Cheapest States to Form an LLC in 2026 (Ranked by Total Cost)
All 50 states + DC ranked by first-year LLC formation cost. Montana, Kentucky, and Arkansas have the lowest filing fees. Wyoming and New Mexico have no income tax and low ongoing costs.
The cheapest state to form an LLC in 2026 is Arizona at just $50 in year one. The most expensive is Massachusetts at $1,000. All 51 jurisdictions ranked below — including filing fee, annual report cost, and state income tax status.
Cheapest First Year
$50
Arizona
No Income Tax States
9
out of 51 jurisdictions
Most Expensive First Year
$1,000
Massachusetts
All States Ranked by First-Year LLC Cost (2026)
First-year total = filing fee + annualized annual report fee (biennial ÷ 2, decennial ÷ 10)
| # | State | Filing Fee | Annual Report | Income Tax | Year 1 Total |
|---|---|---|---|---|---|
| 1 | Arizona | $50 | None | Yes | $50 |
| 2 | Mississippi | $50 | $0 / annual | Yes | $50 |
| 3 | Missouri | $50 | None | Yes | $50 |
| 4 | New Mexico | $50 | None | Yes | $50 |
| 5 | Kentucky | $40 | $15 / yr | Yes | $55 |
| 6 | Montana | $35 | $20 / yr | Yes | $55 |
| 7 | Colorado | $50 | $10 / yr | Yes | $60 |
| 8 | Hawaii | $50 | $15 / yr | Yes | $65 |
| 9 | Utah | $54 | $18 / yr | Yes | $72 |
| 10 | Iowa | $50 | $45 / 2yr | Yes | $73 |
| 11 | Michigan | $50 | $25 / yr | Yes | $75 |
| 12 | California | $70 | $20 / 2yr | Yes | $80 |
| 13 | Ohio | $99 | $0 / biennial | Yes | $99 |
| 14 | Idaho | $100 | $0 / annual | Yes | $100 |
| 15 | Nebraska | $100 | $13 / 2yr | Yes | $107 |
| 16 | South Carolina | $110 | $0 / annual | Yes | $110 |
| 17 | Indiana | $95 | $32 / 2yr | Yes | $111 |
| 18 | Oklahoma | $100 | $25 / yr | Yes | $125 |
| 19 | West Virginia | $100 | $25 / yr | Yes | $125 |
| 20 | Pennsylvania | $125 | $70 / 10yr | Yes | $132 |
| 21 | Louisiana | $100 | $35 / yr | Yes | $135 |
| 22 | Minnesota | $135 | $0 / annual | Yes | $135 |
| 23 | Georgia | $100 | $50 / yr | Yes | $150 |
| 24 | Virginia | $100 | $50 / yr | Yes | $150 |
| 25 | Wyoming | $100 | $52 / yr | None | $152 |
| 26 | Wisconsin | $130 | $25 / yr | Yes | $155 |
| 27 | Vermont | $125 | $35 / yr | Yes | $160 |
| 28 | North Dakota | $135 | $50 / yr | Yes | $185 |
| 29 | Arkansas | $45 | $150 / yr | Yes | $195 |
| 30 | Connecticut | $120 | $80 / yr | Yes | $200 |
| 31 | New Hampshire | $100 | $100 / yr | None | $200 |
| 32 | New Jersey | $125 | $75 / yr | Yes | $200 |
| 33 | Oregon | $100 | $100 / yr | Yes | $200 |
| 34 | Rhode Island | $150 | $50 / yr | Yes | $200 |
| 35 | South Dakota | $150 | $50 / yr | None | $200 |
| 36 | New York | $200 | $9 / 2yr | Yes | $205 |
| 37 | Alabama | $200 | $10 / yr | Yes | $210 |
| 38 | Kansas | $165 | $55 / yr | Yes | $220 |
| 39 | Illinois | $150 | $75 / yr | Yes | $225 |
| 40 | District of Columbia | $99 | $300 / 2yr | Yes | $249 |
| 41 | Maine | $175 | $85 / yr | Yes | $260 |
| 42 | Washington | $200 | $60 / yr | None | $260 |
| 43 | Florida | $125 | $139 / yr | None | $264 |
| 44 | Alaska | $250 | $100 / 2yr | None | $300 |
| 45 | Texas | $300 | None | None | $300 |
| 46 | North Carolina | $125 | $200 / yr | Yes | $325 |
| 47 | Delaware | $90 | $300 / yr | Yes | $390 |
| 48 | Maryland | $100 | $300 / yr | Yes | $400 |
| 49 | Nevada | $75 | $350 / yr | None | $425 |
| 50 | Tennessee | $300 | $300 / yr | None | $600 |
| 51 | Massachusetts | $500 | $500 / yr | Yes | $1,000 |
Popular LLC State Comparisons
Comparing the most popular LLC formation states side-by-side:
Key Takeaways: Cheapest States for LLC Formation
Lowest filing fees
Montana ($35), Kentucky ($40), and Arkansas ($45) have the lowest one-time filing fees. However, Arkansas charges $150/year in annual report fees — making its ongoing costs higher than most.
No annual report required
Missouri, New Mexico, and Arizona have zero ongoing annual report requirements. Ohio, Idaho, Minnesota, Mississippi, and South Carolina require reports but charge no fee. These states minimize long-term compliance burden.
No state income tax
Wyoming, Nevada, Texas, Florida, Washington, South Dakota, Tennessee, Alaska, and New Hampshire have no personal income tax. This can save LLC owners thousands per year in states with high income tax (California up to 13.3%, Oregon up to 9.9%).
The "home state" rule
For most businesses, the cheapest option is simply your home state. Forming in Wyoming or Delaware requires foreign-qualifying in your operating state — you'll pay both states' fees, eliminating the cost advantage.
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