State Filing Fees Breakdown: Where It’s Cheapest to Form an LLC

Starting a limited liability company (LLC) is considered one of the best ways to protect personal assets. However, it can be costly to form one.

Filing fees for LLCs vary by state, and choosing where to form your company can have lasting financial implications. Beyond initial filing fees, you must consider other costs such as renewal fees, publication requirements, and ongoing compliance costs. We’ve broken down these costs by state below.

Key Takeaways

• LLC filing fees vary significantly by state, ranging from approximately $35 to over $ 500.
• Some states impose annual reports or franchise taxes, which increase ongoing costs.
• Kentucky, Arizona, and Mississippi remain the most affordable states for forming an LLC in 2025.
• Though pricier, Nevada and Delaware offer strong privacy and pro-business laws.
• A low-cost state only makes sense if it fits your business location and compliance needs.

Understanding State Filing Fees

LLC filing fees are the initial costs you pay to the Secretary of State (or equivalent agency) when submitting your Articles of Organization. These fees cover the administrative work required to register your business officially.

The filing fee typically applies only once during formation, but you may incur recurring fees, such as annual reports or franchise taxes, depending on the state.

Cheapest States to Form an LLC in 2025

These states keep costs low without heavy compliance burdens. New Mexico and Mississippi have no annual report requirements, allowing owners to operate with minimal expenses.

Mid-Range States with Balanced Costs and Benefits

These states strike a balance between affordability and regulatory ease. For instance, Florida offers online filing and strong support for small businesses despite moderate costs.

Most Expensive States to Form an LLC

While Massachusetts and California are among the priciest, Nevada and Delaware stand out for their strong privacy laws, asset protection, and business-friendly legal systems.

Hidden or Additional LLC Costs to Consider

Registered Agent Fees

Most states require LLCs to maintain a registered agent, a person or service responsible for receiving legal documents on a business’s behalf. Hiring a professional registered agent may cost between $100 and $300 per year.

Annual or Biennial Reports

States use annual or biennial reports to keep business records up to date. Missing a deadline can result in late penalties or administrative dissolution. Fees range from $0 to $500.

Publication Fees

New York, Arizona, and Nebraska require new LLCs to publish a notice in local newspapers. Publication costs vary from $100 to over $1,200, depending on location and newspaper rates.

State Business License or Franchise Taxes

Some states, notably California, Texas, and Nevada, charge annual business license fees or franchise taxes. These are not based on profit but on gross receipts or flat rates.

Expedited Filing or Certified Copy Fees

If you need your LLC formed quickly, most states offer expedited processing for an additional fee ($25–$150). Certified copies of LLC documents also incur extra charges.

Choosing the Right State for Your LLC

The best state for your LLC depends on your business goals, budget, and privacy needs.
While low-cost states can save you money initially, forming outside your home state can create foreign qualification costs — requiring you to pay filing and renewal fees in multiple states.

For most small business owners, it’s best to form your LLC in your home state, unless you have specific reasons to register elsewhere (like tax benefits or asset protection).

How to Calculate Your True LLC Costs

To get an accurate estimate, consider both initial and recurring costs:

1. Filing fee – State charge to form your LLC.
2. Registered agent – Required in nearly every state.
3. Annual or biennial report – Renewal to maintain good standing.
4. Franchise or business license tax – Annual charge in some states.
5. Publication or additional filings – State-specific requirements.

Example:

If you form an LLC in Nevada, expect to pay:

• $425 for your initial filing
• $350 for annual renewal (Annual List of Members or Managers + state business license)
• $150 for your registered agent

That’s roughly $925 for the first year, and $500 annually thereafter.

Frequently Asked Questions

Which state has the cheapest LLC filing fee in 2025?

Kentucky currently has the lowest LLC filing fee at just $40. Arizona and Mississippi follow closely, each charging around $50 to form an LLC.

Are there any states that do not charge annual LLC fees?

Yes, a few states, like Arizona, New Mexico, and Missouri, have no yearly reporting or renewal fees. This makes them great options for businesses seeking minimal ongoing costs.

Is it better to form an LLC in a low-cost state even if I live elsewhere?

Not always, since forming out of state can trigger extra filings and foreign registration costs. It’s often more efficient to form your LLC in the state where you primarily operate.

What is the average cost to start an LLC in the US?

Most states charge between $100 and $150 to form an LLC. However, overall startup costs can rise depending on licenses, agents, and taxes.

Do online filing methods reduce costs?

Yes, many states give discounted rates for online LLC filings. It’s also faster and eliminates mailing delays or paperwork errors.

How much do registered agent services cost annually?

A registered agent may cost between $100 and $200 per year. The price depends on the provider’s features and service quality.

What’s the difference between filing fees and franchise taxes?

Filing fees are paid once when forming your LLC. Franchise taxes are annual payments that help maintain your company’s good standing.

Which states are best for online or remote businesses?

Nevada, Wyoming, and Delaware are popular among online business owners. They offer strong privacy protection and favorable tax treatment.

Can I change the state of my LLC later?

Yes, but moving your LLC’s registration, called domestication, can be complex. Not all states allow it, and the process may involve additional costs.

How do I find my state’s latest filing fees?

Visit your Secretary of State’s official website for the most current fee list. It provides official guidance and links for online submission.

Expert Tips from NCH

1. Look Beyond the Filing Fee – The cheapest state upfront isn’t always the most cost-effective in the long term. Evaluate renewal costs, taxes, and compliance obligations.
2. Prioritize Where You Do Business – Forming an out-of-state LLC can trigger “foreign LLC” registration fees, which often cost more than local formation.
3. Consider Asset Protection States – States like Nevada and Wyoming offer strong liability shields that may outweigh higher fees.
4. Use a Professional Registered Agent – A reliable registered agent keeps you compliant and ensures you don’t miss legal notices.
5. Plan for Growth – If you expect to expand across states, consider starting in a jurisdiction known for its favorable business laws, such as Nevada or Delaware.

Location Matters

Forming your LLC in the right state can save you money, simplify management, and strengthen your legal standing. While some states offer lower costs upfront, others provide stronger legal protection, privacy, or tax advantages that may justify higher fees. Evaluating both initial and recurring expenses ensures your decision supports your company’s long-term success.

Get Started Today

At NCH, we help you form and maintain your LLCs efficiently, affordably, and in full compliance with state regulations. Whether you’re starting in Nevada, Wyoming, or your home state, our experts will register your new business for you.

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DISCLAIMER: The above material has been prepared for informational purposes only, containing opinions of the provider and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Please consider consulting tax, legal, and accounting advisors before engaging in any transaction.