Business License Costs by State: 2026 Comparison for All 50 States, DC and Puerto Rico

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Business License Costs by State: 2026 Comparison Table
Filing fees mislead: recurring reports, franchise taxes, publication rules and local licenses usually drive an LLC's true cost.

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A business license costs between $0 and $500 a year at the state level in 2026, and most states charge nothing at all because they have no general statewide business license. Only a handful of jurisdictions license every business: Alaska, Delaware, the District of Columbia, Nevada, Washington and West Virginia, with Alabama and Tennessee licensing through their counties and Puerto Rico through its municipalities. Everywhere else, the state cost of operating legally comes from forming and maintaining the entity, and the license itself comes from the city or county.

This page puts all three layers side by side for the 50 states, the District of Columbia and Puerto Rico: the statewide business license, the LLC fees and the corporation fees. Every figure links to the state agency that charges it.

Fees verified 22 September 2026. LLC and corporation figures come from the same state-sourced research behind our LLC cost by state and incorporation filing fees by state pages.

TL;DR: business license costs at a glance

  • Most states have no general business license. 41 states charge no statewide business license fee. Licensing in those states is local and industry-specific.
  • Nevada charges the most. Its State Business License costs $500 a year for corporations and $200 a year for every other business type.
  • Alaska and Delaware license every year. Alaska charges $50 a year; Delaware charges $75 a year for most activities.
  • The District of Columbia licenses every two years. A Basic Business License costs $99 for two years or $198 for four.
  • Washington and West Virginia charge once or close to it. Washington charges $50 to open plus $5 a year to renew; West Virginia charges $30 once per location.
  • The entity costs more than the license. Forming an LLC costs $35 in Montana and $520 in Massachusetts, and California charges an $800 minimum franchise tax every year.
  • Louisiana’s LLC fee rises on 1 October 2026, from $100 to $125.

What does a business license cost?

A business license is permission from a government to operate. In the United States that permission comes from up to three places, and each one charges separately:

  • The state entity filing. Forming an LLC or a corporation registers the business with the state. It is not a license to operate, a point covered in is an LLC a business license. The filing carries a formation fee and a recurring report fee.
  • A statewide general business license. Required in a minority of jurisdictions. Where it exists, it applies on top of the entity filing, including to sole proprietors.
  • Local and industry licenses. City and county licenses, business tax receipts and occupation tax certificates, plus state board licenses for regulated trades such as contractors, cosmetology and food service.

A company formed in one state that operates in another pays the second state too, through foreign registration. The domestic vs foreign LLC guide explains when that applies.

Business license costs by state: full comparison table

The table below covers all 52 jurisdictions. Recurring fees are the state’s own charges; a figure marked minimum scales with authorized shares, capital or members. Select a jurisdiction to jump to its breakdown.

JurisdictionStatewide business licenseLLC formationLLC recurringCorporation formationCorporation recurring
AlabamaYes, state and county privilege license (varies)$200 + $25 name reservationNone to SOS$225$10/yr
AlaskaYes, $50 per year$250$100 every 2 yrs$250$100 every 2 yrs
ArizonaNo; TPT license $12 if selling taxable goods or services$50None$60$45/yr
ArkansasNo$45 online$150/yr franchise tax$45 online$150/yr minimum
CaliforniaNo; city or county license$70$20 every 2 yrs + $800/yr tax$100$25/yr + $800/yr tax
ColoradoNo; city or county license$50$25/yr$50$25/yr
ConnecticutNo$120$80/yr$250$150/yr
DelawareYes, $75 per year for most activities$110$400/yr LLC tax$109 minimum$50 report + $175 minimum tax
District of ColumbiaYes, Basic Business License $99 for 2 years$99$300 every 2 yrs$99 (up to $100,000 capital)$300 every 2 yrs
FloridaNo; county and city Business Tax Receipt$125$138.75/yr$70$150/yr
GeorgiaNo; local occupation tax certificate$110$60/yr$110$60/yr
HawaiiGeneral Excise Tax license, $20 one-time$51$15/yr$51$15/yr
IdahoNo$100 online$0 (report required)$100 online$0 (report required)
IllinoisNo; city or county license$150$75/yr$150$75/yr + franchise tax
IndianaNo$95$30 every 2 yrs$95$30/yr online
IowaNo$50$30 every 2 yrs$50$60 every 2 yrs
KansasNo$85 onlineInformation Report every 2 yrs$85 online$90 online every 2 yrs
KentuckyNo$40$15/yr + LLET$50 minimum$15/yr
LouisianaNo; parish and city licenses$100 ($125 from 1 Oct 2026)$30/yr$75$30/yr
MaineNo$175$85/yr$145$85/yr
MarylandNo; trader’s and industry licenses$150$300/yr$120$300/yr
MassachusettsNo; city or town business certificate$520 online$500/yr$275$100/yr online
MichiganNo$50$25/yr$60 minimum$25/yr
MinnesotaNo$155 online$0 (renewal required)$155 online$0 (renewal required)
MississippiNo$50$0/yr$50$25/yr
MissouriNo$50 onlineNone$58 minimum$20/yr online
MontanaNo$35$0 if filed by 15 April$35$0 if filed by 15 April
NebraskaNo$100 online$25 every 2 yrs$100 online + publicationBiennial occupation tax
NevadaYes, $200/yr ($500/yr for corporations)$225 ($75 + $150 initial list)$150/yr list$225 minimum ($75 + $150 initial list)$150/yr list minimum
New HampshireNo$100 (+$2 online)$100/yr$100 (+$2 online)$100/yr
New JerseyNo; business registration certificate$100$75/yr$100$75/yr
New MexicoNo$50None$100 minimumNone
New YorkNo; industry and local licenses$200 + publication$9 every 2 yrs + LLC filing fee$125$9 every 2 yrs
North CarolinaNo$125$200/yr$125$21/yr online
North DakotaNo$135$50/yr$100$25/yr
OhioNo$99None$99 minimumNone
OklahomaNo$100$25/yr$50 minimum$10/yr minimum
OregonNo$100$100/yr$100$100/yr
PennsylvaniaNo$125$7/yr$125$7/yr
Rhode IslandNo$150$50/yr + $400 tax$230$50/yr + $400 tax
South CarolinaNo; city or county license$110None$135$25/yr minimum
South DakotaNo$150 online$55/yr online$150 online$55/yr online
TennesseeYes over $3,000 receipts; $15 county and city fee$300 minimum$300/yr minimum$100$20/yr
TexasNo$300$0 below $2.65M revenue$300$0 below $2.65M revenue
UtahNo$59$18/yr$59$18/yr
VermontNo$155$45/yr$155$60/yr
VirginiaNo; local business license$100$25/yr$75 minimum$100 to $1,700/yr
WashingtonYes, $50 to open + $5/yr renewal + endorsements$180$70/yr$180$70/yr
West VirginiaYes, $30 one-time per location$100$25/yr$100$25/yr
WisconsinNo; seller’s permit and local licenses$130 online$25/yr$100$25/yr online
WyomingNo$100$60/yr minimum$100$60/yr minimum
Puerto RicoMerchant Registration Certificate + municipal license$250$150/yr$150 minimum$150/yr
State fees verified September 2026. Local city and county licenses are not included.

