Business License Costs by State: 2026 Comparison Table

Starting an LLC in 2026 can cost as little as $35 in Montana or more than $425 upfront in Nevada, and that’s before many local permits, report fees, and state taxes. If I had to boil this guide down to one point, it’s this: the filing fee is only the starting number. In many states, the bigger bill comes later through annual or biennial reports, franchise taxes, publication rules, and city or county licenses.

Here’s the short version:

• I’m comparing all 50 states plus Washington, D.C.
• The baseline is a standard LLC
• The main cost buckets are:
  • initial filing fees
  • annual or biennial report fees
  • state franchise or business taxes
  • local permits and industry licenses
  • registered agent costs, often $75 to $300 per year
• The price spread is wide:
  • low upfront states: Montana ($35), Kentucky ($40), Arkansas ($45), Arizona/New Mexico/Hawaii/Michigan/Mississippi/Missouri ($50)
  • high repeat-cost states: California ($800 per year minimum franchise tax), Illinois ($500 annual report), Connecticut ($500 every 2 years), Massachusetts ($500 biennial report)
  • high setup states: Nevada ($425 upfront), Massachusetts ($500 to $520), New York can jump fast because publication may cost $1,000 to $2,000
• One big catch: forming in a low-fee state does not let you skip fees where you actually do business. If you operate in your home state, you may still need to register there as a foreign LLC.

A few patterns stand out fast:

• Some states keep state-level LLC costs low but shift costs to local licenses
• Some states have no general statewide business license
• Some states look cheap at first, then add publication fees, franchise taxes, or repeat filings
• For remote owners, a registered agent and mail service can end up costing more than the filing itself

Quick Comparison

So if you’re comparing states, I’d focus on total first-year cost and repeat cost after year one, not just the filing fee. That gives you a much better read on what your LLC may cost in 2026.

1. Alabama

Alabama charges a $200 LLC filing fee. That’s higher than several nearby states, though it’s still below Tennessee.

If you’re running a virtual business, the filing fee is only one piece of the puzzle. In many cases, the extra costs come from local permits and your registered-agent service.

Local Licensing and Industry Add-On Costs

Local permit and license fees change based on your city, county, and business type across Alabama. A home-based online shop in one town may face a very different setup than a remote consulting business in another. Because of that, you’ll want to check the exact city and county rules that apply to your business.

What Remote Owners Should Budget For

If you don’t have a physical office in Alabama, you’ll likely need to pay for a registered agent. That usually runs $100–$300 per year. For many remote founders, that annual bill matters more than the state’s one-time filing fee.

And there’s another cost that can sneak up on people: mail handling. If you want full-service management with a virtual mailbox, the average cost is about $418. So while Alabama’s filing fee may get the most attention, these repeat service charges can end up being the bigger part of your budget.

Online filing is usually faster and can help you avoid mail-in processing fees of $10–$75.

2. Alaska

Alaska charges $250 to form an LLC, which is higher than the U.S. average of about $130. But the picture changes a bit after that. Because the state uses a biennial reporting cycle and does not charge state individual income tax, many owners may face lower repeat costs than they would in other states.

For startups, that means a simple tradeoff: more paid upfront, less paperwork every year.

Initial LLC Filing Fee

Alaska keeps the one-time filing cost straightforward at $250. There’s no complicated tiered setup here.

It’s also one of just nine states with no individual income tax. That won’t erase every business cost, of course, but it does matter when you’re thinking past formation day.

Biennial Report Requirement

Alaska requires LLCs to renew on a biennial cycle, so reports and fees come due every two years instead of every year. That means fewer filings than in states with annual reports.

Still, this isn’t something to put on autopilot and forget. If you miss the deadline, the state can charge late penalties or move toward administrative dissolution.

Statewide License Requirement

Lower filing frequency doesn’t mean fewer rules across the board. Alaska also requires a state business license, and the cost can change based on the industry.

So even if the LLC filing step is simple, the total setup cost may not stop there.

Local and Industry Add-On Costs

Costs can climb depending on where and how you do business. Local permits vary by city, and industry licenses are handled separately.

If you don’t have an Alaska address, you may also need a registered agent service, which usually runs about $100 to $300 per year.

3. Arizona

Arizona is one of the lower-cost states for forming an LLC. A big reason is simple: there’s no recurring statewide LLC filing fee. You pay the $50 initial filing fee, which is in line with New Mexico ($50) and Utah ($54).

There is one thing to watch, though. Filing by mail can cost $10 to $75+ more than filing online. So while Arizona keeps things simple, your filing method can still affect the total.

No Recurring State LLC Fee

Arizona charges no recurring statewide LLC fee.

No General State Business License

After formation, most costs come from taxes and industry-specific permits, not from a catch-all state license. Arizona does not have a single statewide general business license. If your business sells taxable goods or taxable services, you’ll usually need a TPT license. And if you work in a regulated profession, you may need separate state permits.

