LLC Formation Cost: What You’ll Actually Pay in Every State (2026)

Quick Answer

Forming an LLC costs the state filing fee ($35 to $500 depending on state) plus optional service fees. Northwest Registered Agent at $39 and Bizee at $0 are the best-value 2026 options. Budget $289 (Northwest) or $298 (Bizee). Then follow our post-formation checklist over three years, including registered agent renewals and compliance fees.

The filing fee to create an LLC ranges from $35 to $520 depending on your state. But the filing fee is one line item (see the hidden costs below). Registered agent service, annual reports, state franchise taxes, and optional add-ons (EIN, operating agreement) add $0 to $1,000+, see what’s actually included, in year one alone. This guide breaks down every cost category with real 2026 numbers so you can budget accurately before filing.

Bottom line: Most LLC owners spend $74-$400 in their first year (state fee + registered agent). Using Northwest Registered Agent at $39 (includes free registered agent for year one) keeps your non-state costs as low as possible.

Quick Cost Summary

State Filing Fees: The Complete 2026 Table

This is the one-time fee your state charges to process your Articles of Organization. It is non-negotiable, every LLC pays this regardless of whether you file yourself or use a service.

Low-Cost States ($35-$75)

Mid-Cost States ($100-$200)

High-Cost States ($200-$520)

The Costs Nobody Tells You About

The filing fee gets all the attention. These are the expenses that inflate your real LLC cost:

1. Registered Agent Service ($0-$300/year)

Required in all 50 states. You can be your own agent for $0, but your home address goes on public record. Professional services cost $39-$300/year.

Registered agent pricing comparison:

Key insight: The “free formation” providers make their money on registered agent renewals. A $0 formation with a $199/year registered agent costs $398 over 3 years. Northwest’s $39 formation with $125/year renewal costs $289 over 3 years, $109 less, the lowest total among major providers. Bizee comes close: its $149/year renewal makes the 3-year total $298, with more limited support.

→ See our complete comparison of LLC formation services

2. State Franchise or Privilege Taxes ($0-$800/year)

Some states impose annual taxes just for the privilege of having an LLC registered there, regardless of your revenue:

California deserves special attention. The $800 annual franchise tax applies to every LLC regardless of income. If your California LLC earns $5,000/year in profit, you’re paying a 16% effective tax rate on the franchise tax alone. For low-revenue California businesses, a sole proprietorship may be more cost-effective until revenue justifies the LLC’s liability protection.

3. New York Publication Requirement ($200-$1,500+)

New York requires new LLCs to publish a formation notice in two newspapers (one daily, one weekly) in the county where the LLC is located for six consecutive weeks. Costs vary dramatically by county:

• Albany County: ~$200-$400
• Manhattan (New York County): $1,000-$1,500+
• Brooklyn (Kings County): $400-$800

This is a one-time cost but catches most first-time LLC owners off guard.

4. EIN Application ($0 DIY, $50-$100 via service)

The IRS provides EINs for free at irs.gov/ein. The application takes 5 minutes online. Formation services charge $50-$100 for this task. There is no reason to pay for it unless you’re a non-US resident.

5. Operating Agreement ($0-$500)

Not a state-charged fee, but a practical necessity. Free templates are available online. Attorney-drafted versions cost $200-$500. Formation services offer templates for $50-$100.

Original Research: The 3-Year Total Cost Model

We calculated the true 3-year cost of owning an LLC in the 10 most popular formation states, including filing, registered agent (via Northwest Registered Agent), annual reports, and franchise taxes:

Findings:

1. Colorado ($369) and Montana ($384) are the cheapest states for 3-year LLC ownership, low filing fees, low annual reports, no franchise taxes.
2. California ($1,999) is the most expensive due to the $800 annual franchise tax, it’s 5x the cost of Colorado.
3. Delaware ($1,199) is expensive despite its “business-friendly” reputation. The annual tax, raised to $400 from tax year 2026, adds up. Only worth it if you’re raising venture capital or need Delaware’s Court of Chancery.
4. Wyoming ($569) and Texas ($589) are mid-range, reasonable filing fees, no income tax, but not the cheapest for ongoing costs.
5. New York looks cheap on paper but the publication requirement adds $200-$1,500 in hidden one-time costs.

