State-by-state LLC guides, formation requirements & costs
LLC formation rules are all over the map depending on where you file. Fees can run anywhere from $40 up to $500. And annual reports? Those might cost you nothing, or they could hit $800 or more. Some states throw in a franchise tax. Others skip it entirely.
Our state guides cover the basics, filing fees, registered agent rules, annual reports, and what ongoing compliance will cost you in each state.
Popular states for LLC formation
California
Highest annual franchise tax in the country. Still popular, though, because the market here is massive.
Texas
No state income tax. Annual costs stay low. It’s one of the top states people pick when they start a LLC.
Florida
No state income tax. Filing fees are low. Real estate investors and small businesses love it.
Delaware
Most business friendly laws around. Popular with corporations and businesses looking to raise capital.
Wyoming
No state income tax. Privacy laws are solid. Annual costs stay low. Folks outside the state love it here.
Nevada
No state income tax. Strong privacy and asset protection laws. Real estate investors love it.
New york
High filing fees, but the annual costs stay low. That publication requirement? It tacks on another $1,000 or more.
Colorado
Very low fees. It's one of the cheapest states to form and keep a LLC going. And it's getting more popular.
Illinois
Mid-range fees. Big market, and the infrastructure holds up. Midwest businesses like it.
Georgia
Low fees. No annual report in year one. Southeast businesses love it.
Arizona
Very low filing fees. No annual report costs. One of the cheapest states overall.
North carolina
Low fees. No annual report costs. And the economy’s growing, with real support for small businesses.
Ohio
Low fees. No annual report costs. And we're right in the middle of everything, with solid logistics to back it up.
Pennsylvania
Mid-range fees. No annual report costs. Big market, and it’s got a solid manufacturing history.
Washington
No state income tax. Filing fees are mid range. Tech and retail have a strong presence here.
State comparisons
Not sure which state fits your business? These comparisons spell out the big differences.
Delaware vs wyoming
Two of the most popular states for out-of-state formation. Business-friendly laws versus privacy and low costs.
Nevada vs wyoming
Both offer solid privacy and asset protection. But which one wins on costs and features?
Texas vs california
The two biggest states. One skips income tax but hits you with higher filing fees. The other? Huge market, but those yearly costs add up fast.
Home state vs delaware
Should you form in Delaware or your home state? We break down the costs and benefits.
Home state vs wyoming
Wyoming gives you privacy and keeps costs down. But is it actually worth forming there? Let’s break down the ups and downs.
Key considerations by state
When choosing a state for your LLC, think about these things:
- Filing fees: They run anywhere from $40 in Colorado to $500 in Massachusetts. Most states sit between $50 and $200.
- Annual report fees: They run anywhere from $0 in states like Texas and Ohio, and plenty of others, all the way up to $800 or more in California.
- Franchise taxes: California charges $800/year. Delaware charges $300/year. Most states have no franchise tax.
- Privacy protection: If you want strong privacy protections, Wyoming, Nevada, and Delaware have you covered.
- Publication requirements: New York requires newspaper publication, which can cost $1,000 to $2,000.
- State income tax: Texas, Florida, Wyoming, Nevada, and Washington don't charge one.
For most small businesses, your home state is the best place to form. It's simpler, cheaper, and you skip foreign qualification fees. But if privacy matters to you or you're planning to raise capital, Delaware or Wyoming might be worth a look.
For a deeper look at what things cost and what you'll need in your state, check out our registered agent pricing research or flip through our guides for more detailed advice.