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.
Compare formation services (many file your LLC for $0 + state fee and act as your registered agent).
Compare LLC formation services → Sponsored placeholderCompare up to 4 states side-by-side with 5-year totals, export a one-page PDF cost report + CSV, and save & reload scenarios — all on your device.
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| — | Wyoming | Delaware | New Mexico |
|---|---|---|---|
| Filing fee | $100 | $90 | $50 |
| Annual fee | $60 min | $300 | $0 |
| State income tax | None | None | 4.9% |
| Privacy | Strong | Moderate | Strong |
| Best for | Asset protection | Investors / fundraising | Budget + 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.
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 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.
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.
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.
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.
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.
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.
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.
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.
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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