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Cheapest State to Form an LLC and Keep It Cheap (2026)
The cheapest state to form an LLC is not always the cheapest to keep. Here are the states with the lowest cost to start, the lowest yearly cost, and the one that wins on both.
The cheapest state to form an LLC is New Mexico: it has one of the lowest filing fees and no annual report or yearly state fee, so it stays cheap every year. Our all-in New Mexico package is $190. Montana and Wyoming are next for first-year cost, and Wyoming costs $60 a year after that.
Cheapest States to Start an LLC
These are the lowest all-in first-year prices, including the state filing fee, registered agent, EIN and US mailing address:
| Rank | State | First-year package (all-in) | Yearly state cost after that |
|---|---|---|---|
| 1 | New Mexico | $190 | $0, no annual report |
| 2 | Montana | $199 | Annual report due April 15 |
| 3 | Wyoming | $199 | $60 annual report for most small LLCs |
| 4 | Kentucky | $204 | $15 annual report |
| 5 | Arkansas | $209 | $150 annual franchise tax report |
| 6 | Colorado | $214 | Periodic report |
| 7 | Iowa | $214 | Biennial report |
| 8 | Michigan | $214 | $25 annual statement |
| 9 | Arizona | $216 | $0, no annual report |
| 10 | Missouri | $216 | $0, no annual report |
Cheapest States to Keep an LLC Every Year
The filing fee is paid once. The yearly fee is paid for as long as the LLC exists, so over a few years it matters more:
- $0 a year, no annual report: New Mexico, Arizona, Ohio, Missouri and most South Carolina LLCs
- $0 to file the report: Idaho, Minnesota and Mississippi
- Under $30 a year: Pennsylvania ($7), New York ($9 every two years), Kentucky ($15), Utah ($18), Michigan ($25), Oklahoma ($25), West Virginia ($25)
Full details for every state are in our LLC annual report by state guide.
Cheapest State Overall: New Mexico
New Mexico is the only state that ranks first on both lists: the lowest first-year price and no yearly state fee or report. Over five years, a New Mexico LLC costs only the first-year package plus registered agent renewals. That is why it is the most popular choice for freelancers and small online businesses run from outside the US. Wyoming costs about $60 a year more but is the better-known state; compare them in Wyoming vs New Mexico.
Most Expensive States for an LLC
- Massachusetts: $664 to start and a $500 annual report
- Nevada: $600 to start and about $350 every year
- Tennessee: $472 to start and at least $300 a year
- California: a low filing fee, but an $800 minimum franchise tax every year
- Delaware: $400 annual LLC tax
Is the Cheapest State Always the Right Choice?
If you live outside the US, usually yes: pick New Mexico or Wyoming and keep your costs low. If you live in a US state and run the business there, your home state is usually cheaper in practice, because forming elsewhere means registering in your home state as well and paying both states’ fees. See best state for an LLC.
LLC Cost in All 50 States
Every state’s all-in first-year package and its yearly state filing, so you can compare the full picture in one table:
| State | First-year package (all-in) | Yearly state filing |
|---|---|---|
| Alabama | $403 | Annual report + business privilege tax |
| Alaska | $414 | Biennial report, every 2 years |
| Arizona | $216 | No annual report |
| Arkansas | $209 | Annual franchise tax report |
| California | $234 | $800 yearly franchise tax |
| Colorado | $214 | Periodic report $25 |
| Connecticut | $284 | Annual report |
| Delaware | $274 | $400 annual tax by June 1 |
| Florida | $299 | Annual report $138.75 by May 1 |
| Georgia | $274 | Annual registration $60 by April 1 |
| Hawaii | $218 | Annual report |
| Idaho | $268 | Annual report |
| Illinois | $320 | Annual report |
| Indiana | $262 | Business entity report, every 2 years |
| Iowa | $214 | Biennial report, odd-numbered years |
| Kansas | $324 | Annual report |
| Kentucky | $204 | Annual report |
| Louisiana | $294 | Annual report |
| Maine | $339 | Annual report |
| Maryland | $269 | Annual report + personal property return |
| Massachusetts | $664 | Annual report |
| Michigan | $214 | Annual statement |
| Minnesota | $319 | Annual renewal |
| Mississippi | $218 | Annual report |
| Missouri | $216 | No annual report required |
| Montana | $199 | Annual report by April 15 |
| Nebraska | $267 | Biennial report, odd years + newspaper publication requirement |
| Nevada | $600 | $350 every year |
| New Hampshire | $266 | Annual report |
| New Jersey | $268 | Annual report |
| New Mexico | $190 | No annual report |
| New York | $364 | $9 biennial statement |
| North Carolina | $292 | Annual report $200 by April 15 |
| North Dakota | $299 | Annual report |
| Ohio | $263 | No annual report |
| Oklahoma | $268 | Annual certificate |
| Oregon | $264 | Annual report |
| Pennsylvania | $289 | Annual report $7 by September 30 |
| Rhode Island | $320 | Annual report |
| South Carolina | $289 | No annual report required |
| South Dakota | $318 | Annual report |
| Tennessee | $472 | Annual report |
| Texas | $450 | Franchise tax report by May 15 |
| Utah | $225 | Annual renewal |
| Vermont | $320 | Annual report |
| Virginia | $264 | $50 annual registration fee |
| Washington | $364 | Annual report |
| West Virginia | $267 | Annual report |
| Wisconsin | $299 | Annual report |
| Wyoming | $199 | Annual report from $60 |
The Hidden Cost of Forming in Another State
A cheap state only saves money if you do not also have to register somewhere else. If you live and run your business in a US state, that state usually treats your out-of-state LLC as doing business there. You then register it as a foreign LLC at home, pay your home state’s fees and yearly report, and keep paying the cheap state’s fees and a registered agent as well. For founders who live outside the US, this problem does not exist, which is why they can simply pick the cheapest state.
How to Choose: A Simple Decision Framework
- You live outside the US: choose New Mexico for the lowest cost, or Wyoming for the best-known state.
- You live in a US state and work there: form in your home state.
- You will raise money from US investors: Delaware, usually as a C corporation.
- You want privacy: New Mexico or Wyoming. See anonymous LLC.
Cheapest State for an LLC: FAQs
What is the cheapest state to form an LLC?
New Mexico. It has a low filing fee and no annual report, so it is the cheapest to start and the cheapest to keep.
Which states have no annual LLC fee?
New Mexico, Arizona, Ohio, Missouri and most South Carolina LLCs have no annual report. Idaho, Minnesota and Mississippi require a report but charge nothing to file it.
Is Wyoming cheaper than Delaware?
Yes. Wyoming’s annual report is $60 for most small LLCs, while Delaware charges a $400 annual LLC tax.
What is the most expensive state for an LLC?
California, because of its $800 minimum franchise tax every year. Massachusetts ($500 annual report) and Nevada (about $350 a year) are also expensive.
What is the cheapest state for a non-US resident?
New Mexico. Founders outside the US can form in any state, and New Mexico has the lowest first-year and yearly cost.
Is it cheaper to form an LLC in Wyoming or Delaware?
Wyoming. Its first-year package is lower and its yearly report is $60 for most small LLCs, compared with Delaware’s $400 annual LLC tax.
Does forming in a cheap state save money if I live in another US state?
Usually not. You would also have to register the LLC in your home state and pay its fees, so forming at home is often cheaper overall.
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Start the Cheapest LLC to Keep
New Mexico: no annual report, no yearly state fee. State fee, agent, EIN and US address included.
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