Free 50-State LLC Cost & Compliance Calculator
LLC Cost Calculator
See your true first-year and multi-year LLC costs — including hidden fees.
5-Year Total Cost
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Cost Breakdown
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Year-by-Year Cost
Disclaimer: FreeLLCCalculator.com is an educational utility and does not provide legal or tax advice.
Data verified against official 2026 Secretary of State fee schedules.
The True Cost of Forming and Running an LLC in 2026
When starting a business, the initial price tag advertised by formation services rarely tells the whole story. The true cost of forming and running a Limited Liability Company (LLC) is divided into two distinct categories: one-time formation fees paid to establish the entity, and ongoing operational compliance costs required to keep the business in good standing.
Many "free LLC formation" marketing services are misleading. While they may waive their own agency setup fees, you are still legally obligated to pay the mandatory state filing fees. More importantly, these services often downplay the mandatory annual filings, franchise taxes, and registered agent fees that recur every single year after your business is formed.
Initial Filing Fees vs. Ongoing Annual Reports & Franchise Taxes
The cost of entry to start a business varies dramatically across the country. For example, forming an LLC in Kentucky or Montana requires a modest initial filing fee of around $40 to $50. On the opposite end of the spectrum, Massachusetts demands a staggering $520 upfront just to file your initial Articles of Organization.
However, the initial filing fee is just the beginning. Recurring annual costs frequently surprise new founders. Some of the most significant ongoing state fees include:
- California: A mandatory $800 Annual Minimum Franchise Tax applies to every LLC, regardless of revenue, profit, or whether the business is actively operating.
- Delaware: A $300 Annual Franchise Tax is required every year to maintain your entity in the state.
- Nevada: A $350 Annual List and Business License fee must be paid yearly to remain compliant.
Conversely, some states are incredibly business-friendly for long-term maintenance. States like New Mexico, Missouri, Ohio, and South Carolina charge $0 in ongoing annual report fees or franchise taxes.
Hidden LLC Expenses Most Founders Overlook
Beyond standard filing and report fees, several hidden expenses can inflate your startup budget if you aren't prepared.
Newspaper Publication Requirements
In states like New York, Arizona, and Nebraska, you are legally required to announce the formation of your LLC in local newspapers. New York's Section 206 publication requirement is particularly notorious. Depending on the county where your LLC is located, publishing these notices for six consecutive weeks can add anywhere from $100 to over $2,000 to your total formation cost.
Mandatory Initial / Biennial Reports
Some states require an "initial report" to be filed and paid for shortly after formation. Furthermore, instead of annual reports, some states use a biennial schedule. For instance, California requires a $20 Statement of Information to be filed biennially, which is in addition to the hefty $800 annual franchise tax.
Registered Agent Costs
Every state requires an LLC to designate a registered agent—a person or entity responsible for receiving official legal and tax documents on behalf of the business. You can act as your own registered agent for $0 if you maintain a physical street address in the state and are available during normal business hours. However, many founders opt for a commercial registered agent service for privacy and convenience, which typically adds $100 to $150 per year to their compliance budget.
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The Out-of-State Formation Trap: Delaware & Wyoming vs. Your Home State
A persistent myth in the entrepreneurial community is that you should form your LLC in Delaware or Wyoming to "save on taxes" or benefit from business-friendly laws. While Delaware makes sense for large C-Corporations seeking venture capital, for a typical small business operating locally, this strategy is an expensive trap.
If you form an LLC out-of-state but conduct business in your home state, you must register for Foreign LLC Qualification. This means you will pay dual formation fees, file dual annual reports, maintain two registered agents, and potentially face dual taxation. Use our comparison tool below to see exactly how these costs compound.
Out-of-State Formation Myth Buster
Think Delaware or Wyoming saves you money? Select your home state and see the true cost comparison.
