What is the cheapest state to form an LLC?
It depends on how long you look. On day one, the cheapest state is Montana, with a $35 filing fee. Over five years, the cheapest is Arizona, because yearly fees add up faster than a one-time filing fee.
The gap between the two views can be large. California charges $90 to form, less than most states, then charges $800 minimum tax + $20 statement every 2 years. Its $800 tax is due in the first year too, by the 15th day of the 4th month after formation, so a California LLC really makes five $800 payments in five years. A 2026 law lowers the first year's tax to $400 for tax years beginning in 2027 through 2029.
Why five years? It's long enough for yearly fees to add up, and short enough that today's fees are a fair guide. Fees do change: Delaware's LLC tax rose from $300 to $400 starting with tax year 2026, and Louisiana's annual report fee rises from $30 to $35 on October 1, 2026. The date at the top of this page shows when we last checked the figures.
The cheapest states for an LLC over 5 years
The ranking adds each state's standard formation fee to four yearly payments, the typical state cost of years two to five. It counts state fees only: no registered agent, no newspaper notices and no taxes on profits. Biennial fees are split into yearly amounts. 19 states aren't ranked yet because we haven't confirmed their 2026 yearly fees with the state; the full table above still lists every state.
| Rank | State | Formation fee | Per year | 5-year total |
|---|---|---|---|---|
| 1 | Arizona | $50 | $0 | $50 |
| 2 | Missouri | $52 | $0 | $52 |
| 2 | New Mexico | $52 | $0 | $52 |
| 4 | Mississippi | $54 | $0 | $54 |
| 5 | Kentucky | $40 | $15 | $100 |
| 6 | Iowa | $50 | $15 | $110 |
| 7 | Montana | $35 | $20 | $115 |
| 8 | South Carolina | $125 | $0 | $125 |
| 9 | Colorado | $50 | $25 | $150 |
| 9 | Michigan | $50 | $25 | $150 |
Every state here charges $25 or less a year, so the filing fee decides most of the order. Arizona requires a newspaper notice after formation in some cases, and that cost isn't included. Montana's figure uses its standard $20 report fee, although the state has waived the on-time fee through 2027.
The most expensive states to keep an LLC
| State | Formation fee | What you pay yearly | 5-year total |
|---|---|---|---|
| California | $90 | $800 minimum tax + $20 statement every 2 years | $3,330 |
| Delaware | $110 | $400 flat tax | $1,710 |
| Maryland | $155 | $300 | $1,355 |
| North Carolina | $128 | $203 online ($200 by mail) | $940 |
| District of Columbia | $99 | $300 every 2 years | $699 |
The formation fee isn't what makes these states expensive; the yearly charge is. Minimum taxes like California's $800 and Delaware's flat $400 are owed even in a year with no revenue, so a dormant LLC still pays them.
If nothing ties you to one of these states, paying more every year rarely buys a founder abroad anything. Delaware is the usual exception, when investors or partners ask for it; Wyoming vs Delaware covers when that's worth the extra cost.
Does a cheap state still work if you do business somewhere else?
Only if you don't actually do business in another state. You can form an LLC in any state, but each state where the company transacts business requires you to register there as a foreign LLC, meaning an LLC formed in a different state. Registering means another filing fee, another registered agent and that state's yearly reports and taxes.
Florida's rules show how this works. A foreign LLC may not transact business in Florida until it gets a certificate of authority. If it does business there anyway, it can't bring a lawsuit in Florida courts until it registers, and it owes the fees it would have paid plus a civil penalty of $500 to $1,000 for each year. So a Wyoming LLC run from an office in Miami pays Wyoming's $60 minimum and Florida's $138.75 every year.
What counts as doing business is defined state by state. Having an office, employees or inventory in a state usually counts. Florida's own list of activities that don't count includes keeping a bank account, selling through independent contractors and interstate commerce.
Which low-cost states make sense for founders outside the US?
When the business has no US location, you can pick any state, so compare what the state costs to keep and how much admin it adds each year. Here's how five low-cost options compare:
| Criteria | New Mexico | Wyoming | Montana | Kentucky | Arizona |
|---|---|---|---|---|---|
| Formation fee | $52 | $103 | $35 | $40 | $50 |
| Documents back in | about 3 days | about 2 days | about 3 days | about 3 days | about 10 days |
| Yearly state cost | $0 | $60 minimum | $20, waived if filed by April 15 through 2027 | $15 | $0 |
| 5-year state cost | $52 | $343 | $115 | $100 | $50 |
| Yearly report to file | |||||
| Newspaper notice after forming | Only outside Maricopa and Pima counties |
- New Mexico: no annual report and no yearly state fee, so after the $52 filing fee there's nothing to pay or file with the state. It's the lowest-maintenance option on this list.
- Wyoming: a $60 minimum yearly license tax with an annual report you can file online, and no corporate or personal state income tax. It's popular with founders outside the US.
- Montana: the lowest filing fee, $35, and an annual report due April 15. The standard report fee is $20, the state has waived it for on-time filings through 2027, and filing after April 15 costs $35.
- Kentucky: a $40 filing fee and a $15 annual report due between January 1 and June 30. It's cheap but strict: an LLC that misses June 30 is administratively dissolved.
- Arizona: no annual report at all, but a new LLC must publish a notice in a newspaper three times within 60 days unless its statutory agent is in Maricopa or Pima County. The standard filing takes about 10 days.
Fees aren't the only factor. Check how quickly the state processes filings, whether you can file the yearly report online, and whether a partner, investor or payment provider has asked for a particular state. The best state for an LLC as a non-resident weighs those factors in more detail.
Compare the popular LLC states head to head
- Wyoming vs New Mexico: $343 vs $52 in state fees over five years.
- Wyoming vs Delaware: $343 vs $1,710 in state fees over five years.
- Wyoming vs Nevada: fees, taxes and yearly filings side by side.
- Delaware vs Nevada: fees, taxes and yearly filings side by side.
- Wyoming vs Florida: $343 vs $680 in state fees over five years.
- Wyoming vs Texas: $343 vs $310 in state fees over five years.
With us, state fees stay at cost and the plan costs the same in every state. Over five years on the Starter plan, a Wyoming LLC comes to $2,088 and a New Mexico LLC to $1,797, including the registered agent, your EIN and the annual reports. Compared with Wyoming, Delaware adds $1,360 in state tax over the same years.
Frequently asked questions
Is New Mexico or Wyoming cheaper for an LLC?
Why isn't Delaware on the list of cheap states?
Does forming in a cheap state lower my US taxes?
Do I still need a registered agent in a cheap state?
What does the five-year cost leave out?
Sources
- Florida Statutes § 605.0902, foreign LLC certificate of authority
- Florida Statutes § 605.0904, transacting business without a certificate of authority
- Florida Statutes § 605.0905, activities not constituting transacting business
- California Revenue and Taxation Code § 17941, LLC annual tax
- Montana Secretary of State, business filing fees
- Delaware Division of Corporations, LLC annual tax instructions
- Louisiana Secretary of State, fee schedule effective October 1, 2026
- Arizona Revised Statutes § 29-3201, articles of organization and publication
- Kentucky Secretary of State, annual reports
- Wyoming Business Council, business resources (tax climate)
Facts checked on September 17, 2026 against the sources above. Rules and fees change, so confirm anything important with the official source. Register Quick LLC is not a law firm or CPA firm, and this page is general information, not legal or tax advice.
