Annual Report vs Annual Renewal: What's the Difference?
LLC Formation Cost by State: Complete 2026 Comparison
Before you form an LLC, you need to know what it actually costs. LLC filing fees range from $35 in Montana to $500 in Massachusetts, with a national average of approximately $132. But the state filing fee is only the starting point. Registered agent fees, operating agreement preparation, EIN applications, publication requirements, and annual renewal costs all factor into the true first-year expense of running an LLC. Next Step Filings is a compliance-first business services company based in Glen Allen, Virginia, that has processed over 20,000 state filings across 12 U.S. states with a 99.8% success rate and a 24 to 48 hour turnaround. This guide provides a complete, state-by-state breakdown of LLC formation costs so you can plan your budget with confidence.
"Service-based business owners are the backbone of local economies. Cleaners, contractors, landscapers, consultants. They don't have compliance departments. They have us," says Lisa Matthews, General Manager and Business Compliance Advisor at Next Step Filings. Transparent pricing matters. When you know exactly what you're paying and why, you make better decisions about where and how to form your business.
Complete 50-State LLC Filing Fee Comparison Table
The table below shows the state filing fee to form an LLC, the annual or biennial report fee, and any additional state-specific costs. These are government fees paid directly to the state. Service provider fees (such as those charged by Next Step Filings or competitors) are separate and covered later in this guide.
| State | Formation Fee | Annual/Biennial Report Fee | Notes |
|---|---|---|---|
| Alabama | $208 | None (but $100 business privilege tax minimum) | County-level publication may apply |
| Alaska | $250 | $100 (biennial) | Filed with the Division of Corporations |
| Arizona | $50 | None required | No annual report; publication required ($100 to $300+) |
| Arkansas | $45 | $150 (annual franchise tax) | Filed online through Arkansas Secretary of State |
| California | $70 | $20 (biennial Statement of Information) | $800 annual franchise tax (separate from filing fee) |
| Colorado | $50 | $10 (annual) | One of the lowest total costs in the country |
| Connecticut | $120 | $80 (annual) | Annual report due between Jan 1 and Mar 31 |
| Delaware | $90 | $300 (annual franchise tax) | Popular for holding companies; high annual cost |
| Florida | $125 | $138.75 (annual) | Filed through Sunbiz |
| Georgia | $100 | $50 (annual) | Filed with Georgia Corporations Division |
| Hawaii | $50 | $15 (annual) | Low ongoing costs |
| Idaho | $100 | $0 (annual report is free) | Annual report required but no fee |
| Illinois | $150 | $75 (annual) | Filed with Illinois Secretary of State |
| Indiana | $95 | $31 (biennial, due in odd years) or $50 (even years) | Business entity report required |
| Iowa | $50 | $30 (biennial) | Filed with Iowa Secretary of State |
| Kansas | $160 | $55 (annual) | Filed with Kansas Secretary of State |
| Kentucky | $40 | $15 (annual) | One of the cheapest states overall |
| Louisiana | $100 | $35 (annual) | Filed with Louisiana Secretary of State |
| Maine | $175 | $85 (annual) | Filed with Maine Department of Secretary of State |
| Maryland | $100 | $300 (annual personal property return fee) | Annual personal property return required |
| Massachusetts | $500 | $500 (annual) | Most expensive state for LLC formation and renewal |
| Michigan | $50 | $25 (annual, if filed online) | Filed with Michigan LARA |
| Minnesota | $155 | $0 (annual renewal is free) | Annual renewal required but no fee |
| Mississippi | $50 | $0 (no annual report required) | No ongoing filing requirement |
| Missouri | $50 | $0 (no annual report required) | No ongoing filing requirement |
| Montana | $35 | $20 (annual) | Cheapest formation fee in the country |
| Nebraska | $105 | $10 (biennial) | Filed with Nebraska Secretary of State |
| Nevada | $75 | $150 (annual list) + $200 (business license) | No state income tax, but high annual costs |
| New Hampshire | $100 | $100 (annual) | Filed with NH Secretary of State |
| New Jersey | $125 | $75 (annual) | Filed online through NJ Division of Revenue |
| New Mexico | $50 | $0 (no annual report required) | No ongoing filing requirement; strong privacy |
| New York | $200 | $9 (biennial statement) | Publication requirement adds $300 to $1,500+ |
| North Carolina | $125 | $200 (annual) | Filed with NC Secretary of State |
| North Dakota | $135 | $50 (annual) | Filed with ND Secretary of State |
| Ohio | $99 | $0 (no annual report required) | No ongoing filing requirement |
| Oklahoma | $100 | $25 (annual) | Filed with Oklahoma Secretary of State |
| Oregon | $100 | $100 (annual) | Filed with Oregon Secretary of State |