Local and Industry Add-On Costs

State fees may be low, but local rules can still add to the bill. City and county requirements may bring extra licensing costs.

4. Arkansas

Arkansas starts off cheap, at least on paper. The LLC filing fee is $45. But that’s only the first piece of the cost picture. Once your LLC is up and running, the annual franchise tax can change what you spend from year to year.

Annual Franchise Tax

Arkansas requires an annual franchise tax. This is a recurring state tax, separate from federal income taxes. You will also need to appoint a registered agent to handle legal correspondence.

Local and Industry Compliance

Once you’ve formed the LLC, the next thing to look at is state and local compliance. Arkansas does not require a general state business license, which helps a bit. But the catch is that rules can change based on your city, county, and the kind of work you do.

If your business sells taxable products, you’ll usually need sales tax registration. And depending on your field, permits can add a lot to your yearly costs. A home-based shop, for example, may have very different permit needs than a contractor, food business, or salon.

Local permits and industry licenses vary by city, county, and business type.

5. California

The LLC filing fee is $70, but in California, that’s not the part that hits hardest. The main expense comes later, not at setup.

Annual Franchise Tax

California LLCs renew annually. And every California LLC owes a minimum franchise tax of $800 per year.

That tax applies even if the LLC brings in no revenue. So yes, even a quiet year still comes with an $800 bill. If you pay late, California adds a $250 penalty.

After the state tax, the next thing to check is whether you need a business license at the local level.

Statewide License Requirement

California does not have a statewide general business license. Instead, licenses are handled at the city or county level.

Local and Industry Add-On Costs

Depending on what the business does, you may also need industry permits or professional licenses. And there’s a big point here: forming your LLC in another state does not let you skip California’s $800 franchise tax if you’re doing business in California.

6. Colorado

Colorado is on the cheaper side for LLC costs, but your total can still shift based on where you do business. The state keeps things simple: the LLC filing fee is $50, and there’s no statewide business license.

Annual Periodic Report Fee

To keep your LLC in good standing, Colorado requires an annual periodic report. That report costs $25 per year. If you miss the deadline, you can face penalties and lose good standing.

Once you get past the state filing fee and the annual report, the main cost variable is local licensing.

Local and Industry Add-On Costs

Colorado does not have a statewide business license. Instead, licensing happens at the city and county level, which means fees can vary a lot depending on your location. On top of that, some fields need extra permits or licenses. If you’re in a regulated profession, you may also need approval through a state board with its own fee schedule.

7. Connecticut

Connecticut’s $120 LLC filing fee sits in the middle of the pack. But the bigger story is the $500 biennial renewal fee. Over time, that pushes the state’s total cost much higher than the upfront filing fee makes it seem.

Biennial Filing Fee

Connecticut uses a two-year renewal cycle, and the fee is $500 every two years. That works out to $250 per year in recurring state costs. If you miss the renewal deadline, you can lose good standing and face penalties of $50–$200.

Statewide Business License

Connecticut does not have a statewide general business license. Instead, businesses deal with industry-specific registrations and professional licenses at the state level, plus local permits at the municipal level. If your business sells taxable products, you’ll also need a sales tax permit and must follow state tax rules.

For remote founders, the bigger wildcard is often local permits and recurring compliance, not the state filing itself.

Local and Industry Add-On Costs

Local fees can change by city and county, and zoning or operating permits at the municipal level may add separate costs. For many remote businesses, the biggest swings come from local permits and registered agent fees. If you hire a professional registered agent, plan for about $75–$150 per year. Connecticut’s paid sick leave rule can also add recurring compliance costs for employers.

Next, look at how the next state shifts the balance between upfront filing fees and recurring costs.

8. Delaware

Delaware’s $90 LLC filing fee is low, and LLCs don’t have to file an annual report. That helps keep filing costs down. But Delaware LLCs still have annual tax and licensing duties, so those are often the main things that shape the total cost.

Annual LLC Tax

Delaware LLCs pay a flat annual tax, while other entity types can have different rules. If you need to update your LLC later, like changing the business name, Delaware charges a $50 amendment fee.

Statewide Business License

Delaware doesn’t have one general business license that covers every company. Regulated businesses still need the state or local permits that apply to their line of work. For many LLC owners, the next recurring cost is the registered agent.

Local and Industry Add-On Costs

Every Delaware LLC must have a Delaware registered agent, which usually costs $100–$300 per year. If you’re a remote founder or run a virtual business without a Delaware office, that’s a recurring compliance cost you’ll need to plan for. And if you form in Delaware but do business in another state, you may also need foreign LLC registration there, along with that state’s filing fees.

Next: how District of Columbia costs compare.

9. District of Columbia

D.C. charges $99 to start an LLC, which sounds pretty low at first glance. But the filing fee is only part of the story. In D.C., the repeat compliance costs can add up, so the long-term price is often higher than that $99 suggests.

