Cheapest states to form an LLC
Ranked by estimated state fees over five years (formation, any year-one extras, four years of filing fees and, where a state charges one, five years of its mandatory annual state tax). The cheapest is Arizona at $50.
| # | State | Formation | Year one | Annual (incl. state tax) | 5-yr state costs | Data |
|---|---|---|---|---|---|---|
| 1 | Arizona | $50 | $50 | $0 | $50 | Checked against official state sources (October 2026) |
| 2 | Mississippi | $50 | $50 | $0 | $50 | Checked against official state sources (October 2026) |
| 3 | Missouri | $50 | $50 | $0 | $50 | Checked against official state sources (October 2026) |
| 4 | New Mexico | $50 | $50 | $0 | $50 | Checked against official state sources (October 2026) |
| 5 | Ohio | $99 | $99 | $0 | $99 | Checked against official state sources (October 2026) |
| 6 | Idaho | $100 | $100 | $0 | $100 | Checked against official state sources (October 2026) |
| 7 | Hawaii | $51 | $51 | $12.50 | $101 | Checked against official state sources (October 2026) |
| 8 | Iowa | $50 | $50 | $15 | $110 | Checked against official state sources (October 2026) |
| 9 | Michigan | $50 | $50 | $15 | $110 | Checked against official state sources (October 2026) |
| 10 | South Carolina | $110 | $110 | $0 | $110 | Checked against official state sources (October 2026) |
| 11 | Montana | $35 | $35 | $20 | $115 | Checked against official state sources (October 2026) |
| 12 | Utah | $59 | $59 | $18 | $131 | Checked against official state sources (October 2026) |
| 13 | Colorado | $50 | $50 | $25 | $150 | Checked against official state sources (October 2026) |
| 14 | Nebraska | $100 | $100 | $12.50 | $150 | Checked against official state sources (October 2026) |
| 15 | Pennsylvania | $125 | $125 | $7 | $153 | Checked against official state sources (October 2026) |
States with no recurring state fee
Alabama, Arizona, Idaho, Minnesota, Mississippi, Missouri, New Mexico, Ohio, South Carolina, Texas charge no recurring filing fee and no mandatory annual state tax in our data. Some still have reporting, income-based tax or local requirements; open each state to check.
Want someone else to handle the filing?
A formation service files the paperwork for a fee on top of the state fee and often includes a first year of registered agent service. It saves time, but you can file directly with the state for the state fee alone. Compare DIY and services.
See a formation service (partner link) Sponsored
Fee data: official state government pages and statutes (checked October 28–29, 2026); sources are linked on each state page. See our methodology. Not legal or tax advice.