Forming an LLC in 2026 costs a one-time state filing fee of roughly $35 to $500 — about $130 on average — plus a recurring annual or biennial fee in most states. Add an optional registered agent ($0–$300 per year) and the realistic first-year cost lands between $100 and $800, depending entirely on which state you file in. Everything below is an estimate of published state fees; verify with your state’s Secretary of State before you file. This is not legal or tax advice.
The two costs that matter
Almost every “how much does an LLC cost” answer comes down to two state fees:
- The filing fee — a one-time charge to file your Articles of Organization (called a Certificate of Formation in some states). This is what officially creates the LLC.
- The recurring fee — an annual or biennial report fee, or a franchise tax, that keeps the LLC in good standing.
Everything else — registered agent, EIN, operating agreement — is optional, provider-dependent, or free if you do it yourself.
What the state filing fee costs in 2026
Filing fees vary widely by state. Here is the national picture:
| Measure | 2026 figure | State |
|---|---|---|
| Cheapest filing fee | $35 | Montana |
| Most expensive filing fee | $500 | Massachusetts |
| Approximate US average | ~$130 | — |
| Popular low-cost choice | $100 | Wyoming |
| Popular “business-friendly” choice | $110 | Delaware |
You pay the filing fee once. A few states (Georgia, Indiana, Kansas, Wisconsin and others) charge less to file online than on paper, so filing electronically usually saves a little.
The recurring fee is where states really differ
The annual cost is what most people underestimate. Some states are cheap to file but expensive to keep, and vice versa:
| State | Filing fee | Recurring fee | Type |
|---|---|---|---|
| California | $70 | $800/yr | Franchise tax (+ $20 biennial statement) |
| Massachusetts | $500 | $500/yr | Annual report |
| Delaware | $110 | $300/yr | Flat alternative-entity tax |
| Kentucky | $40 | $15/yr | Annual report |
| Pennsylvania | $125 | $7/yr | Annual report (new in 2025) |
| New Mexico | $50 | $0 | No recurring fee |
| Texas | $300 | $0 | Franchise tax / report (no fee below threshold) |
California is the classic trap: a low $70 filing fee hides an $800 minimum annual franchise tax that applies even if the LLC makes no money. Use our LLC formation-cost calculator to see your state’s combined first-year number, or the state comparison tool to weigh two states over several years.
The optional (and sometimes hidden) extras
Beyond the two state fees, budget for these only if they apply to you:
- Registered agent — $0 to $300/yr. Every state requires one. You can be your own agent for free if you have a physical in-state address and don’t mind your address being public. Commercial services charge roughly $50–$300 a year. See do I need a registered agent?
- EIN — $0. The IRS issues your Employer Identification Number for free. Some formation services charge around $70 to do it for you; you don’t need to pay this.
- Operating agreement — $0 to $200. Recommended for every LLC, especially multi-member ones. Free templates exist; a lawyer-drafted version costs more.
- State-specific requirements. A few states add real costs: New York requires newspaper publication within 120 days (often $300–$1,500+, highest in New York City), Nevada bundles a $200 state business license into both formation and renewal, and Arizona and Nebraska require publication too.
A realistic first-year budget
Putting it together, here’s what most people actually spend in year one:
| Scenario | Filing | Recurring (yr 1) | Registered agent | First-year total |
|---|---|---|---|---|
| DIY in a cheap state (Kentucky) | $40 | $15 | $0 (self) | ~$55 |
| DIY in a mid-cost state (Florida) | $125 | $138.75 | $0 (self) | ~$264 |
| Hired agent in California | $70 | $800 | $150 | ~$1,020 |
The single biggest swing factor is the state, not the service you use. If you’re choosing where to form, read the cheapest states to form an LLC — and note that forming out of state usually means paying to foreign-qualify in your home state anyway, which can wipe out the savings.
Does an LLC save you tax?
Forming an LLC doesn’t change your taxes by itself — by default a single-member LLC is taxed like a sole proprietorship and a multi-member LLC like a partnership. The tax question that does matter is whether to elect S-corporation status once you’re profitable; see LLC vs S-corp: tax savings explained and our LLC vs S-corp calculator.
Sources and disclaimer
- State Secretaries of State / business filing agencies (linked on every state page)
- LLC University — LLC filing fees by state and annual fees by state
- IRS — Limited Liability Company (LLC)
Not legal or tax advice. All figures are 2026 estimates of published state fees and may lag a recent change. Verify with your state’s Secretary of State and consult a qualified professional. See our methodology and disclaimer.