SnapTool Logo
SnapToolSnap. Solve. Done.

LLC Formation Cost Estimator

Compare LLC filing fees, annual franchise taxes, and ongoing compliance expenses across all 50 US states. Project a detailed 3-year expense curve and make informed business choices.

Last Updated: May 2026
Live Interactive Calculator
i

FTC Affiliate Disclosure: This calculator is supported by our readers. Some links on this page may be affiliate recommendations. We may receive commissions if you choose to sign up or purchase a service, at no additional cost to you. This does not impact the independence or accuracy of our calculations.

Filing Preferences

Using a professional service keeps your home address off of public business registry records.

Texas LLC Cost Breakdown

3-Year Projected CostSetup + 3 Years of compliance fees
$675
One-time Startup CostFiling Fee: $300
$300
Annual Recurring CostState: $0/yr + Agent: $125/yr
$125/yr
Processing: ~2-3 days

State Notes: No state income tax; annual franchise tax information report required.

LLC Filing comparison of popular incorporation states

US StateFiling FeeAnnual FeePrimary AdvantageQuick Action
Delaware$90$300Standard for startups
Wyoming$100$60Low annual costs
Florida$125$139Highly popular
Texas$300$0No franchise tax fee
Nevada$425$350No state income tax
California$70$800Flat $800 annual tax

Understanding LLC Formation Costs

When starting a new business, one of your first legal decisions is choosing the corporate entity. For most small business owners, freelancers, and startups, a **Limited Liability Company (LLC)** offers the perfect balance of liability protection, simplicity, and tax flexibility (pass-through taxation).

However, the cost to set up and maintain an LLC is not uniform — it is determined entirely by individual state governments. Before you file, it is vital to calculate both your **one-time upfront filing fees** and **recurring annual maintenance costs** to avoid unexpected financial surprises.

Upfront vs. Ongoing Maintenance Costs

Filing an LLC involves two distinct types of regulatory fees:

  • One-Time Articles of Organization Fee: The initial registration fee paid directly to the Secretary of State. This ranges from $35 in Montana to $500 in Massachusetts.
  • Ongoing Annual Report / Franchise Tax Fees: A recurring compliance fee due every 1 or 2 years to keep your LLC in good legal standing. For example, Delaware charges a flat $300 franchise tax annually, while California charges an $800 minimum franchise tax.

Should You Form an LLC in a "Tax Haven" State?

Many new entrepreneurs read about the benefits of incorporating in Delaware, Nevada, or Wyoming and assume they should automatically file there. However, for a standard local business or physical store, this is often a costly mistake.

If you form an LLC in Wyoming but physically operate in California, you will be legally required to register your Wyoming LLC as a **Foreign LLC** in California. This means you will end up paying filing fees, annual report fees, and registered agent services in **both** states!

The Golden Rule: If you are a local physical business or a solo freelancer, form the LLC in your home operating state. If you are an online e-commerce brand or plan to raise institutional venture capital, incorporating in Delaware or Wyoming is highly strategic.

3-Step LLC Setup Guide

  1. Choose a State and Name: Verify that your desired business name is completely unique by performing a lookup on your state's business registry.
  2. Appoint a Registered Agent: Select a professional registered agent service to protect your home address privacy and handle service of process.
  3. File Articles of Organization: Submit your formation documents online to your Secretary of State and pay the designated filing fee.

Frequently Asked Questions

Which US state is the cheapest to start an LLC?

Montana is currently the cheapest state to start an LLC, with a one-time filing fee of just $35 and a low annual renewal fee of $20. Kentucky is also very affordable, charging a $40 filing fee and $15 annual report fee. However, you should generally form your LLC in the state where your physical business operates to avoid foreign LLC registration fees.

What ongoing annual fees do LLCs have?

Most states require LLCs to file an Annual or Biennial Report to keep their records active. These fees vary wildly: Texas charges $0, Colorado charges $10, Delaware charges $300, and California imposes a flat $800 minimum annual franchise tax regardless of whether your business made a profit.

Should I form my LLC in Delaware or Wyoming?

Delaware is the gold standard for high-growth startups planning to seek venture capital or angel funding because of its highly developed business courts (Court of Chancery). Wyoming is excellent for smaller e-commerce and privacy-focused businesses because of its low $60 annual report fee and robust asset protection rules, with zero state income tax.

What is a Registered Agent and is it required?

Yes, every US state legally requires an LLC to maintain a Registered Agent with a physical street address in the state of formation. This agent is responsible for receiving official tax documents and legal service of process (lawsuits). You can act as your own agent for free if you live in that state, or pay a professional service (~$125/year) to secure your personal home privacy.

Are LLC startup costs tax-deductible?

Yes, the IRS allows you to deduct up to $5,000 in business startup and organizational costs in your first year of active operations, provided your total startup expenses are under $50,000. This includes filing fees, legal services, and initial registered agent fees.

Share Feedback or Report an Issue

Help us improve this tool. Report bugs, suggest features, or request data updates!