The state filing fee is only part of the cost. To choose smartly you need to compare the full package: filing, annual report, franchise tax, Registered Agent, and EIN.
Cheapest states (year one + year two)
New Mexico: $50 filing + $0/year. Lifetime cheapest.
Wyoming: $100 filing + $60/year. Best balance of cost and reputation.
Montana: $35 filing + $20/year. Cheap but less common for non-residents.
Kentucky: $40 filing + $15/year. Niche choice.
What 'total cost' really includes
State filing fee (one-time).
Annual report or franchise tax (every year).
Registered Agent service ($29-$150/year).
EIN application ($0 if you have an SSN, $90-$200 if a service handles it for non-residents).
Operating Agreement ($0-$200 depending on whether you draft it yourself).
Frequently asked questions
What's the cheapest US state to form an LLC?+
Montana has the cheapest filing fee at $35, but New Mexico is cheapest long-term because it has no annual report fee at all. Wyoming wins on cost-plus-reputation balance.
Why is California so expensive?+
California charges every LLC an $800 annual minimum franchise tax regardless of revenue, even if the LLC made $0. It's the highest mandatory tax of any US state.
Are the formation fees one-time or annual?+
The state filing fee is one-time. The annual report fee or franchise tax is yearly. Registered Agent service is also yearly. EIN is one-time.
Ready to form your LLC?
Start with one of the states covered in this article.
Open your US LLC the easy way
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