Single Member vs Multi Member LLC (Which Costs Less to File in 2026)

If you're comparing single member LLC vs. multi-member LLC filing fees, you're missing the hidden costs and here's the real breakdown. Here's the problem. Most states charge identical fees for both structures.

Wyoming charges $100 for both single and multi-member LLCs in 2026. [music] Delaware adds a $300 franchise tax only multi-member LLCs pay annually. Single member LLC vs. multi-member LLC filing fees aren't just about state registration.

You're looking at ongoing costs that stack up fast. A founder registers a multi-member LLC in Delaware with two partners. Within 12 months, they've paid $800 more than a Wyoming single member would. >> [music] >> The filing fee is identical at formation, but the annual franchise tax, extra tax forms, and bookkeeping requirements create a 3x cost difference.

Most states charge the same upfront fee whether you have one member or five. The real expense shows up in year two when multi-member LLCs trigger partnership tax returns and higher compliance costs. Most people fail here. They compare only the state filing fee and ignore the IRS side.

A single member LLC defaults to disregarded entity status, which means no separate tax return. A multi-member LLC must file form 1065 every year. That form costs $500 to $1,200 if you hire a CPA. Add Delaware's $300 franchise tax [music] for multi-member entities, and you're paying $800 to $1,500 extra annually.

The formation fee is the same, but the ongoing burden isn't. Do not assume [music] filing fees tell the whole story. Check your state's base filing fee first. Wyoming charges $100 for both single and multi-member LLCs.

Delaware charges $90 for both. California charges $70 for both. The filing fee itself is identical in 47 states. Only three states, Delaware, New York, and Illinois, add extra annual taxes specifically for multi-member structures.

Delaware's franchise tax is $300 per year. New York's publication requirement costs $1,200 to $1,500 for multi-member entities. Illinois charges a $75 annual report fee regardless of member count. Factor in the IRS tax return cost.

This is important. A single member LLC files a Schedule C on your personal 1040, which takes 2 hours or costs $150 to $300 with a CPA. A multi-member LLC files form 1065, which requires a separate partnership return, K-1s for every member, and costs $500 to $1,200 annually. If you're using Bastian Formations to register your LLC, they'll get you the EIN and registered agent for $249 in Wyoming or $349 in Delaware, but the annual tax filing cost is on you.

That's where the real difference lives. Here's the problem with multi-member LLCs. You see the same $100 filing fee in Wyoming and assume the costs are identical. >> [music] >> Then April arrives.

Your CPA bills you $900 for form 1065 and three K-1s. Your single member friend pays $200 for a Schedule C. The filing fee was the same, but the annual compliance cost is 4x higher. That gap widens every year you operate.

Use this exact question when comparing, "What's the total 3-year cost including filing, agent, tax prep, [music] and state renewals? " Run the math for Wyoming single member. $100 filing plus $99 registered agent from Bastian Formations [music] plus $200 annual tax prep equals $499 year one, then $299 per year after. Wyoming multi-member.

$100 filing plus $99 agent plus $800 annual tax prep equals $999 year one, then $899 per year after. Over 3 years, that's $1,097 for single member vs. $2,697 for multi-member. The filing fee is identical, but the 3-year total is 2.

5x higher for multi-member. What's the total 3-year cost including filing, agent, tax prep, and state renewals? Filing fees are identical in 47 states for both. Multi-member LLCs add $500 to $1,200 annual tax prep.

Use Bastian Formations for $249 Wyoming or $349 Delaware setup. Start your LLC with Bastian Formations today at bastianformations. com. Visit https://bastianformations.

com.