Cheapest States to Form an LLC
LLC formation costs vary from $40 to $500 for filing, plus ongoing annual fees. Below are all 50 states ranked by total first-year LLC cost (filing fee + annual fee).
- Kentucky ranks #1 with the lowest filing fee at $40.
- Massachusetts ranks last at $500 — the highest among all states.
- The top 5 states are Kentucky, Arkansas, Arizona, Colorado, Hawaii.
- All data is sourced from verified government databases and updated for 2026.
Top 3 States
All 50 States Ranked
Lowest to highest by filing fee
| # | State | Filing Fee | Annual Fee | Income Tax | Calculator |
|---|---|---|---|---|---|
| 1 | Kentucky | $40 | $15 | 4.00% | LLC Cost Calculator |
| 2 | Arkansas | $45 | $150 | 4.40% | LLC Cost Calculator |
| 3 | Arizona | $50 | $0 | 2.50% | LLC Cost Calculator |
| 4 | Colorado | $50 | $10 | 4.40% | LLC Cost Calculator |
| 5 | Hawaii | $50 | $15 | 11.00% | LLC Cost Calculator |
| 6 | Iowa | $50 | $60 | 3.80% | LLC Cost Calculator |
| 7 | Michigan | $50 | $25 | 4.25% | LLC Cost Calculator |
| 8 | Mississippi | $50 | $0 | 5.00% | LLC Cost Calculator |
| 9 | Missouri | $50 | $0 | 4.80% | LLC Cost Calculator |
| 10 | New Mexico | $50 | $0 | 5.90% | LLC Cost Calculator |
| 11 | Utah | $54 | $18 | 4.65% | LLC Cost Calculator |
| 12 | California | $70 | $800 | 13.30% | LLC Cost Calculator |
| 13 | Montana | $70 | $20 | 5.90% | LLC Cost Calculator |
| 14 | Nevada | $75 | $200 | 0.00% | LLC Cost Calculator |
| 15 | Delaware | $90 | $300 | 6.60% | LLC Cost Calculator |
| 16 | Indiana | $95 | $32 | 3.05% | LLC Cost Calculator |
| 17 | Ohio | $99 | $0 | 3.50% | LLC Cost Calculator |
| 18 | Georgia | $100 | $50 | 5.49% | LLC Cost Calculator |
| 19 | Idaho | $100 | $0 | 5.80% | LLC Cost Calculator |
| 20 | Louisiana | $100 | $35 | 4.25% | LLC Cost Calculator |
| 21 | Maryland | $100 | $300 | 5.75% | LLC Cost Calculator |
| 22 | Nebraska | $100 | $13 | 5.84% | LLC Cost Calculator |
| 23 | New Hampshire | $100 | $100 | 0.00% | LLC Cost Calculator |
| 24 | Oklahoma | $100 | $25 | 4.75% | LLC Cost Calculator |
| 25 | Oregon | $100 | $100 | 9.90% | LLC Cost Calculator |
| 26 | Virginia | $100 | $50 | 5.75% | LLC Cost Calculator |
| 27 | West Virginia | $100 | $25 | 5.12% | LLC Cost Calculator |
| 28 | Wyoming | $100 | $60 | 0.00% | LLC Cost Calculator |
| 29 | South Carolina | $110 | $0 | 6.40% | LLC Cost Calculator |
| 30 | Connecticut | $120 | $80 | 6.99% | LLC Cost Calculator |
| 31 | Florida | $125 | $138 | 0.00% | LLC Cost Calculator |
| 32 | New Jersey | $125 | $75 | 10.75% | LLC Cost Calculator |
| 33 | North Carolina | $125 | $200 | 4.50% | LLC Cost Calculator |
| 34 | Pennsylvania | $125 | $0 | 3.07% | LLC Cost Calculator |
| 35 | Vermont | $125 | $35 | 8.75% | LLC Cost Calculator |
| 36 | Wisconsin | $130 | $25 | 7.65% | LLC Cost Calculator |
| 37 | North Dakota | $135 | $50 | 1.95% | LLC Cost Calculator |
| 38 | Illinois | $150 | $75 | 4.95% | LLC Cost Calculator |
| 39 | Rhode Island | $150 | $50 | 5.99% | LLC Cost Calculator |
| 40 | South Dakota | $150 | $50 | 0.00% | LLC Cost Calculator |
| 41 | Minnesota | $155 | $0 | 9.85% | LLC Cost Calculator |
| 42 | Kansas | $160 | $55 | 5.70% | LLC Cost Calculator |
| 43 | Maine | $175 | $85 | 7.15% | LLC Cost Calculator |
| 44 | Washington | $180 | $60 | 0.00% | LLC Cost Calculator |
| 45 | Alabama | $200 | $0 | 5.00% | LLC Cost Calculator |
| 46 | New York | $200 | $25 | 10.90% | LLC Cost Calculator |
| 47 | Alaska | $250 | $100 | 0.00% | LLC Cost Calculator |
| 48 | Tennessee | $300 | $300 | 0.00% | LLC Cost Calculator |
| 49 | Texas | $300 | $0 | 0.00% | LLC Cost Calculator |
| 50 | Massachusetts | $500 | $500 | 9.00% | LLC Cost Calculator |
Methodology
How we collected and ranked the data
LLC filing fees and annual/biennial report fees from each state's Secretary of State website. Total first-year cost = filing fee + first annual fee.
Frequently Asked Questions
What is the cheapest state to form an LLC?
Kentucky and Arkansas have among the lowest filing fees at $40. However, consider all costs including annual fees, state income tax, and registered agent fees.
Is forming an LLC in another state worth it?
For most small businesses, forming in your home state is cheapest. Forming in Delaware or Wyoming only makes sense for specific legal advantages, and you'll still need to register as a foreign LLC in your home state.