The cheapest states to form an LLC in 2026 are Arizona ($50 first year), Mississippi ($50 first year), Missouri ($50 first year) and New Mexico ($50). The most expensive are Massachusetts ($1,000) and California ($890). These are state fees only - the filing fee plus recurring annual state charges - and the cheapest state is usually the wrong choice if you operate somewhere else.
All 51 jurisdictions ranked by first-year cost
Sorted cheapest first. “Annual state fee” is the recurring charge you pay every year to keep the company in good standing; biennial fees are shown as their annual equivalent so the comparison is like for like.
| # | State | Filing fee | Annual state fee | First year |
|---|---|---|---|---|
| 1 | Arizona | $50 | None | $50 |
| 2 | Mississippi | $50 | None | $50 |
| 3 | Missouri | $50 | None | $50 |
| 4 | New Mexico | $50 | None | $50 |
| 5 | Kentucky | $40 | $15 | $55 |
| 6 | Montana | $35 | $20 | $55 |
| 7 | Hawaii | $50 | $15 | $65 |
| 8 | Iowa | $50 | $15 | $65 |
| 9 | Colorado | $50 | $25 | $75 |
| 10 | Michigan | $50 | $25 | $75 |
| 11 | Utah | $59 | $18 | $77 |
| 12 | Ohio | $99 | None | $99 |
| 13 | Idaho | $100 | None | $100 |
| 14 | Nebraska | $100 | $6.50 | $106.50 |
| 15 | South Carolina | $110 | None | $110 |
| 16 | Indiana | $95 | $16 | $111 |
| 17 | Oklahoma | $100 | $25 | $125 |
| 18 | West Virginia | $100 | $25 | $125 |
| 19 | Louisiana | $100 | $30 | $130 |
| 20 | Pennsylvania | $125 | $7 | $132 |
| 21 | Kansas | $85 | $50 | $135 |
| 22 | Virginia | $100 | $50 | $150 |
| 23 | Minnesota | $155 | None | $155 |
| 24 | Wisconsin | $130 | $25 | $155 |
| 25 | Wyoming | $100 | $60 | $160 |
| 26 | Georgia | $110 | $60 | $170 |
| 27 | North Dakota | $135 | $50 | $185 |
| 28 | Arkansas | $45 | $150 | $195 |
| 29 | Vermont | $155 | $45 | $200 |
| 30 | Rhode Island | $150 | $50 | $200 |
| 31 | South Dakota | $150 | $50 | $200 |
| 32 | New Jersey | $125 | $75 | $200 |
| 33 | Connecticut | $120 | $80 | $200 |
| 34 | New Hampshire | $100 | $100 | $200 |
| 35 | Oregon | $100 | $100 | $200 |
| 36 | New York | $200 | $4.50 | $204.50 |
| 37 | Illinois | $150 | $75 | $225 |
| 38 | District of Columbia | $99 | $150 | $249 |
| 39 | Alabama | $200 | $50 | $250 |
| 40 | Maine | $175 | $85 | $260 |
| 41 | Florida | $125 | $138.75 | $263.75 |
| 42 | Washington | $200 | $70 | $270 |
| 43 | Texas | $300 | None | $300 |
| 44 | Alaska | $250 | $50 | $300 |
| 45 | North Carolina | $125 | $200 | $325 |
| 46 | Maryland | $100 | $300 | $400 |
| 47 | Delaware | $110 | $300 | $410 |
| 48 | Tennessee | $300 | $400 | $700 |
| 49 | Nevada | $425 | $350 | $775 |
| 50 | California | $70 | $820 | $890 |
| 51 | Massachusetts | $500 | $500 | $1,000 |
State fees only - add a registered agent (typically $50-$125 a year) and any formation-service fee. Cross-checked against official Secretary of State sources where available; last checked 2026-07-21. Confirm before filing.
Filing fee versus the fee you pay forever
Most “cheapest state” lists rank on the filing fee, which is the number that matters least. You pay it once. The annual fee you pay every year the company exists, so over three or five years it dominates the total.
Arizona, Mississippi, Missouri, New Mexico, Ohio charge no recurring state fee at all. That is the figure to optimise if the company will exist for years. Compare that with Massachusetts at $500 a year or California at $820: over five years the gap between a zero-fee state and those runs into thousands, dwarfing any difference in filing fee.
The corollary is that a low filing fee paired with a high annual charge is a trap. Arkansas is the clearest example - $45 to file looks excellent until the $150 annual franchise tax arrives every year thereafter.
Why “cheapest” is usually the wrong question
If you are a US resident running a business from your own state, forming in a cheaper state elsewhere rarely saves anything. You generally still have to register as a foreign entity where you actually operate, which means two filing fees, two annual reports and two registered agents. The cheap state becomes an additional cost layered on top of your real one.
This is the most expensive misunderstanding in the whole formation market, and it is actively encouraged by content promoting Wyoming or Delaware to everyone regardless of circumstances. For a resident operating in one state, the home state is usually correct and usually cheapest overall.
Where the ranking genuinely applies is when you have no physical operations in any state - which describes most non-resident founders. If you live abroad, work remotely, and have no US office, staff or inventory, you can choose on cost, privacy and banking acceptance rather than being anchored to a home state. See the Wyoming vs Delaware comparison for that decision in depth.
What these numbers leave out
- Registered agent. Required in every state, typically $50-$125 a year independently. Not included above.
- Publication. A few states require newspaper publication after formation. In New York City this has run to four figures - a cost that dwarfs the filing fee.
- State income and sales tax. A state with no filing cost can still tax your income or require sales-tax registration. Check the individual state page.
- Federal filings. A foreign-owned single-member LLC generally files Form 5472 with a pro forma 1120 every year, even when dormant, with penalties starting at $25,000. That obligation is identical in every state.
- Exit cost. Dissolving means a filing fee and clearing any outstanding reports or franchise tax. In an expensive state, an unused company gets costly fast.
Compare structures with the entity explorer · See the full three-year cost breakdown
Quick answers
Frequently asked questions
What is the cheapest state to form an LLC?
On state fees alone, Arizona is among the cheapest at $50 to file and $0 a year ongoing, giving a first-year cost of about $50. Mississippi and Missouri are comparable. Cheapest on paper is not the same as cheapest for your situation.
What is the most expensive state to form an LLC?
Massachusetts is the most expensive on these figures at about $1,000 in the first year ($500 to file plus $500 a year). California follows at about $890, largely because of its $820 recurring annual charge.
Which state has the lowest ongoing LLC fees?
Ongoing cost matters more than the filing fee because you pay it every year. Arizona, Mississippi, Missouri, New Mexico charge no recurring annual state fee at all, which keeps long-run cost lowest even where the filing fee is not the very cheapest.
Should I form in the cheapest state even if I live elsewhere?
Usually not, if you are a US resident operating in your own state. Forming out of state normally means registering as a foreign entity where you actually operate, so you pay two sets of fees and file in two places. The cheap state becomes an extra cost, not a saving.
Do these figures include the registered agent?
No. These are state fees only. Every state requires a registered agent with an in-state address, which typically costs $50-$125 a year from an independent provider, or more inside a formation bundle. Add that to every figure in the table.
Do non-residents pay more?
No. State filing and annual fees are identical regardless of whether the owner is a US resident or a non-resident. What differs for non-residents is the process - a registered agent is mandatory, the EIN goes in by fax or phone, and a foreign-owned LLC generally files Form 5472 each year.