LLC Cost by State: Check the Math Before You File (All 50 States, 2026)

Forming an LLC is one of the smartest financial moves for most side-income earners. But “most” isn’t “all.” A handful of states charge annual fees so high that the LLC doesn’t make mathematical sense until your income reaches a certain threshold. If you live in one of those states and nobody warns you, you’ll form an LLC expecting tax savings and get an $800 bill instead.

This post is the warning. And the roadmap.

Below is every state’s LLC filing fee, annual cost, and any special requirements that affect your decision. It’s organized by what matters most: how much it actually costs you per year to keep the LLC alive — not just the one-time filing fee that every other guide leads with.

The states where the math requires a second look before filing are flagged. If you’re on Path C of the Zero Chaos Growth Plan, this is the reference to check before you form anything.

How to Read This Guide

For each state, there are three numbers:

1. Filing Fee — The one-time cost to form the LLC. You pay this once.
2. Annual/Ongoing Cost — What you pay every year to keep the LLC active. This is what actually matters for long-term math.
3. Special Notes — Anything unusual that affects your total cost: franchise taxes, publication requirements, or other fees that aren’t obvious.

Each state also gets a Zero Chaos Verdict — a plain-English assessment of whether the LLC makes financial sense at typical side-income levels ($1,000–$3,000/month).

The States That Need a Warning Label

Let’s start with the states where the math isn’t straightforward. If you live in one of these, read the details carefully before filing.

California — The $800 Problem

Filing Fee: $70 Annual Cost: $800 minimum franchise tax (due regardless of income) + $20 biennial Statement of Information Special Notes: The $800 franchise tax applies to every LLC every year, even if the business earns nothing. LLCs grossing over $250,000 pay additional fees on a graduated scale. New LLCs formed after January 1, 2024 are exempt from the franchise tax in their first year only — but it kicks in fully in year two.

Zero Chaos Verdict: Don’t form an LLC in California unless you’re consistently earning $2,500–$3,000/month or more in side income. Below that threshold, the $800 annual tax likely exceeds your tax savings from deductions. Operate as a sole proprietor and take deductions on Schedule C until your income justifies the cost. If you think forming in another state avoids this: it usually doesn’t. If you live and work in California, registering an out-of-state LLC as a foreign entity in California triggers the same $800 tax — plus you’re paying fees in two states.

New York — The Publication Trap

Filing Fee: $200 Annual Cost: $9 biennial report (very cheap ongoing) Special Notes: New York requires new LLCs to publish a notice of formation in two newspapers (one daily, one weekly) in the county of formation for six consecutive weeks. This publication requirement costs anywhere from $300 to $1,500+ depending on your county. New York City and surrounding counties are the most expensive. After publication, you file a Certificate of Publication ($50). This is a one-time cost, not annual — but it can be a brutal surprise in year one.

Zero Chaos Verdict: The LLC is worth it long-term (the ongoing cost is only $9 every two years). But budget $500–$1,500 for the first-year publication cost on top of the $200 filing fee. If that first-year hit is too much, delay until your side income can absorb it. Pro tip: forming in a county outside NYC can dramatically reduce publication costs — Albany County, for example, is often under $500.

Massachusetts — Quietly Expensive

Filing Fee: $500 (one of the highest in the country) Annual Cost: $500 annual report Special Notes: Massachusetts charges the same $500 for both the initial filing and the annual report. That’s $1,000 in year one and $500 every year after. There’s no franchise tax on top of this, but the annual report fee alone is among the nation’s highest.

Zero Chaos Verdict: The math works if you’re earning $2,000+/month in side income. Below that, the $500/year ongoing cost may eat most of your tax savings. Still better than California’s $800, but not a slam dunk for low-income side hustles.

Tennessee — High Across the Board

Filing Fee: $300 Annual Cost: $300 annual report + franchise tax + 6.5% excise tax on net earnings Special Notes: Tennessee’s costs stack. The $300 filing fee plus $300 annual report is $600 in year one. The franchise tax and excise tax add further costs for profitable LLCs. The state has no personal income tax, which partially offsets this — but the LLC-specific costs are above average.

Zero Chaos Verdict: Workable for consistent earners above $2,000/month. The franchise and excise taxes mean you should consult a Tennessee tax professional to model your specific situation before filing.

