A limited liability company (LLC) is the most popular structure for new small businesses in the United States. It separates your personal assets from your business’s debts and lawsuits, keeps taxes simple by default, and costs relatively little to form. But every state sets its own fees, deadlines and rules, and the differences are bigger than most people expect: forming an LLC costs $35 in Montana and $500 in Massachusetts, and the yearly cost ranges from nothing to several hundred dollars.
This page brings everything together: a comparison of all 50 states, the steps that apply everywhere, and a link to a detailed 2026 guide for your state.
LLC fees and rules in all 50 states
Table of Contents
| State | Filing fee | Recurring state filing | Worth knowing |
|---|---|---|---|
| Alabama | $200 plus name reservation | None (abolished 2024) | Business privilege tax only if over $100 |
| Alaska | $250 | $100 every two years | State business license required |
| Arizona | $50 | None | Newspaper notice outside Maricopa and Pima |
| Arkansas | $45 online | $150 franchise tax yearly | Food Freedom Act for home cooks |
| California | $70 | $20 every two years | $800 minimum annual tax |
| Colorado | $50 | $25 yearly | City-run sales taxes |
| Connecticut | $120 | $80 yearly | Business entity tax repealed |
| Delaware | $110 | $400 annual tax | Popular with investors; tax raised for 2026 |
| Florida | $125 | $138.75 yearly | $400 late fee after May 1 |
| Georgia | About $110 | About $60 yearly | Annual registration due April 1 |
| Hawaii | $50 | $12.50 yearly online | General excise tax on most income |
| Idaho | $100 online | Free yearly report | Easy to forget because it’s free |
| Illinois | $150 | $75 yearly | 1.5% replacement tax |
| Indiana | $95 online | $31 every two years | County income taxes |
| Iowa | $50 | $30 every two years | Flat 3.8% income tax |
| Kansas | About $85 online (confirm) | Report every two years | Fees changed recently |
| Kentucky | $40 | $15 yearly | $175 minimum entity tax |
| Louisiana | $125 ($130 online) | $35 yearly | Fees rose October 2026 |
| Maine | $175 | $85 yearly | Paid leave program |
| Maryland | $100 | $300 yearly | Fee waiver via MarylandSaves |
| Massachusetts | $500 | $500 yearly | Highest LLC fees |
| Michigan | $50 | $25 yearly | City income taxes |
| Minnesota | $155 online | Free yearly renewal | Assumed names must be published |
| Mississippi | $50 | Free yearly report | E-Verify required for employers |
| Missouri | $50 online | None | 1% earnings tax in KC and St. Louis |
| Montana | $35 | Yearly report (fee currently waived if on time) | Lowest filing fee |
| Nebraska | $100 online | $25 every two years | Newspaper notice required |
| Nevada | $425 at formation | $350 yearly | No income tax, high fees |
| New Hampshire | $100 | $100 yearly | No sales or wage tax |
| New Jersey | $100 | $75 yearly | Fee cut July 2026 |
| New Mexico | $50 | None | Gross receipts tax on services |
| New York | $200 | $9 every two years | Newspaper publication required |
| North Carolina | $125 | $200 yearly | GC license over $40,000 |
| North Dakota | $135 | $50 yearly | State-fund workers’ comp |
| Ohio | $99 | None | Municipal income taxes |
| Oklahoma | $100 ($104 online) | $25 yearly | Annual certificate on anniversary |
| Oregon | $100 | $100 yearly | No sales tax |
| Pennsylvania | $125 | $7 yearly | Enforcement starts 2027 |
| Rhode Island | $150 | $50 yearly | Minimum annual tax |
| South Carolina | $110 | None for most LLCs | Local business licenses |
| South Dakota | $150 | $55 yearly | No income tax; services taxable |
| Tennessee | $300 minimum | $300 minimum yearly | Franchise and excise taxes |
| Texas | $300 | Public Information Report (no fee) | Franchise tax only above $2.65M |
| Utah | $59 | $18 yearly | Contractor licensing via DOPL |
| Vermont | $155 | $45 yearly | Act 250 land-use permits |
| Virginia | $100 | $50 yearly | Local BPOL taxes |
| Washington | $200 online | $70 yearly | B&O tax on gross receipts |
| West Virginia | $100 | $25 yearly | Veteran fee waiver |
| Wisconsin | $130 online | $25 yearly | Due by end of anniversary quarter |
| Wyoming | $100 | $60 minimum yearly | Privacy; no income tax |
Fees are as of October 2026. Some states add small online processing fees, and a few states’ figures are changing; each state guide explains the details and links to official sources. Taxes on income, sales and payroll are separate.