Biennial Fee

D.C. requires biennial reports and fees to keep your LLC in good standing.

Basic Business License (BBL)

Most businesses in D.C. also need a Basic Business License (BBL). Fees depend on the endorsement tied to your business type, and the license term is either two or four years.

Local and Industry Add-On Costs

Some businesses need a Certificate of Occupancy or a Home Occupation Permit before they can get BBL approval. That adds one more step, and one more possible cost.

If you hire a registered agent service, plan on $100–$300 per year.

Next: Florida, where repeat state licensing is lighter, but local compliance can still shape the total cost.

10. Florida

Florida’s LLC filing fee sits in the middle of the pack, but that’s only part of the story. For most owners, the bigger issue is the recurring cost of staying compliant year after year. That usually means annual reporting, plus any local permits or licenses your city or county may require.

LLC Filing Fee

Forming an LLC in Florida costs $125 as a one-time state filing fee.

Annual Report Fee

After you form the LLC, the main recurring state cost is the annual report. Florida requires this filing to keep your LLC in good standing, following a standard LLC compliance checklist. If you file late, you could face penalties or even administrative dissolution.

Statewide License Requirement

Florida does not require a statewide general business license. In most cases, license costs show up at the local level or come from your industry.

Local and Industry Add-On Costs

This is where costs can start to stack up. Many cities and counties require a local Business Tax Receipt, and the fee depends on where you’re based and what kind of business you run.

If you decide hiring a registered agent is worth it, plan for another If you use a registered agent service, plan for another $100–$300 per year.00–$300 per year.

Here are the main costs most Florida LLC owners should expect:

11. Georgia

Georgia keeps LLC costs pretty simple: a $100 filing fee and an $89 annual registration fee. That makes the state cheaper than average to start in, with fairly modest yearly costs. If you run a business remotely, though, the one-time filing fee usually matters less than the bills that come back every year. In Georgia, that means paying close attention to the annual registration fee and any local certificate costs.

LLC Filing Fee

At $100, Georgia is below the typical U.S. LLC filing fee.

Annual Registration Fee

Georgia requires an $89 annual registration fee to keep your LLC in good standing with the Secretary of State. Miss the deadline, and you could face late penalties of $50 to $200. If the issue isn’t fixed, the state can administratively dissolve the LLC.

Statewide License Requirement

Georgia does not have one statewide general business license. Instead, licensing is handled at the local level through Occupational Tax Certificates, which may be required by your city or county.

Local and Industry Add-On Costs

Occupational Tax Certificate fees vary by municipality. On top of that, industry licenses and permits can add separate costs based on your business type and where you operate.

Hawaii raises the stakes further with a higher formation fee and more variable compliance costs.

12. Hawaii

Hawaii’s LLC filing fee is $50, well below the national average of about $130. That sounds cheap at first glance. But the filing fee is only the opening price. Once you look at yearly filings, permits, and employer-related costs, the total can climb.

LLC Filing Fee

At $50, Hawaii’s formation fee is much lower than what many other states charge. Because of that, the bigger cost pressure usually comes later from compliance and employer expenses.

Annual Report Requirement

After you form the LLC, the main cost drivers shift to annual filings and local permits. Hawaii requires regular report filings to keep your business in good standing.

Local and Industry Add-On Costs

State filing costs are only one piece of the puzzle. In Hawaii, businesses may also run into local licensing rules and industry-specific permits. If you have employees, workers’ comp is another line item to plan for, with an average cost of $2.48 per $100 of payroll. And if you don’t live in the state, you’ll likely need to get a registered agent, which usually adds $100–$300 a year.

Hawaii starts cheap, but recurring reports, permits, and workers’ comp can push total costs higher. Idaho shifts the balance again.

13. Idaho

Idaho’s LLC filing fee is $100, which sits below the U.S. average. That sounds low at first glance, but the filing fee usually isn’t what shapes your total cost. For many remote founders, the bigger issue is what comes after setup: report filings, registered agent costs, and local licensing.

LLC Filing Fee

The $100 state filing fee is the base cost to form an LLC in Idaho. If you file online, you can avoid paper surcharges. So while formation day is fairly low-cost, the longer-term expenses often matter more.

Recurring Report Filing

Idaho requires regular report filings to keep your LLC in good standing. Miss a deadline, and things can snowball fast. You could face penalties, lose good standing, or even end up with administrative dissolution.

Statewide License Requirement

Idaho does not require a statewide general business license. Instead, most business licensing happens at the city or county level. That means your costs can look very different depending on where you operate.

Local and Industry Add-On Costs

State fees are only part of the picture. If you don’t have a physical Idaho address, you’ll likely need a registered agent, which usually runs $100–$300 per year. On top of that, local licenses and permits can push your total cost past the state filing fee, since some local fees can be higher than the filing fee itself.

