Why Filing Fees Are Only Half the Story
Most LLC cost guides show you the filing fee. They stop there. But if you're planning to own your LLC for more than a year, the filing fee is just the opening act. What really matters is what you pay every single year to keep your LLC alive.
A state with a cheap filing fee can end up costing you far more over time if the annual renewal fee is high. Nevada charges $425 to form but $350 per year in franchise tax. After three years, you have paid more than Wyoming, which costs only $103.75 to form plus $60 per year.
California is even more extreme. Its annual LLC fee is $800 per year — the most expensive ongoing maintenance cost in the country. A low filing fee means nothing when the renewal eats into your profits every single January.
This guide covers both: filing fees and recurring fees, state by state. You will see the full picture before you decide where to form your LLC. This is especially important for non-resident founders choosing between Wyoming and Delaware, and for US-based founders deciding whether to file in their home state or chase a lower sticker price.
Understanding LLC Costs — Filing Fees vs. Recurring Fees
Every state LLC has two separate cost categories. Understanding the difference saves you money.
Filing Fee
A filing fee is a one-time charge. You pay it when you form your LLC. Montana charges the lowest at just $35. Nevada charges the highest at $425.
No state has a monthly LLC fee. All fees are either one-time or annual/biennial. That matters because some services advertise "low monthly rates" — they hide the real cost structure.
Recurring Fee
A recurring fee is the annual or biennial charge to keep your LLC in good standing. Most states call it a franchise tax or annual report fee. Miss a payment and your state administratively dissolves your LLC.
Dissolution means you lose your liability protection overnight. The LLC ceases to exist legally.
Why Both Matter
A $50 filing fee with a $300 annual renewal costs more over three years than a $200 filing fee with a $50 annual renewal. Many founders fixate on the upfront sticker price.
California is the extreme example. Its filing fee is $70. Its annual LLC fee is $800 per year — the most expensive ongoing cost in the country.
A low filing fee means nothing when the annual renewal eats into your profits every January.
Zero-Report States
Nine states require no annual report and charge no recurring fee: Texas, Missouri, New Mexico, Ohio, South Carolina, Arizona, Idaho, Minnesota, and Mississippi.
"No annual report" does not mean "no paperwork." States like Arizona and Idaho require informational filings. These are not fees — but you must still file them or face penalties.
Even in zero-report states, you still need a registered agent. Most states require this — an individual or service that accepts legal documents on your LLC's behalf. Costs range from $0 if you self-appoint, to $50–$100/year through a professional service.
State-by-State LLC Cost Comparison Table (2026)
The table below compares all 50 states plus Washington DC. Columns: initial filing fee, recurring fee type, recurring amount, first-year total, and three-year total. First-year total = filing fee + one renewal cycle. Three-year total = filing fee + two renewal cycles (biennial states are charged every other year). Registered agent costs ($0–$100/year) are not included — see note below table.
| State | Filing Fee | Recurring Fee | First-Year Total | 3-Year Total |
|---|---|---|---|---|
| Wyoming | $103.75 | $60/yr | $163.75 | $223.75 |
| Arkansas | $45 | $150/yr | $195 | $345 |
| Colorado | $50 | $10/yr | $60 | $70 |
| Montana | $35 | $20/yr | $55 | $75 |
| Michigan | $50 | $25/yr | $75 | $100 |
| Iowa | $50 | $45/2yr | $50 | $95 |
| Hawaii | $50 | $15/yr | $65 | $80 |
| Missouri | $50 | $0/yr | $50 | $50 |
| New Mexico | $50 | $0/yr | $50 | $50 |
| Minnesota | $50 | $0/yr | $50 | $50 |
| Mississippi | $50 | $0/yr | $50 | $50 |
| Texas | $300 | $0/yr | $300 | $300 |
| Delaware | $160 | $300/yr franchise tax | $460 | $760 |
| California | $70 | $800/yr + $20 biennial | $870 | $2,570 |
| Nevada | $425 | $350/yr | $775 | $1,125 |
| Massachusetts | $500 | $500/yr | $1,000 | $1,500 |
| Maryland | $100 | $300/yr | $400 | $700 |
| Washington DC | $99 | $300 biennial | $399 | $699 |
| Tennessee | $300 | $300/yr | $600 | $900 |
| New York | $205 | $9 biennial | $205 | $214 |
Cheapest filing fees cluster between $35–$50. Montana charges the absolute lowest at $35. Eight states charge $50: Colorado, Hawaii, Iowa, Michigan, Minnesota, Mississippi, Missouri, and New Mexico. Arkansas sits just below them at $45.
Most expensive filing fees belong to Massachusetts ($500), Nevada ($425), Tennessee ($300), and Texas ($300). These four states charge 6–10 times more than the cheapest states to file.
Nine states charge zero recurring fees: Texas, Missouri, New Mexico, Ohio, South Carolina, Arizona, Idaho, Minnesota, and Mississippi. Missouri and New Mexico combine a low filing fee with zero recurring cost — making them unusually affordable over a multi-year horizon.
The three-year cost comparison reveals how dramatically state choice compounds over time. Wyoming's three-year total is $223.75. Nevada's three-year total is $1,125 — five times higher. California reaches $2,570. Massachusetts tops the chart at $1,500 — a 6.7x difference versus Wyoming.
Which State Should You Actually Form In?
Lower fees do not automatically mean you should form there. Your residency status changes everything.
Non-US Residents: Choose Wyoming or Delaware
If you live outside the United States, you can form your LLC in any state. Most non-resident founders choose Wyoming or Delaware. Wyoming costs $223.75 over three years with no corporate income tax. Delaware costs $760 over three years but offers the Court of Chancery — a specialized business court that handles complex disputes. For most online businesses, Wyoming is the better value.
US Residents: File in Your Home State
If you live in the US, you should generally form in the state where you reside. Filing in a different state means you pay for your home-state LLC (foreign qualification) on top of your chosen state LLC. That doubles your costs. A California resident who forms in Wyoming still owes California $800/year for the privilege of doing business there.
Frequently Asked Questions
Frequently Asked Questions
The Decision Framework
Your LLC cost depends on three variables: your residency status, the state you choose, and how long you plan to operate. If you are a non-US resident, Wyoming is almost always the right choice. If you live in the US, file at home — the cost of foreign qualification outweighs any filing fee savings.
Run your own 3-year projection before deciding. A $35 filing fee means nothing if the annual renewal costs $300. Use the table above to calculate your specific state combination. The cheapest LLC is the one that costs the least over the life of your business — not the one with the lowest sticker price.