How to Form an LLC by State (2026)

Kentucky has the lowest LLC filing fee at $40, followed by Arkansas ($45) and Colorado ($50). However, the cheapest filing fee is not always the lowest total cost — New York adds $1,000+ in mandatory publication costs and California charges an $800 annual franchise tax regardless of income. Wyoming and New Mexico are often the best overall value: low filing fees and no annual report fee.

For most small businesses, yes — you should form your LLC in the state where you actually operate and have a physical presence. Forming in a different state (like Delaware or Wyoming) and then operating in your home state requires you to register as a foreign LLC in your home state, paying fees to both states. The "form in a cheaper state" strategy mainly benefits online businesses with no physical location.

Processing times range from same-day (in some states with expedited filing) to 2–4 weeks for standard processing. Most states process LLC filings in 3–10 business days. Expedited processing (often 1–3 business days) is available in most states for an additional fee of $25–$200.

An annual report fee is a recurring yearly fee paid to the state to keep your LLC in good standing. Not all states charge one — New Mexico and Wyoming have no annual report fee, while Massachusetts charges $500 per year. Some states call it a franchise tax, biennial fee, or renewal fee. Missing the annual report deadline can result in late fees or administrative dissolution of your LLC.

Yes — forming an LLC does not require an attorney. You file the Articles of Organization directly with the state Secretary of State, either online or by mail. Many people use the state's official website to file themselves. Formation services like ZenBusiness or Northwest Registered Agent can also handle the paperwork for a flat fee starting around $39 plus the state filing fee.