Why LLC Formation Costs Vary So Dramatically
Forming an LLC in Wyoming costs $100. Forming one in Massachusetts costs $500. That's before annual maintenance—California charges $800 minimum franchise tax every year regardless of revenue.
State Filing Fees
- Kentucky: $40 (lowest)
- New Mexico: $50 (no annual report required)
- Wyoming: $100 (strongest asset protection)
- Delaware: $90 + $300 annual franchise tax
- Nevada: $75 + $150 annual list + $200 business license
- Florida: $125 + $138.75 annual report
- Texas: $300
- California: $70 + $800 minimum annual franchise tax
- New York: $200 + publication requirement ($1,200–$2,000 in NYC)
- Massachusetts: $500 + $500 annual report
Source: Each state's Secretary of State filing schedule, current as of 2026.
The Hidden Cost: Annual Maintenance
California's $800 franchise tax is due every year, even at zero revenue, even in year one. LLCs earning over $250,000 also pay a gross receipts fee up to $11,790. Source: California Franchise Tax Board Publication 1005.
New York's publication requirement mandates publishing LLC formation in two local newspapers for six consecutive weeks. Manhattan rates: $1,200–$2,000. Albany: $100–$200. Source: NY LLC Law §206.
Delaware is popular for VC-backed companies due to the Court of Chancery and predictable case law. Annual cost: $300 franchise tax + $50 registered agent.
New Mexico has no annual report and no franchise tax—making it the lowest-maintenance state for holding or dormant LLCs.
Registered Agent: $50–$300/Year
Every state requires a registered agent with a physical in-state address. If forming out-of-state (common for Delaware or Wyoming LLCs), you need a commercial registered agent. Northwest Registered Agent: $125/yr. ZenBusiness: $99/yr. Registered Agents Inc: $200/yr.
Total First-Year Cost by State
- Wyoming: ~$250 (filing + registered agent)
- Florida: ~$415
- Delaware: ~$490
- Texas: ~$450
- California: ~$1,070 (filing + $800 franchise tax + registered agent)
- New York (NYC): ~$2,500–$3,500 (filing + publication + registered agent)
- Massachusetts: ~$800
Which State Should You Form In?
Form in your home state if you're operating a local business. Forming in Delaware or Wyoming while operating in California means paying California's $800 franchise tax anyway—plus a foreign qualification fee. Delaware and Wyoming make sense for holding companies, IP entities, or businesses planning outside investment. Sources: State SOS fee schedules, CA FTB Publication 1005, NY LLC Law §206.