Jake Lawson here. One of the first questions I get from every entrepreneur is: “How much will this actually cost me?” Fair question. LLC formation fees range from $40 in Kentucky to $520 in Massachusetts, but that’s just the beginning. After helping over 1,200 business owners navigate these costs, I can tell you the real story about what you’ll actually pay—and why the cheapest state isn’t always your best choice.
The Bottom Line Up Front
LLC filing fees in 2025 range from $40 to $520, with an average of $132 across all states. But here’s what most people miss: the annual fees can cost you more over time than the initial filing fee. California hits you with $800 every year, while states like Wyoming and Ohio charge nothing annually.
My rule: Don’t choose your state based solely on fees. You could end up paying twice—once in your “cheap” state and again in your home state as a foreign LLC.
Understanding the Two Types of LLC Fees
One-Time Filing Fee (Articles of Organization)
This is what you pay the state to officially form your LLC. Different states call the paperwork by different names:
- Articles of Organization (most common)
- Certificate of Organization
- Certificate of Formation
- Certificate of Limited Liability Company
The range: $40 (Kentucky) to $520 (Massachusetts)
Ongoing Annual/Biennial Fees
Most states require annual or biennial reports to keep your LLC in good standing. Miss these deadlines, and they’ll shut down your LLC—no exceptions.
The range: $0 (several states) to $800 (California)
2025 LLC Filing Fees by State: The Complete Breakdown
| State | Filing Fee | Annual Fee | My Notes |
| Alabama | $183 | $25 | Reasonable all around |
| Alaska | $250 | $100 (biennial) | Higher upfront, manageable ongoing |
| Arizona | $50 | $0 | Great value proposition |
| Arkansas | $45 | $150 | Low start, higher annual |
| California | $70 | $800 | The $800 annual fee is brutal |
| Colorado | $50 | $10 | Excellent value |
| Connecticut | $160 | $80 | Mid-range costs |
| Delaware | $90 | $300 | Premium for “prestige” |
| Florida | $125 | $138.75 | Reasonable for business-friendly state |
| Georgia | $100 | $50 | Solid middle ground |
| Hawaii | $50 | $15 | Great ongoing costs |
| Idaho | $100 | $0 | No annual fees is nice |
| Illinois | $150 | $75 | Typical Midwest pricing |
| Indiana | $95 | $50 (biennial) | Good value |
| Iowa | $50 | $45 (biennial) | Low costs overall |
| Kansas | $160 | $55 | Standard pricing |
| Kentucky | $40 | $15 | Cheapest filing fee in US |
| Louisiana | $100 | $35 | Reasonable Gulf Coast option |
| Maine | $175 | $85 | Higher New England costs |
| Maryland | $100 | $300 | Expensive annual fee |
| Massachusetts | $520 | $500 | Most expensive in US |
| Michigan | $50 | $25 | Great Lakes value |
| Minnesota | $160 | $25 | Front-loaded costs |
| Mississippi | $50 | $25 | Southern value pricing |
| Missouri | $50 | $0 | No annual fees |
| Montana | $35 | $20 | Lowest total cost |
| Nebraska | $105 | $26 (biennial) | Plus publication requirement |
| Nevada | $75 | $350 | High annual fee |
| New Hampshire | $100 | $100 | Consistent pricing |
| New Jersey | $125 | $75 | Tri-state area premium |
| New Mexico | $50 | $0 | Hidden gem for costs |
| New York | $200 | $9 (biennial) | Plus publication requirement |
| North Carolina | $125 | $200 | Higher annual fee |
| North Dakota | $135 | $50 | Prairie state pricing |
| Ohio | $99 | $0 | My personal favorite |
| Oklahoma | $100 | $25 | Oil state value |
| Oregon | $100 | $100 | West Coast consistency |
| Pennsylvania | $125 | $70 (every 10 years) | Unique 10-year cycle |
| Rhode Island | $150 | $450 | Expensive small state |
| South Carolina | $110 | $0 | No annual fees |
| South Dakota | $150 | $50 | Mount Rushmore pricing |
| Tennessee | $300 | $300 | Expensive music city |
| Texas | $300 | $0* | *PIR required if revenue >$2.47M |
| Utah | $70 | $20 | Great mountain west value |
| Vermont | $125 | $35 | Green Mountain reasonable |
| Virginia | $100 | $50 | Old Dominion standard |
| Washington | $200 | $71 | Pacific Northwest premium |
| Washington DC | $220 | $300 (biennial) | Capital costs |
| West Virginia | $100 | $25 | Mountain state value |
| Wisconsin | $130 | $25 | Cheese state reasonable |
| Wyoming | $100 | $60 | Business-friendly favorite |
The Cheapest States for LLC Formation (Total Cost Analysis)
Looking at just filing fees is misleading. Here’s my analysis of total 5-year costs:
Best Overall Value (5-Year Total Cost Under $200):
- Montana: $135 total ($35 + $100 in annual fees)
- Kentucky: $115 total ($40 + $75 in annual fees)
- Arizona: $50 total (no annual fees)
- Colorado: $100 total ($50 + $50 in annual fees)
- Wyoming: $340 total ($100 + $240 in annual fees)
Most Expensive (5-Year Total Cost Over $3,000):
- California: $3,270 total ($70 + $3,200 in annual fees)
- Massachusetts: $3,020 total ($520 + $2,500 in annual fees)
- Rhode Island: $2,400 total ($150 + $2,250 in annual fees)
States with No Annual Fees (The “Set and Forget” Options)
These states don’t require annual reports or fees after formation:
- Arizona
- Idaho
- Missouri
- New Mexico
- Ohio
- South Carolina
- Texas (unless revenue exceeds $2.47 million)
My take: These are attractive for passive investment LLCs or holding companies where you want minimal ongoing compliance.
