LLC Cost By State In 2025: A Simple Guide for Everyone

✅ My recommended LLC formation service: Registered Agents Inc. – reliable, private, and trusted nationwide.

 Curious about how much it costs to start an LLC? Whether you’re based in the U.S., a digital nomad hopping countries, or a non-U.S. resident launching a business from abroad understanding the LLC cost by state is a smart first step.

Here’s the thing: LLC formation fees aren’t the same across the board. Each U.S. state sets its own price, and it can range from super affordable to surprisingly expensive. For example, Montana is currently the cheapest state to form an LLC just $35. On the other hand, states like California and Massachusetts can cost several hundred dollars to get started.

I put together this guide to give you a clear, up-to-date look at the LLC cost by state, no matter where you’re located or what kind of business you’re building. Whether you’re a solo entrepreneur, running a side hustle, or going full-time with your dream venture—this info will help you plan ahead and choose the state that fits your budget and goals best.

Average LLC formation cost by state

If you’re trying to figure out what a “normal” LLC cost looks like across the U.S., here’s a quick reality check: there really isn’t a one-size-fits-all number—but we can look at the average to give you a solid ballpark.

Right now, the average LLC formation cost by state is around $125.

That means if you were to randomly pick a state to start your LLC, chances are you’d pay somewhere in that range just to file your Articles of Organization (the main form that officially creates your LLC).

Of course, some states like Montana ($35) and Kentucky ($40) keep things super budget-friendly, while others like Massachusetts ($500) or California ($70 upfront + $800 annual fee) definitely aren’t messing around with their price tags.

But the good news? You don’t have to guess. Once you understand how each state sets its fees—and what you get in return you’ll be able to choose the best option for your needs, whether you’re based in the U.S., launching remotely, or forming your LLC from overseas.

Is the LLC fee a one-time or recurring cost?

Short answer: It’s both—you pay a one-time fee to form your LLC, but most states also charge recurring annual fees to keep it active.

✅ 1. The One-Time LLC Formation Fee

This is the fee you pay to the state when you form your LLC. It’s a one-time charge, and it varies depending on which state you’re filing in.

📌 Example:

• Florida: $125 (one-time) 
• Texas: $300 (one-time) 
• California: $70 (formation fee) + $800 franchise tax  

This fee is paid to the Secretary of State (or equivalent state agency) when you file your Articles of Organization or equaling document like Certificate of Formation which is the official document that creates your LLC.

Note: The name of the LLC filing document may vary by state but they have one purpose from Your LLC.

🔁 2. Recurring Costs to Maintain Your LLC

While the LLC formation fee is a one-time payment, most states require ongoing payments—annually or biennially—to keep your LLC in good standing.

These recurring costs may include

📍 Annual Report or Franchise Tax Fees

• Many states require you to file an Annual Report or pay a Franchise Tax, or both
• These are typically due once a year and come with a fee.
  

  State	Annual Report or Franchise Tax	Cost
  Delaware	Franchise Tax	Minimum $300/year
  California	Annual Franchise Tax	$800/year
  New York	Biennial Statement	$9 every 2 years (cheap!)
  Florida	Annual Report	$138.75/year
  Texas	Franchise Tax	0% if under $2M revenue

📌 Why do states charge this?

Think of it as a way for the state to:

• Make sure your LLC is still active
• Keep their database up-to-date
• Collect revenue from businesses operating in their jurisdiction 

🕵️‍♂️ 3. Other Potential Ongoing Costs

These aren’t state-mandated fees, but they’re commonly associated with running an LLC:

✅ Registered Agent Fees

If you hire a professional registered agent (which most people do), this usually costs $100–$200/year.

✅ Business Licenses/Permits

• Some states or cities may require local business licenses, which come with their own fees—usually annual.
  

✅ Optional Maintenance Services

• Many LLC owners pay for services like annual compliance filing, mail forwarding, or virtual office, depending on their needs.

💡 So, What’s the Bottom Line?