Rhode Island — The Hidden Annual Charge

Filing Fee: $150 Annual Cost: $50 annual report + $400 annual charge from the Division of Taxation = $450/year total Special Notes: That $400 annual charge catches people off guard. Most guides list Rhode Island’s annual cost as $50 (the report fee). The additional $400 from the Division of Taxation is mandatory and brings the true annual cost to $450 — higher than every state except California and Massachusetts.

Zero Chaos Verdict: Similar to Massachusetts. Worth it above $2,000/month in consistent income. Below that, sole proprietorship with Schedule C deductions is the smarter starting structure.

Nevada — Higher Than You’d Think

Filing Fee: $75 Annual Cost: $150 Annual List of Managers/Members + $200 State Business License = $350/year Special Notes: Nevada has no state income tax, which is the headline benefit. But the combined annual LLC cost of $350 is higher than the national average. The Initial List of Managers is due within 30 days of formation (included in filing), and the Annual List is due on the anniversary of formation each year.

Zero Chaos Verdict: The LLC makes sense at relatively modest side income levels — $1,500/month or more. The $350/year ongoing cost is offset by the absence of state income tax (you’re not paying Nevada tax on your LLC income anyway) and by federal tax deductions. For residents earning consistent side income, this is a straightforward yes once your income is steady.

The Cheapest States (If You Happen to Live There)

These states have the lowest total cost to form and maintain an LLC. Remember: you should almost always form in the state where you live and operate. Forming in a cheap state when you live elsewhere usually means paying fees in both states.

States with $0 or Near-$0 Annual Fees

Missouri: $50 filing fee, no annual report or fee. One of the cheapest states in the country to maintain an LLC.

New Mexico: $50 filing fee, no annual report or fee. No franchise tax. Extremely business-friendly for small LLCs.

Ohio: $99 filing fee, no annual report or fee. Clean and simple.

Arizona: $50 filing fee, no annual report fee. Note: Arizona does require publication in a newspaper within 60 days of formation, but the cost is typically $100–$300 (much cheaper than New York’s requirement).

South Carolina: $110 filing fee, no annual report fee (unless you file as an S-Corp).

States with Low Annual Fees ($25 or Less)

Kentucky: $40 filing fee (lowest in the country), $15 annual report. Total year-one cost: $55. Possibly the cheapest LLC in America.

Montana: $35 filing fee (second lowest), $20 annual report. Total year-one cost: $55.

Mississippi: $50 filing fee, $0 annual fee (informational filing only, no charge).

North Dakota: $135 filing fee, $0 annual report fee.

Wyoming: $100 filing fee, $60 annual report (or $0 if total assets in Wyoming are under $300,000). Popular for privacy-conscious business owners due to strong anonymity protections.

For readers in these states: the LLC math works at almost any consistent income level. If you’re earning $500/month or more in side income, the deductions and liability protection are worth the minimal cost. There’s very little reason to wait.

The Middle of the Pack (Most States)

The majority of states fall in a range where the LLC is affordable and the math works for most side-income earners. Here’s the complete breakdown:

