$0
Texas — lowest yearly state cost we found
$810
California — highest yearly state cost
$99–$199
Yearly cost of a registered agent service if you live elsewhere
The short answer
If your business operates in one state, form your LLC there. That state will usually require you to register anyway (as a “foreign LLC”), so forming somewhere else can mean paying two sets of yearly fees plus a registered agent. Forming in another state mostly makes sense if you have no home-state operations — for example, founders outside the US — or specific legal reasons.
Yearly cost to keep an LLC in good standing
State fee is the recurring cost for a typical small LLC. The last column adds the lowest-priced registered agent we found ($99/yr) for owners who don’t live in the state.
| State | State cost / year | What you pay for | With registered agent |
|---|---|---|---|
| Texas | $0 | No franchise tax at or below $2,650,000 annualized revenue; the Public Information Report is free | $99 |
| New York | $4.50 | $9 biennial statement every two years (plus a one-time publication requirement) | $4.50agent optional |
| Michigan | $25 | $25 annual statement | $124 |
| Wyoming | $60 | $60 minimum license tax ($0.0002 per dollar of Wyoming assets above $300,000) | $159 |
| Georgia | $60 | $60 annual registration | $159 |
| Florida | $138.75 | $138.75 annual report | $237.75 |
| North Carolina | $200 | $200 annual report ($203 online by card) | $299 |
| Delaware | $400 | $400 annual LLC tax | $499 |
| California | $810 | $800 annual LLC tax + $20 Statement of Information every two years | $909 |
Recurring state fees only — formation fees, local taxes and income taxes are not included. Figures verified against each state’s official website; see each state guide for sources.
How to choose
You operate in one state
Form there. You avoid a second registration, a second annual filing and an out-of-state agent.
You have no US operations
Yearly cost and paperwork matter most. Low-fee states with simple annual filings keep the ongoing burden small — but you’ll need a registered agent there.
You want the lowest yearly cost
Compare the state cost plus a registered agent if you don’t live there. Texas, New York, Michigan are the lowest among the states we’ve verified.
You’re weighing Wyoming vs Delaware
On yearly cost alone, Wyoming’s $60 minimum is well below Delaware’s $400 annual tax. See the full comparison.
Late penalties differ a lot, too
Missing a filing can cost far more than the fee itself — from no late fee at all to $400 in Florida. See late penalties and reinstatement rules by state.
Frequently asked questions
What is the best state to form an LLC?
For most small businesses it is the state where you actually operate, because that state will usually require you to register there anyway. If you are choosing a state purely on yearly cost, Texas is the lowest among the 9 states we have verified, and California is the highest at about $810 a year in state fees.
What is the cheapest state to keep an LLC in?
Among the states we have verified, Texas ($0/yr), New York ($4.50/yr), Michigan ($25/yr) have the lowest recurring state costs. Add a registered agent ($99–$199/yr among the services we compared) if you don’t live in the state.
Is Wyoming or Delaware better for an LLC?
For a small LLC focused on cost, Wyoming’s $60 minimum yearly fee is far below Delaware’s $400 annual tax. See our Wyoming vs Delaware comparison for the full breakdown.
Do I need a registered agent if I form in another state?
Yes. Almost every state requires an LLC to keep a registered agent with a physical address in that state, so out-of-state owners usually pay a commercial agent. New York is the exception among the states we cover.
Your LLC setup checklist
- Get a free EINFrom the IRS, in minutes online.
- Open a business bank accountKeep LLC money apart from yours to protect the liability shield.
- Sign an operating agreementSettle who owns and decides what before it matters.
- Get business insuranceCover what the LLC itself doesn’t protect.
- Plan your taxesKnow your tax status and federal due dates.
- Track state deadlinesFree reminders before each filing.
Everything in one list: printable LLC compliance checklist · live deadline calendar.