Which states require a statewide business license?

Six jurisdictions require a general business license from every business: Alaska, Delaware, the District of Columbia, Nevada, Washington and West Virginia. Alabama and Tennessee require a state license issued through county offices, Hawaii and Arizona require a tax license that works as one for most businesses, and Puerto Rico requires merchant registration plus a municipal license.

JurisdictionLicenseState feeRenewalIssued by
NevadaState Business License$500/yr corporations, $200/yr all othersAnnual, with the Annual ListSecretary of State
DelawareBusiness license$75/yr for most activities, $25 per extra locationAnnual, expires 31 DecemberDivision of Revenue
District of ColumbiaBasic Business License$99 for 2 years, $198 for 4 yearsEvery 2 or 4 yearsDepartment of Licensing and Consumer Protection
AlaskaBusiness license$50 per yearAnnualDivision of Corporations, Business and Professional Licensing
WashingtonBusiness license (UBI)$50 to open, $5 renewal, plus endorsementsAnnualDepartment of Revenue
West VirginiaBusiness registration certificate$30 per locationOne-time since 2010State Tax Department
HawaiiGeneral Excise Tax license$20One-timeDepartment of Taxation
ArizonaTransaction Privilege Tax license$12 per location plus city feesAnnualDepartment of Revenue
TennesseeMinimal activity or standard business license$15 per new businessWith business tax registrationCounty and municipal clerks
AlabamaState and county privilege licenseSet by business activityAnnualCounty probate judge or license commissioner
Puerto RicoMerchant Registration Certificate and municipal licenseMunicipal license tax on volume of businessAnnual municipal licenseDepartment of Treasury and each municipality

Local business licenses: where most of the cost sits

In the 41 states without a general license, the license a business needs comes from the city or county where it operates. Florida counties and cities issue a Business Tax Receipt, Georgia local governments issue an occupation tax certificate, California cities charge a business license tax, and Virginia localities issue BPOL licenses. Each sets its own fee, and several base it on gross receipts or employee count.

A home-based or online business still falls under the rules of the city it operates from. The guides on whether you need a business license and on business licenses and permits walk through how to identify every license that applies.

Five costs the headline fee hides

1. A license can sit on top of the entity filing

Forming an LLC in Nevada costs $225 in filings, and the $200 State Business License takes day one to $425. Alaska, Delaware, the District of Columbia and Washington also bill the license separately from the entity filing.

2. Franchise and minimum taxes dwarf the license

California charges an $800 minimum franchise tax every year, Delaware LLCs pay a $400 annual tax, and Rhode Island charges $400 a year whether or not the entity operated. Tennessee LLCs pay at least $300 a year in report fees plus franchise and excise tax.

3. Publication rules add a newspaper bill

New York LLCs must publish notice of formation in two newspapers, and Arizona and Nebraska require publication for corporations. The newspaper sets the price, and it does not appear on any state fee schedule.

4. Operating in a second state doubles the fees

A company formed in Wyoming or Delaware that operates in California pays California’s fees too, through foreign registration. The formation state saves nothing if the business operates somewhere else.

5. Remote owners pay for a registered agent and a mailing address

Every LLC and corporation needs a registered agent with a physical address in its state. Owners outside the state pay for that service every year, and most also need a virtual mailbox to receive state mail. The best registered agent service comparison covers the options.

Cheapest and most expensive states for business fees

Ranked on state fees for an LLC, including any statewide business license that applies to every business.

MeasureLowestHighest
LLC formationMontana $35, Kentucky $40, Arkansas $45Massachusetts $520, Nevada $425 with license, Texas and Tennessee $300
Statewide licenseNo fee in 41 statesNevada $500/yr corporations, $200/yr others
LLC recurring per year$0 in Arizona, Missouri, New Mexico, Ohio, South Carolina, Idaho, Minnesota, Mississippi, MontanaCalifornia $800+, Massachusetts $500, Rhode Island $450, Delaware $400, Nevada $350

For the full formation ranking, see LLC cost by state. The states that combine high fees with extra paperwork are covered in the worst states to form an LLC.

Business license cost by state, one jurisdiction at a time

Jump to a jurisdiction: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, Puerto Rico.

