Cheapest States to Form an LLC in 2026
The cheapest states to form an LLC are ranked by official formation filing fees. Montana currently leads at $35. However, the real long-term cost depends heavily on annual or biennial report fees and any franchise tax. This page shows both views using verified official source data.
Lowest Formation Fees (One-Time)
Ranked by the official state filing fee for Articles / Certificate of Organization.
| # | State | Formation Fee | Recurring | Details |
|---|---|---|---|---|
| 1 | Montana | $35 | $20 annual | View → |
| 2 | Kentucky | $40 | $15 annual | View → |
| 3 | Arkansas | $45 | $150 annual | View → |
| 4 | Arizona | $50 | None / $0 | View → |
| 5 | Colorado | $50 | $25 annual | View → |
| 6 | Hawaii | $50 | $15 annual | View → |
| 7 | Iowa | $50 | $30 biennial | View → |
| 8 | Michigan | $50 | $25 annual | View → |
| 9 | Mississippi | $50 | None / $0 | View → |
| 10 | Missouri | $50 | None / $0 | View → |
Lowest Estimated 5-Year State Costs
Approximate total of formation fee + recurring state fees over five years (biennial fees averaged). Does not include registered agent services, local licenses, publication costs, or professional fees.
| # | State | Est. 5-Year | Formation | Notes |
|---|---|---|---|---|
| 1 | Arizona | $50 | $50 | Articles of Organization $50. No annual report required for … |
| 2 | Mississippi | $50 | $50 | Certificate of Formation $50. Annual report required but typ… |
| 3 | Missouri | $50 | $50 | Articles of Organization $50 online. No annual report requir… |
| 4 | New Mexico | $50 | $50 | Articles of Organization $50. No annual report fee for LLCs.… |
| 5 | Ohio | $99 | $99 | Articles of Organization $99. No annual report for LLCs.… |
| 6 | Idaho | $100 | $100 | Certificate of Organization $100. Annual report required but… |
| 7 | Delaware | $110 | $110 | Certificate of Formation $110. Annual LLC tax $400 due June … |
| 8 | South Carolina | $110 | $110 | Articles of Organization $110. No annual report fee for LLCs… |
| 9 | Kentucky | $115 | $40 | Articles of Organization $40. Annual report $15.… |
| 10 | Hawaii | $125 | $50 | Articles of Organization $50. Annual report $15.… |
| 11 | Iowa | $125 | $50 | Certificate of Organization $50. Biennial report $30.… |
| 12 | Nebraska | $133 | $100 | Certificate of Organization $100. Biennial report $13. Publi… |
Key Takeaways
- •Montana currently has the lowest official formation fee at $35.
- •Several states (Arizona, Missouri, New Mexico, Ohio, South Carolina and others) charge little or nothing in recurring report fees.
- •California is inexpensive to form ($70) but among the most expensive to maintain because of the $800 annual franchise tax.
- •Formation fee alone is a poor decision metric. Always calculate multi-year cost and confirm current fees on the official state site.
Calculate your exact state cost
Use the free calculator to add registered agent, multi-year projections, and optional fees for any verified state.
Open LLC Cost CalculatorData is drawn from official state sources and marked with verification dates. Fees change. Always re-check the current fee schedule on the Secretary of State (or equivalent) website before filing. This page is educational only and is not legal or tax advice.