Most Expensive States to Form & Keep an LLC (2026)
Some states charge high one-time formation fees. Others look inexpensive to form but become costly over time because of annual reports, franchise taxes, or both. This page ranks states by formation fee, by estimated yearly state cost, and by approximate five-year total using verified official data.
Highest Formation Fees
Ranked by the official one-time state filing fee for forming an LLC.
| # | State | Formation Fee | Recurring note | |
|---|---|---|---|---|
| 1 | Massachusetts | $500 | $500 annual | View → |
| 2 | Nevada | $425 | $350 annual | View → |
| 3 | Tennessee | $300 | $300 annual | View → |
| 4 | Texas | $300 | See state page | View → |
| 5 | Alaska | $250 | $100 biennial | View → |
| 6 | Alabama | $200 | See state page | View → |
| 7 | New York | $200 | $9 biennial | View → |
| 8 | Washington | $200 | $60 annual | View → |
| 9 | Maine | $175 | $85 annual | View → |
| 10 | South Dakota | $165 | $50 annual | View → |
| 11 | Kansas | $160 | $50 annual | View → |
| 12 | Minnesota | $155 | See state page | View → |
Highest Estimated Yearly State Costs
Approximate annualized cost of required state reports + franchise/privilege taxes. Does not include registered agent fees, publication, or local licenses.
| # | State | Est. Yearly | Formation | |
|---|---|---|---|---|
| 1 | California | $820 | $70 | View → |
| 2 | Massachusetts | $500 | $500 | View → |
| 3 | Rhode Island | $450 | $150 | View → |
| 4 | Nevada | $350 | $425 | View → |
| 5 | Arkansas | $300 | $45 | View → |
| 6 | Maryland | $300 | $100 | View → |
| 7 | Tennessee | $300 | $300 | View → |
| 8 | North Carolina | $200 | $125 | View → |
| 9 | Washington DC | $150 | $99 | View → |
| 10 | Florida | $139 | $125 | View → |
| 11 | New Hampshire | $100 | $100 | View → |
| 12 | Oregon | $100 | $100 | View → |
Highest Estimated 5-Year State Costs
Formation fee + five years of estimated recurring state costs. Useful for comparing the true long-term price of keeping an LLC in good standing.
| # | State | Est. 5-Year | Formation | |
|---|---|---|---|---|
| 1 | California | $4,170 | $70 | View → |
| 2 | Massachusetts | $3,000 | $500 | View → |
| 3 | Rhode Island | $2,400 | $150 | View → |
| 4 | Nevada | $2,175 | $425 | View → |
| 5 | Tennessee | $1,800 | $300 | View → |
| 6 | Maryland | $1,600 | $100 | View → |
| 7 | Arkansas | $1,545 | $45 | View → |
| 8 | North Carolina | $1,125 | $125 | View → |
| 9 | Washington DC | $849 | $99 | View → |
| 10 | Florida | $819 | $125 | View → |
| 11 | Maine | $600 | $175 | View → |
| 12 | New Hampshire | $600 | $100 | View → |
Key takeaways
- •Massachusetts and a few other states charge among the highest one-time formation fees.
- •California is the classic example of low formation fee + high ongoing cost ($800 franchise tax every year).
- •Publication requirements (especially in New York) can make year-one costs much higher than the formation fee alone.
- •Always calculate multi-year cost and read the notes on each state page before deciding where to form.
Related pages
Run the numbers for your state
Use the free calculator for 1 / 3 / 5 year projections including optional registered agent.
Open LLC Cost CalculatorRankings are derived from verified official state fee data. Fees change. Always re-check the current schedule on the official state website. This page is educational only and is not legal or tax advice.