Alabama business license cost

Alabama requires a state and county business privilege license for every business described in Title 40, Chapter 12 of the Code of Alabama. The license is issued by the probate judge or license commissioner in each county where the business operates, and the fee depends on the business activity. City licenses are separate and are not administered by the Alabama Department of Revenue.

FeeCost
Statewide business licenseYes, state and county privilege license (varies)
LLC formation$200 + $25 name reservation
LLC recurringNone to SOS
Corporation formation$225
Corporation recurring$10/yr

Alabama makes a $25 name reservation a precondition of filing, so the real formation cost is $225 for an LLC or a corporation. LLCs file no annual report with the Secretary of State, and the Business Privilege Tax is fully exempt when the tax due is $100 or less.

Sources: Alabama Department of Revenue, business privilege license; Alabama Secretary of State fee schedule. Verified September 2026.

Alaska business license cost

Alaska requires a state business license from the Division of Corporations, Business and Professional Licensing. A new license and each renewal cost $50 per year, and each endorsement on the license adds $100.

FeeCost
Statewide business licenseYes, $50 per year
LLC formation$250
LLC recurring$100 every 2 yrs
Corporation formation$250
Corporation recurring$100 every 2 yrs

An Alaska LLC pays $250 to form, $100 every two years for the biennial report and $50 a year for the business license. The license is a separate filing from the entity registration, so forming the LLC does not license it.

Sources: Alaska business license forms and fees; Alaska Division of Corporations forms and fees. Verified September 2026.

Arizona business license cost

Arizona has no general statewide business license. A business that sells taxable goods or services needs a Transaction Privilege Tax (TPT) license from the Arizona Department of Revenue at $12 per location, plus a city fee in cities that charge one. The TPT license runs from 1 January to 31 December and must be renewed every year by 1 January.

FeeCost
Statewide business licenseNo; TPT license $12 if selling taxable goods or services
LLC formation$50
LLC recurringNone
Corporation formation$60
Corporation recurring$45/yr

Arizona LLCs file no annual report, which makes the LLC one of the cheapest entities in the country to keep. Arizona corporations pay $45 a year and must publish their articles in a newspaper, a cost the newspaper sets.

Sources: Arizona Department of Revenue, TPT license; Arizona Corporation Commission fee schedule. Verified September 2026.

Arkansas business license cost

Arkansas has no general statewide business license. Licensing happens at the city and county level and through state boards for regulated trades.

FeeCost
Statewide business licenseNo
LLC formation$45 online
LLC recurring$150/yr franchise tax
Corporation formation$45 online
Corporation recurring$150/yr minimum

The $45 formation fee makes Arkansas look cheap, but the annual franchise tax starts at $150 for LLCs and corporations alike. Over three years a corporation pays $495 in state fees, more than one in Massachusetts.

Sources: Arkansas Secretary of State LLC forms and fees; Arkansas Secretary of State corporation forms and fees. Verified September 2026.

California business license cost

California has no statewide general business license. Cities and counties issue business licenses and business tax certificates, and each sets its own fee.

FeeCost
Statewide business licenseNo; city or county license
LLC formation$70
LLC recurring$20 every 2 yrs + $800/yr tax
Corporation formation$100
Corporation recurring$25/yr + $800/yr tax

The $800 minimum franchise tax is the cost that matters in California. Every LLC and corporation formed, registered or doing business in the state owes it, and forming in another state does not remove it for a business operating in California. Corporations formed on or after 1 January 2020 are exempt in their first taxable year only.

Sources: California Secretary of State LLC forms; California Franchise Tax Board, corporations. Verified September 2026.

Colorado business license cost

Colorado has no statewide general business license. Cities and counties license businesses, and regulated professions answer to state boards with their own fee schedules. The Colorado business license cost breakdown covers the main city requirements.

FeeCost
Statewide business licenseNo; city or county license
LLC formation$50
LLC recurring$25/yr
Corporation formation$50
Corporation recurring$25/yr

Colorado files are online only. The $25 Periodic Report is due in the formation anniversary month, and a late report adds a $50 penalty, twice the fee itself.

Sources: Colorado Secretary of State business fees. Verified September 2026.

Connecticut business license cost

Connecticut has no statewide general business license. Businesses register with the Department of Revenue Services for taxes they collect, and regulated trades hold state licenses.

FeeCost
Statewide business licenseNo
LLC formation$120
LLC recurring$80/yr
Corporation formation$250
Corporation recurring$150/yr

The annual report is $80 for an LLC and $150 for a corporation. The LLC report window runs from 1 January to 31 March. Connecticut repealed its Business Entity Tax for periods after 31 December 2018.

Sources: Connecticut LLC forms and fees; Connecticut stock corporation forms and fees. Verified September 2026.

Delaware business license cost

Delaware requires a state business license from the Division of Revenue for any person or entity conducting a trade or business in Delaware. The annual fee is set by business activity: $75 for most activities, including general services, plus $25 for each additional location. Licenses expire on 31 December, and a three-year license costs three times the annual fee.

FeeCost
Statewide business licenseYes, $75 per year for most activities
LLC formation$110
LLC recurring$400/yr LLC tax
Corporation formation$109 minimum
Corporation recurring$50 report + $175 minimum tax

The business license follows activity, not formation: it applies to businesses conducting business in Delaware, including Delaware-located entities that trade elsewhere. The $400 annual LLC tax, due by 1 June, applies to every Delaware LLC. Corporations pay a $50 annual report plus their Delaware franchise tax, which starts at $175. Delaware also levies a gross receipts tax of 0.0945% to 1.9914% on businesses operating in the state.

Sources: Delaware Division of Revenue business license FAQs; Delaware license and gross receipts rate list; Delaware Division of Corporations, LLC tax. Verified September 2026.

