For the new small business owner, a common question is, “Where should I incorporate my business?”
Some entrepreneurs choose to form an LLC or incorporate where they live, while others opt for a business-friendly state like Delaware or the state with the lowest fees.
As you’ll see below, states vary when it comes to formation and annual report fees. It’s tempting to choose the lowest costs available, but keep in mind that the cheapest state to form an LLC or a corporation won’t necessarily save you money.
Why?
When you incorporate in one state and then are physically located or do business in another state, you’ll need to register in the other state as well. And that means paying those state filing fees and taxes.
While most small businesses will benefit from incorporating or forming an LLC in the state where they’re located, it’s always good to see the prices differences across the 50 states.
To that end, here’s a compilation of the formation and annual maintenance fees for each state. Keep in mind this data is current as of March 2015 and is subject to change:
Alabama: LLC filing fees: $165; LLC Annual Report; $0, Incorporation filing fees: $165; Corporation Annual Report: $0
Alaska: LLC filing fees: $250; LLC Initial Report: $0; LLC Annual Report: $100; Incorporation filing fees: $250; Corporation Initial Report: $0; Corporation Annual Report: $100
Arizona: LLC filing fees: $50; LLC Publication fee: $299 (required); LLC Annual Report: $0; Incorporation filing fees: $60; Corporation Publication fee: $299 (required); Corporation Annual Report: $45
Arkansas: LLC filing fees: $50; LLC Annual Report: $150; Incorporation filing fees: $50; Corporation Annual Report: $150
California: LLC filing fees: $75; LLC Initial Report $20; LLC Annual Report: $20; Incorporation filing fees: $105; Corporation Initial Report: $25; Corporation Annual Report: $25
Colorado: LLC filing fees: $50; LLC Annual Report: $10; Incorporation filing fees: $50; Corporation Annual Report: $10
Connecticut: LLC filing fees: $175; LLC Annual Report: $20; Incorporation filing fees: $455; Corporation Annual Report: $100
District of Columbia: LLC filing fees: $220; LLC Annual Report: $300; Incorporation filing fees: $220; Corporation Annual Report: $300
Delaware: LLC filing fees: $140; LLC Annual Report: $300; Incorporation filing fees: $140; Corporation Annual Report: $225 (based on min number of authorized shares)
Florida: LLC filing fees: $155; LLC Annual Report: $138.75; Incorporation filing fees: $78.75; Corporation Annual Report: $150
Georgia: LLC filing fees: $100; LLC Annual Report: $50; Incorporation filing fees: $100 Corporation Publication fees: $150 (required for Corps); Corporation Initial Report: $50; Corporation Annual Report: $50
Hawaii: LLC filing fees: $50; LLC Annual Report: $15; Incorporation filing fees: $50; Corporation Annual Report: $15
Idaho: LLC filing fees: $100; LLC Annual Report: $0; Incorporation filing fees: $101; Corporation Annual Report: $0
Illinois: LLC filing fees: $500; LLC Annual Report: $305; Incorporation filing fees: $175; Corporation Annual Report: $155
Indiana: LLC filing fees: $90; LLC Annual Report: $30; Incorporation filing fees: $90; Corporation Annual Report: $30
Iowa: LLC filing fees: $50; LLC Annual Report: $45; Incorporation filing fees: $50; Corporation Annual Report: $45
Kansas: LLC filing fees: $160; LLC Annual Report: $55; Incorporation filing fees: $90; Corporation Annual Report: $55
Kentucky: LLC filing fees: $55; LLC Annual Report: $15; Incorporation filing fees: $55; Corporation Annual Report: $15
Louisiana: LLC filing fees: $100; LLC Annual Report: $30; Incorporation filing fees: $100; Corporation Annual Report: $30
Maine: LLC filing fees: $175; LLC Annual Report: $85; Incorporation filing fees: $145; Corporation Annual Report: $85
Maryland: LLC filing fees: $155; LLC Annual Report: depends on revenue (min fee $300); Incorporation filing fees: $155; Corporation Annual Report: depends on revenue (min fee $300)
Massachusetts: LLC filing fees: $520; LLC Annual Report: $520; Incorporation filing fees: $295; Corporation Annual Report: $135
Michigan: LLC filing fees: $50; LLC Annual Report: $25; Incorporation filing fees: $60; Corporation Annual Report: $25
Minnesota: LLC filing fees: $160; LLC Annual Report: $0; Incorporation filing fees: $160; Corporation Annual Report: $0
Mississippi: LLC filing fees: $50; LLC Annual Report: $25; Incorporation filing fees: $50; Corporation Annual Report: $25
Missouri: LLC filing fees: $50; LLC Annual Report: $0; Incorporation filing fees: $58; Corporation Initial Report: $45; Corporation Annual Report: $45
Montana: LLC filing fees: $70; LLC Annual Report: $15; Incorporation filing fees: $70; Corporation Annual Report: $15
Nebraska: LLC filing fees: $120; LLC Publication fees: $150; LLC Annual Report: $26; Incorporation filing fees: $65; Corporation Publication fees: $150; Corporation Annual Report: $26
Nevada: LLC filing fees: $75; LLC Initial Report: $325; LLC Annual Report: $325; Incorporation filing fees: $75; Corporation Initial Report: $325; Corporation Annual Report: $325
New Hampshire: LLC filing fees: $100; LLC Annual Report: $100; Incorporation filing fees: $100; Corporation Annual Report: $100
New Jersey: LLC filing fees: $125; LLC Annual Report: $50; Incorporation filing fees: $125; Corporation Annual Report: $50
New Mexico: LLC filing fees: $50; LLC Annual Report: $0; Incorporation filing fees: $100; Corporation Initial Report: $25; Corporation Annual Report: $25
New York: LLC filing fees: $210; LLC Annual Report: $9; LLC Publication fees: Starting from $425-$1200; Incorporation filing fees: $145; Corporation Annual Report: $9
