Mapped: What It Costs to Start an LLC in Every State
Key Takeaways:
- Massachusetts is the most expensive state, with $1,000 in combined initial and annualized recurring LLC costs.
- Montana is the cheapest at $35, while Arizona, Mississippi, Missouri, and New Mexico each cost $50.
- The national average is $219.15, though recurring state fees can significantly raise the overall cost.
Forming a limited liability company (LLC) can help separate an owner’s personal assets from business liabilities while offering relatively flexible management and taxation options. Because LLCs are governed at the state level, however, filing requirements and costs can vary significantly.
This visualization, created by Julie R. Peasley, compares the cost of starting and maintaining an LLC across all 50 states, based on the LLC University 2026 Guide. Totals combine the lowest mandatory initial state costs with annual fees, or half of biennial fees where applicable.
LLC Costs Range From $35 to $1,000
The table below shows LLC costs by state, based on data compiled from LLC University and state filing requirements.
| State | Initial Cost | Recurring Cost | Total Cost |
|---|---|---|---|
| Massachusetts | $500.00 | $500.00 | $1,000.00 |
| California | $90.00 | $810.00 | $900.00 |
| Nevada | $425.00 | $350.00 | $775.00 |
| Tennessee | $300.00 | $300.00 | $600.00 |
| Delaware | $110.00 | $400.00 | $510.00 |
| Maryland | $100.00 | $300.00 | $400.00 |
| North Carolina | $125.00 | $200.00 | $325.00 |
| Alaska | $250.00 | $50.00 | $300.00 |
| Texas | $300.00 | $0 | $300.00 |
| Florida | $125.00 | $138.75 | $263.75 |
| Maine | $175.00 | $85.00 | $260.00 |
| New York | $250.00 | $4.50 | $254.50 |
| Washington | $180.00 | $70.00 | $250.00 |
| District of Columbia | $99.00 | $150.00 | $249.00 |
| Alabama | $225.00 | $0 | $225.00 |
| Illinois | $150.00 | $75.00 | $225.00 |
| South Dakota | $150.00 | $55.00 | $205.00 |
| Connecticut | $120.00 | $80.00 | $200.00 |
| New Hampshire | $100.00 | $100.00 | $200.00 |
| Oregon | $100.00 | $100.00 | $200.00 |
| Rhode Island | $150.00 | $50.00 | $200.00 |
| Vermont | $155.00 | $45.00 | $200.00 |
| Arkansas | $45.00 | $150.00 | $195.00 |
| North Dakota | $135.00 | $50.00 | $185.00 |
| New Jersey | $100.00 | $75.00 | $175.00 |
| Georgia | $110.00 | $60.00 | $170.00 |
| Wyoming | $100.00 | $60.00 | $160.00 |
| West Virginia | $131.00 | $26.00 | $157.00 |
| Wisconsin | $130.00 | $25.00 | $155.00 |
| Virginia | $100.00 | $50.00 | $150.00 |
| Minnesota | $135.00 | $0 | $135.00 |
| Pennsylvania | $125.00 | $7.00 | $132.00 |
| Louisiana | $100.00 | $30.00 | $130.00 |
| Oklahoma | $100.00 | $25.00 | $125.00 |
| Nebraska | $100.00 | $12.50 | $112.50 |
| Indiana | $95.00 | $16.00 | $111.00 |
| South Carolina | $110.00 | $0 | $110.00 |
| Idaho | $100.00 | $0 | $100.00 |
| Ohio | $99.00 | $0 | $99.00 |
| Kansas | $85.00 | $2.50 | $87.50 |
| Utah | $59.00 | $18.00 | $77.00 |
| Colorado | $50.00 | $25.00 | $75.00 |
| Michigan | $50.00 | $25.00 | $75.00 |
| Iowa | $50.00 | $15.00 | $65.00 |
| Hawaii | $51.00 | $12.50 | $63.50 |
| Kentucky | $40.00 | $15.00 | $55.00 |
| Arizona | $50.00 | $0 | $50.00 |
| Mississippi | $50.00 | $0 | $50.00 |
| Missouri | $50.00 | $0 | $50.00 |
| New Mexico | $50.00 | $0 | $50.00 |
| Montana | $35.00 | $0 | $35.00 |
 United States average |
— | — | $219.15 |
The national average comes to $219.15, but several states sit far above that level. California totals $900, Nevada $775, Tennessee $600, and Delaware $510. At the lower end, four states tie at $50, just above Montana’s $35 total.
Upfront filing fees can give an incomplete picture of LLC costs. California, for example, has a relatively modest $90 initial cost in the dataset, but its $800 annual LLC tax and added biennial fees push the combined total to $900 on average. Massachusetts reaches $1,000 through a $500 initial fee and another $500 in annual costs.
What Does It Take to Form an LLC?
LLCs combine elements of corporations and partnerships, including limited personal liability and the potential for pass-through taxation.
While requirements differ by state, the process generally involves choosing a business name, appointing a registered agent, filing articles of organization, creating an operating agreement, and obtaining an Employer Identification Number (EIN) when required.
Ongoing annual or biennial reports may also be necessary to keep the company in good standing. These differences are one reason the broader business landscape can vary across America.
Is the Cheapest State Always the Best Choice?
For most entrepreneurs, choosing the state with the lowest LLC fee may not actually reduce their costs. A Forbes Advisor analysis generally recommends forming an LLC in the state where the business operates.
Registering elsewhere can require qualifying as a foreign LLC in the home state as well, potentially adding another set of filing fees, registered-agent requirements, and annual reporting obligations.
States such as Wyoming, Nevada, and Delaware remain notable for business-friendly features. However, the lowest headline filing fee does not necessarily translate into the lowest overall cost once recurring fees, taxes, and multi-state compliance are considered.
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