District of Columbia business license cost

The District requires most businesses to hold a Basic Business License (BBL) from the Department of Licensing and Consumer Protection, applied for through the BOSS portal. A two-year license costs $99, a four-year license $198 and a six-month license $49. Consultants who earn revenue in the District need a BBL under the General Business category. A lapsed license draws a $75 penalty, a further $75 after 31 days and a further $200 after six months.

FeeCost
Statewide business licenseYes, Basic Business License $99 for 2 years
LLC formation$99
LLC recurring$300 every 2 yrs
Corporation formation$99 (up to $100,000 capital)
Corporation recurring$300 every 2 yrs

The biennial report is $300 for both LLCs and corporations, with a $100 late fee. LLCs also owe the Unincorporated Business Franchise Tax, with a $250 minimum.

Sources: DC Business Licensing FAQs; DC LLC fee schedule. Verified September 2026.

Florida business license cost

Florida has no statewide general business license. Counties and cities issue a local Business Tax Receipt, and the fee depends on the location and the business type. The Florida business license cost guide covers the main county requirements.

FeeCost
Statewide business licenseNo; county and city Business Tax Receipt
LLC formation$125
LLC recurring$138.75/yr
Corporation formation$70
Corporation recurring$150/yr

The Florida LLC fee is $125, not the $100 most sites quote, because the $25 registered agent designation is required. The annual report is due by 1 May, and filing after that date adds a $400 late fee.

Sources: Florida Division of Corporations fees. Verified September 2026.

Georgia business license cost

Georgia has no statewide general business license. Cities and counties require an occupation tax certificate, and each sets its own fee.

FeeCost
Statewide business licenseNo; local occupation tax certificate
LLC formation$110
LLC recurring$60/yr
Corporation formation$110
Corporation recurring$60/yr

Georgia charges the same $110 to form an LLC or a corporation and the same $60 annual registration, due between 1 January and 1 April. Entity choice carries no state fee difference in Georgia.

Sources: Georgia Secretary of State filing fees. Verified September 2026.

Hawaii business license cost

Hawaii has no general business license, but a business earning income from Hawaii activity registers for a General Excise Tax (GET) license with the Department of Taxation. The GET license costs a one-time $20 on Form BB-1 and does not renew.

FeeCost
Statewide business licenseGeneral Excise Tax license, $20 one-time
LLC formation$51
LLC recurring$15/yr
Corporation formation$51
Corporation recurring$15/yr

Hawaii adds a $1 State Archives fee to the $50 filing fee, so formation is $51. At $15 a year, the annual report is one of the lowest recurring fees in the country.

Sources: Hawaii Department of Taxation, GET information; Hawaii Business Registration Division fees. Verified September 2026.

Idaho business license cost

Idaho has no general statewide business license. Cities, counties and state licensing boards handle permits for specific activities.

FeeCost
Statewide business licenseNo
LLC formation$100 online
LLC recurring$0 (report required)
Corporation formation$100 online
Corporation recurring$0 (report required)

The Idaho annual report is free and still mandatory. Paper filings add a $20 manual processing fee, so file online.

Sources: Idaho Secretary of State business forms. Verified September 2026.

Illinois business license cost

Illinois has no statewide general business license. Cities and counties license businesses locally, with Chicago running its own licensing system.

FeeCost
Statewide business licenseNo; city or county license
LLC formation$150
LLC recurring$75/yr
Corporation formation$150
Corporation recurring$75/yr + franchise tax

Illinois cut its LLC fees in 2017: formation from $500 to $150 and the annual report from $250 to $75. Pages still quoting $500 are out of date. Corporations also owe the Illinois franchise tax on top of the $75 report.

Sources: Illinois Secretary of State LLC fees; Illinois Secretary of State corporation fees. Verified September 2026.

Indiana business license cost

Indiana has no general statewide business license. Local governments and state agencies license specific activities.

FeeCost
Statewide business licenseNo
LLC formation$95
LLC recurring$30 every 2 yrs
Corporation formation$95
Corporation recurring$30/yr online

INBiz adds a card processing fee at checkout of at least $1 and no more than 2.15 percent. Indiana states that failure to file the Business Entity Report results in administrative dissolution.

Sources: Indiana INBiz fee calculator; Indiana INBiz Business Entity Reports. Verified September 2026.

Iowa business license cost

Iowa has no general statewide business license. Cities and counties license some activities, and state boards license regulated professions.

FeeCost
Statewide business licenseNo
LLC formation$50
LLC recurring$30 every 2 yrs
Corporation formation$50
Corporation recurring$60 every 2 yrs

Iowa charges $50 to form either entity. The biennial report is due by 1 April, which keeps Iowa among the cheapest states to maintain an entity.

Sources: Iowa Secretary of State business entity forms and fees. Verified September 2026.

Kansas business license cost

Kansas has no general statewide business license. Cities and counties license some businesses locally.

FeeCost
Statewide business licenseNo
LLC formation$85 online
LLC recurringInformation Report every 2 yrs
Corporation formation$85 online
Corporation recurring$90 online every 2 yrs

Kansas calls its recurring filing an Information Report, due by 15 April of the filing year. For a corporation it costs $90 online or $110 on paper every two years, and a late report adds a $10 penalty.

Sources: Kansas Secretary of State information reports; Kansas Articles of Incorporation. Verified September 2026.

Kentucky business license cost

Kentucky has no general statewide business license. Cities and counties levy their own occupational license taxes.

FeeCost
Statewide business licenseNo
LLC formation$40
LLC recurring$15/yr + LLET
Corporation formation$50 minimum
Corporation recurring$15/yr

Kentucky’s $15 annual report is due by 30 June. LLCs also owe the Limited Liability Entity Tax, with a $175 minimum for entities with gross receipts of $3 million or less.

Sources: Kentucky Secretary of State business filing fees. Verified September 2026.