| Pennsylvania | $125 | $70 (decennial report, every 10 years) | No annual report; decennial report only |
| Rhode Island | $150 | $50 (annual) | Filed with RI Secretary of State |
| South Carolina | $110 | $0 (no annual report required) | No ongoing filing requirement |
| South Dakota | $150 | $50 (annual) | No state income tax |
| Tennessee | $300 (minimum; $50 per member, $300 min) | $300 (minimum annual franchise tax) | Fee is based on number of members |
| Texas | $300 | $0 (franchise tax report, no fee if under threshold) | No fee if revenue under $2.47M; no-tax-due threshold |
| Utah | $54 | $18 (annual) | Low formation and ongoing costs |
| Vermont | $125 | $35 (annual) | Filed with Vermont Secretary of State |
| Virginia | $100 | $50 (annual) | Administrative dissolution per Virginia Code S 13.1-1062 for missed filings |
| Washington | $200 | $71 (annual) | First report due within 120 days of formation (RCW 23.95.610) |
| West Virginia | $100 | $25 (annual) | Filed with WV Secretary of State |
| Wisconsin | $130 | $25 (annual) | Filed with Wisconsin DFI |
| Wyoming | $100 | $60 (annual, minimum) | No state income tax; popular for privacy |
These fees are current as of 2026. States periodically adjust filing fees, so always verify with your state's Secretary of State office or equivalent agency before filing.
Cheapest States to Form an LLC
If you're evaluating formation costs alone, the following states offer the lowest filing fees:
- Montana: $35 formation fee, $20 annual report
- Kentucky: $40 formation fee, $15 annual report
- Arkansas: $45 formation fee, $150 annual franchise tax
- Arizona: $50 formation fee, no annual report (but publication required)
- Colorado: $50 formation fee, $10 annual report
- Hawaii: $50 formation fee, $15 annual report
- Iowa: $50 formation fee, $30 biennial report
- Michigan: $50 formation fee, $25 annual report
- Mississippi: $50 formation fee, no annual report
- Missouri: $50 formation fee, no annual report
For a deeper look at how to evaluate states beyond filing fees, see our guide on the cheapest state to form an LLC. However, the cheapest state on paper is not always the right state for your LLC. If you do not live or operate in the state where you form, you will likely need to register as a foreign LLC in your home state, which means paying formation fees and annual fees in two states instead of one. For most small business owners, forming in your home state is the most cost-effective choice.
Most Expensive States to Form an LLC
Several states stand out for their high formation and ongoing costs:
- Massachusetts: $500 formation fee and $500 annual report. The most expensive state for both initial and ongoing LLC costs.
- Tennessee: $300 minimum formation fee (based on number of members) plus $300 minimum annual franchise tax.
- Texas: $300 formation fee. No annual fee for most small businesses (the franchise tax only applies above $2.47M in revenue).
- California: $70 formation fee, but the $800 annual franchise tax makes California one of the most expensive states for ongoing LLC maintenance.
- New York: $200 formation fee plus the publication requirement, which can add $300 to $1,500 or more depending on the county.
- Nevada: $75 formation fee, but $350 per year in combined annual list and business license fees.
High formation costs do not necessarily mean a state is a bad choice. Texas has no state income tax, which can more than offset its $300 filing fee. California's $800 franchise tax is steep, but if your business operates in California, you'll owe that tax regardless of where you form.
Additional Costs Beyond the State Filing Fee
The state filing fee is only one component of your total LLC formation cost. Here are the other expenses to budget for.
Registered Agent Fees
Every LLC is required to have a registered agent in its state of formation. A registered agent is a person or company designated to receive official state and legal correspondence on behalf of your LLC.
- Yourself as registered agent: Free, but your address becomes public record and you must be available at that address during business hours.
- Professional registered agent service: Typically $50 to $300 per year. This keeps your personal address off public records and ensures you never miss a state filing notice or legal document.
Next Step Filings offers registered agent services as part of its compliance support. To understand the full role a registered agent plays, read our guide on what a registered agent is and why you need one. Using a professional service protects your privacy and helps you stay on top of important state communications.
Operating Agreement
An operating agreement is an internal document that outlines the ownership structure, management responsibilities, and operational rules of your LLC. While not all states legally require one, every LLC should have an operating agreement regardless.