The Cheapest Way to Form an LLC (Decision Tree)

If you want the absolute lowest cost:

1. Form in your home state (avoid double registration fees)
2. Be your own registered agent ($0, but address goes public)
3. File online directly with your Secretary of State (state fee only)
4. Use a free operating agreement template
5. Apply for EIN yourself at IRS.gov (free, 5 minutes)

Total: State filing fee only ($35-$520)

If you want low cost with address privacy and compliance support:

1. Use Northwest Registered Agent ($39 + state fee), includes formation + registered agent year 1 + free business address, mail scanning, phone line, business email, domain, website, and brand protection
2. Apply for EIN yourself (free)
3. Use their included operating agreement template (free with $39 package) or a free one online

Total: $39-$89 + state filing fee

→ Read our step-by-step LLC formation guide for the complete process.

When Paying More Actually Saves Money

Not every LLC owner should optimize for the cheapest option:

• If you’re forming in a complex state (New York, California), a formation service ensures you don’t miss state-specific requirements like publication rules or franchise tax deadlines. Missing California’s franchise tax deadline costs $250+ in penalties.
• If you have multiple members An attorney-drafted operating agreement ($200-$500) prevents disputes that could cost thousands in litigation.
• If you need fast turnaround Expedited state processing ($25-$100) plus a service that submits quickly can get your LLC approved in 1-2 days instead of 2-4 weeks.
• If privacy matters The $39-$125/year cost of a registered agent service keeps your home address off public databases. That’s worth it if you receive solicitation mail, have safety concerns, or simply don’t want your address on the internet.

Next Steps

1. Know your state’s costs? → Follow our step-by-step formation guide
2. Want to compare formation services? → See our top 5 comparison
3. Ready to file? → Start with Northwest Registered Agent for $39
4. Need the cheapest option? → Bizee files for $0 + state fee
5. Want a deep dive on our #1 pick? → Read the full Northwest RA review

→ Browse all LLC formation guides for more resources.

→ Form Your LLC with Northwest for $39

→ Form Your LLC with Bizee for $0

Watch out for hidden fees: Many “$0 formation” services bury auto-renewing subscriptions in checkout. Read our LLC formation scams to avoid guide before signing up anywhere.

Not sure which service fits your budget? Our step-by-step guide on how to choose an LLC formation service walks you through pricing tiers, feature checklists, and red flags so you can match a provider to your exact needs.

Considering an LLC vs staying a sole proprietor? Our LLC vs sole proprietorship comparison shows exactly when the liability protection and tax benefits justify the cost. Freelancers should also check our LLC guide for freelancers and consultants.

Remember: formation is just the first cost. Review our annual LLC compliance requirements by state to budget for ongoing fees like annual reports, franchise taxes, and registered agent renewals that vary dramatically by state.

Best LLC service by state

The best formation service can vary by state due to different filing fees, processing times, and requirements. We’ve published detailed state-specific guides to help you choose:

• Alabama
• Alaska
• Arizona
• Arkansas
• California
• Colorado
• Connecticut
• Delaware
• Florida
• Georgia
• Hawaii
• Idaho
• Illinois
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana
• Maine
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Mississippi
• Missouri
• Montana
• Nebraska
• Nevada
• New Hampshire
• New Jersey
• New Mexico
• New York
• North Carolina
• North Dakota
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• Tennessee
• Texas
• Utah
• Vermont
• Virginia
• Washington
• Washington DC
• West Virginia
• Wisconsin
• Wyoming

Why I Choose Northwest Registered Agent

After forming 3 LLCs myself and helping clients through the process, I keep coming back to Northwest Registered Agent. Here is why:

• Remarkable Customer Support: Quick, human responses every time.
• Caring & Privacy-Focused: Genuine service with full respect for your privacy.
• Lightning-Fast Formation: Often faster than promised.
• Incredible Value: $39 includes free business address, mail scanning, phone line, business email, domain name, website, and brand protection.
• Clear & Transparent: No hidden fees or surprises.

Ready to form your business? Choose Northwest today!

Two ways to get started with Northwest, both the same $39 + state fee offer:

See the $39 Package First →
Start My LLC Now →

“See the $39 Package First” opens Northwest’s offer page so you can review everything that is included before you commit. “Start My LLC Now” takes you straight into the formation wizard to begin right away.