Louisiana business license cost

Louisiana has no general statewide business license. Parishes and municipalities issue occupational licenses locally.

FeeCost
Statewide business licenseNo; parish and city licenses
LLC formation$100 ($125 from 1 Oct 2026)
LLC recurring$30/yr
Corporation formation$75
Corporation recurring$30/yr

Fee change on 1 October 2026: the Louisiana LLC formation fee rises from $100 to $125. File before that date to pay $100.

The Louisiana LLC formation fee rises from $100 to $125 on 1 October 2026. The $30 annual report is due on the formation anniversary.

Sources: Louisiana Secretary of State fee schedule. Verified September 2026.

Maine business license cost

Maine has no general statewide business license. Towns and state licensing boards cover specific activities.

FeeCost
Statewide business licenseNo
LLC formation$175
LLC recurring$85/yr
Corporation formation$145
Corporation recurring$85/yr

Maine accepts LLC formations by mail only, and the stated corporate processing time is 40 to 55 business days. Plan around that if a bank account or a contract is waiting on the certificate. The annual report is due 1 June.

Sources: Maine Secretary of State annual reports; Maine Secretary of State business forms. Verified September 2026.

Maryland business license cost

Maryland has no general statewide business license. Retailers and specific trades obtain licenses through the clerk of the circuit court in each county, and regulated professions hold state licenses.

FeeCost
Statewide business licenseNo; trader’s and industry licenses
LLC formation$150
LLC recurring$300/yr
Corporation formation$120
Corporation recurring$300/yr

Maryland’s $300 annual report applies to LLCs and stock corporations alike and is due 15 April. Online LLC formations are expedited automatically, which is why the online fee is $150, and Maryland Business Express adds a 3 percent technology fee.

Sources: Maryland Business Express fee schedule. Verified September 2026.

Massachusetts business license cost

Massachusetts has no general statewide business license. A business operating under a name other than its legal name files a business certificate with the city or town clerk.

FeeCost
Statewide business licenseNo; city or town business certificate
LLC formation$520 online
LLC recurring$500/yr
Corporation formation$275
Corporation recurring$100/yr online

Massachusetts is the most expensive state to form and keep an LLC, at $520 online and $500 a year. A corporation costs $275 to form and $100 a year, the largest cost gap in favour of the corporation anywhere in the country.

Sources: Massachusetts LLC information; Massachusetts corporation filing fees. Verified September 2026.

Michigan business license cost

Michigan has no general statewide business license. Local governments and state regulators license specific activities.

FeeCost
Statewide business licenseNo
LLC formation$50
LLC recurring$25/yr
Corporation formation$60 minimum
Corporation recurring$25/yr

The LLC annual statement is $25 and due 15 February, and it is waived for the first year when the LLC forms after 30 September. Michigan has no franchise tax.

Sources: Michigan LARA; Michigan LARA corporation fee schedule. Verified September 2026.

Minnesota business license cost

Minnesota has no general statewide business license. Cities, counties and state agencies license specific activities.

FeeCost
Statewide business licenseNo
LLC formation$155 online
LLC recurring$0 (renewal required)
Corporation formation$155 online
Corporation recurring$0 (renewal required)

Minnesota charges $20 more online ($155) than by mail ($135). The annual renewal is free and mandatory, and skipping it leads to administrative dissolution.

Sources: Minnesota Secretary of State fee schedule. Verified September 2026.

Mississippi business license cost

Mississippi has no general statewide business license. Cities and counties license businesses locally.

FeeCost
Statewide business licenseNo
LLC formation$50
LLC recurring$0/yr
Corporation formation$50
Corporation recurring$25/yr

The Mississippi LLC annual report costs nothing and is due between 1 January and 15 April. Corporations pay $25 a year.

Sources: Mississippi Secretary of State fees and forms. Verified September 2026.

Missouri business license cost

Missouri has no general statewide business license. Cities and counties license businesses locally.

FeeCost
Statewide business licenseNo
LLC formation$50 online
LLC recurringNone
Corporation formation$58 minimum
Corporation recurring$20/yr online

Missouri LLCs file no annual report. Missouri waives the Secretary of State filing fee for active duty military, including the Missouri National Guard.

Sources: Missouri Secretary of State, start a business; Missouri Secretary of State corporations. Verified September 2026.

Montana business license cost

Montana has no general statewide business license. Some cities license businesses locally.

FeeCost
Statewide business licenseNo
LLC formation$35
LLC recurring$0 if filed by 15 April
Corporation formation$35
Corporation recurring$0 if filed by 15 April

Montana is the cheapest state in the country to form an LLC or a corporation at $35. The annual report is free when filed by 15 April and $35 after that date.

Sources: Montana Secretary of State business fees. Verified September 2026.

Nebraska business license cost

Nebraska has no general statewide business license. Cities and state agencies license specific activities.

FeeCost
Statewide business licenseNo
LLC formation$100 online
LLC recurring$25 every 2 yrs
Corporation formation$100 online + publication
Corporation recurringBiennial occupation tax

Nebraska corporations must publish notice of incorporation in a newspaper and file a $25 to $30 Affidavit of Publication, and the newspaper sets its own price. The corporate recurring cost is a biennial occupation tax based on paid-up capital stock, filed in even-numbered years.

Sources: Nebraska Secretary of State forms and fees. Verified September 2026.

Nevada business license cost

Nevada requires a State Business License from the Secretary of State. It costs $500 a year for corporations and $200 a year for all other business types, and it renews every year. LLCs and corporations pay it with the Initial List and each Annual List.

FeeCost
Statewide business licenseYes, $200/yr ($500/yr for corporations)
LLC formation$225 ($75 + $150 initial list)
LLC recurring$150/yr list
Corporation formation$225 minimum ($75 + $150 initial list)
Corporation recurring$150/yr list minimum

With the license, a Nevada LLC pays $425 in year one and $350 every year after. A corporation pays $725 in year one and $650 a year after, and both corporate filings scale with authorized stock, so those figures are floors.

