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Costs and rankings
Cheapest states to form an LLC (2026)
Montana is the cheapest state on our list: $35 in state fees over 5 years. 10 of the 50 jurisdictions we have confirmed charge nothing after formation, so the filing fee is the whole state cost there.
The 10 lowest 5-year totals
| Rank | State | Formation | Per year after | 5-year total |
|---|---|---|---|---|
| 1 | Montana | $35 | $0 | $35 |
| 2 | Arizona | $50 | $0 | $50 |
| 3 | Mississippi | $50 | $0 | $50 |
| 4 | Missouri | $50 | $0 | $50 |
| 5 | New Mexico | $50 | $0 | $50 |
| 6 | Ohio | $99 | $0 | $99 |
| 7 | Idaho | $100 | $0 | $100 |
| 8 | Hawaii | $50 | $15 | $110 |
| 9 | Iowa | $50 | $15 | $110 |
| 10 | South Carolina | $110 | $0 | $110 |
Why these states cost little
In the cheapest states the cost is almost all up front. Among the ten above, 8 have no paid recurring report and no minimum state tax. The median 5-year total across all 50 is $335.
Before you pick a state for its price
An LLC formed in one state that does business in another usually has to register there as a foreign LLC and pay that state's fees as well. For most owners the cheapest state is simply the one where they live and work. Each state page lists its own filing deadlines and penalties.
Not included until its fees are confirmed on official pages: Texas.
Sources, read verified 2026-11-15: sosmt.gov/business/fees/ · help.sosmt.gov/en-us/article/how-do-i-file-my-annual-report-ywawrv/ · azcc.gov/docs/default-source/corps-files/fee-schedules/fee-schedule-ll · azcc.gov/faqs/BusinessServicesFAQs · sos.ms.gov/content/documents/Business/FeeSchedule.pdf · dor.ms.gov/sites/default/files/tax-forms/business/2025%20PTE%20INSTRUC · sos.mo.gov/business/faqs · enterprise.sos.nm.gov/forms/business · businessportal.nm.gov/maintain/file-reports/ · tax.newmexico.gov/businesses/2020/10/23/corporate-income-and-franchise · lsc.ohio.gov/assets/organizations/legislative-service-commission/files · sos.idaho.gov/business-forms/ · legislature.idaho.gov/wp-content/uploads/statutesrules/idstat/Title30/ · cca.hawaii.gov/breg/registration/dllc/fees/ · legis.iowa.gov/docs/code/489.122.pdf · help.sos.iowa.gov/how-do-i-file-biennial-report · businessfilings.sc.gov/BusinessFiling/Home/DownloadForms?pdfCategoryId
Questions
- What is the cheapest state to form an LLC in 2026?
- Montana, at $35 in state fees over 5 years, counting formation, recurring reports and minimum state tax.
- Does a cheap state save money if I live somewhere else?
- Usually not: if the LLC does business in your home state it normally has to register there too, so you pay both states' fees.
Related
Most expensive states for an LLC
Where state fees add up fastest, and why.
$4,130 in CaliforniaCosts and rankingsLLC annual fees by state
Recurring report and minimum tax, state by state.
10 states at no yearly feeCosts and rankingsStates with a yearly minimum tax on LLCs
Fixed yearly taxes that ignore income.
up to $800 a year