What does it really cost to start and keep an LLC in your state? See the filing fee, annual report, franchise tax, registered agent and formation options — for year one and every year after.
Compare formation services (many file your LLC for $0 + state fee and act as your registered agent).
Compare LLC formation services → Sponsored placeholder| — | Wyoming | Delaware | New Mexico |
|---|---|---|---|
| Filing fee | $100 | $90 | $50 |
| Annual fee | $60 min | $300 | $0 |
| State income tax | None | None | 4.9% |
| Privacy | Strong | Moderate | Strong |
| Best for | Asset protection | Investors / fundraising | Budget + privacy |
Tip: for most owners, forming in your home state is cheapest — out-of-state LLCs usually still need to register (and pay) as a "foreign LLC" where you actually operate.
Every LLC has a one-time state filing fee (from $35 in Montana to $500 in Massachusetts). Most states then charge an annual or biennial report fee to stay in good standing. A handful add a franchise tax — California's minimum $800/year is the big one, owed even if you earn nothing. You'll also need a registered agent (you can be your own in your home state for free, or pay ~$50–$150/year for a commercial one), and optionally a formation service that files the paperwork for you. This calculator adds those up into a real year-one number and your ongoing annual cost.
An LLC is a legal structure; an S-corp is a tax election. Once your business consistently nets $40,000–$50,000+, electing S-corp status (IRS Form 2553) can cut self-employment tax: you take a "reasonable salary" (payroll-taxed) and distribute the rest as profit (not payroll-taxed). On $80,000 net with a $45,000 salary that's roughly $5,355 saved — but S-corps add payroll, bookkeeping and a CPA bill, so confirm it pencils out first.
Figures are based on state Secretary of State schedules as of early 2026 and are estimates that change — always confirm the current fee on your state's official SOS website before filing. Registered-agent and formation-service prices vary by provider.
By filing fee, Montana ($35), Kentucky ($40), and several states at $50 are lowest — but the cheapest real option is usually your home state, since forming elsewhere means also registering (and paying) where you operate.
Most states charge an annual or biennial report fee to keep your LLC active. A few (Arizona, Missouri, New Mexico, Ohio, Texas under the revenue threshold) have no ongoing state fee.
California charges every LLC a minimum $800/year franchise tax, due even with zero income, plus an extra fee once revenue tops $250,000.
Yes — every LLC needs one. In your home state you can usually be your own agent for free; for out-of-state LLCs you'll need a commercial agent (~$50–$150/yr).
For a simple single-owner LLC, your home state is usually best. Wyoming suits privacy/asset-protection; Delaware suits startups raising outside investment.
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