LLC Cost Estimator

Forming a US LLC looks cheap on the surface, some states advertise filing fees under $100. But the sticker price is rarely the real cost. Between state filing fees, registered agents, annual reports, franchise taxes and state-specific quirks, the true first-year and ongoing cost varies widely depending on where you form. The estimator above gives you a realistic comparison. This guide explains what drives the differences and how to choose.

The cost components every LLC has

Wherever you form, four cost buckets show up:

• State filing fee. The one-time charge to create the LLC, ranging from around $50 to $300 depending on the state.
• Registered agent. A person or company with a physical address in the formation state who receives legal and state mail on your behalf. Required in every state, and essential if you don't live there. Typically $100–$150 a year.
• Annual report or franchise tax. An ongoing fee to keep the LLC in good standing. This is where states diverge most, from $0 to $800+ a year.
• State-specific extras. Publication requirements, gross-receipts taxes, or minimum taxes that can dwarf the headline fees.

The popular states, compared

Delaware is the classic choice for startups planning to raise venture capital. Its business law is the most developed in the country, courts understand corporate disputes, and investors are comfortable with it. The trade-off is a flat $300 annual franchise tax for LLCs and slightly higher complexity. For a company that intends to raise money or eventually convert to a C-corp, Delaware is often worth it.

Wyoming is the favorite for low-cost, private holding companies and solo operators. No state income tax, strong privacy, and a small annual fee. For a simple online business or a non-resident who just needs a clean US entity, Wyoming is hard to beat on cost.

New Mexico is the cheapest to maintain, low filing fee and no annual report, but has less established case law, so it suits very simple, low-risk businesses more than companies expecting disputes or investment.

California is the cautionary tale: an $800 minimum franchise tax every single year, owed even by an LLC with no profit. If you live and operate in California, you generally can't escape it by forming elsewhere, the state taxes LLCs "doing business" there regardless of formation state. Forming in Wyoming to dodge California tax while operating in California usually just creates two filings and two costs.

Texas and Florida appeal to residents of those states: no personal state income tax, reasonable fees, and no need to register a "foreign" entity if you live there.

The "form where you operate" rule

The single most common mistake is forming in a "cheap" or "private" state when you actually live and work somewhere else. If you operate your business from State A, you generally must register your out-of-state LLC as a foreign LLC in State A anyway, paying fees and an agent in both states. For most small businesses, forming in your home state is simpler and cheaper. The exception is a genuinely location-independent business (common for non-residents and online founders) where Wyoming or Delaware makes sense as a base.

Extra costs for non-US residents

If you're forming from outside the US, budget for a few things the estimator hints at. You'll need a registered agent in the formation state (you can't be your own). You'll need an EIN (employer identification number) from the IRS, which is more involved without a Social Security number but entirely doable. And you'll likely want help with US banking, which has gotten stricter for non-residents. None of these are dealbreakers, they're just steps that a formation service that handles non-residents manages end to end.

What the estimator leaves out, on purpose

The tool shows government and registered-agent costs, the unavoidable, state-driven numbers. It deliberately excludes service fees, EIN handling, and ongoing compliance, because those depend on how much you do yourself. It also can't capture every state quirk (New York's publication requirement, for instance, can add hundreds to over a thousand dollars). Treat the result as a solid baseline for comparing states, then get a flat quote for the full picture.

Don't forget the costs after formation

Formation is a one-time event; running the company is ongoing. Beyond the annual state fees, a US LLC typically needs bookkeeping, an annual tax return, and, for foreign-owned single-member LLCs, a Form 5472 filing that carries a steep penalty if missed. Many low-cost formation mills set up the entity and disappear, leaving owners non-compliant within a year. The smarter path is forming with a firm that also handles the filings and the books afterward, so the company stays in good standing and you're never blindsided by a deadline you didn't know existed.

Choosing the right state for you

Use the estimator to compare two or three states side by side on real first-year and ongoing cost. Then weigh the non-cost factors: are you raising money (lean Delaware), do you want low-cost privacy (lean Wyoming), do you operate from a specific state (form there). The cheapest filing fee is almost never the deciding factor, the ongoing tax and your actual operations are. When you're ready, our team forms the entity correctly, secures your EIN and registered agent, and keeps it compliant year after year.

The hidden costs people forget to budget

Beyond the government fees the estimator shows, a few costs reliably surprise new owners. New York's publication requirement obliges new LLCs to publish formation notices in two newspapers, which in some counties runs well over a thousand dollars, far more than the filing fee itself. A few states levy gross-receipts or franchise taxes that scale with revenue rather than profit, so a high-revenue, low-margin business can owe more than expected. And if you register your LLC in one state but operate in another, you pay two sets of agent fees and annual reports, not one.

Then there's the cost of doing it wrong: a missed annual report can push your LLC into "not in good standing," risking administrative dissolution and the loss of liability protection that was the whole point of forming. Reinstating a dissolved LLC costs more than maintaining it ever would have. Budgeting for the boring annual upkeep is cheaper than fixing a lapse.