LLC Cost by State (2026 Directory & Fee Matrix)
Compare initial LLC filing fees, recurring annual report costs, state franchise taxes, statutory filing deadlines, and late penalty fees across all 50 states and Washington D.C.
| State | Initial Filing Fee ⬍ | Annual Cost ⬍ | Reporting Frequency | Statutory Due Date | Late Penalty | Official Portal |
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The Real Cost of an LLC: Beyond the Initial Formation Fee
When launching a small business, most founders focus solely on the initial Articles of Organization filing fee. However, an LLC is an ongoing statutory entity that carries recurring compliance obligations. Failing to account for annual reports, minimum franchise taxes, and registered agent fees can lead to costly penalties or involuntary administrative dissolution.
One-time statutory fee paid to the Secretary of State to create the legal entity. Ranges from $35 in Montana to $500 in Massachusetts.
Periodic filing to update member addresses and management. Nine states charge $0, while Florida charges $138.75 and North Carolina charges $200.
Privilege taxes for doing business in the state regardless of profit. California levies an $800 minimum tax, while Delaware charges a $300 annual franchise tax.
Required in all 50 states to receive official legal notices (Service of Process). Free if acting as your own agent, or $100 – $300/yr for a commercial service.
The “Out-of-State” Formation Myth: Why Delaware & Wyoming Cost You Double
A widespread online myth suggests that every entrepreneur should form their LLC in Delaware, Wyoming, or Nevada to avoid taxes. For 95% of small business owners, this is costly bad advice.
The Foreign Qualification Trap:
If you live and operate a business in Florida, Texas, or Illinois, forming a Wyoming LLC does not exempt you from home-state jurisdiction. You are legally required to register your Wyoming LLC as a Foreign LLC in the state where you actually conduct business. You end up paying two initial filing fees, two annual reports, and two registered agent fees every single year!
Beware: The States with the Stiffest Late Filing Penalties
State filing deadlines are strictly enforced. Filing even one day late can trigger severe financial penalties:
- Florida: A missed May 1 deadline incurs a mandatory, non-negotiable $400 late penalty on top of the $138.75 report fee.
- Delaware: A missed June 1 franchise tax deadline incurs an instant $200 penalty plus 1.5% monthly interest.
- California: Missing your biennial Statement of Information or FTB tax return results in a $250 penalty and suspension of your corporate rights.
- Nevada: Late annual list filing triggers a $175 late fee.
Frequently Asked Questions: LLC Formation & Annual Fees
Which state is the cheapest to form an LLC in?
For initial filing fees alone, Montana is the cheapest ($35), followed closely by Kentucky ($40) and Arkansas ($45). For ongoing annual maintenance, states like Arizona, New Mexico, and Missouri charge $0 in annual fees.
Can I be my own registered agent to save money?
Yes. In all 50 states, an LLC owner can serve as their own registered agent at $0 cost, provided you are at least 18 years old, have a physical street address in the state (no P.O. boxes), and are available during standard business hours to receive legal process.
What happens if I forget to file my LLC’s annual report?
Most states provide a 60-day grace period. After that, the state levies late fines ($25 to $400) and changes your status to ‘Not in Good Standing’. If left unresolved, the state will administratively dissolve the LLC, forfeiting your liability protection.