The cost of forming an LLC varies wildly by state — from $0 in annual fees to California's notorious $800/year minimum tax. This guide gives you the full picture: filing fees plus the ongoing annual costs that actually determine what your LLC costs over time.
Note: fees change. Always verify with your Secretary of State before filing. Annual costs below include mandatory annual/biennial reports and minimum taxes where applicable.
The 15 most popular states
| State | Filing fee | Annual cost | Notes |
|---|---|---|---|
| New Mexico | $50 | $0 | No annual report — cheapest lifetime cost |
| Wyoming | $100 | $60 | Best value + privacy combo |
| Delaware | $110 | $300 | Worth it mainly for VC-track startups |
| Colorado | $50 | $10 | One of the cheapest overall |
| Texas | $300 | $0 | No annual report, but high filing fee |
| Florida | $125 | $138.75 | Annual report required |
| New York | $200 | ~$9* | *Plus publication requirement ($300–$1,200 in some counties) |
| California | $70 | $800 | Minimum franchise tax — most expensive |
| Nevada | $75 | $350+ | Business license fees add up |
| Arizona | $50 | $0 | No annual report |
| Ohio | $99 | $0 | No annual report |
| Georgia | $100 | $50 | Annual registration |
| Illinois | $150 | $75 | Annual report |
| Pennsylvania | $125 | $0 | Decennial report every 10 years |
| Washington | $200 | $60 | Annual report |
Cheapest states to form AND maintain (10-year view)
Filing fees get the headlines, but annual costs dominate the math. Over 10 years:
| State | 10-year state cost |
|---|---|
| New Mexico | $50 ($50 filing, $0 annual) |
| Arizona | $50 ($50 filing, $0 annual) |
| Ohio | $99 ($99 filing, $0 annual) |
| Colorado | $150 ($50 filing, $10/year) |
| Wyoming | $640 ($100 filing, $60/year) |
| Delaware | $3,110 ($110 filing, $300/year) |
| California | $8,070 ($70 filing, $800/year minimum) |
New Mexico's lack of an annual report makes it nearly unbeatable on pure cost. But remember: if you operate in another state, you will pay foreign qualification fees there too — which usually wipes out the savings. See our best states guide for the full decision framework.
The true first-year cost (beyond state fees)
State fees are only part of the budget. A realistic first year:
| Item | DIY cost | With a service |
|---|---|---|
| State filing fee | $50–$500 | $50–$500 |
| Formation service | $0 | $0–$300 |
| Registered agent | $0 (DIY) or $100–$200 | Often free year 1 |
| Operating agreement | $0 (template) | Included |
| EIN | $0 (IRS) | $0 (do it yourself!) |
| Business licenses | $0–$400 (varies) | $0–$400 |
| Typical total | $50–$1,100 | $50–$1,400 |
Hidden costs to watch
- New York publication requirement: LLCs must publish formation notices in two newspapers — $300+ in most counties, over $1,000 in Manhattan. Budget for it or pick another state.
- California's $800 minimum: due even if your LLC earns nothing. First-year businesses get a one-year exemption, then it kicks in.
- Expedited processing: $50–$150 extra if you need fast approval.
- Registered agent renewals: year-one "free" offers renew at $119–$249/year. Check before you commit.
- Business licenses: cities and counties have their own requirements and fees, completely separate from the state LLC filing.
How to save money (legitimately)
- File yourself directly with the Secretary of State — the form is short and the instructions are clear.
- Get your EIN free from the IRS — never pay for this.
- Use a free operating agreement template — fine for simple LLCs.
- Compare registered agent renewal rates, not just year-one pricing.
- File in your home state unless you have a specific, quantified reason not to — foreign qualification doubles everything.
The bottom line
For most founders, total first-year cost lands between $150 and $600 all-in. The state you choose matters more than the formation package: a "free" formation in California still costs $800+/year, while a $50 New Mexico filing costs $50 total for a decade. Pick the state with intention, file the paperwork yourself or with a reputable low-cost service, and never pay for an EIN.