Sources: Nevada State Business License FAQ; Nevada Secretary of State. Verified September 2026.

New Hampshire business license cost

New Hampshire has no general statewide business license. Specific trades and professions hold state or local licenses.

FeeCost
Statewide business licenseNo
LLC formation$100 (+$2 online)
LLC recurring$100/yr
Corporation formation$100 (+$2 online)
Corporation recurring$100/yr

New Hampshire adds a $2 handling charge to every electronic filing. The $100 annual report is due 1 April, with a $50 late fee.

Sources: New Hampshire LLC forms and fees. Verified September 2026.

New Jersey business license cost

New Jersey has no general statewide business license. Businesses register with the Division of Revenue, and municipalities and state boards license specific activities.

FeeCost
Statewide business licenseNo; business registration certificate
LLC formation$100
LLC recurring$75/yr
Corporation formation$100
Corporation recurring$75/yr

The formation fee is $100 for both an LLC and a corporation, not the $125 some pages still quote. The $75 annual report is due in the formation anniversary month.

Sources: New Jersey Division of Revenue fee schedule. Verified September 2026.

New Mexico business license cost

New Mexico has no general statewide business license. Cities and counties license businesses locally.

FeeCost
Statewide business licenseNo
LLC formation$50
LLC recurringNone
Corporation formation$100 minimum
Corporation recurringNone

New Mexico LLCs and corporations file no annual or biennial report at all. The corporation fee is $1.00 per 1,000 authorized shares with a $100 minimum and a $1,000 cap.

Sources: New Mexico Secretary of State Enterprise portal. Verified September 2026.

New York business license cost

New York has no general statewide business license. State agencies license regulated activities, and New York City runs its own licensing. The New York business license cost guide covers the main requirements.

FeeCost
Statewide business licenseNo; industry and local licenses
LLC formation$200 + publication
LLC recurring$9 every 2 yrs + LLC filing fee
Corporation formation$125
Corporation recurring$9 every 2 yrs

The New York LLC publication requirement is the largest hidden cost in the table: the LLC must publish in two newspapers for six weeks, and the newspaper charges vary by county. LLCs also owe an annual filing fee of $25 to $4,500 based on New York source gross income. The publication rule does not apply to corporations.

Sources: New York Department of State; New York LLC publication requirements. Verified September 2026.

North Carolina business license cost

North Carolina has no general statewide business license. Local governments and state boards license specific activities.

FeeCost
Statewide business licenseNo
LLC formation$125
LLC recurring$200/yr
Corporation formation$125
Corporation recurring$21/yr online

North Carolina is one of the clearest cases for a corporation on cost: the corporate annual report is $21 online against $200 for an LLC, both due 15 April for calendar-year filers. Corporations also owe the North Carolina franchise tax.

Sources: North Carolina Secretary of State forms; North Carolina business registration fees. Verified September 2026.

North Dakota business license cost

North Dakota has no general statewide business license. Cities and state agencies license specific activities.

FeeCost
Statewide business licenseNo
LLC formation$135
LLC recurring$50/yr
Corporation formation$100
Corporation recurring$25/yr

The LLC annual report is $50 and due 15 November. The corporation report is $25 and due 1 August.

Sources: North Dakota Secretary of State; North Dakota corporation page. Verified September 2026.

Ohio business license cost

Ohio has no general statewide business license. Vendors selling taxable goods obtain a vendor’s license, and cities and state boards license specific activities.

FeeCost
Statewide business licenseNo
LLC formation$99
LLC recurringNone
Corporation formation$99 minimum
Corporation recurringNone

Ohio requires no recurring report from LLCs or for-profit corporations. The Commercial Activity Tax applies only above its gross receipts threshold.

Sources: Ohio Secretary of State; Ohio Secretary of State business filing forms. Verified September 2026.

Oklahoma business license cost

Oklahoma has no general statewide business license. Cities and state agencies license specific activities, and sellers obtain a sales tax permit.

FeeCost
Statewide business licenseNo
LLC formation$100
LLC recurring$25/yr
Corporation formation$50 minimum
Corporation recurring$10/yr minimum

The LLC annual certificate is $25 and due on the formation anniversary. Corporate fees are one tenth of one percent of authorized capital, so $50 and $10 are floors.

Sources: Oklahoma Secretary of State forms; Oklahoma corporation fees. Verified September 2026.

Oregon business license cost

Oregon has no general statewide business license. Cities such as Portland levy their own business license taxes, and state boards license regulated trades.

FeeCost
Statewide business licenseNo
LLC formation$100
LLC recurring$100/yr
Corporation formation$100
Corporation recurring$100/yr

Oregon charges $100 to form and $100 a year to renew either entity. The Corporate Activity Tax applies to all entity types with Oregon commercial activity over $1 million.

Sources: Oregon business registry fee schedule. Verified September 2026.

Pennsylvania business license cost

Pennsylvania has no general statewide business license. Some municipalities, including Philadelphia, require a local license, and state boards license regulated professions.

FeeCost
Statewide business licenseNo
LLC formation$125
LLC recurring$7/yr
Corporation formation$125
Corporation recurring$7/yr

Pennsylvania replaced its decennial report with a $7 annual report from 2025, filed between 1 January and 30 September for LLCs. Many comparison pages still show no annual filing.

Sources: Pennsylvania Department of State fees. Verified September 2026.

Rhode Island business license cost

Rhode Island has no general statewide business license. Cities, towns and state agencies license specific activities.