14. Illinois

Illinois sits in the middle on the upfront LLC filing cost, but the yearly bill is where things get expensive.

LLC Filing Fee

The 2026 LLC filing fee in Illinois is $150, which is a bit above the national average of about $130. If you file online, you can usually skip mail-related surcharges.

Annual Report Fee

The yearly cost is the bigger deal here. Illinois requires an annual report, and the fee is $500. That puts it among the most expensive states in the U.S. for LLC renewals. If you miss the deadline, you could face a $50–$250 late penalty and lose good standing.

Statewide License Requirement

Illinois does not require a statewide general business license. Instead, licensing happens at the local level. That means your city or county decides which permits you need and how much they cost.

Local and Industry Add-On Costs

State fees are only part of the picture. Local permits and industry licenses can add extra costs, and those vary based on your city, county, and line of work. If you hire a registered agent service, expect to pay about $75–$150 per year.

15. Indiana

Indiana is usually a low-cost state for starting and running an LLC. The big things that shape the price are simple: a low filing fee, a report due every other year, and any city, county, or industry permit costs.

LLC Filing Fee

The initial LLC filing fee in Indiana is $95, which is below the national average of about $130. If you file online, you’ll usually pay less than if you file by mail. Mailing documents can add $10 to over $75 in extra charges.

That said, the first filing fee isn’t always the part that matters most. In Indiana, the repeat filing schedule can have a bigger effect over time.

Biennial Report Cycle

Indiana uses a biennial report cycle. So instead of filing every year, you file once every two years. That can help trim repeat compliance costs a bit.

Still, deadlines matter. Missing the due date can lead to late penalties of about $50 to $200 and may put your good standing at risk.

Statewide License Requirement

Indiana does not have a general statewide business license. That’s one less box to check for many business owners.

You still need to register your legal entity with the Secretary of State. And if your business is in a regulated field, you may also need state permits.

Local and Industry Add-On Costs

This is where costs can shift. Local permit rules vary by city and county, so it’s smart to check local requirements before you file. A business that looks cheap on paper can get more expensive once local permits enter the picture.

Some industries may also need state permits, including:

• Healthcare
• Construction
• Food service

If you plan to hire a registered agent service, budget $100 to $300 per year.

Next, compare how the next state changes the balance between filing fees and recurring compliance.

16. Iowa

Iowa is one of the cheapest states for LLC formation in 2026. The core state costs are simple: $50 to file, $45 every two years for the report, and no statewide general business license. That keeps the base cost low. Where things can change is at the local level, especially if your city or industry needs extra permits.

LLC Filing Fee

Iowa charges a one-time $50 LLC filing fee. If you file online, the process is usually faster and less expensive than mailing documents. Mailed filings can add $10 to over $75 in extra charges in some jurisdictions.

Biennial Report Fee

Iowa uses a biennial reporting cycle, which means you file once every two years instead of every year. The fee for that report is $45.

Put the filing fee and the biennial report fee together, and total state fees come to about $95. That’s pretty low. But there’s a catch: if you miss the deadline, late penalties can run from $50 to $200.

Statewide License Requirement

Iowa does not require a statewide general business license. So if you’re trying to estimate startup costs, you won’t need to budget for a blanket state license.

Local and Industry Add-On Costs

This is where the math can shift a bit. After you handle state filing and reporting, local rules and industry rules shape the rest of your costs.

Municipal business licenses usually cost $50 to $400, depending on the jurisdiction. Industry-specific permits often fall between $200 and $1,200. If you hire a registered agent service instead of serving as your own, that usually costs $100 to $300 per year.

17. Kansas

Kansas charges $160 to form an LLC, which is a bit above the national average. The good news is that state licensing is pretty simple. The catch is that annual reports and local permits can still push up your total cost. So the filing fee is just the first number to look at.

LLC Filing Fee

If you can, file online. Paper filings may come with extra charges of $10–$75+.

Annual Report Requirement

In Kansas, recurring compliance can matter more than the upfront filing cost.

Kansas LLCs must file an annual report to stay in good standing. If you miss the deadline, you may face late penalties of $50–$200. If the problem drags on, the state can administratively dissolve the LLC.

Local and Industry Add-On Costs

Once the state filing is done, local rules are where costs start to vary.

Local permits and industry-specific registrations can add to your total, depending on your city and the type of business you run. If you don’t have a physical address in the state, registered agent service often costs $100–$300 per year.

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18. Kentucky

Kentucky looks cheap at first glance, and on the front end, it is. The state’s $40 LLC filing fee is among the lowest in the country and far below the U.S. average of about $130.

LLC Filing Fee

Kentucky’s LLC filing fee is $40. If you file by mail, there may also be an extra $10–$75 charge.

Annual or Biennial Report Filing

Kentucky requires LLCs to keep up with report filings to stay in good standing. If you miss the deadline, you could face $50–$200 in penalties, and the state can also administratively dissolve the LLC.

