How to form an LLC in every state: fees, forms and yearly costs

What does it cost to form an LLC in each state?

Fees are the state's charge for the online filing where the state has one; paper filings sometimes cost more, and expedited service is extra. The last column is what the state asks for every year after formation; the federal filings are the same wherever the LLC is formed.

States with their own guide are linked. For the rest, the row above is the summary and the state's own business portal has the form; see LLC annual report fees and due dates by state for the yearly filing in detail and sales tax for online sellers by state if you sell online.

Which states are cheapest, and which cost the most?

The filing fee is a one-off, so the yearly cost matters more over the life of the LLC. Massachusetts charges $500 to form an LLC and then $500 a year, which makes it one of the most expensive states to keep an LLC in. Montana, at $35, is cheap to start but its annual report is free on time through 2027; $20 standard. California costs $70 to form but every LLC pays an $800 annual tax, so its true first-year cost is closer to $900. Compare the two columns together before you choose.

Which states require no annual report?

7 states have no annual report for LLCs: Alabama, Arizona, Delaware, Missouri, New Mexico, Ohio and South Carolina. That is not the same as no yearly cost. Delaware charges a flat annual tax instead, Alabama has a business privilege tax return above a small exemption, and Ohio and Arizona rely on tax registrations rather than a report. New Mexico and Missouri are the clearest cases of nothing to file, which is one reason New Mexico attracts owners who want the least paperwork.

Where do owners outside the US usually form?

Wyoming, Delaware, New Mexico, Florida and Texas, roughly in that order. Wyoming and New Mexico are cheap and private, Delaware is the choice when investors expect it, and Florida and Texas suit owners who will actually do business there. None of them has a residency requirement, and the registered agent is the only local presence an LLC needs. See how to form an LLC in Wyoming, in Delaware, in New Mexico, in Florida and in Texas, and the best state for a non-resident LLC for how to choose.

What is the same in every state?

1. Choose and check the name

   Search the state's business records and include "LLC" or an accepted variation in the name.

2. Appoint a registered agent

   A person or company with a street address in the state, available during business hours. See what a registered agent is.

3. File the formation document

   Articles or a certificate of organization or formation, usually online, with the fee in the table.

4. Get an EIN

   Free from the IRS, online with a Social Security number or on Form SS-4 without one. See how to get an EIN online.

5. Sign an operating agreement and register for state taxes

   See the LLC operating agreement, then sales tax and payroll registrations as needed.

Does it matter which state you choose?

For most owners, no: form where you live and work, because a business that operates in a state has to register there anyway, as a foreign LLC, and pay that state's fees on top. The exceptions are owners outside the US, who have no home state, and businesses that will raise money from investors who expect Delaware. See which state to form your LLC in, home state or another state and how much an LLC costs for the costs beyond the state fee.

This guide is general information. It is not tax or legal advice for your situation.