Fazlur Rahman
How much it costs to form an LLC in 2026 depends on the state. The state filing fee is 50 to 500 dollars, the registered agent is 100 to 300 dollars per year, and the first-year annual report is 0 to 300 dollars. The total for a typical single-state LLC is 150 to 800 dollars, with most states in the 200 to 500 dollar range.
State filing fees
The state filing fee for an LLC is the cost of filing the articles of organization with the secretary of state. The fee varies by state, with the cheapest states around 50 dollars and the most expensive around 500 dollars. The fee is set by state law and does not change frequently.
Cheapest and most expensive states
| State | Filing fee | Annual fee | Total first year |
|---|---|---|---|
| Kentucky | $40 | $15 | $55 |
| Arkansas | $45 | $150 | $195 |
| Mississippi | $50 | $0 | $50 |
| Colorado | $50 | $10 | $60 |
| California | $70 | $800 (min $800 franchise tax) | $870 |
| New York | $200 | $9 (biennial) | $209 |
| Texas | $300 | $0 | $300 |
| Massachusetts | $500 | $500 | $1,000 |
California and Massachusetts are the most expensive because of the high annual fees. Texas has a high filing fee but no annual fee. Mississippi and Colorado are the cheapest for a single-state LLC.
Registered agent
Every state requires a registered agent, which is a person or service that accepts legal and tax documents on behalf of the LLC. The owner can serve as the registered agent in the state of formation, but a registered agent service is the right call for multi-state operations, for privacy, or for owners who do not have a physical address in the state.
Registered agent services cost 100 to 300 dollars per year. The right call is a national service for multi-state operations, and a state-specific service or the owner for a single-state LLC.
Annual report
Most states require an annual or biennial report, which is a filing that updates the LLC ownership, address, and registered agent information. The fee is 0 to 300 dollars, with the most expensive states (California, Massachusetts, and a few others) at the top of the range. The annual report is the right call for keeping the LLC in good standing, and missing it can lead to administrative dissolution.
EIN
An EIN is the employer identification number issued by the IRS, and it is free. The IRS online application at irs.gov issues the EIN in about fifteen minutes. The EIN is required for any LLC with employees, any LLC that files as a partnership or corporation, and any LLC that needs a business bank account.
Operating agreement
An operating agreement is a private document that outlines the ownership, the management structure, and the operating procedures of the LLC. Most states do not require an operating agreement, but it is the right call for any multi-member LLC. The cost is 0 to 500 dollars depending on whether the owner drafts it from a template or hires a lawyer.
Single-state vs multi-state
For a single-state LLC, the right call is to form the LLC in the state where the business is located. For a multi-state LLC, the right call is to form the LLC in the home state and register as a foreign LLC in the other states. The home state should be the state with the lowest annual fees and the most favorable tax structure for the business.
Common mistakes to avoid
The most common mistake is to form the LLC in the wrong state. The right call is to form the LLC in the state where the business is located, not in a low-fee state like Delaware or Wyoming unless the business has a specific reason to be in that state. The annual fees in the home state and the foreign qualification fees in the other states usually exceed the savings from a low-fee state.
The second most common mistake is to skip the operating agreement. The operating agreement is the right call for any multi-member LLC, and most states do not require one but recommend one. The right call is to have an operating agreement from day one, even for a single-member LLC, to keep the business and the owner separate.
The third most common mistake is to forget the annual report. The annual report is the right call for keeping the LLC in good standing, and missing it can lead to administrative dissolution. The right call is to mark the annual report date on the calendar and to file it on time, every year.
The honest short version
How much it costs to form an LLC in 2026 is 50 to 500 dollars for the state filing fee, 100 to 300 for the registered agent, and 0 to 300 for the annual report. The total is 150 to 800 dollars for a typical single-state LLC. The cheapest states are Mississippi, Colorado, and Kentucky. The most expensive are California and Massachusetts.
