimator

Franchise & Minimum Tax Module

LLC vs Sole Proprietorship

Methodology & data sources

Frequently asked questions

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