Business Filing Fees by State: LLC, Corporation & Nonprofit Costs
How much does it actually cost to start a business? Filing fees range from $40 to $500 depending on the state and entity type. But the formation fee is just the beginning — annual reports, franchise taxes, and registered agent costs determine your real ongoing expense. This page compares every cost across all 50 states.
What Does It Really Cost to Start a Business?
The state filing fee gets all the attention — but it’s only one piece of the total cost. A complete picture includes four categories of expense, some one-time and some recurring.
One-Time Formation Costs
State filing fee — the fee paid to the Secretary of State to create your LLC or corporation. Ranges from $40 (Kentucky) to $500 (Massachusetts). This is the only mandatory cost to form your entity.
Recurring Annual Costs
Annual report fee — most states charge $0–$300 per year. Some states require biennial filing instead. A few require no report at all. Franchise tax — a tax on the privilege of existing as a business entity. Not all states charge one. California ($800/year) and Delaware ($300+ for LLCs, $400+ for Corps) are the most notable. Registered agent — $100–$299/year for a professional service, or $0 if you serve as your own agent.
Optional But Common Costs
Operating agreement or bylaws — $0 (free template) to $1,000+ (attorney-drafted). EIN — free from the IRS. Publication — $50–$1,500 in states that require newspaper publication (New York, Arizona). Business licenses — $25–$500 depending on your city and industry.
Cheapest States to Start & Run a Business
Ranked by total first-year cost: formation fee + annual report + franchise tax. Registered agent fees ($100–$299/year) are additional.
🥇 New Mexico
LLC: $50
Corp: $100
Annual report: None
Franchise tax: None
Year 1 LLC total: $50
🥈 Colorado
LLC: $50
Corp: $50
Annual report: $10
Franchise tax: None
Year 1 LLC total: $60
🥉 Kentucky
LLC: $40
Corp: $40
Annual report: $15
Franchise tax: None
Year 1 LLC total: $55
Mississippi
LLC: $50
Corp: $50
Annual report: $0
Franchise tax: None
Year 1 LLC total: $50
Missouri
LLC: $50
Corp: $58
Annual report: None
Franchise tax: None
Year 1 LLC total: $50
Hawaii
LLC: $50
Corp: $50
Annual report: $15
Franchise tax: None
Year 1 LLC total: $65
Michigan
LLC: $50
Corp: $60
Annual report: $25
Franchise tax: None
Year 1 LLC total: $75
Wyoming
LLC: $100
Corp: $100
Annual report: $60
Franchise tax: None
Income tax: None
Year 1 LLC total: $160
Wyoming stands out despite not being the absolute cheapest. At $160/year total with no state income tax, no franchise tax, strongest privacy protections, and a business-friendly legal environment, it consistently ranks as the best overall value for LLC formation — especially for online businesses, holding companies, and privacy-conscious founders.
Most Expensive States to Start & Run a Business
High formation fees, annual franchise taxes, or special requirements that add up fast.
California
LLC: $70
Corp: $100
Annual report: $20 biennial
Franchise tax: $800/year
Year 1 LLC total: $870+
Massachusetts
LLC: $500
Corp: $275
Annual report: $500
Franchise tax: None
Year 1 LLC total: $1,000
New York
LLC: $200
Publication: $200–$1,500
Annual: $9 biennial
Filing fee: $25–$4,500/yr
Year 1 LLC total: $400–$1,700+
Tennessee
LLC: $300
Corp: $100
Annual report: $300
Franchise tax: Yes
Year 1 LLC total: $600
Complete Filing Fee Table — All 50 States + DC
LLC and corporation formation fees, annual report costs, and notable taxes for every state.
Alabama
LLC: $208 · Corp: $200
Annual: $50 · Privilege tax: Yes
Alaska
LLC: $250 · Corp: $250
Biennial: $100 · No income tax
Arizona
LLC: $50 · Corp: $60
No annual report · Publication req.
