Cost guide
Cheapest states to form an LLC
Which verified states have the lowest LLC formation filing fees and ongoing report or franchise costs — with official sources.
Affiliate disclosure: This article may include affiliate links. If you purchase through them, we may earn a commission at no extra cost to you. Full disclosure.
Not legal or tax advice. General information only.
How we define “cheap”
We look at official state fees we verified, not marketing claims:
- Formation filing fee
- Recurring SOS report fees
- Flat franchise / annual entity taxes
Important: Forming in a “cheap” state while you live and operate elsewhere can trigger foreign qualification fees in your home state and other tax/nexus issues. Cheap formation ≠ cheapest lawful operating structure. Get professional advice.
Lowest formation fees among states we verified
| State | Formation fee | Ongoing highlight |
|---|---|---|
| California | $70 | But $800/yr FTB annual tax — not cheap overall |
| Ohio | $99 | No LLC SOS annual/biennial report |
| Wyoming | $100 | $60 minimum annual license tax |
| Georgia | $110 ($100+$10) | $60 annual registration (usually starts next year) |
| Delaware | $110 | $400 annual tax |
| Florida | $125 | $138.75/yr annual report |
| North Carolina | $125 | $200/yr annual report |
| Illinois | $150 | $75/yr annual report |
| New York | $200 | Publication can dominate total cost |
| Texas | $300 | No SOS annual report; franchise tax often $0 under threshold |
Strong “low ongoing cost” candidates (from this set)
Among the verified set, Ohio stands out for low formation fee and no LLC SOS annual report. Wyoming pairs a $100 formation fee with a $60 minimum annual report/license tax. Texas has a high formation fee but no SOS annual report and a franchise-tax no-tax-due threshold of $2.65 million for 2026 reports.
California’s $70 formation fee is low, but the $800 FTB annual tax makes it expensive to maintain.
What we have not done yet
We have not yet verified all 50 states + D.C. The homepage table only lists verified jurisdictions. Some states not yet listed may have lower fees than Ohio or Wyoming.