Statewide Business License

Kentucky does not require one statewide general business license. That’s one less fee to pay and one less form to deal with.

Local and Industry Add-On Costs

This is where costs can start to stack up. Local permits and industry licenses may add $0–$500+. And if you don’t want to act as your own registered agent, you’ll often pay $100–$300 per year for that service.

The table below shows where Kentucky’s low filing fee ends and the repeat costs start.

19. Louisiana

Louisiana charges a $100 LLC filing fee, which is below the national average of about $130. If you file online, you can skip paper surcharges that range from $10 to $75+. After that first filing, the main costs usually come from report filings, local permits, and registered-agent service.

Report Filings

Louisiana requires annual report filings to keep your LLC in good standing. Miss the deadline, and you could face penalties of $50 to $250. That can also put your good-standing status at risk.

Licensing and Local Add-On Costs

Louisiana does not require a statewide general business license. So the rest of your setup and compliance costs depend on your parish, your city, and your line of work. A registered agent usually costs $100 to $300 per year.

Next, Maine shows how filing fees can stay low even when recurring compliance costs start to add up.

20. Maine

Maine’s LLC filing fee is $175, which is higher than the national average of about $130. So right out of the gate, forming an LLC in Maine costs more than in many other states. And unlike Louisiana, where more of the cost shows up at formation, Maine pushes a bigger share of the expense into recurring compliance.

LLC Filing Fee

If you can, file online. Paper filing can tack on $10 to $75+ in surcharges, and that’s an easy cost to avoid.

Annual Report Fee

Maine also requires an annual report. That means you’ll want to budget for a yearly renewal cost, plus any penalties if you file late.

Statewide License Requirement

Maine does not require a general statewide business license. Instead, licensing depends on your industry and where your business operates.

Local and Industry Add-On Costs

If you run a virtual business, your main extra costs will usually come from registered agent service and any city or industry permits. Once you have employees, the picture changes a bit. You may also need to plan for paid sick leave compliance and workers’ comp, which runs about $0.82 to $2.48 per $100 of payroll. Maine requires paid sick leave for employers in 2026.

Next, Maryland shifts the balance again with a different mix of state fees and local compliance.

21. Maryland

Maryland lands somewhere in the middle on LLC startup cost, but the repeat compliance costs can add up over time. The LLC filing fee is $100.

LLC Filing Fee

That $100 formation fee is a one-time charge. If you file online, you may avoid paper-filing surcharges that can run from $10 to $75+ in some jurisdictions.

Annual Report Fee

Maryland requires LLCs to file an annual report to stay in good standing with the state. That means this isn’t just a startup cost. It’s part of your yearly budget.

Miss the renewal deadline, and the state can tack on penalties that usually fall between $50 and $200.

Statewide License Requirement

Maryland does not require a statewide general business license. What you need depends on your industry and your local jurisdiction.

Local and Industry Add-On Costs

This is where the total can start to shift. Employers need to plan for Maryland’s paid sick leave rules. If you don’t live in the state, or just don’t want to act as your own point of contact, you should also plan for $100–$300 per year for a registered agent.

Local permits and industry fees can also change the math. A home-based consultant and a restaurant owner in Maryland are dealing with very different costs. So while the state filing fee looks simple, your full price depends a lot on where you’re operating and what kind of business you’re running.

Massachusetts shifts to a different cost structure with higher recurring state costs.

22. Massachusetts

Massachusetts has a high upfront filing fee, and the cost doesn’t ease up much later. If you’re a remote founder, that renewal fee can matter just as much as the price you pay to get started.

LLC Filing Fee

The initial LLC filing fee in Massachusetts costs $500 to $520. That puts Massachusetts among the most expensive states to form an LLC.

Biennial Report Fee

Massachusetts charges a $500 biennial report fee. So even after formation, your renewal costs stay high. If you miss the filing deadline, you could lose your LLC’s good standing, which may put your liability protection at risk.

Statewide License Requirement

Massachusetts does not require one general statewide business license. What you’ll need depends on your industry and the city or town where you operate, so local licensing costs can vary a lot.

Local and Industry Add-On Costs

If you run a home-based business, you may need a local Business Certificate (DBA) and zoning approval from your city or town. If you hire employees, Massachusetts also requires paid sick leave, which adds to your compliance costs over time. You should also plan for $100–$300 per year for a registered agent.

For virtual businesses, local permits and payroll rules often have a big effect on the true first-year cost.

23. Michigan

Michigan keeps the upfront LLC cost low. The state’s LLC filing fee is $50.

LLC Filing Fee

The initial LLC filing fee in Michigan is $50. If you file online, you can skip mail processing charges that range from $10 to $75.

Annual Report Fee

Michigan requires LLCs to file an annual report to stay in good standing. Miss that filing, and you could face penalties, lose good standing, or even end up with administrative dissolution.

