Created May 2026 · Reviewed and verified September 2026 All 50 States Ranked
Cheapest States to Form an LLC (2026)
All 50 states ranked by LLC filing fee — plus annual costs, publication requirements, and franchise taxes so you see the true year-1 cost.
#1 Montana
$35 filing fee
#2 Kentucky
$40 filing fee
#3 Arkansas
$45 filing fee
#4 Arizona
$50 filing fee
#5 Colorado
$50 filing fee
The 5 Cheapest States to Form an LLC
#1 Montana
$35
Filing fee
Annual: $35
Lowest formation fee in the US at $35. No sales tax.
#2 Kentucky
$40
Filing fee
Annual: $15
Lowest formation fee in the US at $40.
#3 Arkansas
$45
Filing fee
Annual: $150
Very low formation fee at $45 — one of the cheapest in the US.
#4 Arizona
$50
Filing fee
Annual: None
No annual report fee — one of the lowest ongoing costs in the US.
#5 Colorado
$50
Filing fee
Annual: $10
Only $10/year annual report — one of the lowest ongoing costs in the US.
All 50 States — Ranked by LLC Filing Fee
| # | State | Filing Fee | Annual Fee | Est. Year-1 |
|---|---|---|---|---|
| 1 | Montana | $35 | $35 | $35+ |
| 2 | Kentucky | $40 | $15 | $40+ |
| 3 | Arkansas | $45 | $150 | $45+ |
| 4 | Arizona | $50 | None | $150+ |
| 5 | Colorado | $50 | $10 | $50+ |
| 6 | Hawaii | $50 | $15 | $50+ |
| 7 | Iowa | $50 | $45 | $50+ |
| 8 | Michigan | $50 | $25 | $50+ |
| 9 | Mississippi | $50 | None | $50+ |
| 10 | Missouri | $50 | None | $50+ |
| 11 | New Mexico | $50 | None | $50+ |
| 12 | Utah | $54 | $18 | $54+ |
| 13 | California | $70 | $820 | $870+ |
| 14 | Delaware | $90 | $300 | $90+ |
| 15 | Indiana | $95 | $31 | $95+ |
| 16 | Ohio | $99 | None | $99+ |
| 17 | Georgia | $100 | $50 | $100+ |
| 18 | Idaho | $100 | None | $100+ |
| 19 | Maryland | $100 | $300 | $100+ |
| 20 | Nebraska | $100 | $13 | $200+ |
| 21 | New Hampshire | $100 | $100 | $100+ |
| 22 | Oklahoma | $100 | $25 | $100+ |
| 23 | Oregon | $100 | $100 | $100+ |
| 24 | Virginia | $100 | $50 | $100+ |
| 25 | West Virginia | $100 | $25 | $100+ |
| 26 | Wyoming | $100 | $60 | $100+ |
| 27 | South Carolina | $110 | None | $110+ |
| 28 | Connecticut | $120 | $80 | $120+ |
| 29 | Florida | $125 | $138.75 | $125+ |
| 30 | Louisiana | $125 | $35 | $125+ |
| 31 | New Jersey | $125 | $75 | $125+ |
| 32 | North Carolina | $125 | $200 | $125+ |
| 33 | Pennsylvania | $125 | $70 | $125+ |
| 34 | Vermont | $125 | $35 | $125+ |
| 35 | Wisconsin | $130 | $25 | $130+ |
| 36 | North Dakota | $135 | $50 | $135+ |
| 37 | Illinois | $150 | $75 | $150+ |
| 38 | Rhode Island | $150 | $50 | $150+ |
| 39 | South Dakota | $150 | $50 | $150+ |
| 40 | Minnesota | $155 | None | $155+ |
| 41 | Kansas | $160 | $55 | $160+ |
| 42 | Maine | $175 | $85 | $175+ |
| 43 | Washington | $180 | $70 | $180+ |
| 44 | Alabama | $200 | $100 | $200+ |
| 45 | New York | $200 | $9 | $425+ |
| 46 | Alaska | $250 | $100 | $250+ |
| 47 | Tennessee | $300 | $300 | $400+ |
| 48 | Texas | $300 | None | $300+ |
| 49 | Nevada | $425 | $350 | $625+ |
| 50 | Massachusetts | $500 | $500 | $500+ |
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Frequently Asked Questions
What is the cheapest state to form an LLC?
Montana is the cheapest state to form an LLC by filing fee at $35. Other low-cost states include Kentucky ($40), Arkansas ($45), Arizona ($50). However, the cheapest filing fee does not always mean the lowest total cost — factor in annual report fees and publication requirements when comparing states.
Should I form my LLC in the cheapest state?
Usually no — most people should form their LLC in the state where they actually do business. If you form in Wyoming but operate in California, you still have to register as a foreign LLC in California (paying both states' fees) and pay California taxes. The "form in Wyoming" strategy mainly benefits people with businesses that have no physical presence and operate entirely online, or for privacy and asset-protection reasons.
Which states have no annual LLC fee?
States with no annual LLC fee include Arizona, Mississippi, Missouri, New Mexico, Ohio, among others. Even without an annual fee, most states still require some form of annual filing or registered agent maintenance. New Mexico is particularly notable — it has a low filing fee and no annual report requirement for LLCs.
Is Wyoming or Delaware cheaper for LLCs?
Wyoming and Delaware are both popular for LLCs with strong privacy and asset-protection laws. Wyoming's filing fee is $100 and its annual report fee is $60. Delaware's filing fee is $90 with a $300 annual franchise tax. For pure cost, Wyoming wins for most small businesses. Delaware is preferred for startups seeking VC funding, as investors expect Delaware C-corps — not LLCs — for investment rounds.
What is the total cost to form an LLC in the first year?
The first-year cost to form an LLC includes: the state filing fee (as low as $35 in Montana), a registered agent fee if you hire one ($50–$150/year), and any publication requirement. Some states like New York add $1,000–$2,000 in mandatory publication costs. In most states, year-1 total runs $100–$500 for DIY formation. In New York, it can exceed $2,000.