Fee Type	One-Time or Recurring	Applies to All States?
LLC Formation Fee	One-Time	✅ Yes
Annual Report/Franchise Tax	Recurring (Annual/Biannual)	✅ Mostly
Registered Agent Fee	Recurring (Yearly)	✅ If using a service
Business Licenses/Permits	Recurring (Varies)	❌ Not in every case

🔍 Real-World Example:

Let’s say you’re forming an LLC in Florida:

• Initial LLC Fee: $125 (one-time)
• Annual Report Fee: $138.75/year (starting the year after you form)
• Registered Agent (optional): $100–$200/year if you use a service

So your first-year cost might be $125–$325, and then around $138.75–$338.75/year after that.

Summary!

While forming your LLC does involve a one-time setup fee, keeping your LLC in good legal standing usually means budgeting for yearly state fees and other services. It’s part of the cost of doing business—but totally worth it for the liability protection and credibility an LLC gives you.

Want a personalized breakdown for your state or business situation? Just let me know where you’re forming and if you’re a US or non-US resident—I’ll guide you step-by-step.

LLC Cost By State in 2025

This table has everything you need to know about LLC filing costs as well as annual or biennial fees.

Can I form an LLC in a low-cost state and operate in another?

Ah, the classic “LLC loophole” question great one! 😄.  Let’s clear this up in a friendly, no-fluff way:

✅ Yes, you can form an LLC in a low-cost state like Wyoming or Delaware…

But if you’re actually doing business in another state (say, California, Texas, or New York), then surprise! you still have to register your LLC as a foreign entity in that state.

🔍 What does that mean for you?

Let’s say you form an LLC in Wyoming (super cheap, no state income tax—sounds like a dream 💭),
but you’re physically running your business from California, meeting clients there, or even just shipping products from there.

👉 California will still want a piece of the pie.
You’ll need to register your Wyoming LLC in California as a “foreign LLC”, and that means:

• Filing extra paperwork

• Paying California’s annual $800 franchise tax

• And basically following most of the same rules as if you’d just formed the LLC in California in the first place.

🚧 So, is it worth it?

Sometimes yes, but usually no—especially if:

• You’re a solo founder working from your home state
• You have a physical presence in your high-cost state
• You want to keep things simple and avoid double fees or compliance headaches

But it can make sense if:

• You’re a non-US resident and want a neutral, low-tax state
• Your business is 100% online and has no physical “nexus” (presence) anywhere
• You’re working with investors who prefer Delaware, for example

🎯 Bottom Line

Yes, you can form your LLC in a low-cost state—but if you’re truly operating in another, that state still wants you to play by its rules (and pay its fees).

So always match your LLC to where you’re actually doing business, or be ready to register in both states.

LLC Cost by State FAQs

Here are the answers to the questions asked by many people from around the world.

Which state has the cheapest LLC formation cost?

Montana takes the real crown for the cheapest LLC formation cost in the U.S. as of 2025. Let’s set the record straight:

✅ Montana LLC Filing Fee: Only $35

That’s the lowest official state filing fee in the entire country — and yes, that’s for online filing too!

Not only is it dirt cheap to start an LLC in Montana, but the process is also super straightforward through their Secretary of State’s online portal. You don’t even need to file any extra paperwork by mail — it’s all digital.

Quick Recap of the Top Cheapest States (2025)

State	LLC Formation Fee
Montana	$35 ✅ CHEAPEST
Arkansas	$45 (online)
Arizona	$50
Mississippi	$50
Colorado	$50

Bonus Perk?

Montana has no sales tax, which makes it kind of a legendary pick for certain types of businesses (like vehicle holding companies — you may have heard of the “Montana LLC car hack”).

That said, Montana isn’t ideal for everyone, especially if you don’t live there — some people register there just for the low cost, but that can trigger foreign registration fees and extra paperwork in your home state.

🟡 Is Montana a good state for non-US residents to form an LLC?

Short answer:
👉 No, not really — even though it’s cheap.

Here’s why:

Montana might have the lowest LLC formation fee at just $35, but for non-US residents, price isn’t everything. There are other more important factors — and Montana falls short in a few key areas:

❌ Why Montana isn’t ideal for non-US residents:

1. No strong support for non-residents
   Montana doesn’t offer extra help, simplified processes, or clear pathways for foreign entrepreneurs like some other states do (like Wyoming or Delaware). You might struggle to find local support.

2. Harder to get an EIN and open a U.S. bank account
   If you’re forming in Montana, many banks may not recognize your LLC unless you have a physical connection there. This makes getting a business bank account in the U.S. more complicated.