Statewide License Requirement

Michigan does not have a general statewide business license. What you need depends on your industry and the rules in your city or county.

Local and Industry Add-On Costs

This is where costs can start to stack up a bit. Michigan requires paid sick leave for employers. If you sell physical products, you’ll also need to plan for sales tax registration. And workers’ compensation can be a big swing factor, with rates ranging from $0.82 to $2.48 per $100 of payroll depending on the industry.

Using a professional registered agent service adds another yearly cost, usually around $100 to $300 per year.

Michigan’s low formation fee helps keep startup costs in check, but annual filings and local permit rules still affect what you’ll pay over time. Next, Minnesota shows how a low filing fee can still come with recurring compliance costs.

24. Minnesota

Minnesota’s LLC filing fee is $155, so it’s higher than the national average of about $130. Online filing is often the lower-cost path. If you file by mail, you may pay an added $10 to $75+ surcharge. So the full price tag doesn’t stop at formation. In many cases, recurring filings and local rules shape the total more than the setup fee itself.

LLC Filing Fee

Minnesota charges a flat $155 to form an LLC.

Recurring State Filing Fee

Minnesota requires businesses to handle annual or biennial filings to stay in good standing. For remote founders, those repeat costs can matter more than the one-time formation charge.

Local and Industry Add-On Costs

Minnesota puts much of its licensing at the local level or within regulated fields, so city and county rules can change what you end up paying. If you hire a registered agent service, expect $100 to $300 per year. On top of that, Minnesota’s paid sick leave law creates added employer compliance costs over time.

Next, Missouri shifts the balance again.

25. Mississippi

Mississippi is one of the cheapest states to form an LLC. The initial filing fee is $50, which is well below the national average of about $130.

That low upfront price helps. But it doesn’t tell the whole story.

Mississippi’s $50 LLC filing fee keeps startup costs down, while recurring reports and local permits can add to the total over time. In plain English: the filing is cheap, but the long-term cost often comes from reports, local permits, and business-specific rules.

LLC Filing Fee

Mississippi charges a flat $50 to form an LLC. If you file online, you can avoid mail surcharges.

Recurring State Filing Fee

Mississippi also requires recurring reports to keep your LLC in good standing.

Statewide License Requirement

Mississippi does not have a general statewide business license requirement. You register the business with the Secretary of State, and most licensing happens at the local level or through industry-specific agencies.

Local and Industry Add-On Costs

City and county rules can differ a lot, so permit costs depend on where your business operates and what kind of work you do. If you don’t have a physical in-state address, you may also need a registered agent service. That usually costs $100 to $300 per year.

Missouri shifts the cost mix again.

26. Missouri

Missouri’s LLC filing fee is $50. If you file by mail, expect $10–$75+ in added costs. That sounds simple enough, but the filing fee is only part of the picture. Once your LLC is up and running, recurring filings and local permits usually have a bigger effect on what you pay over time.

LLC Filing Fee

The initial LLC filing fee in Missouri is $50.

Recurring State Filing Fee

Missouri requires recurring filings to keep your LLC in good standing. The fee depends on the filing schedule, and late penalties can run from $25 to several hundred dollars. In some cases, the state can even administratively dissolve the LLC.

Statewide License Requirement

Missouri does not have a single statewide general business license. So after you form your LLC, most costs come from recurring filings and local rules. Licensing also depends on your industry and where you do business.

Local and Industry Add-On Costs

This is where costs can shift quite a bit from one business to another. A product-based business may need a sales tax permit. A regulated profession may need separate state permits.

If you hire employees, there’s another line item to watch: workers’ compensation insurance. In Missouri, rates usually range from $0.82 to $2.48 per $100 of payroll, depending on your industry.

Next, Montana shows how a low filing fee can still lead to higher recurring compliance costs.

27. Montana

Montana has the lowest LLC filing fee in the country: $35. That puts it at the very top of the list for low-cost LLC formation in 2026. Still, the filing fee is only part of the picture. Local permits and repeat state filings can add to the total.

LLC Filing Fee

The initial LLC filing fee in Montana is $35.

Annual State Filing Fee

Montana requires an annual report, and the fee is $20. That low yearly cost helps keep Montana near the bottom of the national price range. Miss the deadline, though, and things can get messy fast. You could face penalties, lose good standing, or even end up with administrative dissolution.

Statewide License Requirement

Montana does not require a general statewide business license. But that doesn’t mean you’re automatically in the clear. City and county permit rules can differ, so local checks still matter.

Local and Industry Add-On Costs

Local business license fees depend on the city or county. And if you use a registered agent service, expect to pay about $100–$300 per year.

Next, New Hampshire shifts the comparison from low filing fees to higher recurring compliance costs.

28. Nebraska

Nebraska’s LLC filing fee is Nebraska’s LLC filing fee is $10000, but that isn’t always the full first-year bill. Publication rules and local permits can push costs higher than many owners expect.

