How Much Does It Cost to Start an LLC in 2026? (State-by-State Breakdown)
Forming an LLC is one of the first financial decisions a new business owner makes, and it comes with more moving parts than the state filing fee alone. This guide breaks down every cost layer — upfront and ongoing — so you can budget accurately for your LLC formation in 2026.
Note: state fees change periodically. Always verify current figures at your state's official Secretary of State website before filing. The figures below reflect approximate 2026 rates for the most popular states.
State filing fees: the 10 most popular states for LLC formation
| State | Filing Fee (approx.) | Annual Report Fee | Est. Year 1 Total | Notes |
|---|---|---|---|---|
| Wyoming | $100 | ~$60 (min.) | ~$160 | Strong privacy laws, no state income tax |
| Delaware | $90 | ~$300 | ~$390 | Best for VC-backed startups; Court of Chancery |
| Nevada | ~$75 + ~$150 state business license | ~$350 | ~$575 | No state income tax; high annual fees |
| Florida | ~$125 | ~$139 | ~$264 | No state income tax; popular for small business |
| Texas | ~$300 | $0 (franchise tax report; tax owed if revenue over threshold) | ~$300+ | No personal income tax; franchise tax applies to larger LLCs |
| California | ~$70 | $800 minimum franchise tax + $20 Statement of Info | ~$890 | Most expensive ongoing; first-year franchise tax exemption may apply |
| New York | ~$200 | ~$9 biennial | ~$700–2,400 | Publication requirement adds $400–$2,000+ depending on county |
| Colorado | ~$50 | ~$10 | ~$60 | Among the lowest total costs in the US |
| Georgia | ~$100 | ~$50 | ~$150 | Straightforward, low ongoing cost |
| New Mexico | ~$50 | $0 | ~$50 | No annual report; excellent for cost-conscious formation |
Sources: State Secretary of State offices. Fees are approximate for 2026 and subject to change. Always check the official state website for current rates.
Additional upfront costs: beyond the filing fee
Registered agent: $0–$300/year
Every LLC must designate a registered agent — a person or service that receives legal documents, tax notices, and official correspondence on behalf of the business. You have two options:
- Serve as your own registered agent (free): Valid if you have a physical street address in the state (not a PO box) and are available during business hours. Your address becomes part of the public record.
- Commercial registered agent service ($50–$300/year): Services like Northwest Registered Agent, Registered Agents Inc., or ZenBusiness keep your personal address off public records and handle document forwarding. Recommended for home-based businesses and those in states requiring public address disclosure.
Operating agreement: $0–$500+
An operating agreement is a legal document that defines ownership structure, voting rights, profit distribution, and member responsibilities. Most states do not legally require it, but every LLC should have one — especially multi-member LLCs. Options:
- DIY ($0): Free templates are available from state bar associations and legal sites. Adequate for simple single-member LLCs.
- Online legal services ($50–$150): LegalZoom, Northwest, and similar services offer customizable templates with basic legal review.
- Attorney-drafted ($300–$1,500+): Recommended for multi-member LLCs, complex ownership structures, or businesses with significant assets or IP.
EIN (Employer Identification Number): free
An EIN is your LLC's federal tax ID, required for opening a business bank account, hiring employees, and filing certain tax returns. Apply directly through the IRS website (IRS.gov) at no cost. The application takes 5–10 minutes online and the EIN is issued immediately. Never pay a third-party service to obtain an EIN — it is always free from the IRS.
Business bank account: $0–$50 (often free)
Most major banks and online banks (Mercury, Relay, Chase Business) offer free or low-fee business checking accounts for LLCs. You will need your EIN, LLC formation documents, and operating agreement. Keeping business and personal finances separate is essential for maintaining LLC liability protection.
Business licenses and permits: varies widely
Depending on your industry and location, you may need federal, state, or local business licenses separate from your LLC formation. These vary enormously — from free home occupation permits to multi-thousand-dollar professional licenses. See our business license cost by state guide for details.
Ongoing annual costs: what you pay after formation
| Cost item | Typical range | Notes |
|---|---|---|
| State annual report / renewal | $0–$800/year | Varies dramatically by state; California $800 min. franchise tax |
| Registered agent renewal | $50–$300/year | If using a commercial service |
| Federal tax filing (Schedule C or Form 1065) | $0 (DIY) to $500+ (CPA) | Single-member LLCs file Schedule C with personal return |
| State income tax | $0–varies | Wyoming, Nevada, Florida have no state income tax |
| Bookkeeping / accounting software | $0–$50/month | Wave (free), QuickBooks ($30/month), FreshBooks ($17/month) |
| Business insurance | $30–$200+/month | General liability; varies by industry and coverage level |
California's $800 franchise tax: the most important fee to understand
California charges a minimum $800 annual franchise tax on every LLC doing business in the state, regardless of revenue. A California LLC earning $0 in its second year still owes $800. This makes California structurally expensive for small businesses.