State	Filing Fee	Annual/Ongoing Cost	Year-One Total	Verdict
Alabama	$200	$100 annual privilege tax min	$300	Worth it at $1,000+/mo
Alaska	$250	$100 biennial	$250–$350	Worth it at $1,500+/mo
Arkansas	$45	$150 annual franchise tax	$195	Worth it at $1,000+/mo
Colorado	$50	$10 annual report	$60	Almost always worth it
Connecticut	$120	$80 annual report	$200	Worth it at $1,000+/mo
Delaware	$90	$300 annual franchise tax	$390	Worth it at $1,500+/mo*
D.C.	$99	$300 biennial report	$99–$399	Worth it at $1,500+/mo
Florida	$125	$138.75 annual report	$264	Worth it at $1,000+/mo
Georgia	$100	$50 annual report	$150	Worth it at $1,000+/mo
Hawaii	$50	$15 annual report	$65	Almost always worth it
Idaho	$100	$0 annual report	$100	Almost always worth it
Illinois	$150	$75 annual report	$225	Worth it at $1,000+/mo
Indiana	$95	$31 biennial report	$95–$126	Almost always worth it
Iowa	$50	$30 biennial report	$50–$80	Almost always worth it
Kansas	$160	$55 annual report	$215	Worth it at $1,000+/mo
Louisiana	$100	$35 annual report	$135	Worth it at $1,000+/mo
Maine	$175	$85 annual report	$260	Worth it at $1,000+/mo
Maryland	$100	$300 annual report	$400	Worth it at $1,500+/mo
Michigan	$50	$25 annual report	$75	Almost always worth it
Minnesota	$155	$0 annual renewal	$155	Almost always worth it
Nebraska	$100	$13 biennial report	$100–$113	Almost always worth it**
New Hampshire	$100	$100 annual report	$200	Worth it at $1,000+/mo
New Jersey	$125	$75 annual report	$200	Worth it at $1,000+/mo
North Carolina	$125	$200 annual report	$325	Worth it at $1,500+/mo
Oklahoma	$100	$25 annual report	$125	Almost always worth it
Oregon	$100	$100 annual report	$200	Worth it at $1,000+/mo
Pennsylvania	$125	$7 annual report (new as of 2025)	$132	Almost always worth it
South Dakota	$150	$50 annual report	$200	Worth it at $1,000+/mo
Texas	$300	$0 franchise tax (under $2.47M revenue)	$300	Worth it at $1,000+/mo
Utah	$54	$20 annual renewal	$74	Almost always worth it
Vermont	$125	$35 annual report	$160	Worth it at $1,000+/mo
Virginia	$100	$50 annual report	$150	Worth it at $1,000+/mo
Washington	$200	$60 annual report	$260	Worth it at $1,000+/mo
West Virginia	$100	$25 annual report	$125	Almost always worth it
Wisconsin	$130	$25 annual report	$155	Almost always worth it

*Delaware is popular for large corporations but usually not advantageous for single-member side-income LLCs unless you live there.

**Nebraska requires publication of LLC formation in a newspaper (one-time, typically $100–$200).

The “Almost Always Worth It” States

If you see “Almost always worth it” next to your state, here’s what that means: your combined filing fee and annual cost are low enough that even modest side income ($500–$1,000/month) generates enough tax savings to justify the LLC. In these states, the main question isn’t “can I afford an LLC?” — it’s “am I earning consistent side income?” If yes, file.

These states include: Arizona, Colorado, Hawaii, Idaho, Indiana, Iowa, Kentucky, Michigan, Minnesota, Mississippi, Missouri, Montana, New Mexico, Ohio, Oklahoma, Pennsylvania, South Carolina, Utah, West Virginia, Wisconsin, and Wyoming.

The Decision Framework

If you’re trying to decide whether to form an LLC, here’s the Zero Chaos way to think about it:

Step 1: Find your state above.

Step 2: Note the annual ongoing cost (not just the filing fee).

Step 3: Estimate your annual tax savings from LLC deductions.

A rough rule of thumb: if you work from home and use your computer, phone, and internet for business, your deductible expenses are typically $3,000–$8,000/year for a home-based side business. At a 22–24% marginal tax rate, that’s $660–$1,920 in annual tax savings. Self-employment tax savings from an eventual S-Corp election can add another $2,000–$5,000+ at higher income levels.

Step 4: Compare.

If your estimated tax savings exceed your state’s annual LLC cost, the LLC makes financial sense. If they don’t (hello, California at $800/year), wait until your income grows.

Step 5: If the math works, file.

Use Bizee for the $0 formation (you only pay state fees) or file directly with your Secretary of State. Either way, the process takes about an hour.

Three Things Nobody Tells You

1. You should almost always form in your home state.

The internet is full of advice about forming in Wyoming, Delaware, or Nevada for “tax advantages.” For a single-member side-income LLC, this almost never works. If you live and operate in California, forming a Wyoming LLC means you still register as a foreign entity in California (triggering the $800 franchise tax) AND pay Wyoming’s fees. You end up paying double.

Form where you live. The exception is if you genuinely have no physical presence in any state (rare for most readers).

2. Annual fees are more important than filing fees.

A $300 filing fee in Texas sounds painful, but you pay it once. A $300 annual report in Maryland costs you $300 every year for the life of the LLC. When evaluating states, look at the ongoing cost first.

3. Your LLC can be dissolved if you want out.

If you form an LLC and later decide it’s not worth maintaining — maybe your side income dried up, maybe you moved to a cheaper state — you can dissolve it. The dissolution process costs $0–$100 in most states and takes a few minutes to file. You’re not locked in forever. The LLC is a tool, not a marriage.

The Zero Chaos system doesn’t hide costs. It names them, plans for them, and routes you around them when necessary.