LLC Filing Fee

The base filing fee is $100.

Filing online is usually the better move. It’s faster, and it can help you avoid paper-filing surcharges that may range from $10 to over $75.

Biennial State Filing Fee

Nebraska uses a biennial reporting cycle, which means you file every two years instead of every year. You need to file the biennial report to stay in good standing.

Statewide License Requirement

Nebraska does not require a general statewide business license. Instead, licensing happens at the city or county level. Some businesses may also need separate industry permits or registrations.

Local and Industry Add-On Costs

For online or virtual businesses, the newspaper notice is often the cost that catches people off guard. Nebraska requires a formation notice to run in a local newspaper for three consecutive weeks in the county of the principal office.

That one rule can add up fast. Based on local newspaper rates, publication may cost several hundred dollars to more than $1,000.

Next, New Hampshire shifts the comparison from Nebraska’s publication cost to recurring state compliance.

29. Nevada

Nevada is one of those states where the upfront LLC cost adds up fast. Forming an LLC costs $425 before you even get into local permits or extra services. Then there’s another $150 due every two years. Here’s how that breaks down.

LLC Filing Fee

Nevada charges $75 for the Articles of Organization. On top of that, you’ll pay $150 for the Initial List of Managers or Members and $200 for the State Business License. That brings the total formation cost to $425.

Biennial Report Fee

Nevada uses a biennial renewal cycle, and the fee is $150 every two years.

Statewide License Requirement

Nevada requires all LLCs to have a statewide business license. That fee is already part of the upfront total, and it renews on the same biennial cycle.

Local and Industry Add-On Costs

The state-level fees are only part of the picture. Most Nevada cities and counties also require local business licenses, and the cost depends on where you operate and what kind of business you run.

Some businesses may also need extra permits, especially in fields like:

• contracting
• food service
• healthcare

Those added licenses can push your total cost higher.

So yes, Nevada has no state income tax, but the LLC setup cost is still on the high side. The filing fees are front-loaded, and local licensing can make the total climb even more.

30. New Hampshire

New Hampshire’s LLC filing fee is $100. That’s below the national average and much lower than what you’ll see in states like Massachusetts and Nevada. For most business owners, the main costs come down to the setup fee, required reports, and any local or industry permits.

LLC Filing Fee

It costs $100 to form an LLC in New Hampshire. This is a one-time state filing fee.

Annual Report Fee

New Hampshire requires annual or biennial reports to keep your LLC in good standing, and those filings add repeat compliance costs. If you miss a required report, the state can administratively dissolve your LLC, which can put your liability protection at risk.

Statewide License Requirement

New Hampshire does not require a statewide general business license. In practice, that means many businesses deal instead with local permit fees or industry-based licensing costs.

Local and Industry Add-On Costs

These extra costs depend on the city, county, and the type of work you do. If you run a remote business, local fees may end up mattering more than the state’s If you run a remote business, local fees may end up mattering more than the state’s $100 filing fee.00 filing fee.

Next, the comparison moves to a state with a different mix of setup and repeat costs.

31. New Jersey

New Jersey’s LLC filing fee is $125, which puts it in the middle of the pack for startup costs. So the upfront cost isn’t especially low, but it isn’t sky-high either.

Where New Jersey gets more expensive is after setup. The bigger issue is the recurring compliance costs that can add up over time.

LLC Filing Fee

Forming an LLC in New Jersey costs $125 as a one-time filing fee. New Jersey also does not have a publication requirement for LLCs, and that can save new businesses between $1,000 and $2,000 in startup costs.

That’s a nice break at the beginning. But the main cost gap in New Jersey tends to show up later, through annual filings and local compliance.

Annual Report Requirement

New Jersey requires an annual report to keep an LLC in good standing. If you file late, you may face penalties and lose good standing.

Statewide License Requirement

New Jersey does not require a general statewide business license. In most cases, businesses register for taxes and deal with licensing at the local level or through industry-specific agencies.

Local and Industry Add-On Costs

Local licenses, industry permits, paid sick leave, and workers’ compensation can all push recurring costs higher. If you’re a remote founder, it’s smart to budget for registered agent service, local licenses, and any employer-related compliance costs.

A professional registered agent usually costs about $100–$300 per year.

The filing fee itself is manageable. The longer-term pressure comes from tax and compliance costs that keep coming back.

New Jersey’s main cost risk is recurring compliance, not the initial filing fee.

32. New Mexico

New Mexico is one of the cheapest states to form an LLC in 2026. You’ll pay $50 to file and $0 in annual or biennial LLC report fees.

LLC Filing Fee

At $50, New Mexico’s LLC filing fee is among the lowest in the country. And because the state doesn’t charge an annual or biennial report fee, your year-to-year state costs stay low.

Statewide License Requirement

New Mexico does not have a statewide general business license. Instead, licensing depends on your industry and the city or county where you do business.

