How Much Does It Cost to Start an LLC?
See the real cost of forming an LLC in your state: filing fee, annual report, franchise tax, and registered agent. One-time vs recurring costs, free.
LLC formation cost is mostly state filing fees — $50 in Kentucky, $500 in Massachusetts, $800/year franchise tax in California, forever. The "we'll file for you" services bundle the same paperwork with marked-up extras, so knowing your state's actual fees is where the money is saved.
This calculator breaks out one-time costs (filing, registered agent if you use one) versus recurring costs (annual/biennial reports, franchise taxes) for your state, so you can budget the real number — and decide whether DIY filing is worth the hour it takes.
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US LLC Cost Compare
See 5-year total cost of forming an LLC in all 50 states — find the cheapest
Sample selection — popular formation states. Adjust as needed.
Includes formation fee, annual reports, franchise tax, and registered agent for 5 years.
| Rank | State | Form | Report | Franchise | 5-Year |
|---|---|---|---|---|---|
| #1 | Arizona | $50 | — | None | $550 |
| #2 | Missouri | $50 | — | None | $550 |
| #3 | New Mexico ⭐ | $50 | — | None | $550 |
| #4 | Indiana | $90 | $0/2yr | None | $590 |
| #5 | Colorado ⭐ | $50 | $10/yr | None | $600 |
| #6 | Idaho | $100 | — | None | $600 |
| #7 | Iowa | $50 | $30/2yr | None | $610 |
| #8 | South Carolina | $110 | — | None | $610 |
| #9 | Montana | $35 | $20/yr | None | $635 |
| #10 | Minnesota | $155 | $0/yr | None | $655 |
LLC formation fees, annual report fees, and franchise taxes are based on state Secretary of State data as of Jan 2026. Registered agent fees are market averages ($100-150/yr). Fees change — always verify with your state's SOS website before filing.
What actually drives LLC cost — illustrated
This tool computes a 5-year total cost of ownership for forming an LLC in any US state: a one-time state filing fee, plus three recurring lines that repeat every year — the annual/biennial report fee, the franchise tax, and the registered agent fee. The formula is simple and state-specific: 5-yr cost = formation + report fees + franchise tax × 5 + registered agent × 5. Because the recurring lines dominate, a cheap-to-file state like Wyoming (formation $100, no franchise tax) can end up costing a fraction of a state like California, whose $800/yr minimum franchise tax adds $4,000 alone over five years. Under Delaware's HB 400, the flat LLC franchise tax rose to $400/yr from 2026.
One-time formation plus recurring report, franchise tax and registered-agent fees — all multiplied out over five years to make states comparable.
Maya is an online seller forming her LLC in 2026 and comparing two states: Wyoming (filing $100, $60/yr report, no franchise tax, $100/yr agent) and California (filing $70, $20 biennial report, $800/yr minimum franchise tax, $100/yr agent).
- Formation + agent:Wyoming: $100 + $100×5 = $600 · California: $70 + $100×5 = $570 — nearly identical on day one.
- Reports:Wyoming: $60 × 5 = $300 · California: $20 × 2 (biennial) = $40.
- Franchise tax:Wyoming: $0 · California: $800 × 5 = $4,000 — this single line is the whole story.
- 5-year totals:Wyoming ≈ $900 vs. California ≈ $4,610. California costs about 5× more, purely from its minimum franchise tax.
About this how much does it cost to start an LLC
This page covers llc annual fees by state, cheapest state to form an llc, llc registered agent cost, california llc 800 franchise tax — all the same underlying task as how much does it cost to start an LLC. The tool above is FreeToolHub's llc cost embedded in full: every feature works right here, and nothing you process is uploaded to any server.
Frequently asked questions
What is the cheapest way to start an LLC?
File directly with your Secretary of State — most states charge $50–$150 and the online form takes under an hour. The only near-essential add-on is a registered agent ($50–$150/year) if you don't want your home address public. Formation services charge $100–$300 on top for work you can do yourself.
Are there ongoing costs after forming an LLC?
Usually yes: annual or biennial report fees ($10–$800 depending on state), and in some states meaningful franchise taxes — California's $800/year minimum is the famous one, New York has publication requirements costing hundreds more. The calculator shows your state's recurring line so the true cost is known up front.