How to form an LLC (cost and steps by state)

Updated

Forming an LLC follows the same five steps in every state: name it, appoint a registered agent, file the formation document with the Secretary of State, get a free EIN from the IRS, and file an annual report to stay in good standing. What changes state to state is the money: the filing fee, the annual report, and whether the state adds a franchise tax. The table below compares the states we track. Every figure is traced to the state's own Secretary of State.

How much does it cost to form an LLC by state?

LLC formation costs by state (reviewed August 29, 2026)
State Filing fee Ongoing report Franchise tax State income tax
Alabama $200 None No Yes, up to 5%
Alaska $250 $100/2yr No None
Arizona $50 None No Yes, up to 2.5%
Arkansas $45 $150/yr Yes Yes, up to 3.7%
California $70 $20/2yr Yes Yes, up to 13.3%
Colorado $50 $25/yr No Yes, up to 4.4%
Connecticut $120 $80/yr No Yes, up to 6.99%
Delaware $110 None Yes Yes, up to 6.6%
District of Columbia $99 $300/2yr Yes Yes, up to 10.75%
Florida $100 $138.75/yr No None
Georgia $100 $50/yr No Yes, up to 4.99%
Hawaii $50 $15/yr No Yes, up to 11%
Idaho $100 $0/yr No Yes, up to 5.3%
Illinois $150 $75/yr No Yes, up to 4.95%
Indiana $100 $50/2yr No Yes, up to 2.95%
Iowa $50 $30/2yr No Yes, up to 3.8%
Kansas $85 $5/2yr No Yes, up to 5.58%
Kentucky $40 $15/yr Yes Yes, up to 3.5%
Louisiana $100 $30/yr No Yes, up to 3%
Maine $175 $85/yr No Yes, up to 9.15%
Maryland $100 $300/yr No Yes, up to 6.5%
Massachusetts $500 $500/yr No Yes, up to 9%
Michigan $50 $25/yr No Yes, up to 4.25%
Minnesota $155 $0/yr No Yes, up to 9.85%
Mississippi $50 $0/yr No Yes, up to 4%
Missouri $105 None No Yes, up to 4.7%
Montana $35 $0/yr No Yes, up to 5.65%
Nebraska $100 $25/2yr No Yes, up to 4.55%
Nevada $75 $350/yr No None
New Hampshire $100 $100/yr No None
New Jersey $100 $75/yr No Yes, up to 10.75%
New Mexico $50 $20/3yr No Yes, up to 5.9%
New York $200 $9/2yr No Yes, up to 10.9%
North Carolina $125 $200/yr No Yes, up to 3.99%
North Dakota $135 $50/yr No Yes, up to 2.5%
Ohio $99 None No Yes, up to 2.75%
Oklahoma $100 $25/yr No Yes, up to 4.5%
Oregon $100 $100/yr No Yes, up to 9.9%
Pennsylvania $125 $7/yr No Yes, up to 3.07%
Rhode Island $150 $50/yr Yes Yes, up to 5.99%
South Carolina $125 None No Yes, up to 5.21%
South Dakota $150 $55/yr No None
Tennessee $300 $300/yr Yes None
Texas $300 None Yes None
Utah $59 $18/yr No Yes, up to 4.45%
Vermont $155 $45/yr Yes Yes, up to 8.75%
Virginia $100 $50/yr No Yes, up to 5.75%
Washington $200 $70/yr No None
West Virginia $100 $25/yr No Yes, up to 4.58%
Wisconsin $130 $25/yr No Yes, up to 7.65%
Wyoming $100 $60/yr No None

Each row links to the full guide for that state. Fees from each Secretary of State; income tax from each state's Department of Revenue. Reviewed August 29, 2026.

The five steps, in order

The sequence matters, because some steps depend on earlier ones. Do them in this order and nothing has to be redone.

  1. Name the LLC and confirm it is available with your state.
  2. Appoint a registered agent (most states require one with a physical in-state address).
  3. File the formation document (Articles or Certificate of Organization) and pay the state filing fee. This creates the LLC.
  4. Get an EIN free from the IRS. Never pay a service for it: see how to get an EIN free from the IRS.
  5. File the annual or biennial report and open a business bank account to keep your liability protection intact.

What changes from state to state?

Three things drive the real cost. The filing fee ranges widely, from $70 in California to $300 in Texas. The ongoing report can be annual, biennial, or absent. And the franchise tax is the one people miss: California charges every LLC an $800 minimum every year regardless of income, while Texas only charges above a revenue threshold and Florida and Wyoming charge none. A cheap filing fee does not always mean a cheap state, and California is the clearest example.

Before you choose a structure at all, it is worth comparing the options: see LLC vs S-corp vs sole proprietorship.

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