Guide 50 States

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).

Verified Data Ranked by Filing Fee Editorially Reviewed Updated
Key Takeaways
  • 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

1
Kentucky
Lowest Filing Fee
Filing Fee $40
Annual Fee $15
Income Tax 4.00%
LLC Cost Calculator
2
Arkansas
Lowest Filing Fee
Filing Fee $45
Annual Fee $150
Income Tax 4.40%
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3
Arizona
Lowest Filing Fee
Filing Fee $50
Annual Fee $0
Income Tax 2.50%
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All 50 States Ranked

Lowest to highest by filing fee

Scroll horizontally to see all columns
#StateFiling FeeAnnual FeeIncome 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%
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4 Colorado
$50
$10
4.40%
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5 Hawaii
$50
$15
11.00%
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6 Iowa
$50
$60
3.80%
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7 Michigan
$50
$25
4.25%
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8 Mississippi
$50
$0
5.00%
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9 Missouri
$50
$0
4.80%
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10 New Mexico
$50
$0
5.90%
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11 Utah
$54
$18
4.65%
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12 California
$70
$800
13.30%
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13 Montana
$70
$20
5.90%
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14 Nevada
$75
$200
0.00%
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15 Delaware
$90
$300
6.60%
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16 Indiana
$95
$32
3.05%
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17 Ohio
$99
$0
3.50%
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18 Georgia
$100
$50
5.49%
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19 Idaho
$100
$0
5.80%
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20 Louisiana
$100
$35
4.25%
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21 Maryland
$100
$300
5.75%
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22 Nebraska
$100
$13
5.84%
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23 New Hampshire
$100
$100
0.00%
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24 Oklahoma
$100
$25
4.75%
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25 Oregon
$100
$100
9.90%
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26 Virginia
$100
$50
5.75%
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27 West Virginia
$100
$25
5.12%
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28 Wyoming
$100
$60
0.00%
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29 South Carolina
$110
$0
6.40%
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30 Connecticut
$120
$80
6.99%
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31 Florida
$125
$138
0.00%
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32 New Jersey
$125
$75
10.75%
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33 North Carolina
$125
$200
4.50%
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34 Pennsylvania
$125
$0
3.07%
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35 Vermont
$125
$35
8.75%
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36 Wisconsin
$130
$25
7.65%
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37 North Dakota
$135
$50
1.95%
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38 Illinois
$150
$75
4.95%
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39 Rhode Island
$150
$50
5.99%
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40 South Dakota
$150
$50
0.00%
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41 Minnesota
$155
$0
9.85%
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42 Kansas
$160
$55
5.70%
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43 Maine
$175
$85
7.15%
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44 Washington
$180
$60
0.00%
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45 Alabama
$200
$0
5.00%
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46 New York
$200
$25
10.90%
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47 Alaska
$250
$100
0.00%
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48 Tennessee
$300
$300
0.00%
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49 Texas
$300
$0
0.00%
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50 Massachusetts
$500
$500
9.00%
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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.

Government data sources Updated annually Editorially reviewed

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.