- DIY template: Free to $50 for a basic template.
- Attorney-drafted: $500 to $2,000 depending on complexity and the number of members.
Multi-member LLCs especially need a well-drafted operating agreement to define profit-sharing, decision-making authority, and what happens if a member wants to leave.
EIN (Employer Identification Number)
An EIN is your LLC's federal tax identification number, issued by the IRS. You need an EIN to open a business bank account, hire employees, and file taxes.
- IRS direct application: Free. You can apply online at IRS.gov and receive your EIN immediately.
- Through a service provider: $50 to $150. Providers like Next Step Filings handle the application for you, which is especially helpful if you're forming in a state you're not familiar with or if you need assistance navigating the IRS process.
Publication Requirements
A few states require LLCs to publish a notice of formation in local newspapers. This is one of the most commonly overlooked (and most expensive) hidden costs of LLC formation.
| State | Publication Requirement | Estimated Cost |
|---|---|---|
| New York | Publish in two newspapers for six consecutive weeks | $300 to $1,500+ (varies by county) |
| Arizona | Publish in a newspaper in the county of the LLC's known place of business for three consecutive publications | $100 to $300 |
| Nebraska | Publish in a legal newspaper for three consecutive weeks | $100 to $200 |
New York's publication requirement is the most significant. In New York County (Manhattan), publication costs can exceed $1,000. In less expensive counties, costs may be as low as $300. This is a mandatory requirement. Failure to publish within 120 days of formation can result in the suspension of your LLC's authority to conduct business in New York.
State Business Licenses and Permits
Depending on your industry and location, you may need state, county, or city business licenses in addition to your LLC filing. These costs vary widely:
- General business license: $25 to $500 depending on the jurisdiction.
- Professional licenses: $100 to $1,000+ for regulated professions (contractors, real estate agents, healthcare providers).
- Home-based business permits: $0 to $150 in most municipalities.
Annual Renewal and Ongoing Compliance Costs
Your LLC's annual compliance costs are just as important as the formation cost. Failing to file an annual report or pay a franchise tax can result in administrative dissolution under state statutes like Virginia Code S 13.1-1062 or RCW 23.95.610 in Washington.
Budget for these recurring costs every year:
- Annual or biennial report filing fee (see state table above)
- Registered agent renewal fee
- State franchise tax (if applicable)
- Business license renewal
- Compliance service fees (if using a provider like Next Step Filings)
Total First-Year LLC Cost Estimates
To give you a realistic picture, here is the estimated total first-year cost for forming an LLC in some of the most popular states. These estimates include the state filing fee, one year of registered agent service, and the first annual report fee (where applicable).
| State | Formation Fee | Registered Agent (est.) | Annual Report Fee | Other Costs | Estimated First-Year Total |
|---|---|---|---|---|---|
| Texas | $300 | $100 to $200 | $0 | None typical | $400 to $500 |
| Florida | $125 | $100 to $200 | $138.75 | None typical | $365 to $465 |
| California | $70 | $100 to $200 | $20 | $800 franchise tax | $990 to $1,090 |
| New York | $200 | $100 to $200 | $9 | $300 to $1,500 publication | $609 to $1,909 |
| Virginia | $100 | $100 to $200 | $50 | None typical | $250 to $350 |
| New Jersey | $125 | $100 to $200 | $75 | None typical | $300 to $400 |
| Connecticut | $120 | $100 to $200 | $80 | None typical | $300 to $400 |
| Washington | $200 | $100 to $200 | $71 | None typical | $371 to $471 |
| Wyoming | $100 | $100 to $200 | $60 | None typical | $260 to $360 |
| Colorado | $50 | $100 to $200 | $10 | None typical | $160 to $260 |
| Delaware | $90 | $100 to $200 | $300 | None typical | $490 to $590 |
| Massachusetts | $500 | $100 to $200 | $500 | None typical | $1,100 to $1,200 |
These estimates do not include optional costs like a custom operating agreement prepared by an attorney, professional tax preparation, or business insurance. Those expenses depend on your specific business needs. Once your LLC is filed, our guide on what to do after forming your LLC covers every remaining step from EIN to compliance calendar.
Hidden Fees to Watch For
When comparing LLC formation services, watch for these commonly hidden or unexpected costs that can inflate your total expense well beyond the advertised price.