Which state should you form your LLC in?
For almost every small business, the answer is simple: form your LLC in the state where you live and do business. If you form elsewhere, such as Delaware, Wyoming or Nevada, but operate at home, you’ll generally have to register in your home state as a "foreign" LLC too, paying both states’ fees, filing two sets of reports and still paying your home state’s taxes.
Forming out of state can make sense when:
- You’re raising venture capital, where investors may prefer Delaware (often as a corporation rather than an LLC).
- You’re building a holding company or have complex ownership.
- You don’t have a physical base in any state with heavier requirements, which is rare for most owners.
- You’re a non-US founder choosing a US entity for selling to American customers.
See our Delaware, Wyoming and Nevada guides for honest comparisons.
The cheapest and most expensive states
Lowest ongoing state costs. Ohio, Missouri, New Mexico, Arizona and most South Carolina LLCs have no recurring report at all. Mississippi, Idaho and Minnesota have free yearly reports, and Pennsylvania’s costs just $7.
Highest costs. Massachusetts charges $500 to form and $500 a year. California’s $800 minimum annual tax, Delaware’s $400 annual tax, Nevada’s $350 yearly fees, Maryland’s $300 report and Tennessee’s per-member fees plus franchise and excise taxes also stand out.
Hidden costs to watch for. Kentucky’s $175 minimum entity tax, Rhode Island’s minimum annual tax, newspaper publication in New York, Nebraska and parts of Arizona, local business license taxes in Virginia and many other places, and city income taxes in Ohio, Michigan and Missouri.
The steps that apply in every state
- Choose a name that includes "LLC" or similar wording and isn’t already taken in your state. Check trademarks and domain names too, using our business name checklist.
- Appoint a registered agent with a physical address in the state to receive legal papers.
- File formation documents (usually called Articles of Organization or a Certificate of Formation) with the state and pay the fee.
- Complete any state-specific steps, such as publication, name reservation or a business license.
- Write an operating agreement, even if your state doesn’t require one.
- Get a free EIN from the IRS.
- Open a business bank account and keep your finances separate. See choosing a business bank account.
- Register for state taxes such as sales tax and payroll taxes, and get local and professional licenses.
- Put your recurring deadlines in your calendar: annual or biennial reports, state taxes and license renewals.
LLC taxes in brief
By default, a single-member LLC is taxed like a sole proprietorship and a multi-member LLC like a partnership: profits pass through to the owners’ personal tax returns, where they’re subject to federal income tax and self-employment tax, plus state income tax in most states. Nine states have no personal income tax on wages, and a few, such as New Hampshire, tax certain business income instead.
An LLC can also elect to be taxed as an S corporation, which can reduce self-employment tax once profits are steady, or as a C corporation. State rules on these elections differ, so talk to an accountant before choosing. Our guide to small business taxes and bookkeeping covers the basics, including the 2026 changes to 1099 reporting.
Federal rules that apply everywhere
- EIN: free from the IRS; never pay a third party for one unless you want their help.
- Beneficial ownership reporting: in 2026, FinCEN finalized a rule exempting US-formed companies and US owners from federal beneficial ownership reporting. Confirm the current rule when you form.
- Employer rules: if you hire, federal payroll taxes, I-9 forms and new-hire reporting apply in every state. See hiring your first employee.
Common LLC mistakes
- Forming in another state to avoid home-state fees or taxes, which rarely works.
- Missing recurring reports, which can lead to penalties and dissolution.
- Mixing personal and business money, which weakens your liability protection.
- Skipping the operating agreement, especially with partners.
- Forgetting local licenses and taxes, which vary by city and county.
Frequently asked questions
How much does it cost to start an LLC? State filing fees range from $35 to $500, plus any yearly fees and taxes shown in the table above.
Can I form an LLC myself? Yes. Most states let you file online in an hour or less. Consider a lawyer for multi-member agreements, regulated industries or complex ownership.
How long does it take? Online filings in many states are approved within a few days; states with publication requirements take longer to complete everything.
Do I need an LLC to start a business? No. Many owners start as sole proprietors and form an LLC once the business has real income, liability risk or partners.
Next steps
Pick your state from the table above, then follow the Start a Business A–Z guide and estimate your budget with the startup cost calculator.
This page is general information, not legal or tax advice. Fees and rules change; each state guide links to official sources to check before you file.
Sources
- Advanton state LLC guides (each lists its own sources)
- LLC University, LLC annual fees by state (2026)
- IRS, Apply for an EIN online
Last reviewed October 20, 2026. Startup costs are estimates; check local prices, licensing and tax rules before you commit money.
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