Arkansas
LLC: $45 · Corp: $50
Annual: $150 · Franchise tax: Yes
California
LLC: $70 · Corp: $100
$800 franchise tax · SOI: $20 biennial
Colorado
LLC: $50 · Corp: $50
Annual: $10 · No franchise tax
Connecticut
LLC: $120 · Corp: $250
Annual: $80 · Business entity tax: $250
Delaware
LLC: $90 · Corp: $89
LLC tax: $300/yr · Corp franchise: $400+
Dist. of Columbia
LLC: $220 · Corp: $220
Biennial: $300 · Franchise tax: Yes
Florida
LLC: $125 · Corp: $70
Annual: $138.75 / $150 · No income tax
Georgia
LLC: $100 · Corp: $100
Annual: $50 · No franchise tax
Hawaii
LLC: $50 · Corp: $50
Annual: $15 · GET applies
Idaho
LLC: $100 · Corp: $100
No annual report · No franchise tax
Illinois
LLC: $150 · Corp: $150
Annual: $75 · Publication (Cook County)
Indiana
LLC: $95 · Corp: $100
Biennial: $32 · No franchise tax
Iowa
LLC: $50 · Corp: $50
Biennial: $60 · No franchise tax
Kansas
LLC: $165 · Corp: $90
Annual: $55 · Franchise tax: Yes
Kentucky
LLC: $40 · Corp: $40
Annual: $15 · LLC tax: $175/yr
Louisiana
LLC: $100 · Corp: $75
Annual: $35 · Franchise tax: Yes
Maine
LLC: $175 · Corp: $145
Annual: $85 · No franchise tax
Maryland
LLC: $100 · Corp: $120
Annual: $300 · Personal property return
Massachusetts
LLC: $500 · Corp: $275
Annual: $500 · No franchise tax
Michigan
LLC: $50 · Corp: $60
Annual: $25 · No franchise tax
Minnesota
LLC: $155 · Corp: $135
No annual report · No franchise tax
Mississippi
LLC: $50 · Corp: $50
Annual: $0 · Franchise tax: Yes
Missouri
LLC: $50 · Corp: $58
No annual report · No franchise tax
Montana
LLC: $70 · Corp: $70
Annual: $20 · No sales tax
Nebraska
LLC: $100 · Corp: $60
Biennial: $26 · Publication required
Nevada
LLC: $75 · Corp: $75
Annual: $150 · Corp business license: $500
No income tax
New Hampshire
LLC: $100 · Corp: $100
Annual: $100 · BPT: 7.5%
New Jersey
LLC: $125 · Corp: $125
Annual: $75 · Min corp tax: $500
New Mexico
LLC: $50 · Corp: $100
No annual report · No franchise tax
New York
LLC: $200 + pub. · Corp: $125
Biennial: $9 · Filing fee: $25–$4,500
North Carolina
LLC: $125 · Corp: $125
Annual: $200 · Franchise tax: Yes
North Dakota
LLC: $135 · Corp: $100
Annual: $50 · No franchise tax
Ohio
LLC: $99 · Corp: $99
No annual report · CAT: 0.26%
Oklahoma
LLC: $100 · Corp: $50
Annual: $25 · Franchise tax: Yes
Oregon
LLC: $100 · Corp: $100
Annual: $100 · No sales tax
Pennsylvania
LLC: $125 · Corp: $125
Decennial: $70 · Publication req. · Corp net income tax
Rhode Island
LLC: $150 · Corp: $230
Annual: $50 · Min corp tax: $400
South Carolina
LLC: $110 · Corp: $135
No annual report · License fee: Yes
South Dakota
LLC: $150 · Corp: $150
Annual: $50 · No income tax
Tennessee
LLC: $300 · Corp: $100
Annual: $300 · Franchise & excise tax
Texas
LLC: $300 · Corp: $300
Franchise: $0 (most) · No income tax
Utah
LLC: $54 · Corp: $70
Annual: $20 · No franchise tax
Vermont
LLC: $125 · Corp: $125
Annual: $35 · No franchise tax
Virginia
LLC: $100 · Corp: $75
Annual: $50 · Registration fee: $100
Washington
LLC: $200 · Corp: $180
Annual: $60 · B&O tax · No income tax
West Virginia
LLC: $100 · Corp: $50
Annual: $25 · No franchise tax
Wisconsin
LLC: $130 · Corp: $100
Annual: $25 · No franchise tax
Wyoming
LLC: $100 · Corp: $100
Annual: $60 · No income tax · No franchise tax
All fees are approximate and subject to change. Registered agent fees ($100–$299/year) are additional. Always verify with your state’s Secretary of State before filing.
Hidden Costs Most People Miss
The filing fee is just the tip of the iceberg. Watch for these additional expenses.
Publication Costs
New York ($200–$1,500), Arizona ($50–$300), Nebraska, and parts of Illinois require newspaper publication after formation. These costs don’t show up in the “filing fee” but are mandatory.
Foreign Qualification
Form in Wyoming but operate in California? You pay Wyoming’s fees PLUS California’s foreign LLC fee ($70) PLUS California’s $800 franchise tax PLUS a second registered agent. Forming out-of-state doubles your costs.
Franchise Tax Surprises
Delaware’s franchise tax can exceed $100,000 for corporations using the default Authorized Shares method. California’s $800 applies even to $0-revenue LLCs. These taxes are owed regardless of profitability.
Expedited Processing
Standard processing is 3–10 days in most states. Need it faster? Expedited fees range from $25 (Colorado) to $1,000+ (Delaware same-day). These fees aren’t included in the base filing fee.
Average Costs by Entity Type
Different entity types have different cost profiles — not just in formation but in ongoing compliance.