3. A registered agent is a must
   You’ll definitely need to hire a Montana-based registered agent — and that will usually cost $100–$200/year, which cancels out the savings on the cheap $35 filing.

4. No privacy perks
   Montana doesn’t offer the same privacy benefits as New Mexico, Wyoming, or Delaware, where you can keep your name off public records.

5. Sales tax benefits don’t help most online businesses
   People love Montana for its 0% sales tax, especially for car purchases — but unless you’re selling physical goods inside Montana, that won’t help you much as a non-US resident.

✅ Best states for non-US residents instead?

If you’re starting an online business or service-based company, the best states are:

State	Why it’s great
Wyoming	Super friendly to non-US residents, strong privacy, no state income tax, low ongoing fees
Delaware	International reputation, strong legal protection, easy to work with for foreigners
New Mexico	Very affordable and offers complete privacy — your name doesn’t appear publicly
Florida	If you’re targeting U.S. customers and want a popular address with lots of banking options

💬 My honest advice?

Go with Wyoming or Delaware if you’re outside the U.S. — they’re way more non-resident-friendly, even if the filing cost is a bit higher.

Is it possible to set up an LLC for free?

Technically? Not completely free. But let me break it down for you in a friendly, no-fluff way.

💡 The Truth About “Free” LLC Formation

You’ve probably seen ads or websites shouting,
“Form your LLC for FREE!”

And hey, it sounds amazing like getting a free puppy that also does your taxes. 😄

But here’s the real deal:

You can set up an LLC without paying anyone (meaning no service fees),
but you’ll still owe your state a filing fee.

Every state charges something — it’s basically their way of saying,

“Sure, you can start a business… but let’s make it official (and grab a few bucks while we’re at it).”

These state fees can range from $35 (like in Montana) to over $500 (like in Massachusetts). There’s no legal workaround to avoid them.

🛠️ DIY Option (Cheap but Not Totally Free)

If you’re comfortable reading instructions and filling out some forms, you can:

• Go to your state’s Secretary of State website
• Fill out the Articles of Organization
• Pay the state filing fee
  

💰 Boom! LLC = formed.

⚠️ But keep in mind: you’ll need to keep up with annual filings, maybe get an EIN, and decide if you want to use your home address on public records (spoiler: most people don’t).

💼 What About “Free” Services?

Some companies (like Bizee) offer $0 service fees to help you form an LLC but you still pay the state fee and possibly for extras like:

• Registered Agent services
• EIN application
• Operating Agreement templates
• Business address/privacy protection
  

So while it’s close to free, it’s not 100% free.

Think of it like a “free” mobile app — it works, but you’ll be nudged toward upgrades.

🎯 So, is a Free LLC Possible?

✅ You can form an LLC for $0 in service fees if you go DIY or use a no-cost service.
❌ But you’ll always pay the state filing fee.

Unless your state suddenly turns into a charity (not likely), there’s no escaping that part. 😅

What is the best LLC formation service?

If I had to pick just one LLC formation service to recommend, it would be Registered Agents Inc. with no hesitation.

They offer the perfect mix of professionalism, privacy, and long-term value. You get:

• LLC formation done right (they handle the paperwork, fast)
• A free registered agent for the first year
• Nationwide service in all 50 states (plus D.C. and Puerto Rico)
• Annual report filings included — a game-changer for staying compliant
• Privacy-first approach, using their info on public records
• And the best part? They don’t charge more or upsell non-US founders, making them ideal no matter where you’re from.
  

They’re not just an LLC service. They’re a long-term partner that actually helps you stay compliant without nagging you to buy unnecessary add-ons.

👉 Want to see how they compare to other top-rated options like Northwest, Bizee, and Doola?
Check out my full breakdown here: Best LLC Filing Services – Full Comparison

Final Thoughts on LLC Filing Costs by State

LLC filing costs vary widely from state to state — ranging from as low as $35 to over $500. While it might be tempting to choose a state based solely on the filing fee, it’s important to also consider ongoing costs like annual report fees, franchise taxes, and compliance requirements.

At the end of the day, the best state to form your LLC depends on your business goals, where you operate, and how you plan to grow. By understanding the true costs involved, you’ll be better equipped to make a smart, strategic decision that supports your business in the long run.

Take your time, weigh your options, and choose the path that aligns best with your business needs.