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✓ Recommended
Delaware
✗ Usually costs more
Wyoming
✓ Good for privacy
Complete 50-State LLC Fee Summary
Review the base filing fees, ongoing annual costs, and 5-year projections for every jurisdiction. Click any state for a detailed, programmatic breakdown of its specific compliance requirements.
| State | Filing Fee | Annual Fee | 1-Yr Total | 5-Yr Total | Details |
|---|---|---|---|---|---|
| ALAlabama | $200 | $50 | $350 | $950 | View → |
| AKAlaska | $250 | $100 /2yr | $350 | $950 | View → |
| AZArizona📰 | $50 | $0 none | $225 | $625 | View → |
| ARArkansas | $45 | $150 | $295 | $1,295 | View → |
| CACalifornia | $70 | $20 /2yr | $195 | $735 | View → |
| COColorado | $50 | $10 | $160 | $600 | View → |
| CTConnecticut | $120 | $80 | $300 | $1,020 | View → |
| DEDelaware | $110 | $300 | $560 | $2,360 | View → |
| DCDistrict of Columbia | $220 | $300 /2yr | $320 | $1,320 | View → |
| FLFlorida | $125 | $138.75 | $364 | $1,319 | View → |
| GAGeorgia | $100 | $50 | $250 | $850 | View → |
| HIHawaii | $50 | $15 | $165 | $625 | View → |
| IDIdaho | $100 | $0 | $200 | $600 | View → |
| ILIllinois | $150 | $75 | $325 | $1,025 | View → |
| INIndiana | $95 | $0 /2yr | $195 | $595 | View → |
| IAIowa | $50 | $30 /2yr | $150 | $610 | View → |
| KSKansas | $165 | $55 | $320 | $940 | View → |
| KYKentucky | $40 | $15 | $155 | $615 | View → |
| LALouisiana | $100 | $35 | $235 | $775 | View → |
| MEMaine | $175 | $85 | $360 | $1,100 | View → |
| MDMaryland | $100 | $300 | $500 | $2,100 | View → |
| MAMassachusetts | $500 | $500 | $1,100 | $3,500 | View → |
| MIMichigan | $50 | $25 | $175 | $675 | View → |
| MNMinnesota | $155 | $0 | $255 | $655 | View → |
| MSMississippi | $50 | $0 | $150 | $550 | View → |
| MOMissouri | $50 | $0 none | $150 | $550 | View → |
| MTMontana | $70 | $15 | $185 | $645 | View → |
| NENebraska📰 | $110 | $13 /2yr | $285 | $711 | View → |
| NVNevada | $75 | $150 | $525 | $2,325 | View → |
| NHNew Hampshire | $100 | $100 | $300 | $1,100 | View → |
| NJNew Jersey | $125 | $75 | $300 | $1,000 | View → |
| NMNew Mexico | $50 | $0 none | $150 | $550 | View → |
| NYNew York📰 | $200 | $9 /2yr | $1,150 | $1,568 | View → |
| NCNorth Carolina | $125 | $200 | $425 | $1,625 | View → |
| NDNorth Dakota | $135 | $50 | $285 | $885 | View → |
| OHOhio | $99 | $0 none | $199 | $599 | View → |
| OKOklahoma | $100 | $25 | $225 | $725 | View → |
| OROregon | $100 | $100 | $300 | $1,100 | View → |
| PAPennsylvania | $125 | $7 | $232 | $660 | View → |
| RIRhode Island | $150 | $50 | $300 | $900 | View → |
| SCSouth Carolina | $110 | $0 none | $210 | $610 | View → |
| SDSouth Dakota | $165 | $50 | $315 | $915 | View → |
| TNTennessee | $300 | $300 | $700 | $2,300 | View → |
| TXTexas | $300 | $0 | $400 | $800 | View → |
| UTUtah | $54 | $18 | $172 | $644 | View → |
| VTVermont | $125 | $35 | $260 | $800 | View → |
| VAVirginia | $100 | $50 | $250 | $850 | View → |
| WAWashington | $200 | $60 | $360 | $1,000 | View → |
| WVWest Virginia | $100 | $25 | $225 | $725 | View → |
| WIWisconsin | $130 | $25 | $255 | $755 | View → |
| WYWyoming | $100 | $60 | $210 | $650 | View → |
💡 5-Year totals include filing fee, annual reports, franchise taxes, and $100/yr registered agent. Click any state for full details.