FeeCost
Statewide business licenseNo
LLC formation$150
LLC recurring$50/yr + $400 tax
Corporation formation$230
Corporation recurring$50/yr + $400 tax

Rhode Island’s $400 annual charge is owed whether or not the entity operated, which makes it the third most expensive state to maintain a corporation.

Sources: Rhode Island Secretary of State costs and fees. Verified September 2026.

South Carolina business license cost

South Carolina has no general statewide business license. Cities and counties issue business licenses locally.

FeeCost
Statewide business licenseNo; city or county license
LLC formation$110
LLC recurringNone
Corporation formation$135
Corporation recurring$25/yr minimum

South Carolina LLCs file no annual report. Corporations pay an annual License Fee to the Department of Revenue of 0.1 percent of capital and paid-in surplus plus $15, with a $25 minimum.

Sources: South Carolina Code, LLC fees; South Carolina Department of Revenue, C corporations. Verified September 2026.

South Dakota business license cost

South Dakota has no general statewide business license. Specific activities require state or local licenses, and sellers obtain a sales tax license.

FeeCost
Statewide business licenseNo
LLC formation$150 online
LLC recurring$55/yr online
Corporation formation$150 online
Corporation recurring$55/yr online

South Dakota adds a $15 paper surcharge to formation and to the annual report, so file online.

Sources: South Dakota Secretary of State filing fees. Verified September 2026.

Tennessee business license cost

Tennessee ties its business license to gross receipts. An in-state business with receipts over $3,000 and under $100,000 obtains a minimal activity license from the county and municipal clerk, and a business at $100,000 or more obtains a standard license and registers for business tax. A $15 registration fee is paid to the county or municipal clerk for each new business.

FeeCost
Statewide business licenseYes over $3,000 receipts; $15 county and city fee
LLC formation$300 minimum
LLC recurring$300/yr minimum
Corporation formation$100
Corporation recurring$20/yr

Tennessee charges LLCs $50 per member with a $300 minimum both to form and every year, against $20 a year for a corporation. Both entities also owe franchise and excise tax, with a $100 franchise tax minimum.

Sources: Tennessee Department of Revenue, registration and licensing; Tennessee business forms and fees. Verified September 2026.

Texas business license cost

Texas has no general statewide business license. Sellers obtain a sales and use tax permit, and cities and state agencies license specific activities.

FeeCost
Statewide business licenseNo
LLC formation$300
LLC recurring$0 below $2.65M revenue
Corporation formation$300
Corporation recurring$0 below $2.65M revenue

For report years 2026 and 2027 no franchise tax is due below $2,650,000 of total revenue, but the annual Public Information Report or Ownership Report is still mandatory and due 15 May.

Sources: Texas Secretary of State Certificate of Formation; Texas Comptroller, franchise tax. Verified September 2026.

Utah business license cost

Utah has no general statewide business license. Cities and counties license businesses locally.

FeeCost
Statewide business licenseNo
LLC formation$59
LLC recurring$18/yr
Corporation formation$59
Corporation recurring$18/yr

Utah charges $59 to form and $18 a year to renew either entity, so three years costs $113.

Sources: Utah Division of Corporations. Verified September 2026.

Vermont business license cost

Vermont has no general statewide business license. Towns and state agencies license specific activities.

FeeCost
Statewide business licenseNo
LLC formation$155
LLC recurring$45/yr
Corporation formation$155
Corporation recurring$60/yr

Vermont charges $155 to form either entity, not the $125 some pages quote. The annual report is $45 for an LLC and $60 for a corporation.

Sources: Vermont Secretary of State fees and statutes. Verified September 2026.

Virginia business license cost

Virginia has no general statewide business license. Cities and counties issue local business licenses, known as BPOL licenses.

FeeCost
Statewide business licenseNo; local business license
LLC formation$100
LLC recurring$25/yr
Corporation formation$75 minimum
Corporation recurring$100 to $1,700/yr

The Virginia LLC annual registration fee is $25. A corporation files a free annual report, but its annual registration fee scales with authorized shares from $100 to $1,700, so a standard 10,000,000 share startup pays $1,700 every year.

Sources: Virginia SCC LLC forms and fees; Virginia SCC forms and fees. Verified September 2026.

Washington business license cost

Washington requires a state business license through the Department of Revenue when gross income reaches $12,000 a year or more, when the business hires, collects sales tax, uses a trade name or needs an endorsement. The application processing fee is $50 to open a business, the annual renewal processing fee is $5, and each city, county or state endorsement adds its own fee.

FeeCost
Statewide business licenseYes, $50 to open + $5/yr renewal + endorsements
LLC formation$180
LLC recurring$70/yr
Corporation formation$180
Corporation recurring$70/yr

Washington LLCs and corporations must file with the Secretary of State before applying for the business license. The Business and Occupation tax on gross receipts sits outside both fee schedules. The Washington LLC guide covers the full formation process.

Sources: Washington business license processing fees; Washington Secretary of State fee schedules. Verified September 2026.

West Virginia business license cost

West Virginia requires every business to obtain a business registration certificate from the State Tax Department before engaging in business activity. The fee is $30 per location, and the certificate has been permanent since 1 July 2010 unless the legal name, location or ownership changes. Operating without one risks a fine of $100 a day.

FeeCost
Statewide business licenseYes, $30 one-time per location
LLC formation$100
LLC recurring$25/yr
Corporation formation$100
Corporation recurring$25/yr

The annual report is $25 when received by 30 June and $75 after, because the late fee is $50.

Sources: West Virginia business registration; West Virginia Special Notice 10-01; West Virginia Secretary of State annual reports. Verified September 2026.

Wisconsin business license cost

Wisconsin has no general statewide business license. Sellers obtain a seller’s permit, and municipalities and state agencies license specific activities.

