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LLC annual cost by state
The formation fee is the cheapest part of owning an LLC. The annual report, franchise tax, registered agent and federal filing are what you pay every year. Pick a state and see the first-year and ongoing cost side by side.
- Built by a team of Certified Accountants, CPAs and Enrolled Agents
- 2026 figures
- Estimate only, not advice
State fees from our 50-state dataset (checked 2026-09 against official sources; some states charge franchise or gross-receipts tax on top once revenue passes a threshold). Registered agent and CPA figures are typical market prices, editable above.
The yearly cost has four parts
- The state's annual charge. An annual report fee, a franchise tax, or both. Delaware charges LLCs a flat $300 every June; California charges a minimum $800 franchise tax; Texas wants a franchise tax report by May 15 even when nothing is due; New Mexico, Arizona, Missouri and Ohio want nothing at all.
- A registered agent. Required in every state, with a physical in-state address. Commercial agents charge roughly $50 to $200 a year. Owners living in the state can be their own agent and pay nothing, at the cost of their home address becoming public.
- The federal return. Schedule C, Form 1065, Form 1120-S, or Form 5472 with a pro forma 1120 for a foreign-owned LLC. Free if you do it yourself and get it right; from $99 with us; several hundred dollars at a local CPA.
- Bookkeeping, if you want the return to be built on reconciled numbers rather than a shoebox.
What the cheap states are not telling you
State choice changes state fees and state tax. It does not change federal tax, and it does not change where you actually have to register. An LLC formed in Wyoming but run from a desk in California is doing business in California, owes the $800 minimum tax there, and now has two states of fees instead of one. The cheapest state is the one where the business genuinely operates. For a non-US owner with no US operations, Wyoming, New Mexico and Delaware are the usual candidates, and the differences between them are a few hundred dollars a year and how familiar banks are with each.
Costs this calculator leaves out
- Franchise or gross-receipts taxes that only apply above a revenue threshold (Texas, Ohio, Washington, Nevada, Tennessee).
- State income tax on the owner's share of profit.
- Sales tax registration and returns.
- Business licences, which some cities and counties require separately.
- New York's LLC publication requirement, which can exceed $1,000 in New York County.
- Dissolution fees when the LLC closes; an LLC that is abandoned rather than dissolved keeps accruing annual charges.
Questions people ask
Which state is cheapest to keep an LLC in?
New Mexico has no annual report and no annual fee; Arizona, Missouri and Ohio are similar. Wyoming's $60 minimum is close. The saving versus Delaware is a few hundred dollars a year; the right state is still where you operate.
Do I need a registered agent if I live in the state?
You can act as your own agent in most states if you have a physical address there and are available in business hours. The trade-off is privacy: the address goes on the public record.
Does a foreign-owned LLC pay more?
Not in state fees. It does have an extra federal filing (Form 5472 with a pro forma 1120) and cannot elect S-corp status. The calculator's federal return line covers the 5472 at the same from-$99 price.
What happens if I stop paying the annual fee?
The state marks the LLC delinquent, then revokes or administratively dissolves it, with late fees and reinstatement costs. Banks and payment processors check good standing; a lapsed LLC can lose its accounts.
Is the formation fee a one-off?
Yes. Everything else on the list repeats every year for as long as the LLC exists, including years with no activity.
Can you form the LLC and handle the annual filings?
Yes. Formation, EIN, registered agent coordination and a first-year compliance calendar are one fixed fee; the annual report and federal return then run on a schedule we track.
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