Vol. II · Chapter 03 · The States

Fifty states.
One is right for you.

Filing fees, annual reports, speed, and tax burden — verified against each state's official Division of Corporations. Including the ones the affiliates won't recommend.

51
jurisdictions covered
$100
median filing fee
60 days
freshness cycle
states with no income tax
Figure 01

The United States at a glance

Hover any tile for a full breakdown. Darker tiles = higher values. Editor's picks show a red dot.

★ Cheapest to file
  1. 1 MT Montana $35
  2. 2 KY Kentucky $40
  3. 3 AR Arkansas $45
  4. 4 AZ Arizona $50
  5. 5 CO Colorado $50
★ Cheapest to maintain
  1. 1 AZ Arizona Free
  2. 2 ID Idaho Free
  3. 3 MN Minnesota Free
  4. 4 MS Mississippi Free
  5. 5 MO Missouri Free
★ Most business-friendly
  1. 1 DE Delaware 10/10
  2. 2 WY Wyoming 10/10
  3. 3 CO Colorado 9/10
  4. 4 FL Florida 9/10
  5. 5 SD South Dakota 9/10
Editor's TL;DR

Where should you form?

Most state advice on the internet is written by the affiliate programs. Here's what we actually tell friends who ask.

If
You live + operate in one state
→ Then
Form there.
Why
Foreign qualifying in a second state usually costs more than any tax savings. 90% of small businesses should just form at home.
If
You're raising VC money
→ Then
Delaware C-corp.
Why
The Court of Chancery, standard legal docs, and investor familiarity make it worth the franchise tax.
If
You want privacy
→ Then
New Mexico or Wyoming.
Why
NM has no annual report and no member disclosure. WY has 20+ years of anonymous-LLC case law.
If
You're a non-US founder
→ Then
Wyoming or Delaware.
Why
Both welcome non-resident owners. WY is cheaper; DE is better if you're heading into fundraising.
If
You own rental property
→ Then
Form where the property is.
Why
Out-of-state LLCs must foreign-qualify in the property's state anyway. Skip the double filing.
The full ledger

All 51 jurisdictions.

Sort by any column. Search to jump to a specific state.

State Filing fee Annual Capital Bizfriendly
AL Alabama
$200 $50 Montgomery 5/10 Guide →
AK Alaska
$250 $100 Juneau 6/10 Guide →
AZ Arizona
$50 Free Phoenix 8/10 Guide →
$45 $150 Little Rock 6/10 Guide →
CA California ★ PICK
$70 $20 Sacramento 4/10 Guide →
$50 $25 Denver 9/10 Guide →
$120 $80 Hartford 5/10 Guide →
DE Delaware ★ PICK
$110 $300 Dover 10/10 Guide →
$99 $300 Washington 5/10 Guide →
FL Florida ★ PICK
$125 $139 Tallahassee 9/10 Guide →
GA Georgia
$110 $60 Atlanta 7/10 Guide →
HI Hawaii
$50 $15 Honolulu 6/10 Guide →
ID Idaho
$100 Free Boise 8/10 Guide →
$150 $75 Springfield 4/10 Guide →
IN Indiana
$95 $30 Indianapolis 7/10 Guide →
IA Iowa
$50 $30 Des Moines 6/10 Guide →
KS Kansas
$165 $55 Topeka 6/10 Guide →
$40 $15 Frankfort 7/10 Guide →
$100 $35 Baton Rouge 5/10 Guide →
ME Maine
$175 $85 Augusta 5/10 Guide →
$100 $300 Annapolis 5/10 Guide →
$500 $500 Boston 4/10 Guide →
$50 $25 Lansing 8/10 Guide →
$155 Free Saint Paul 6/10 Guide →
$50 Free Jackson 6/10 Guide →
$50 Free Jefferson City 8/10 Guide →
MT Montana
$35 $20 Helena 8/10 Guide →
$100 $13 Lincoln 6/10 Guide →
NV Nevada
$425 $350 Carson City 7/10 Guide →
$100 $100 Concord 7/10 Guide →
$125 $75 Trenton 5/10 Guide →
$50 Free Santa Fe 8/10 Guide →
NY New York ★ PICK
$200 $9 Albany 4/10 Guide →
$125 $200 Raleigh 7/10 Guide →
$135 $50 Bismarck 7/10 Guide →
OH Ohio
$99 Free Columbus 8/10 Guide →
$100 $25 Oklahoma City 7/10 Guide →
OR Oregon
$100 $100 Salem 7/10 Guide →
$125 $7 Harrisburg 6/10 Guide →
$150 $50 Providence 5/10 Guide →
$110 Free Columbia 7/10 Guide →
$150 $50 Pierre 9/10 Guide →
$300 $300 Nashville 5/10 Guide →
TX Texas ★ PICK
$300 Free Austin 9/10 Guide →
UT Utah
$59 $18 Salt Lake City 8/10 Guide →
VT Vermont
$155 $45 Montpelier 5/10 Guide →
$100 $50 Richmond 7/10 Guide →
$200 $70 Olympia 8/10 Guide →
$100 $25 Charleston 6/10 Guide →
$130 $25 Madison 6/10 Guide →
WY Wyoming
$100 $60 Cheyenne 10/10 Guide →

Showing 51 jurisdictions · Last reviewed April 2026 · Fees verified against each state's Division of Corporations

A note on the margins

About D.C., P.R., and the territories.

District of Columbia

D.C. is not a state but operates like one for LLC formation. Treated the same in our tables. Filing is $99 with a biennial report.

Puerto Rico & territories

Puerto Rico has its own LLC statute and tax regime. Standalone guide. Other territories handle so few formations we defer to local attorneys.

Tribal jurisdictions

A handful of tribal nations issue their own charters. Outside this guide's scope; speak with tribal counsel.

Why no "offshore"?

We don't cover the Caymans, BVI, or Delaware's series LLC offshoots. For 99% of small businesses they add regulatory complexity with no real upside.

Frequently asked

What everyone wants to know.

Can I form an LLC in a state I don't live in?

Yes — but you'll likely need to "foreign qualify" it in your home state too, which means two filing fees, two registered agents, and two annual reports. Usually only worth it for privacy or fundraising reasons.

Which state has the lowest LLC formation fee?

Kentucky at $40, followed by Arkansas ($45), Michigan, Iowa, Arizona, Hawaii, Missouri, Montana, Mississippi, and New Mexico (all $35–$55). Low formation fee doesn't mean lowest total cost — check annual fees too.

Which state has no annual report?

Missouri, New Mexico, Ohio, South Carolina (LLCs only), and Arizona have no annual report requirement. Several others are biennial (every two years).

Is Delaware actually better for LLCs?

For most small businesses, no. Delaware's advantages — Chancery Court, predictable case law, statutory flexibility — matter most when you're raising venture capital. For a two-person consultancy, it's just a franchise tax you could avoid.

What makes a state 'private'?

States that don't require member/manager names in public filings. New Mexico and Wyoming are the strictest. Delaware is private at formation but requires officer info on annual reports. Most other states publish member names.

Do I need a registered agent?

Yes, in every state. Either use a commercial service ($39–$199/yr) or designate yourself if you have a physical address in the formation state and are there during business hours.

— not sure yet? —

Let us narrow it down for you.

Four questions, 60 seconds, no email required. We'll recommend a state and entity type based on where you live, how you'll operate, and your fundraising plans.

Take the quiz