If your California business earns less than $5,000–$10,000 per year, consider whether a sole proprietorship (which does not trigger the franchise tax) better fits your situation. Consult a CPA familiar with California small business tax before deciding.
New York's publication requirement: a hidden cost
New York requires LLCs to publish a notice of formation in two newspapers in the county where the LLC's office is located for six consecutive weeks. The cost varies dramatically by county:
- Albany County: approximately $200–$400
- Erie County (Buffalo): approximately $300–$600
- New York County (Manhattan): $1,500–$2,000+
- Nassau/Suffolk (Long Island): $1,000–$1,500
This publication requirement is unique to New York and adds significant cost beyond the $200 filing fee. Budget $400–$2,000 extra if forming in New York. After publication, you file a Certificate of Publication with the New York Department of State.
Should you form in Delaware or Wyoming?
The internet is full of advice to incorporate in Delaware or Wyoming. Here is a clear-eyed assessment:
Delaware: right for VC-backed startups, wrong for most small businesses
Delaware's advantages — the Court of Chancery (specialized business court), extensive corporate case law, flexible LLC governance — are real and meaningful for companies planning to raise venture capital or go public. Investors and corporate attorneys are comfortable with Delaware entities. If you are building a startup that will seek outside investment, form in Delaware (typically as a C-Corp, not an LLC).
For a local service business, solo consultant, or small LLC, Delaware provides no practical advantage. You would still owe taxes and fees in your home state, and you would pay Delaware's annual fees on top. The net cost is higher, not lower.
Wyoming: right for asset protection, wrong as a tax dodge
Wyoming has strong charging order protection, no state income tax, and reasonable annual fees. For real estate investors and business owners with significant personal assets, Wyoming LLC structures (sometimes nested) can provide genuine liability protection. Wyoming also allows anonymous LLC ownership, which appeals to privacy-conscious owners.
Wyoming is not a federal tax shelter. You still pay federal income tax regardless of where your LLC is formed. If you operate your business in California, you still owe California taxes. Form in Wyoming only with specific, attorney-advised reasons — not based on generic internet advice.
Formation services: DIY vs. online service vs. attorney
| Option | Cost range | Best for | Caution |
|---|---|---|---|
| DIY (file directly with state) | Filing fee only ($50–$500) | Simple single-member LLCs; tech-comfortable founders | Errors in formation documents can be costly to correct |
| Online service (ZenBusiness, Northwest, LegalZoom) | $0–$300 + filing fee | Convenience; additional services (registered agent bundled) | Upsells are common; read what is included at each tier |
| Business attorney | $500–$2,000 + filing fee | Multi-member LLCs, complex ownership, significant assets | Overkill for simple structures |
For a simple single-member LLC, filing directly with your state saves $200–$500 versus online services. State Secretary of State websites are generally straightforward. Most filings take 15–30 minutes online.
Calculate total startup costs for your specific business — including LLC, licenses, equipment, and marketing
Use our free startup cost estimator →For related costs, see our guides on small business startup costs 2026, business license costs by state, and online business startup costs.
Frequently Asked Questions
How much does it cost to start an LLC in 2026?
State filing fees range from approximately $50 to $500. Total first-year costs including registered agent, operating agreement, and EIN typically fall between $150 and $800. California is the most expensive due to its $800 annual minimum franchise tax. Always verify current fees at your state's Secretary of State website.
What is the cheapest state to form an LLC in 2026?
New Mexico (~$50 filing, $0 annual report), Colorado (~$50 filing), and Kentucky (~$40 filing) have the lowest formation costs. However, if you operate in another state, you will also need to register there as a foreign LLC, adding fees. For most businesses, the cheapest option is forming in your home state.
Should I form my LLC in Delaware or Wyoming?
Delaware is the right choice for VC-backed startups seeking outside investment. Wyoming suits real estate investors and privacy-conscious owners with specific asset protection needs. For most small businesses, form in your home state — you will pay taxes and fees there regardless of where you form, and double-registering costs more than it saves. Consult a business attorney for your specific situation.
Do I need a registered agent for my LLC?
Yes. Every LLC must designate a registered agent in its formation state. You can serve as your own agent for free if you have a physical street address there and are available during business hours. Commercial services cost $50–$300/year and keep your personal address off public records — recommended for home-based businesses.