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Frequently Asked Questions
Expert answers to the most common LLC cost and compliance questions.
How much does it actually cost to form an LLC in 2026?
The one-time state filing fee to submit your Articles of Organization ranges from $35 in Montana to $520 in Massachusetts, with the national average falling between $100 and $150. However, the total cost of an LLC includes mandatory recurring annual report fees, state franchise taxes, and compliance requirements that vary significantly by state.
What are the ongoing annual fees required to keep an LLC open?
Most states charge an ongoing annual or biennial fee to maintain your LLC in good standing. This fee can be an annual report fee (e.g., $138.75 in Florida, $50 in Georgia), a flat franchise tax (e.g., $800 in California, $300 in Delaware), or a state business license renewal (e.g., $350 total in Nevada). A few states, including New Mexico, Missouri, Ohio, and South Carolina, charge $0 in ongoing annual Secretary of State fees.
Do I have to pay California's $800 franchise tax in my first year?
Under California AB 85, new LLCs that register with the California Secretary of State receive an exemption from the $800 Annual Minimum Franchise Tax for their first tax year. However, starting in your second tax year, the mandatory $800 franchise tax is due annually by April 15 (using Form 3522), regardless of whether your business made a profit or generated zero revenue.
What is the New York LLC newspaper publication requirement (Section 206)?
Under Section 206 of the New York Limited Liability Company Law, newly formed LLCs must publish a notice of formation in two county clerk-designated newspapers for six consecutive weeks within 120 days of formation. Afterwards, you must file a Certificate of Publication with a $50 state fee. Depending on the county (e.g., Manhattan vs. upstate counties like Albany), publication advertising costs range from $600 to over $1,500.
Should I form my LLC in Delaware or Wyoming if I live and work in another state?
For the vast majority of small business owners, freelancers, and e-commerce founders, no. If you form an LLC in Delaware or Wyoming but conduct business, reside, or have clients in your home state, your home state requires you to register as a 'Foreign LLC.' This means paying formation and annual maintenance fees to both Wyoming/Delaware AND your home state, plus hiring commercial registered agents in both states—effectively doubling your costs.
Can I act as my own registered agent for free?
Yes. In all 50 states, you or any business partner can act as your own registered agent for $0, provided you are at least 18 years old, have a physical street address in the state of formation (P.O. Boxes are not permitted), and are available during regular business hours to receive legal correspondence. Business owners generally hire commercial agents ($100–$150/year) to keep their personal home addresses off public records.
What happens if I miss my state's annual report deadline?
States levy strict late penalties if annual reports are missed. For example, Florida imposes a non-waivable $400 late fee on any annual report submitted after May 1. Continued delinquency results in administrative dissolution or revocation of your LLC, which strips away your personal liability shield and exposes your personal assets.
Do I have to pay annual LLC fees if my business makes zero revenue?
Yes. In states that charge mandatory annual report fees or franchise taxes (such as California's $800 tax, Delaware's $300 tax, or Maryland's $300 personal property report), the fees are required simply for the legal privilege of maintaining an active corporate charter, regardless of revenue, activity, or profit.
What is the cheapest state in the US to form and maintain an LLC?
For initial one-time filing, Montana ($35), Kentucky ($40), and Arkansas ($45) are the cheapest. For long-term 5-year total cost of ownership, New Mexico ($50 formation, $0 annual fee), Missouri ($50 formation, $0 annual fee), and Ohio ($99 formation, $0 annual fee) are the most economical.
Why do some online formation companies advertise "$0 LLC Formation"?
The '$0 formation' claim refers exclusively to the service company waiving their internal preparation fee. You are still legally required to pay the mandatory state filing fee directly to the Secretary of State. Furthermore, these providers typically upsell registered agent renewals ($199–$300/yr), EIN procurement (which is free from the IRS), and operating agreement templates.