That helps keep state-level costs down. In most cases, the bigger cost swings come from local rules and any permits tied to your line of work.

Local and Industry Add-On Costs

Local licenses and industry permits can still add to your total. On top of that, registered agent service usually costs $100–$300 per year. If you have employees, you’ll also need to plan for the state’s paid sick leave mandate as part of ongoing compliance.

Next, New York shows how fast recurring state and local costs can add up.

33. New York

New York is one of the most expensive states for LLCs in 2026. The base filing fee is $200, but that’s not what pushes costs up. The big hits usually come from publication and recurring state fees.

LLC Filing Fee

Filing Articles of Organization costs $200. New York also has a publication rule that many lower-cost states don’t have.

Publication Requirement

New York requires LLCs to publish a notice in two newspapers for six straight weeks in the county where your LLC office is located. In Manhattan, that often costs $1,000–$2,000.

That’s where New York starts to pull away from cheaper states. The filing fee may look manageable, but publication can change the math fast. If you skip this step, your LLC’s authority to do business in New York can be suspended.

Biennial and Annual State Fees

LLCs must file a $25 biennial statement and pay annual franchise taxes of $25–$4,500. If you’re running a remote business, these repeat costs can matter more than the day-one filing fee.

Local and Industry Add-On Costs

Licensing happens at the local and industry level. If your business operates in New York City, you may need extra city permits in addition to state requirements.

You may also need to budget for:

• Registered agent service: $100–$300 per year
• Employee-related costs: paid sick leave and workers’ compensation insurance are both required if you have employees

For virtual businesses, the main cost issue in New York usually isn’t setting up the LLC. Many entrepreneurs use a virtual office for startups to manage these requirements while keeping overhead low. It’s staying compliant year after year.

In New York, publication and recurring taxes matter far more than the filing fee.

Next up is North Carolina.

34. North Carolina

North Carolina’s LLC filing fee is $125, which puts it a bit under the national average of about $130. So while it isn’t one of the cheapest states, it also doesn’t hit your wallet as hard as some others before local charges show up.

LLC Filing Fee

To form an LLC in North Carolina, you’ll pay $125 to file Articles of Organization.

Annual Report

North Carolina requires LLCs to file an annual report to stay in good standing. Skip it, and the state can impose penalties or move toward administrative dissolution. When setting up your business, choosing the right registered agent is a key step in maintaining this compliance.

Statewide License Requirement

There isn’t a general statewide business license in North Carolina. Instead, costs usually come from local permits and licenses tied to your line of work.

Local and Industry Add-On Costs

This is where the total can change a lot. City and county permits may add to your first-year cost, and some businesses also need industry-specific licenses depending on what they do.

North Dakota shifts the cost mix again.

35. North Dakota

North Dakota charges $135 to form an LLC. That puts the upfront filing cost pretty close to what many other states charge. But the first fee is only part of the picture. Recurring reports, registered agent service, and local permits can all add to what you’ll spend over time.

LLC Filing Fee

The one-time state filing fee is $135. If you file online, you can skip mailing surcharges that range from $10 to over $75.

Recurring Report Fee

North Dakota requires recurring information reports to keep your LLC in good standing. The fee can vary.

Statewide License Requirement

North Dakota does not require a general statewide business license. Instead, extra costs usually come from local permits and industry-specific approvals.

Local and Industry Add-On Costs

City, county, and industry permit costs vary based on where you operate and what kind of business you run. You may also pay for a registered agent service, which usually costs about $100 to $300 per year.

The table below shows the main state and local costs at a glance.

FAQs

What is the real first-year cost to start an LLC?

The real first-year cost to start an LLC usually falls between $50 and $1,000, but the total can swing a lot depending on your state and what your business needs.

The filing fee for the Articles of Organization is only part of the picture. You may also need to pay annual report fees, franchise taxes, registered agent service fees, and local business license costs.

And some states throw in extra charges that can hit hard. New York is the big example here: its publication requirement can cost more than $1,500.

Do I need to register in my home state too?

If you run your business in a state other than the one where you formed your LLC, you’ll usually need to register as a foreign LLC in the state where you’re actually doing business.

That often means paying filing fees, annual report fees, and registered agent costs in both states. In plain English, your compliance costs can end up close to double.

Which states are cheapest after year one?

After the first year, Arizona, Missouri, New Mexico, and Ohio are the cheapest states to keep an LLC in good standing. Why? They don’t charge annual fees or franchise taxes. That means your yearly cost can stay at $0 after formation.

Wyoming is also low-cost. It charges a $60 annual report fee and has no franchise tax, which keeps long-term upkeep pretty light.

If you want to compare costs over time, don’t stop at the filing fee. Look at the full picture, including:

• Annual report fees
• Franchise taxes
• Foreign registration fees, if you’ll do business in another state

That’s where the numbers can start to shift. A state with a low setup cost can end up costing more year after year.

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