Cheapest States to Form an LLC
Ranked by true 5-year total cost including filing fees, annual reports, franchise taxes, and registered agent fees.
🏆 States With $0 Annual LLC Fees
These states require no annual report and charge no franchise tax — you pay only the one-time filing fee and never again (excluding registered agent if used).
Top 10 Cheapest States — 5-Year Total
| # | State | Filing Fee | Annual Fee | 5-Year Total | |
|---|---|---|---|---|---|
| #1 | Mississippi | $50 | $0 | $550 | Details → |
| #2 | Missouri | $50 | $0 | $550 | Details → |
| #3 | New Mexico | $50 | $0 | $550 | Details → |
| #4 | Indiana | $95 | $0 /2yr | $595 | Details → |
| #5 | Ohio | $99 | $0 | $599 | Details → |
| #6 | Colorado | $50 | $10 | $600 | Details → |
| #7 | Idaho | $100 | $0 | $600 | Details → |
| #8 | Iowa | $50 | $30 /2yr | $610 | Details → |
| #9 | South Carolina | $110 | $0 | $610 | Details → |
| #10 | Kentucky | $40 | $15 | $615 | Details → |
* 5-year totals include $100/yr registered agent. Sort and filter all states on our homepage table.
Most Expensive States to Maintain an LLC
These states have high annual fees, franchise taxes, or costly publication requirements that add up significantly over time.
What Makes a State "Cheap" for LLCs?
The true cost of an LLC has four components:
- One-time filing fee — paid once when you form the LLC ($40–$500)
- Annual/biennial report fee — recurring maintenance fee ($0–$500/yr)
- Franchise or privilege tax — a state tax on the right to operate ($0–$800+/yr)
- Publication requirement — newspaper notice required in some states ($0–$2,000)
States that rank cheapest long-term often have low or zero annual fees, even if the initial filing fee is moderate.New Mexico is the gold standard: $50 to file, no annual reports, no franchise tax, and it allows anonymous LLCs.
Is It Worth Forming in a Cheap State?
Only if you don't live and operate in that state. If you do business in California but form in Wyoming to save money, you still need to foreign-qualify in California (paying CA fees) — so you get no savings.
The only exception: if you're a purely online business with no employees, office, or physical presence in any state, some attorneys argue you can legitimately use a low-fee state like Wyoming or New Mexico.Consult a business attorney before making this decision.