Starting a business in the United States often begins with choosing the right legal structure. One of the most popular options for entrepreneurs is forming a Limited Liability Company (LLC). This business structure provides liability protection while keeping management and taxation relatively simple.
However, before registering an LLC, it is important to understand the costs involved. LLC fees vary depending on the state where you register your business. These costs usually include a one-time filing fee and an ongoing recurring fee required to keep the company active.
This guide explains LLC formation costs in every U.S. state for 2026, including both filing fees and annual maintenance fees. By the end of this article, you will have a clear understanding of the financial requirements for starting and maintaining an LLC.
What Is an LLC Filing Fee?
An LLC filing fee is the one-time payment made to the state when you officially register your business.
This fee is paid when submitting the Articles of Organization, which is the document used to legally create your LLC.
Important things to know:
- It is paid once during formation
- It is not a monthly fee
- Every U.S. state requires a filing fee
Some states charge relatively low fees, while others require higher payments depending on local regulations and administrative costs. llc_filing_fees_guide
What Is a Recurring LLC Fee?
After forming an LLC, most states require businesses to pay ongoing maintenance fees.
These are called recurring fees and are required to keep the LLC in good standing with the state.
Recurring fees may be charged:
- Annually (every year)
- Biennially (every two years)
If an LLC fails to pay these required fees, the state may administratively dissolve the company, which means it can lose its legal status. llc_filing_fees_guide
Important: The Cheapest State Isn’t Always the Best Choice
Many entrepreneurs try to find the state with the lowest LLC filing fee. However, choosing a state only based on cost can lead to complications.
If You Are a U.S. Resident
Most entrepreneurs should form their LLC in the state where they live or operate their business.
If you register your LLC in another state, you may need to register as a foreign LLC in your home state. This could require:
- Additional filing fees
- Multiple annual reports
- Extra compliance requirements
Essentially, you might end up maintaining two registrations instead of one.
If You Are a Non-US Resident
International entrepreneurs often have more flexibility when choosing a state for LLC formation.
Two popular choices are:
- Wyoming
- Delaware
These states are known for business-friendly laws and relatively simple compliance requirements. llc_filing_fees_guide
LLC Filing Costs and Recurring Fees by State (2026)
The table below provides a breakdown of LLC filing fees and recurring maintenance costs for each U.S. state.
| State | Filing Fee | Recurring Fee |
|---|---|---|
| Alabama | $200 | $100 yearly |
| Alaska | $250 | $100 every 2 years |
| Arizona | $85 | $0 |
| Arkansas | $45 | $150 yearly |
| California | $70 | $800 yearly + $20 every 2 years |
| Colorado | $50 | $10 yearly |
| Connecticut | $120 | $80 yearly |
| Delaware | $160 | $300 yearly |
| Florida | $125 | $138.75 yearly |
| Georgia | $100 | $50 yearly |
| Hawaii | $50 | $15 yearly |
| Idaho | $100 | $0 (report required) |
| Illinois | $150 | $75 yearly |
| Indiana | $97 | $30 every 2 years |
| Iowa | $50 | $45 every 2 years |
| Kansas | $160 | $50 yearly |
| Kentucky | $40 | $15 yearly |
| Louisiana | $100 | $35 yearly |
| Maine | $175 | $85 yearly |
| Maryland | $100 | $300 yearly |
| Massachusetts | $500 | $500 yearly |
| Michigan | $50 | $25 yearly |
| Minnesota | $50 | $0 (report required) |
| Mississippi | $50 | $0 (report required) |
| Missouri | $50 | $0 |
| Montana | $35 | $20 yearly |
| Nebraska | $105 | $10 every 2 years |
| Nevada | $425 | $350 yearly |
| New Hampshire | $100 | $100 yearly |
| New Jersey | $125 | $75 yearly |
| New Mexico | $50 | $0 |
| New York | $205 | $9 every 2 years |
| North Carolina | $125 | $200 yearly |
| North Dakota | $135 | $50 yearly |
| Ohio | $99 | $0 |
| Oklahoma | $100 | $25 yearly |
| Oregon | $100 | $100 yearly |
| Pennsylvania | $125 | $7 yearly |
| Rhode Island | $150 | $50 yearly |
| South Carolina | $110 | $0 |
| South Dakota | $150 | $50 yearly |
| Tennessee | $300 | $300 yearly |
| Texas | $300 | $0 |
| Utah | $70 | $20 yearly |
| Vermont | $125 | $35 yearly |
| Virginia | $100 | $50 yearly |
| Washington | $200 | $60 yearly |
| Washington DC | $99 | $300 every 2 years |
| West Virginia | $100 | $25 yearly |
| Wisconsin | $130 | $25 yearly |
| Wyoming | $103.75 | $60 yearly |
Additional Costs When Starting an LLC
Besides state filing fees, there are other potential expenses to consider when starting a business.
Registered Agent Fees
Most states require an LLC to have a registered agent, which is a person or service that receives legal documents on behalf of the business.
Typical cost:
$50 to $300 per year
DBA (Doing Business As)
Some companies operate under a name different from their official LLC name.
This is called a DBA or assumed business name.
DBA registration fees usually range between:
$10 and $100 depending on the state
Business Licenses
Certain businesses require local or state licenses before they can operate legally.
Examples include:
- food businesses
- contractors
- healthcare providers
- financial services
These licenses vary widely depending on the industry and location.
Cheapest States to Form an LLC
Some states are known for having relatively low formation costs.
Popular options include:
Wyoming
- Low annual fees
- Business-friendly regulations
- Popular for international founders
New Mexico
- No annual report fee
- Simple compliance rules
Kentucky
- One of the lowest filing fees in the United States
However, keep in mind that the best state to form an LLC is usually the state where your business operates.
Benefits of Forming an LLC
Despite the costs involved, LLCs remain one of the most common business structures because of their advantages.
Personal Liability Protection
LLCs separate business liabilities from personal assets, helping protect owners from business debts or lawsuits.
Flexible Tax Structure
Most LLCs use pass-through taxation, meaning profits are reported on the owners’ personal tax returns instead of being taxed at the corporate level.
Simple Administration
Compared with corporations, LLCs typically have fewer compliance requirements and less paperwork.
Frequently Asked Questions
Are LLCs taxed?
LLCs themselves generally do not pay federal income tax. Instead, profits pass through to the owners and are taxed on their personal tax returns.
Can I avoid LLC fees completely?
No. Every state requires at least a filing fee when creating an LLC.
Which state is best for forming an LLC?
For most entrepreneurs, the best state is the state where they live or run their business.
Do LLCs need a registered agent?
Yes. Most states legally require LLCs to maintain a registered agent to receive official legal documents.
Final Thoughts
Forming an LLC is a major step for entrepreneurs starting a business in the United States. While the exact costs vary by state, most LLCs require a one-time filing fee and ongoing maintenance fees.
Understanding these expenses before forming your company helps you plan ahead and avoid unexpected compliance issues.
Whether you are a U.S. resident launching a local business or an international founder starting a U.S. company, choosing the right state and staying compliant with annual requirements will help ensure your LLC remains active and legally protected.