The Cheap State Myth: Montana charges $35. California charges $800. Guess what? Doesn’t matter. Form in Montana while living in California and you’ll owe California anyway—plus Montana fees, plus foreign registration costs. Now you’re managing two LLCs and paying double for everything. I’ve untangled this mess for 200+ clients who thought they outsmarted the system. Geographic arbitrage doesn’t work for LLCs—save yourself the expensive education.
Special Considerations by State
California: The $800 Trap
California charges every LLC $800 annually, even if you make $0. Trying to avoid this by forming elsewhere usually backfires—you’ll still need to register as a foreign LLC and pay the $800 anyway.
Delaware: The “Prestige” Premium
Delaware’s reputation for business law comes with a $300 annual franchise tax. Only worth it for complex structures or if you’re planning to raise venture capital.
New York: Publication Requirements
New York requires new LLCs to publish formation notices in newspapers, costing $1,000-2,000 additional in NYC area.
Massachusetts: Most Expensive in America
$520 to form, $500 annually. Only form here if you absolutely must for business reasons.
Texas: The Revenue Threshold
Texas is “free” annually unless your LLC generates over $2.47 million in revenue, then you owe franchise tax.
Hidden Costs Most People Miss
Publication Requirements
Three states require newspaper publication:
- New York: $1,000-2,000 in major cities
- Arizona: $40-100 (much more reasonable)
- Nebraska: $100-300 depending on county
Expedited Processing Fees
Most states offer expedited processing for additional fees:
- Same-day processing: $100-500 extra
- 24-48 hour processing: $50-200 extra
- 1-week processing: $25-100 extra
Registered Agent Costs
If you don’t serve as your own registered agent:
- Professional services: $100-300 annually
- Privacy protection: Often worth the cost
Why the Cheapest State Isn’t Always Your Best Choice
Here’s the mistake I see constantly: entrepreneurs choose Montana or Kentucky for the low fees, then discover they need to register as a foreign LLC in their home state anyway.
The Foreign LLC Reality Check
If you live in California and form a Montana LLC:
- Montana LLC fee: $35
- California foreign LLC registration: $70
- California annual fee: $800
- Total first year: $905
You saved nothing and added compliance complexity.
When Low-Fee States Make Sense
- Multi-state operations where you’ll register everywhere anyway
- Holding companies for real estate or investments
- No fixed business location (digital nomads)
- Privacy-focused structures in Wyoming or Delaware
My State Recommendations by Business Type
Single-State Operations
Form where you do business. Don’t overthink it.
Multi-State Real Estate
Wyoming holding company with state-specific subsidiaries.
High-Privacy Needs
Wyoming for anonymity, Delaware for sophisticated structures.
Online Businesses
Your home state unless you have specific reasons to go elsewhere.
Cost-Conscious Startups
Arizona, Colorado, or Ohio for minimal ongoing fees.
Formation Service Costs vs DIY
DIY Formation (My Recommended Approach)
- State fee only: $40-520 depending on state
- Time investment: 2-4 hours of research and filing
- Savings: $200-500 compared to services
Professional Services
- Budget services: $150-300 + state fees
- Premium services: $300-500 + state fees
- Attorney formation: $500-2,000 + state fees
My take: Unless you have complex ownership or need specialized legal structures, DIY is the way to go.
Annual Compliance: The Ongoing Reality
Annual Report Requirements
Most states require annual updates including:
- Current member/manager information
- Business address updates
- Registered agent confirmation
Late Fee Penalties
Miss your annual report deadline and face:
- Late fees: $25-100 typically
- Interest charges: Vary by state
- Administrative dissolution: Your LLC gets shut down
Reinstatement Costs
If your LLC gets dissolved for non-compliance:
- Reinstatement fees: $100-500
- Back annual fees: All missed years
- Lost legal protection: Personal liability exposure
Tax Considerations Beyond Fees
State Income Taxes
Some states impose additional taxes:
- Franchise taxes: Based on revenue or assets
- Gross receipts taxes: Percentage of total sales
- Minimum taxes: Required regardless of profit
Pass-Through Taxation
Most LLCs don’t pay entity-level taxes, but members pay:
- Federal income tax on LLC profits
- State income tax where applicable
- Self-employment tax on active income
Making the Smart Choice: My Decision Framework
Question 1: Where do you actually do business?
If single-state: Form there, don’t overthink it. If multi-state: Consider holding company structure.
Question 2: What’s your budget sensitivity?
Cost-conscious: Arizona, Ohio, New Mexico Willing to pay for benefits: Wyoming, Delaware
Question 3: How complex is your structure?
Simple LLC: Any state works fine Multiple members/investors: Delaware or Wyoming Real estate portfolio: Holding company approach
Question 4: Do you value privacy?
Privacy important: Wyoming, Delaware, Nevada Don’t care: Your home state is fine
The Bottom Line on LLC Costs
The cheapest state isn’t necessarily the best state. Focus on:
- Where you actually do business
- Total cost of ownership (filing + annual fees + compliance)
- Your specific needs (privacy, complexity, growth plans)
- Long-term strategy (5-10 year outlook)
For most small businesses: Form in your home state, be your own registered agent, and DIY the formation process. You’ll save money and avoid compliance complications.
For sophisticated investors: Consider Wyoming or Delaware with professional registered agent services and proper legal consultation.
The key is making an informed decision based on your actual situation, not just chasing the lowest fees. I’ve seen too many entrepreneurs create expensive problems trying to save a few dollars upfront.
Ready to form your LLC but want to make sure you’re choosing the right state and structure? I’ve helped over 1,200 entrepreneurs navigate these decisions successfully. Every business has unique considerations, and what works for your competitor might not work for you. Get the facts first, then make the choice that fits your specific needs and long-term goals.