State-by-State Comparison of LLC Registration Fees and Requirements

Forming a Limited Liability Company (LLC) is a popular choice for entrepreneurs, but the process and costs can vary significantly depending on where you register your business. Each state has its own fees, filing requirements, and ongoing compliance obligations. To help you navigate the complexities, we’ve put together a state-by-state comparison of LLC registration fees and requirements. Whether you’re starting a local business or considering registering in a business-friendly state, this guide will give you the information you need to make an informed decision.

Why State Matters for LLC Registration

Before diving into the specifics, it’s important to understand why the state you choose matters:

• Filing Fees: Registration fees can range from $50 to $500+ depending on the state.
• Annual Fees: Some states require annual reports or franchise taxes, which can add to your costs.
• Business-Friendly Laws: States like Delaware, Wyoming, and Nevada are known for their favorable business climates.
• Local Operations: If your business operates in one state, it’s often easiest to register there.

State-by-State LLC Registration Fees and Requirements

Here’s a breakdown of LLC registration fees and key requirements for each state:

• 1. Alabama:
  • Filing Fee: $200
  • Annual Report: $100
  • Notes: No state income tax for LLCs, but a business privilege tax may apply.
• 2. Alaska:
  • Filing Fee: $250
  • Annual Report: $100
  • Notes: No state income tax or sales tax, making it attractive for certain businesses.
• 3. Arizona:
  • Filing Fee: $50
  • Annual Report: $0 (no annual report required)
  • Notes: Low filing fees and no annual report make Arizona a budget-friendly option.
• 4. Arkansas:
  • Filing Fee: $45
  • Annual Report: $150
  • Notes: Affordable filing fees but higher annual report costs.
• 5. California:
  • Filing Fee: $70
  • Annual Franchise Tax: $800 (minimum)
  • Notes: High ongoing costs make California one of the most expensive states for LLCs.
• 6. Colorado:
  • Filing Fee: $50
  • Annual Report: $10
  • Notes: Low fees and a straightforward filing process.
• 7. Connecticut:
  • Filing Fee: $120
  • Annual Report: $80
  • Notes: Moderate fees with no state income tax on LLCs.
• 8. Delaware:
  • Filing Fee: $90
  • Annual Franchise Tax: $300
  • Notes: Known for its business-friendly laws and Court of Chancery.
• 9. Florida:
  • Filing Fee: $125
  • Annual Report: $138.75
  • Notes: No state income tax, but annual report fees are higher than average.
• 10. Georgia:
  • Filing Fee: $100
  • Annual Report: $50
  • Notes: Affordable fees and a straightforward filing process.
• 11. Hawaii:
  • Filing Fee: $50
  • Annual Report: $15
  • Notes: Low fees but higher state income tax rates.
• 12. Idaho:
  • Filing Fee: $100
  • Annual Report: $0 (no annual report required)
  • Notes: No annual report requirement makes Idaho a low-maintenance option.
• 13. Illinois:
  • Filing Fee: $150
  • Annual Report: $75
  • Notes: Moderate fees but higher state income taxes.
• 14. Indiana:
  • Filing Fee: $95
  • Annual Report: $30
  • Notes: Affordable fees and low annual report costs.
• 15. Iowa:
  • Filing Fee: $50
  • Annual Report: $60
  • Notes: Low filing fees but higher annual report costs.
• 16. Kansas:
  • Filing Fee: $160
  • Annual Report: $55
  • Notes: Higher filing fees but moderate annual report costs.
• 17. Kentucky:
  • Filing Fee: $40
  • Annual Report: $15
  • Notes: One of the lowest filing fees in the country.
• 18. Louisiana:
  • Filing Fee: $100
  • Annual Report: $30
  • Notes: Affordable fees and a straightforward filing process.
• 19. Maine:
  • Filing Fee: $175
  • Annual Report: $85
  • Notes: Higher fees but no state income tax for LLCs.
• 20. Maryland:
  • Filing Fee: $100
  • Annual Report: $300
  • Notes: High annual report fees make Maryland a costly option.
• 21. Massachusetts:
  • Filing Fee: $500
  • Annual Report: $500
  • Notes: One of the most expensive states for LLCs.
• 22. Michigan:
  • Filing Fee: $50
  • Annual Report: $25
  • Notes: Low fees and affordable annual report costs.
• 23. Minnesota:
  • Filing Fee: $135
  • Annual Report: $0 (no annual report required)
  • Notes: No annual report requirement but higher filing fees.
• 24. Mississippi:
  • Filing Fee: $50
  • Annual Report: $0 (no annual report required)
  • Notes: Low fees and no annual report requirement.
• 25. Missouri:
  • Filing Fee: $50
  • Annual Report: $0 (no annual report required)
  • Notes: Affordable fees and low maintenance.

Key Takeaways

• Lowest Filing Fees: Kentucky ($40), Arizona ($50), and Mississippi ($50).
• Highest Filing Fees: Massachusetts ($500), California ($500), and Delaware ($90 + $300 franchise tax).
• No Annual Report Requirement: Arizona, Idaho, Minnesota, Mississippi, and Missouri.

Final Thoughts

Choosing the right state for your LLC registration depends on your business goals, budget, and operations. If you’re running a local business, registering in your home state is usually the best option. However, if you’re looking for a business-friendly environment or plan to operate nationally, states like Delaware, Wyoming, or Nevada might be worth considering.

Before making a decision, research your state’s specific requirements and consult with a legal or tax professional to ensure you’re making the best choice for your business. Here’s to your successful LLC journey!