Bundled "Free" Formation Packages
Some competitors advertise free LLC formation but make their money through upsells and add-ons that are difficult to avoid. Common upsells include:
- Registered agent service automatically added at $100 to $300 per year
- Operating agreement templates priced at $50 to $200
- EIN filing charged at $75 to $150 (the IRS offers this for free)
- Compliance monitoring or "compliance alerts" packaged as subscriptions at $100 to $200 per year
- "Rush processing" fees of $50 to $200 for standard turnaround times
By the time you complete checkout, a "free" formation can cost $300 to $600 in add-ons. "Automation helps the provider but traps the client," says Lisa Matthews.
Subscription Models vs. Flat Fees
Many filing services use annual subscription models where you pay a recurring fee for access to a dashboard, compliance alerts, or registered agent service. If you cancel the subscription, you may lose access to your documents or miss compliance reminders.
Next Step Filings uses a flat-fee model with no subscriptions. You pay for the service you need, when you need it. State fees and service fees are always shown separately, so you know exactly what goes to the state and what goes to the provider.
Expedited Processing Markups
Some states offer expedited processing for an additional state fee. Filing services sometimes charge their own "expedite fee" on top of the state's expedite fee, effectively doubling the surcharge. Always confirm whether an expedite fee is a state charge or a provider markup.
Mail Forwarding and Compliance Alerts
These services are often bundled into premium packages at $150 to $300 per year. While mail forwarding can be useful, compliance alerts are often just automated reminders that you could set up yourself with a calendar. Evaluate whether these add-ons provide genuine value for your situation.
How Next Step Filings Pricing Compares
Next Step Filings operates on a principle of transparent, separated pricing. Here is what that means in practice:
- State fees and service fees listed separately: You always see exactly how much goes to the state and how much is the Next Step Filings service fee. No bundled totals that obscure the breakdown.
- No subscriptions: You are not locked into a recurring payment. Pay for what you need.
- No hidden add-ons: The price you see is the price you pay. No surprise charges at checkout.
- Flat service fees: Consistent pricing across services. No tiered packages designed to push you toward a more expensive option.
With over 20,000 filings processed across 12 states, Next Step Filings has built standardized workflows that keep costs predictable. Every filing receives human oversight, not just automated processing. That means fewer errors, fewer rejections, and fewer delays that cost you time and money.
For LLC formation, Next Step Filings handles your state filing within 24 to 48 hours. For annual renewals, the same turnaround applies. The 99.8% success rate reflects the accuracy of filings submitted on your behalf.
State-by-State Formation Guides
If you have already decided which state to form in, Next Step Filings offers detailed state-specific guides that walk you through the formation process step by step:
- How to Start an LLC in Texas
- How to Start an LLC in Florida
- How to Start an LLC in California
- How to Start an LLC in New York
Each guide covers the specific filing process, state fees, deadlines, and ongoing compliance requirements for that state.
Annual Renewal Costs: What You'll Pay Every Year
Formation is step one. Maintaining your LLC requires paying annual (or biennial) fees to keep your business in good standing. Failure to pay these fees or file the required report can lead to administrative dissolution. In Virginia, for example, a missed $50 annual registration fee triggers dissolution proceedings under Virginia Code S 13.1-1062. In Washington, an annual report filed even one day late can initiate administrative dissolution under RCW 23.95.610.
Here is a comparison of annual renewal costs for the 12 states where Next Step Filings operates, along with other commonly chosen states:
| State | Annual Report Fee | Additional Annual Taxes | Total Minimum Annual Cost |
|---|---|---|---|
| California | $20 (biennial) | $800 franchise tax | $810 (averaged per year) |
| Colorado | $10 | None | $10 |
| Connecticut | $80 | None | $80 |
| Delaware | $300 | None | $300 |
| Florida | $138.75 | None | $138.75 |
| Massachusetts | $500 | None | $500 |
| Nevada | $150 (annual list) | $200 business license | $350 |
| New Jersey | $75 | None | $75 |
| New York | $9 (biennial) | Varies by NY-source income | $4.50 (averaged per year, plus any filing fees) |
| Oklahoma | $25 | None | $25 |
| Oregon | $100 | None | $100 |
| Texas | $0 (if under threshold) | Franchise tax (above $2.47M revenue) | $0 for most small businesses |
| Virginia | $50 | None | $50 |
| Washington | $71 | B&O tax (varies) | $71 (plus applicable B&O tax) |
| Wyoming | $60 (minimum) | None | $60 |
Next Step Filings handles annual renewals for clients across all 12 states served. Every filing is submitted within 24 to 48 hours of receiving your information, and the 99.8% success rate ensures your LLC stays in good standing without the stress of managing deadlines yourself.