FeeCost
Statewide business licenseNo; seller’s permit and local licenses
LLC formation$130 online
LLC recurring$25/yr
Corporation formation$100
Corporation recurring$25/yr online

Incorporating in Wisconsin costs less than forming an LLC: $100 against $130 online or $170 on paper. Wisconsin entities are administered by the Department of Financial Institutions rather than a Secretary of State.

Sources: Wisconsin DFI corporation fees. Verified September 2026.

Wyoming business license cost

Wyoming has no general statewide business license. Cities and counties license specific activities.

FeeCost
Statewide business licenseNo
LLC formation$100
LLC recurring$60/yr minimum
Corporation formation$100
Corporation recurring$60/yr minimum

The Wyoming annual report fee is the greater of $60 or $0.0002 per dollar of Wyoming assets, so a business holding no property in the state pays $60.

Sources: Wyoming Secretary of State business fees. Verified September 2026.

Puerto Rico business license cost

Puerto Rico has no single business license. A business registers with the Department of Treasury (Hacienda) for a Merchant Registration Certificate through the SURI system, and each municipality charges its own municipal license tax (patente municipal) on the volume of business.

FeeCost
Statewide business licenseMerchant Registration Certificate + municipal license
LLC formation$250
LLC recurring$150/yr
Corporation formation$150 minimum
Corporation recurring$150/yr

An LLC pays $250 to form and a $150 annual fee by 15 April, and files no annual report. A for-profit corporation pays at least $150 to form, scaling with authorized capital, and a $150 annual report by 15 April. A late corporate report draws a $750 penalty, and a corporation with a Puerto Rico volume of business over $3,000,000 must attach CPA-audited financial statements.

Sources: Puerto Rico Department of State corporate registry help; Puerto Rico Department of State corporations registry; Puerto Rico Treasury, requirements to establish a business. Verified September 2026.

Frequently asked questions

How much does a business license cost?

At the state level, a business license costs $0 in 41 states because they have no general statewide business license. Where one exists, it costs $20 once in Hawaii, $30 once per location in West Virginia, $50 a year in Alaska, $75 a year for most activities in Delaware, $99 for two years in the District of Columbia, and $200 a year in Nevada, or $500 for corporations. City and county licenses are separate and set locally.

Which states require a general business license?

Alaska, Delaware, the District of Columbia, Nevada, Washington and West Virginia require a general business license from every business. Alabama and Tennessee license through county offices, Hawaii requires a General Excise Tax license, Arizona requires a Transaction Privilege Tax license for taxable sales, and Puerto Rico requires merchant registration and a municipal license.

Is forming an LLC the same as getting a business license?

No. Forming an LLC registers the entity with the state. A business license is permission to operate, issued by the state in a few jurisdictions and by the city or county everywhere else. Most businesses need both.

Which state has the most expensive business license?

Nevada. Its State Business License costs $500 a year for corporations and $200 a year for LLCs and every other business type, on top of the Annual List fee.

What is the cheapest state to form a business and license it?

Montana. An LLC or a corporation costs $35 to form, the annual report is free when filed by 15 April, and Montana has no general statewide business license.

Does Puerto Rico require a business license?

Puerto Rico has no single business license. A business registers with the Department of Treasury for a Merchant Registration Certificate through SURI and pays a municipal license tax to each municipality where it operates. An LLC costs $250 to form and $150 a year.

Do I need a business license for an online business?

An online business follows the same rules as any other business. It needs the statewide license where one exists, and the license of the city or county it operates from. Selling taxable goods also requires a sales tax registration in each state where the business has sales tax obligations.

When do business licenses renew?

Alaska, Delaware, Nevada, Washington and Arizona renew every year. The District of Columbia renews every two or four years. West Virginia and Hawaii charge once. Local licenses set their own renewal cycles, and most renew every year.

How these figures were verified

Every fee on this page comes from the agency that charges it, not from another cost guide. Statewide business license fees were checked against each licensing agency’s own page on 22 September 2026. LLC and corporation fees come from a full verification of all 51 US jurisdictions in September 2026, published on our LLC and incorporation cost pages, and Puerto Rico’s fees were checked against the Puerto Rico Department of State registry on 22 September 2026.

Fees change. We re-verify this page quarterly and date every revision. Check the linked state page before relying on a figure well after September 2026.

Form and license your business from anywhere

BusinessAnywhere forms LLCs and corporations in all 50 states for non-residents and residents alike, with the state filing fee passed through at cost. Registered agent service is included free for the first year with every formation, which covers the state mail that renewal deadlines depend on. See what each package includes on the business registration pricing page, or learn how to start a business in the USA as a foreigner.

About Author

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Rick Mak

Rick Mak is a global entrepreneur and business strategist with over 30 years of hands-on experience in international business, finance, and company formation. Since 2001, he has helped register tens of thousands of LLCs and corporations across all 50 U.S. states for founders, digital nomads, and remote entrepreneurs. He holds degrees in International Business, Finance, and Economics, and master’s degrees in both Entrepreneurship and International Law. Rick has personally started, bought, or sold over a dozen companies and has spoken at hundreds of conferences worldwide on topics including offshore structuring, tax optimization, and asset protection. Rick’s work and insights have been featured in major media outlets such as Business Insider, Yahoo Finance, Street Insider, and Mirror Review.
“I’ve used many LLC formation services before, but this one is the best I’ve ever used—super simple and fast!” “Excellent service, quick turnaround, very professional—exactly what I needed as a non-US resident.”
You can read more feedback from thousands of satisfied entrepreneurs on the Business Anywhere testimonials page. As a contributor to Business Anywhere, Rick shares actionable guidance drawn from decades of cross-border business experience—helping entrepreneurs launch and scale legally, tax-efficiently, and with confidence. To learn more about how we ensure accuracy, transparency, and quality in our content, read our editorial guidelines.

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