Business2026-02-259 min read

LLC Annual Fees by State 2026: Complete Cost Comparison

Forming an LLC is one of the most popular ways to structure a small business in the United States. But the upfront filing fee is only part of the picture. Every year, most states require LLCs to pay annual report fees, franchise taxes, or both, and these ongoing costs vary dramatically from state to state. In 2026, you could pay nothing in annual fees in some states or over $800 in others. This guide provides a complete comparison of LLC costs across all 50 states, helping you choose the right state for your business and budget accordingly.

Formation Cost vs. Ongoing Cost

Before diving into annual fees, it is important to distinguish between two categories of LLC costs.

Formation cost: This is the one-time fee to file your Articles of Organization (or Certificate of Organization) with the state. It ranges from $40 in Kentucky to $500 in Massachusetts. You pay this once when you create the LLC.
Ongoing costs: These are recurring fees you pay every year (or every two years in some states) to keep your LLC in good standing. They include annual report fees, franchise taxes, and registered agent fees. Failure to pay these can result in your LLC being dissolved or forfeiting its good standing status.

When comparing LLC costs between states, always look at the total cost over several years, not just the formation fee. A state with a low filing fee but a high annual franchise tax (like California) can be far more expensive in the long run than a state with a higher filing fee but no annual tax.

Cheapest States for LLC Annual Fees

If minimizing ongoing costs is a priority, these states stand out as the most affordable options for maintaining an LLC in 2026.

Ohio: No annual report required. No franchise tax. Formation fee is just $99. Ohio is arguably the cheapest state to maintain an LLC once formed.
Arkansas: Annual franchise tax of $150 (flat rate for most LLCs). Formation fee is $45, one of the lowest in the country.
Missouri: No annual report fee. No franchise tax. Formation fee is $50. Like Ohio, Missouri LLCs have virtually no ongoing state costs.
New Mexico: No annual report required. No franchise tax. Formation fee is $50. New Mexico is also notable for not requiring LLCs to list member names in public filings, offering strong privacy.
Arizona: No annual report fee. Formation fee is $50. The only ongoing cost is a $0 annual report filing (informational only, no fee).
Wyoming: Annual report fee of $60 (or minimum franchise tax of $60, whichever applies). Formation fee is $100. While not the absolute cheapest, Wyoming is popular for its strong asset protection laws and privacy.

Most Expensive States for LLC Annual Fees

Some states impose significant annual costs on LLCs, which can be a real burden for small businesses and solo entrepreneurs.

California: The most expensive state by far. All LLCs pay an $800 annual franchise tax regardless of income, due within the first 3.5 months of forming the LLC and annually thereafter. LLCs earning over $250,000 also pay an additional fee ranging from $900 to $11,790. On top of this, there is a biennial Statement of Information filing of $20. The formation fee itself is $70, which is modest, but the $800/year franchise tax makes California the costliest state for LLC maintenance.
Massachusetts: Annual report fee of $500. Formation fee of $500. Massachusetts is expensive both to form and maintain an LLC.
Connecticut: Annual report fee of $80 plus a Business Entity Tax of $250 per year, for a total ongoing cost of $330 annually. Formation fee is $120.
Tennessee: Annual report fee of $300 minimum (based on the value of the LLC's property in the state). Formation fee is $300 plus $50/member.
New York: Biennial report fee of $9 (low), but New York requires LLC formation notices to be published in two newspapers for six weeks, costing $1,000 to $2,000+ depending on the county. This publication requirement is a significant one-time cost unique to New York.

States With No Annual Report Fee

Several states do not require an annual report filing or charge $0 for it. This does not necessarily mean there are no ongoing costs (some still have franchise taxes), but it eliminates one common expense.

Ohio — No annual report, no franchise tax
Missouri — No annual report, no franchise tax
New Mexico — No annual report, no franchise tax
Arizona — No annual report fee (informational filing only)
South Carolina — No annual report required

Registered Agent Costs

Every LLC in every state must maintain a registered agent — a person or service with a physical address in the state of formation who can receive legal documents on behalf of the LLC. If you live and work in the state where your LLC is formed, you can serve as your own registered agent for free. However, if you form your LLC in a different state (a common strategy for Wyoming or Delaware LLCs), you will need to hire a registered agent service.

Registered agent services typically cost $50 to $300 per year. Companies like Northwest Registered Agent, Incfile (now ZenBusiness), and LegalZoom offer this service. Some formation services include the first year of registered agent service for free as part of their LLC formation package.

Best States for Non-Residents

If you do not have a physical presence in any particular state (such as a fully remote business), you might consider forming your LLC in a state known for business-friendly laws. Here are the three most popular choices.

Wyoming

Pros: No state income tax. Strong asset protection laws, including charging order protection that makes it difficult for creditors to seize LLC membership interests. Low annual fee ($60). Strong privacy (no public disclosure of member names).
Cons: If your business operates in another state, you still need to register as a foreign LLC there, adding fees.

Delaware

Pros: The most developed body of business law in the country. The Court of Chancery (a specialized business court) provides predictable, expert rulings on corporate disputes. Flexible LLC operating agreement provisions.
Cons: Annual franchise tax of $300. Formation fee of $90. If you do not operate in Delaware, you gain the legal benefits but still need to register where you actually do business. Best suited for companies expecting litigation or investor scrutiny.

Nevada

Pros: No state income tax. No franchise tax. Strong privacy protections (member names not required in Articles of Organization). No information sharing agreement with the IRS.
Cons: Annual list filing fee of $150 plus a Business License fee of $200, totaling $350/year in ongoing costs. This makes Nevada significantly more expensive than Wyoming for annual maintenance.

Estimate Your LLC Costs

CalcViral's LLC cost calculator lets you compare formation fees, annual report costs, and franchise taxes across all 50 states. Enter your state of residence, your preferred formation state, and your estimated revenue to get a complete cost breakdown for the first year and ongoing annual expenses.

Final Thoughts

The state where you form your LLC has a significant impact on your ongoing business costs. While California's $800 annual franchise tax makes it the most expensive state for LLC maintenance, states like Ohio, Missouri, and New Mexico offer essentially zero ongoing state fees. For non-residents, Wyoming offers the best combination of low costs, strong protections, and privacy. Whatever state you choose, make sure you factor in not just the formation fee but also annual reports, franchise taxes, registered agent costs, and any foreign registration requirements if you operate across state lines. Use CalcViral's LLC cost calculator to run the numbers for your specific situation.