📋 LLC
Formation: $40–$500 (avg ~$130)
Annual report: $0–$500 (avg ~$75)
Franchise tax: $0–$800 (most states $0)
Registered agent: $100–$299/year
Tax return: Schedule C (free) or Form 1065 ($200–$1,000 prep)
Typical Year 1: $250–$600
Typical annual after: $200–$500
🏛️ Corporation
Formation: $40–$275 (avg ~$110)
Annual report: $0–$500 (avg ~$100)
Franchise tax: $0–$200K+ (DE corps watch out)
Registered agent: $100–$299/year
Tax return: Form 1120 or 1120-S ($500–$3,000 prep)
Typical Year 1: $500–$1,500
Typical annual after: $800–$3,000
❤️ Nonprofit
Formation: $30–$400 (avg ~$100)
IRS application: $275 (1023-EZ) or $600 (1023)
Annual report: $0–$100
Form 990 prep: $0–$3,000/year
Registered agent: $100–$299/year
D&O insurance: $500–$2,000/year
Typical Year 1: $500–$1,500
Typical annual after: $500–$3,000
Ways to Reduce Your Formation & Compliance Costs
Smart strategies to minimize what you spend without cutting corners.
Form in Your Home State
Avoid foreign qualification costs. One set of fees, one registered agent, one annual report. Unless you have a specific reason to form elsewhere, home state is always cheapest.
Be Your Own Registered Agent
Saves $100–$299/year — but your home address becomes public and you must be available during business hours. Worth it only if privacy isn’t a concern and you’re always at your registered address.
Use Free Templates
Operating agreements, bylaws, NDAs — our templates are free. Save $500–$2,000 vs. attorney-drafted documents. Use the saved money for legal review of the final version ($200–$500) if needed.
Get Your EIN Directly
The IRS issues EINs for free. Don’t pay $50–$300 to a third-party service for something that takes 5 minutes at IRS.gov. Same goes for BOI filing — free directly through FinCEN.
Use Assumed Par Value Method (Delaware)
Delaware corporations: always calculate your franchise tax using the Assumed Par Value Capital method instead of the default Authorized Shares method. This typically reduces tax from thousands to the $400 minimum.
Never Miss a Deadline
Late fees, reinstatement fees, and penalties cost more than the original filing. Calendar every deadline on day one. A $25 late fee on a $50 annual report is a 50% penalty — and dissolution is far worse.
Related Guides
Dig deeper into formation, compliance, and cost optimization.
Form an LLC by State
Complete LLC formation guides for all 50 states with step-by-step instructions, fees, and state-specific requirements.
Browse by state →All State Guides
LLC and corporation formation, registered agents, annual reports, taxes, and compliance — by state.
Browse all states →LLC Formation Guide
The complete guide to forming an LLC — benefits, taxation, operating agreements, and the full process.
Read the guide →Annual Reports Guide
Annual report deadlines, fees, and franchise taxes by state — the ongoing costs after formation.
Read the guide →Registered Agent Guide
Required in every state. Compare costs and options — be your own ($0) or use a service ($100–$299/year).
Read the guide →Free Legal Templates
Save $500–$2,000 on legal documents. Operating agreements, bylaws, NDAs, and more — all free.
Browse templates →Business Filing Fees FAQ
Quick answers to the most common questions about formation costs.
What’s the absolute cheapest way to form a business?
A sole proprietorship costs $0 — no formation filing required. But it offers zero liability protection. For a formal entity, Kentucky ($40 LLC), Mississippi ($50 LLC, no annual report), or New Mexico ($50 LLC, no annual report) are the cheapest. Add a free EIN, free operating agreement template, and be your own registered agent — total cost: $40–$50.
Why does California charge $800 for every LLC?
California’s $800 annual franchise tax is a privilege tax — you pay for the right to exist as an LLC in California, regardless of revenue. It’s due by April 15 each year starting in the LLC’s second year (first year is exempt). LLCs earning over $250,000 pay an additional fee ranging from $900 to $11,790 on top of the $800. This makes California the most expensive state for small, low-revenue LLCs.
Is it worth paying for expedited processing?
Only if you need to operate immediately. Standard processing (3–10 days) is included in the base filing fee. Expedited processing adds $25–$1,000+ depending on the state and turnaround time. If you can wait a week, save the money. If you need to open a bank account or sign a contract this week, expedited processing is worth the premium.
Do I have to pay a registered agent?
No — you can serve as your own registered agent for free if you have a physical address in the state and are available during business hours. But your home address becomes public record and you must always be available to accept process. Most business owners pay $100–$299/year for a professional service to maintain privacy and ensure reliable document acceptance.
What’s the difference between a filing fee and a franchise tax?
A filing fee is a one-time charge to create or update your entity with the state. A franchise tax is an ongoing annual tax on the privilege of existing as a business entity — owed regardless of revenue. Not all states charge franchise taxes. Some states (Delaware, California) charge both. They’re separate obligations with separate deadlines.
Are these fees tax-deductible?
Yes. State filing fees, annual report fees, franchise taxes, and registered agent fees are generally deductible as ordinary business expenses on your tax return. Formation costs may need to be amortized over 15 years under IRC Section 195, but the first $5,000 can typically be deducted in the year incurred (for businesses with under $50,000 in startup costs).
Know the Cost. Start with Confidence.
Now that you know what it costs, take the next step. Form your LLC or corporation with step-by-step guidance.
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