Choosing the Right State: Cost vs. Value
Cost matters, but it should not be the only factor in choosing where to form your LLC. Here are the key considerations:
- Form where you live and operate: For most small business owners, forming in your home state is the simplest and most cost-effective option. You avoid the complexity and additional cost of foreign qualification.
- Consider total ongoing costs, not just formation fees: A state with a low formation fee but high annual report fees or franchise taxes may cost more in the long run.
- Evaluate privacy needs: States like Wyoming and New Mexico offer stronger privacy protections for LLC owners. If privacy is a priority, these states may justify the additional cost of foreign qualification.
- Check for special requirements: New York's publication requirement, California's franchise tax, and Arizona's publication requirement are the most common surprises. Factor these into your budget.
- Think beyond year one: The cheapest state to form in may not be the cheapest state to maintain an LLC in over five or ten years.
"Most small business owners find out they're out of compliance at the worst possible moment," says Lisa Matthews. Planning your formation budget carefully, including ongoing costs, prevents unpleasant surprises down the line.
Frequently Asked Questions About LLC Formation Costs
What is the cheapest state to form an LLC?
Montana has the lowest LLC formation fee at $35, with a $20 annual report fee. Kentucky ($40 formation), Colorado ($50 formation, $10 annual report), and Michigan ($50 formation, $25 annual report) are also among the cheapest states for LLC formation and maintenance. However, if you do not live or operate in these states, forming there means you will also need to register as a foreign LLC in your home state, which typically costs an additional $100 to $300 plus annual fees in both states.
How much does it cost to form an LLC in Texas?
The Texas LLC formation fee is $300, filed with the Texas Secretary of State. Texas does not have a separate annual report fee for most small businesses. The Texas franchise tax applies only to businesses with revenue above $2.47 million, so most small LLCs owe $0 in ongoing state fees beyond their initial formation. For a complete walkthrough, see the Next Step Filings guide on how to start an LLC in Texas.
Why is forming an LLC in New York so expensive?
New York's $200 formation fee is only part of the cost. The state requires every new LLC to publish a notice of formation in two newspapers (one daily, one weekly) for six consecutive weeks in the county where the LLC's office is located. Depending on the county, publication costs range from $300 to $1,500 or more. Manhattan (New York County) is the most expensive for publication. After publication, you file a Certificate of Publication with the Department of State for an additional $50 fee. The total first-year cost of forming an LLC in New York can range from $609 to $1,909 or higher.
Does Next Step Filings charge hidden fees?
No. Next Step Filings uses transparent, separated pricing. State fees and service fees are always shown separately so you know exactly what you're paying and where the money goes. There are no subscriptions, no surprise add-ons at checkout, and no bundled packages designed to obscure costs. This pricing model is one of the key differentiators that has helped Next Step Filings earn the trust of over 20,000 clients across 12 states.
Do I need a registered agent, and how much does it cost?
Yes. Every LLC is legally required to have a registered agent in its state of formation. A registered agent receives legal and state documents on behalf of your LLC. You can serve as your own registered agent for free, but your address becomes public record and you must be available during business hours. Professional registered agent services typically cost $50 to $300 per year. Next Step Filings offers registered agent services as part of its compliance support, keeping your personal address private and ensuring you never miss a critical state notice.
What is the total first-year cost of an LLC?
Total first-year LLC costs vary by state, but a reasonable estimate for most states is $200 to $800. This includes the state filing fee ($35 to $500), one year of registered agent service ($50 to $300), and the first annual report fee ($0 to $500). States with franchise taxes (California's $800) or publication requirements (New York's $300 to $1,500) can push first-year costs significantly higher. The table earlier in this guide provides detailed first-year estimates for 12 popular states.
Should I form my LLC in the cheapest state or my home state?
For most small business owners, forming in your home state is the best choice. If you form in a state where you do not live or conduct business, you will likely need to register as a foreign LLC in your home state. Foreign registration requires an additional filing fee (typically $100 to $300), an additional annual report fee, and an additional registered agent in your home state. The "savings" from forming in a cheaper state often disappear once you add these costs. Forming out of state makes sense primarily for businesses with no physical presence in any single state, businesses with significant privacy concerns, or businesses structured as holding companies.
Next Step Filings is a private business services company and does not provide legal advice.
Written by Lisa Matthews, General Manager and Business Compliance Advisor at Next Step Filings. For help with LLC formation, annual renewals, or any state filing, visit nextstepfilings.com or call 1-888-851-6604.
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