Finance · Business · 2026

LLC Cost Calculator

What does it really cost to start and keep an LLC in your state? Get the filing fee, annual report, franchise tax, registered agent and formation options — for year one, every year after, and a full 1/3/5/10-year total. Then check the out-of-state "foreign LLC" trap and whether an S-corp election would save you tax.

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Best states for non-residents

WyomingDelawareNew Mexico
Filing fee$100$90$50
Annual fee$60 min$300$0
State income taxNoneNone4.9%
PrivacyStrongModerateStrong
Best forAsset protectionInvestors / fundraisingBudget + privacy

Tip: for most owners, forming in your home state is cheapest — out-of-state LLCs usually still need to register (and pay) as a "foreign LLC" where you actually operate. Use the operate-state selector above to see that real cost.

What goes into the cost of an LLC?

Every LLC has a one-time state filing fee (from $35 in Montana to $500 in Massachusetts; the 2026 national average is about $132). Most states then charge an annual or biennial report fee to stay in good standing. A handful add a franchise tax — California's minimum $800/year is the big one, owed even if you earn nothing. You'll also need a registered agent (you can be your own in your home state for free, or pay ~$50–$150/year for a commercial one), and optionally a formation service that files the paperwork for you. This calculator adds those into a real year-one number, your ongoing annual cost, and a multi-year total so you can see what the LLC actually costs over its life — not just on day one.

The out-of-state "foreign LLC" trap

The biggest myth in LLC formation is "form in Wyoming (or Delaware, or New Mexico) to save money." For most owners it costs more. If you form in one state but live or operate in another, you almost always have to register as a foreign LLC where you actually do business — paying that state's filing fee and annual report on top of the formation state's fees, plus a registered agent in both. Set the "where will you operate" field to your real home state to see the true, stacked cost. Forming in your home state is cheapest for the vast majority of single-owner businesses.

LLC vs S-corp — the $5k question

An LLC is a legal structure; an S-corp is a tax election. Once your business consistently nets $40,000–$50,000+, electing S-corp status (IRS Form 2553) can cut self-employment tax: you take a "reasonable salary" (payroll-taxed) and distribute the rest as profit (not subject to the 15.3% Social Security/Medicare tax). Enter a net profit above and the calculator estimates your actual savings using 2026 figures (the $184,500 Social Security wage base), minus the added payroll, bookkeeping and CPA cost — so you can see whether it truly pencils out before you elect.

Where the fees come from

Figures are based on state Secretary of State schedules as of early 2026 and are estimates that change — always confirm the current fee on your state's official SOS website before filing. Registered-agent and formation-service prices vary by provider.

Estimates only, for general information — not legal, tax, or accounting advice. Fees and tax rules change; verify with your state's Secretary of State and consult a licensed professional for your situation.

FAQ

What's the cheapest state to form an LLC?

By filing fee, Montana ($35), Kentucky ($40), and several states at $50 are lowest — but the cheapest real option is usually your home state, since forming elsewhere means also registering (and paying) as a foreign LLC where you operate.

Do I have to pay every year?

Most states charge an annual or biennial report fee to keep your LLC active. A few (Arizona, Missouri, New Mexico, Ohio, Texas under the revenue threshold) have no ongoing state report fee — but may still have other requirements.

What is the California $800 fee?

California charges every LLC a minimum $800/year franchise tax, due even with zero income, plus an extra gross-receipts fee once revenue tops $250,000.

Does forming in Wyoming or Delaware actually save money?

Rarely for a normal small business. If you operate elsewhere you must register as a foreign LLC in your home state too — so you pay both states' fees plus two registered agents. Set the operate-state field above to see the stacked cost. Wyoming suits privacy/asset-protection; Delaware suits startups raising outside investment.

Do I need a registered agent?

Yes — every LLC needs one. In your home state you can usually be your own agent for free; for out-of-state LLCs you'll need a commercial agent (~$50–$150/yr) in each state where you're registered.

When is an S-corp election worth it?

Generally once your net profit is consistently around $40,000–$50,000+, because the self-employment-tax savings start to outweigh the added payroll, bookkeeping and CPA costs. Enter your net profit above for an estimate, then confirm with a CPA.

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