The cost of forming and maintaining an LLC in the United States will vary depending on the state where you decide to open your LLC.
In this article, we'll start by explaining the different costs involved in forming an LLC, and then we'll detail the real prices of opening and maintaining an LLC in each state. Let's get started!
Important
Some states have lower LLC costs than others. But that doesn't mean you should form your LLC in a cheaper state to avoid state fees or other expenses. Cost is just one more factor to consider when opening an LLC, and it's usually not one of the most important. Find out here how to choose the right state for your LLC.
Steps to open an LLC in the United States and their associated costs
Here we'll look at the different costs of each of the steps involved in opening your LLC in the United States. This will be a general overview, since we'll then break down the costs for each of the 50 US states.
It's important to know that there are several companies that will open a US LLC for you in the state of your choice, handling all the paperwork and processes for a very cost-effective price. For the 3 LLCs I've opened, I've always worked with this type of company and I fully recommend it.
The filing fee
To legally form an LLC, you need to file the Articles of Organization (called "Certificate of Formation" or "Certificate of Organization" in some states) with the Secretary of State. These documents can be filed online on the state's website, by mail, or in person at the local state office.
Filing costs usually vary by state and range from $50 to $150. This filing fee is a one-time fee, paid when you submit the Articles of Organization.
Annual Report
Annual reports are documents that report the LLC's activity as well as its basic legal information. This document may be required every year, every 2 years, or at other intervals, and some states don't require it at all. In addition, the fee for filing the annual report varies from state to state.
Note that the annual report may go by other names, such as "Franchise Tax", "Annual Statement", or similar terms.
What is the annual report for?
The annual report provides the state with information about the business's operations, offering proof that it is operating legally and that the LLC is in compliance with regulations. It's a way of showing the state that the business wants to keep operating. It also lets you update the company's contact information.
What happens if I forget to file it?
If you don't file your annual report by the due date, you may face fines from your LLC's state, or your LLC may even be dissolved.
Which states have no annual report?
The states that don't require an annual report are Arizona, Missouri, New Mexico, Ohio and South Carolina.
In addition, Idaho, Minnesota, Mississippi and Texas require it, but filing it is free.
Other possible additional costs
There are other possible additional costs depending on your situation and the state you choose:
- Publication costs: you may have to publish a notice of your LLC's formation in a state-approved newspaper. Publication costs vary depending on the state and the newspaper.
- Registered agent renewal: The registered agent is the one who receives official documents from the state and forwards them to the LLC. This person must be over 18 and reside in the state where you open your LLC. Many companies offer registered agent services, and they usually cost around $100 per year.
Total costs of opening and maintaining an LLC by state
| State | Filing Fee | Filing | State fee | Frequency | Due date | Late penalty |
|---|---|---|---|---|---|---|
| Alabama | $200 | Annual Report | $100 (may vary) | Annual | Extendable to 2.5 months after formation | State tax penalty |
| Alaska | $250 | Biennial Report | $100 | Biennial | January | $37.50 |
| Arizona | $50 (+ $299 for publication) | None | $0 | - | - | - |
| Arkansas | $45 online, $50 by mail | Annual Report | $150 | Annual | May 1 | $25 |
| California | $70 | Franchise Tax and Biennial Report | $800 + $20 | Annual (Tax) and Biennial (Report) | 3 months after the LLC's formation (Tax) and anniversary date (Report) | $250 |
| Colorado | $50 | Annual Report | $10 | Annual | Last day of the anniversary month | $40; $100 if more than 3 months late |
| Connecticut | $120 | Annual Report | $80 | Annual | March 31 | - |
| Delaware | $90 | Annual Report | $300 | Annual | June 1 | $200 + 1.5% each additional month |
| Florida | $125 | Annual Report | $138.75 | Annual | May 1 | $400 |
| Georgia | $100 | Annual Report | $50 | Annual | April 1 | $25 |
| Hawaii | $50 | Annual Report | $15 | Annual | 3 months after the anniversary date | $10 |
| Idaho | $100 | Annual Report | $0 | Annual | Last day of the anniversary month | - |
| Illinois | $150 | Annual Report | $75 | Annual | First day of the anniversary month | $100 |
| Indiana | $95 online, $100 by mail | Annual Report (Business Entity Report) | $31 | Biennial | Last day of the anniversary month | - |
| Iowa | $50 | Biennial Report | $45 | Biennial | April 1 of every odd-numbered year | - |
| Kansas | $160 online, $165 by mail | Annual Report | $50 | Annual | 15th day of the fourth month after the end of the fiscal year | - |
| Kentucky | $40 | Annual Report | $15 | Annual | June 30 | - |
| Louisiana | $100 | Annual Report | $35 | Annual | Anniversary date | - |