North Carolina: LLC filing fees: $125; LLC Annual Report: $202; Incorporation filing fees: $125; Corporation Annual Report: $20
North Dakota: LLC filing fees: $135; LLC Annual Report: $50; Incorporation filing fees: $100; Corporation Annual Report: $25
Ohio: LLC filing fees: $125; LLC Annual Report: $0; Incorporation filing fees: $125; Corporation Annual Report: $0
Oklahoma: LLC filing fees: $104; LLC Annual Report: $25; Incorporation filing fees: $52; Corporation Annual Report: $0
Oregon: LLC filing fees: $100; LLC Annual Report: $100; Incorporation filing fees: $100; Corporation Annual Report: $100
Pennsylvania: LLC filing fees: $125; LLC Annual Report: $0; Incorporation filing fees: $125; Corporation Annual Report: $0 Incorporation Publication fees: $299
Rhode Island: LLC filing fees: $150; LLC Annual Report: $50; Incorporation filing fees: $230; Corporation Annual Report: $50
South Carolina: LLC filing fees: $110; LLC Annual Report: $0; Incorporation filing fees: $135; Corporation Annual Report: $0; Incorporation Attorney Signature fees: $100
South Dakota: LLC filing fees: $150; LLC Annual Report: $50; Incorporation filing fees: $150; Corporation Annual Report: $50
Tennessee: LLC filing fees: $325; LLC Annual Report: $310; Incorporation filing fees: $125; Corporation Annual Report: $20
Texas: LLC filing fees: $310; LLC Annual Report: (depends on gross annual revenue); Incorporation filing fees: $310; Corporation Annual Report: (depends on gross annual revenue)
Utah: LLC filing fees: $72; LLC Annual Report: $15; Incorporation filing fees: $72; Corporation Annual Report: $15
Vermont: LLC filing fees: $125; LLC Annual Report: $25; Incorporation filing fees: $125; Corporation Annual Report: $35
Virginia: LLC filing fees: $104; LLC Annual Report: $50; Incorporation filing fees: $79; Corporation Annual Report: $100
Washington: LLC filing fees: $200; LLC Initial Report: $10; LLC Annual Report: $73; Incorporation filing fees: $200; Corporation Initial Report: $10; Corporation Annual Report: $73
West Virginia: LLC filing fees: $132; LLC Annual Report: $25; Incorporation filing fees: $82; Corporation Annual Report: $25
Wisconsin: LLC filing fees: $130; LLC Annual Report: $25; Incorporation filing fees: $100; Corporation Annual Report: $40
Wyoming: LLC filing fees: $103; LLC Annual Report: $52; Incorporation filing fees: $103; Corporation Annual Report: $52
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Which state do you think is the best to incorporate in, looking at the overall costs?
Hi Martin,
Ultimately the state you file your corporation or LLC in is up to you, however it is generally recommended to file in the state where the business will physically be located. This will prevent any foreseeable need to foreign qualify the company, or be registered in multiple states. If you have any other questions or need assistance with incorporated, please feel free to contact Katie Hendrix in my office for a free business consultation at 888-449-2638 x110.
Nellie: Thanks for your reply! At some point in time, I would like to register a company in my old study location, Manchester, New Hampshire. 🙂
Tim McCormack
You miss all sorts of costs in this comparison. For example, Nevada now requires you to buy a business license which costs an extra $500 per year to file there. Also, California has a minimum annual tax of $800 if you are incorporated there.
Those are the two states I know of, so I can assume that many more states have other direct costs of incorporation that are left out of this comparison. You should redo this including those additional costs so people can do a real comparison.
Thanks Tim for reading my post and commenting! Yes you are correct – there are other fees and taxes associated with running a business in different states. However this post was intended to outline just the fees associated with incorporating and/or forming an LLC in each state. Great idea to do a follow up post including all other fees, so I will definitely keep that in mind!
Joshua Abeles
right. it’s almost impossible to find a comparison on the internet that includes ALL the costs, including the largest cost of all; franchise tax. Annoying.
Dennea Banks
I am currently starting an LLC in Michigan this month and in a few months and I will be moving to Texas. Do I have to register in Texas as well?
Hi Deanna:
Thank you for your inquiry. In response, if you are moving the entire business operations from
Michigan to Texas then at that time you will need to close down the Michigan llc and form a new llc in the state of Texas. Alternatively, if you are expanding into Texas, once you move to Texas, you will not need to
Close down the Michigan llc. What you will do is keep the Michigan llc and foreign qualify the Michigan llc in the state of Texas as a foreign llc. We can help you every step of the way with all of these filings and more. You can reach out to us via email to info@corpnet.com or call 1-888-449-2638 anytime!
God Omenmayor
I want to know the up to date LLC and Incorporation cost of each state so I can make a decision on which state to register with.
I want to know if u can use the tax ID to make purchases in other states?
I NEED to access the auctions and they are requesting for my tax ID
Hi There – We have a current list of costs to incorporate and form an LLC in each state on our blog. Please find that link here: http://bit.ly/2qWIKho
Thanks for reading and commenting!
Zweli
I’m in South Africa. I would like operate a call center. Kindly advise on the steps.