The Real Cost of Forming an LLC in Each U.S. State (2025 Update)

Wondering how much it really costs to form an LLC in the U.S.?

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When starting a business, forming a Limited Liability Company (LLC) is often the first legal step. But the real cost of setting up and maintaining an LLC isn’t the same across all 50 U.S. states. Each state sets its own formation fees, annual maintenance requirements, and compliance costs—making it crucial for business owners, especially non-residents, to plan wisely.

In this blog, we break down the real cost of forming an LLC in every U.S. state (updated for 2025) and offer tips on choosing the best state for your business goals.

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💼 What’s Included in LLC Formation Costs?

When forming an LLC, your total cost typically includes:

• State Filing Fee – One-time cost to register your LLC
• Annual/Biennial Report Fees – Ongoing cost to keep your LLC active
• Registered Agent Fee – Required if you don’t have a U.S. address
• Optional Services – EIN application, Operating Agreement, Compliance support

Let’s dive into the state-by-state breakdown:

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📊 LLC Filing Fees by State (2025)

State	Filing Fee	Annual/Biennial Fee	Renewal Type
Colorado	\$1	\$10	Annual
Delaware	\$90	\$300	Annual
Texas	\$300	\$0 (but Franchise Tax)	Annual Report
Florida	\$125	\$138.75	Annual
California	\$70	\$800 (Franchise Tax)	Annual
Wyoming	\$100	\$60	Annual
New York	\$200 + \$50 pub	\$9 (if no tax due)	Biennial
Nevada	\$75	\$350 (biz license + list)	Annual
Washington	\$200	\$60	Annual
New Mexico	\$50	\$0	None

✅ Colorado remains the most affordable state to start an LLC in 2025, with a \$1 filing fee and low annual cost.

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🧾 Hidden Costs to Watch Out For

While filing fees are easy to find, many business owners overlook hidden or ongoing costs, such as:

• Franchise Taxes (e.g., CA, TX)
• Publication Fees (e.g., New York)
• Business License Requirements (e.g., Nevada)
• Registered Agent Fees (\$99–\$150/year)
• Late Filing Penalties

Always check for state-specific compliance rules or work with a professional formation service to avoid penalties.

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🌍 Best States for Non-U.S. Residents or Online Businesses

If you’re a remote entrepreneur or a non-U.S. resident, consider these states for ease and affordability:

• Wyoming – No state income tax, strong privacy, low fees
• Delaware – Preferred by investors and startups
• New Mexico – Low cost, no annual report
• Colorado – \$1 filing fee and fast online processing

These states are popular for eCommerce, SaaS, and digital agencies, especially those not operating a physical U.S. office.

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✅ How to Choose the Right State for Your LLC

Ask yourself:

• Do I need to operate locally or online only?
• Will I raise capital or stay small and private?
• Do I want the lowest upfront cost or long-term savings?
• Do I have a U.S. address (or need a registered agent)?

If you’re unsure, consult a business formation expert who can help align your budget, business goals, and compliance needs.

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💡 Pro Tip: Cheap Isn’t Always Best

Choosing the cheapest state doesn’t always mean the most savings. Forming in a different state than where you operate can lead to foreign registration fees and double reporting requirements. For U.S. residents, forming in your home state is usually most efficient unless you have a specific legal or tax reason not to.

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🔍 Conclusion

Forming an LLC is a powerful step toward building a credible, protected business—but knowing the real cost is key. With this 2025 state-by-state guide, you’re now equipped to make smarter decisions and avoid surprise fees.

Need help forming your LLC in the right state? Our team offers fast, compliant, and affordable LLC formation, EIN registration, and bank/merchant account setup—tailored for U.S. and international entrepreneurs.

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