| Maine | $175 | Annual Report | $85 | Annual | June 1 | $50 |
| Maryland | $100 | Annual Report, Personal Propert, Tax Return (if you own property in the state) | $309 | Annual | April 15 | - if no property is owned |
| Massachusetts | $500 | Annual Report | $520 | Annual | Anniversary date | - |
| Michigan | $50 | Annual Report (Annual Statement) | $25 | Annual | February 15 | - |
| Minnesota | $155 online, $135 by mail | Annual Report (Annual Renewal) | $0 | Annual | December 31 | - |
| Mississippi | $50 | Annual Report (Annual Renewal) | $0 | Annual | April 15 | - |
| Missouri | $50 (online), $105 (mail) | None | $0 | – | – | – |
| Montana | $70 | Annual Report | $20 | Annual | April 15 | $15 |
| Nebraska | $105 | Biennial Report | $13 | Biennial | April 1 of odd-numbered years | - |
| Nevada | $75 + $150 | Annual List of Managers or Managing Members and State Business Licence Renewal | $150 + $200 | Annual | Last day of the anniversary month | $75 + $100 |
| New Hampshire | $100 | Annual Report | $102 | Annual | April 1 | $50 |
| New Jersey | $125 | Annual Report | $78 | Annual | Last day of the anniversary month | - |
| New Mexico | $50 | None | $0 | - | - | - |
| New York | $200 + publication costs | Biennial Report | $9 | Biennial | Last day of the anniversary month | - |
| North Carolina | $125 | Annual Report | $202 | Annual | April 15 | - |
| North Dakota | $135 | Annual Report | $50 | Annual | November 15 | $50 |
| Ohio | $99 | None | $0 | - | - | - |
| Oklahoma | $100 | Annual Report | $25 | Annual | Anniversary date | - |
| Oregon | $100 | Annual Report | $100 | Annual | Anniversary date | - |
| Pennsylvania | $125 + publication costs | Decennial Report | $70 | 10 years | Last day of years ending in 1 | - |
| Rhode Island | $150 | Annual Report | $50 | Annual | November 1 | $25 for each month late |
| South Carolina | $110 | None (unless the LLC is taxed as a Corp) | $0 | - | - | - |
| South Dakota | $150 | Annual Report | $50 | Annual | Last day of the anniversary month | $50 |
| Tennessee | $300 (minimum) | Annual Report | $300 minimum ($50/member) | Annual | First day of the fourth month after the end of the LLC's fiscal year | - |
| Texas | $300 | Annual Report | $0 if revenue < $1,180,000 | Annual | May 15 | $50 + 5% interest on the fee + an additional 5% interest if more than 30 days late |
| Utah | $70 | Annual Report | $15 | Annual | Anniversary date | $10 |
| Vermont | $125 | Annual Report | $35 | Annual | 2.5 months after the fiscal year | $25 |
| Virginia | $100 | Annual Report | $50 | Annual | Last day of the anniversary month | $25 |
| Washington | $200 | Annual Report | $60 | Annual | Last day of the anniversary month | $25 |
| West Virginia | $100 | Annual Report | $25 | Annual | June 30 | $100 |
| Wisconsin | $130 (online), $170 (mail) | Annual Report | $25 | Annual | Last day of the anniversary quarter | - |
| Wyoming | $100 (mail), $102 (online) | Annual Report | $62 | Annual | First day of the anniversary month | - |
Looking for more information about a specific state? Check out our complete guides.
What is an LLC?
An LLC, or Limited Liability Company, is a business structure that limits the liability of its members. This corporate veil works by separating the partners' personal assets from those of the company, thereby protecting them from any problem or lawsuit the company may face. LLCs can have one member, known as single-member LLCs.
Is it expensive to open an LLC in the United States?
One of the main advantages of opening an LLC in the United States is that it's relatively inexpensive compared to other countries. The cost of opening an LLC in the US depends on the state you choose, but filing fees start at $40.
What are the costs of an LLC in the United States?
The costs of an LLC in the United States are: LLC costs vary from state to state, so for more accuracy, look up the costs of the state where you want to register it.
What is the cheapest state to open an LLC in the United States?
Kentucky offers the lowest LLC filing fee, at $40. Arkansas follows closely at $45, and the following states charge a $50 fee: Arizona, Colorado, Hawaii, Iowa, Michigan, Mississippi, Missouri and New Mexico.
Is it possible to register an LLC for free?
Although the cost of registering an LLC varies by state, every state charges a filing fee. There is no way to open an LLC for free in the United States.
Which state should I open my LLC in if I want to save money?
We don't recommend using price as the only factor when deciding to open an LLC. However, in the long run, it makes sense to open an LLC in states that don't have or don't charge for the annual report and have a low filing fee, namely: New Mexico, Missouri, Mississippi or Arizona. If you prioritize cost and anonymity, opening an LLC in New Mexico is a great option.
Written by
Ignacio Navarro
Ignacio Navarro is a Certified Public Accountant, founder of Start Companies and a specialist in U.S. companies for entrepreneurs, freelancers and digital businesses in Latin America. With training in international taxation and studies at UCEMA, he advises non-resident clients on forming and maintaining LLCs, opening bank accounts, invoicing, accounting and taxes. His experience combines tax strategy, compliance and practical vision for operating in the U.S. in a simple, organized and professional way.
