Uses real 2026 state filing fees. All calculations stay in your browser.
One-Time Formation Costs
One-Time Total
Estimated Annual Ongoing Costs
Annual Total (Ongoing)
LLC formation costs vary dramatically by state — from $35 in Montana to $500+ in Massachusetts for the state filing fee alone. California charges only $70 to form an LLC but imposes an $800 annual minimum franchise tax that makes it expensive to maintain. Wyoming and New Mexico are popular choices for low cost and strong liability protection.
What's Included in LLC Formation?
Forming an LLC requires at minimum: (1) Filing Articles of Organization with your state Secretary of State (the state filing fee), (2) Designating a registered agent with a physical state address, (3) Creating an Operating Agreement (required in some states, strongly recommended in all), and (4) Obtaining a Federal EIN from the IRS for tax and banking purposes. Optional but common: a business bank account, business licenses, and in some states like New York, mandatory publication in local newspapers (which can cost $1,000–$2,000).
Best States to Form an LLC
Wyoming leads as the top "formation-friendly" state: $100 filing fee, $60/year renewal, strong charging order protections, no state income tax, and no public disclosure of members. Delaware is popular for its advanced business law and court system (the Court of Chancery). Nevada offers no state income tax and strong privacy protections. New Mexico allows anonymous LLCs with no annual reports. However, if you do business primarily in one state, forming there is usually simplest — "foreign qualifying" an out-of-state LLC where you operate requires additional fees.
Frequently Asked Questions
LLC formation costs range from $35 (Montana) to $500+ (Massachusetts) just for the state filing fee. When you add a registered agent service ($100–$200/year), an operating agreement ($50–$300 for a template or $500–$1,500 for an attorney-drafted version), and the EIN (free from the IRS), total first-year costs typically run $300–$1,000 DIY or $800–$2,500 with attorney assistance.
For a simple single-member LLC, most people can DIY the formation using their state's Secretary of State website plus free or low-cost operating agreement templates. For multi-member LLCs, LLCs with complex ownership structures, or LLCs in regulated industries, an attorney-drafted operating agreement is worth the investment — it prevents costly disputes between members later. Many online formation services (LegalZoom, ZenBusiness, Incfile) offer middle-ground options for $150–$500.
A registered agent is a person or service with a physical address in your state who receives legal documents (lawsuits, government notices) on behalf of your LLC. Every LLC is legally required to have one. You can act as your own registered agent if you have a physical address in the state (not a P.O. box) and are available during business hours. Many business owners use a registered agent service ($100–$200/year) for privacy (keeps your home address off public records) and reliability.
California, Delaware, Maine, Missouri, Nebraska, and New York legally require operating agreements. All other states strongly recommend having one. Even for a single-member LLC, an operating agreement: establishes your LLC as separate from you personally (important for liability protection), documents your management structure, and is required by most banks to open a business account. Without one, your state's default LLC rules govern your business — which may not match your intentions.
Most states require an annual report (or biennial report) with a filing fee ranging from $0 (New Mexico, Arizona) to $800+ (California franchise tax). Registered agent service adds $100–$200/year. Business license renewals vary by city/county. Accounting and tax preparation for an LLC that elects S-Corp status costs $800–$2,000/year. California's $800 minimum franchise tax applies even if the LLC has no income, making it one of the most expensive states to maintain an LLC.